Exceptional charges totalled $5.8 billion relating to impairments, restructuring costs and net losses on asset disposals.

Adjusted earnings before interest, tax, depreciation and amortisation dropped 32% to $8.7 billion due to weaker commodity prices, which was partially offset by cost-cutting and some currency depreciation.

Glencore CEO Ivan Glasenberg said thanks to measures taken last year, the business was in a strong position and “comfortably cash generative”, even at lower commodity prices.

“The business is sustainable even if the market drops further than where we are today,” he told investors on a teleconference.

“Even at these lower commodity prices which we're experiencing today and current spot prices, we've got this $8.1 billion of EBITDA. We're generating $3 billion of free cashflow.”

Net debt at December 31 was $25.9 billion, largely in line with the company’s target after asset sales and streaming deals of $1.6 billion achieved to date.

The company has flagged further divestments of $4-5 billion this year, with most expected to be finalised before the end of June.

Glasenberg said those sales included a minority stake in the agriculture business, the sales of the Cobar and Lomas Bayas copper mines, potential infrastructure transactions, and further streaming deals.

“We are not selling assets we don’t wish to sell,” he said.

Glencore is targeting net debt of $17-18 billion by the end of 2016, and $15 billion by the end of next year.

Net funding at year-end dropped by $8.5 billion to $41.2 billion, and the company is targeting a further drop to $32-33 billion by December 31, 2016, and less than $30 billion at the end of next year.

Committed available liquidity at the end of 2015 was $15.2 billion.

Glasenberg said the company had the capacity for acquisitions if the right opportunity arose.

He said the company was interested in Anglo American’s stake in the Cerrejon coal complex in Colombia, in which it and BHP Billiton are the other partners.

“It's something that we would have to find a way to do if we can get it at the right price,” Glasenberg said.

 

“It's something we wouldn't want to walk away from. Would we like those tonnes and having that as a 50%-50% if BHP wish to buy it with us? As a 50%-50% joint venture as opposed to the one-third, of course, it's easier to manage on that basis.”