Mining and trading giant Glencore (LSE: GLEN) reported a 50% plunge in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to $17.1 billion in 2023 as commodity prices declined.

Glencore announced a dividend payout of $1.6 billion, which does not include a new buyback scheme or a special dividend.

The company is saving cash to fund its pending $6.9 billion acquisition of a 77% stake in Canadian miner Teck Resources’ metallurgical coal unit.

Glencore’s net debt jumped to $4.92 billion by end-2023, versus $75 million a year earlier. Its shares dropped 3.5% on Wednesday morning and have fallen 20% year-to-date.

As commodity prices weigh on earnings, Glencore is halting shareholder returns to strengthen its balance sheet ahead of the Teck coal business acquisition.