Anglo American Trims Debt But Weak Prices Continue to Weigh
July 28 2016 - 2:53AM
Dow Jones News
By Scott Patterson
LONDON--Anglo American PLC (AAL.LN) on Thursday reported a steep
first-half loss as the mining giant continues to suffer from weak
commodity prices, though it showed some success in paring down its
heavy debt load.
The U.K.-listed miner posted a net loss of $813 million for the
first half of 2016, compared with an adjusted $3 billion loss for
the same period last year.
The loss included a $1.2 billion impairment for some of Anglo's
Australian coal assets, the company said.
Revenue fell 20% to $10.6 billion during the period from last
year. Net debt fell to $11.7 billion as of June 30, down from $12.9
billion at the end of 2015, the result of asset sales and
cash-flow, among other things. Anglo American Chief Executive Mark
Cutifani has said the company expects to sell $3 billion to $4
billion in assets this year as the company launches a sweeping
restructuring plan.
"The decisive actions we have taken to strengthen the balance
sheet put us well on track to achieve our net debt target of less
than $10 billion at the end of 2016," Mr. Cutifani said
Thursday.
Anglo in 2015 reported a loss of $5.6 billion, the result of a
steep dive in commodity prices in the second half of the year as
well as $3.8 billion in impairment charges.
-Write to Scott Patterson at scott.patterson@wsj.com
(END) Dow Jones Newswires
July 28, 2016 02:38 ET (06:38 GMT)
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