Freeport-McMoRan Inc. swung to a second-quarter loss as the
company posted an additional $2 billion of write-downs related to
its oil-and-gas properties and other one-time items.
Still, adjusted per-share earnings topped analysts' forecasts,
and shares—which have dropped 61% in the past 12 months—rose 1.3%
premarket to $15.25.
The Phoenix-based company is focused on copper, deriving the
bulk of its revenue from the metal, which is used for pipes and
wiring and is essential to almost all economic growth.
Last month, the mining and energy company filed plans for an
initial public of oil-and-gas assets. Investors likely will be
watching for details about the planned IPO of Freeport-McMoRan Oil
Gas Inc. The IPO plans come roughly two years after
Freeport-McMoRan acquired Plains Exploration Production Co. and
McMoRan Exploration Co. in deals valued at a combined $9
billion.
The acquisitions provided the Phoenix-based mining company with
sizable assets in the then-booming U.S. oil- and
natural-gas-production business. However in April, Freeport-McMoRan
Inc. said it might spin off part of its energy business after
recording a hefty write-down in that segment.
Overall, Freeport-McMoRan reported a loss of $1.85 billion, or
$1.78 a share, compared with a year-earlier profit of $482 million,
or 46 cents a share. Excluding one-time items and other items,
per-share earnings were 14 cents. Revenue decreased 23% to $4.25
billion.
Analysts polled by Thomson Reuters expected per-share profit of
seven cents and revenue of $4.28 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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