Freeport-McMoRan Swings to Profit After String of Losses
October 25 2016 - 11:19AM
Dow Jones News
By Imani Moise
Freeport-McMoRan Inc. swung to a profit for the first time in
nearly two years, as the company moves to focus more on its copper
business.
The biggest U.S. mining company by market value has been
increasing copper production despite weak prices, and it also has
been shedding assets to help reduce its debt.
The Phoenix-based company agreed to sell its onshore California
oil and gas properties for $592 million in cash earlier this month.
Additionally, it agreed to sell its Mexican oil and gas assets for
$2 billion in September. Chief Executive Richard Adkerson said
Tuesday that the company has announced asset sale transactions
totaling $6.6 billion so far this year.
The company said it sold 1.2 billion pounds of copper and
317,000 ounces of gold in the quarter, up from 1 billion pounds and
294,000 ounces, respectively.
In all for the third quarter, Freeport-McMoRan reported a profit
of $217 million, or 16 cents a share, compared with a loss of $3.83
billion, or $3.53 a share, a year earlier. The year-earlier period
was hurt by $3.65 billion of impairments related to the company's
oil and gas properties.
On an adjusted basis for the latest quarter, the company
reported earnings of 13 cents, below analysts' views of 18
cents.
Revenue jumped 15% to $3.88 billion.
The profit breaks a streak of seven straight quarterly losses
for Freeport-McMoRan, whose shares rose 5.4% to $10.72 in Tuesday
morning trading. They are still down 13% in the past three
months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
October 25, 2016 11:04 ET (15:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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