Summary
Freeport-McMoRan Inc. (FCX) reported a significant net loss attributable to common stockholders of $1.85 billion ($1.78 per share) for the second quarter ended June 30, 2015. This was largely driven by a substantial impairment charge of $2.7 billion related to its oil and gas properties, a consequence of declining oil prices and the company's full-cost accounting method. Despite this, the company's mining segment, particularly copper and gold production from operations in North America, South America, and Indonesia, demonstrated resilience, though lower commodity prices impacted revenues and profitability compared to the prior year. Overall revenues for the quarter decreased to $4.25 billion from $5.52 billion in the same period last year, reflecting weaker commodity prices. While the company is focused on managing costs and capital expenditures in response to the challenging market environment, the significant oil and gas impairment highlights the negative impact of commodity price volatility on its diversified business. Investors should closely monitor the company's progress in its announced review of operating plans to further reduce costs and capital spending, as well as the ongoing performance of its key mining assets.
Financial Highlights
44 data points| Revenue | $3.94B |
| Cost of Revenue | $6.17B |
| Gross Profit | -$2.23B |
| SG&A Expenses | $148.00M |
| Operating Expenses | $6.36B |
| Operating Income | -$2.42B |
| Net Income | -$1.85B |
| EPS (Basic) | $-1.78 |
| EPS (Diluted) | $-1.78 |
| Shares Outstanding (Basic) | 1.04B |
| Shares Outstanding (Diluted) | 1.04B |
Key Highlights
- 1Reported a net loss attributable to common stockholders of $1.85 billion for the quarter, compared to a net income of $482 million in the prior year.
- 2Recorded a substantial impairment charge of $2.7 billion related to oil and gas properties due to declining oil prices and full-cost accounting rules.
- 3Total revenues decreased to $4.25 billion from $5.52 billion in the prior year, driven by lower commodity price realizations.
- 4Copper sales volumes remained relatively stable year-over-year (964 million pounds vs. 968 million pounds), but average realized prices declined.
- 5Gold sales volumes increased significantly (352 thousand ounces vs. 159 thousand ounces) due to higher ore grades and operating rates.
- 6Total debt stood at $20.9 billion at the end of the quarter, with the company actively managing its balance sheet.
- 7The company announced a comprehensive review of operating plans to target significant cost and capital expenditure reductions.