Summary
Freeport-McMoRan Inc. (FCX) reported a net income of $217 million for the third quarter of 2016, a significant improvement from a net loss in the prior year's comparable quarter, driven by higher copper sales volumes and reduced impairment charges related to oil and gas properties. For the first nine months of 2016, the company reported a net loss of $4.4 billion, still reflecting substantial impairments and operational costs, but showing progress from the previous year's loss. The company continued its strategic asset divestitures to strengthen its balance sheet, with significant pending sales expected to close in the fourth quarter of 2016, providing substantial proceeds to reduce debt. FCX also initiated equity offerings to raise capital, further supporting its deleveraging efforts. The company remains focused on its core copper assets, with positive long-term fundamentals expected to drive value as market conditions improve.
Financial Highlights
45 data points| Revenue | $3.88B |
| Cost of Revenue | $3.41B |
| Gross Profit | $466.00M |
| SG&A Expenses | $110.00M |
| Operating Expenses | $3.52B |
| Operating Income | $359.00M |
| Net Income | $217.00M |
| EPS (Basic) | $0.16 |
| EPS (Diluted) | $0.16 |
| Shares Outstanding (Basic) | 1.35B |
| Shares Outstanding (Diluted) | 1.35B |
Key Highlights
- 1Reported a net income of $217 million for Q3 2016, compared to a net loss of $3.8 billion in Q3 2015.
- 2Nine-month net loss improved to $4.4 billion from $8.2 billion in the prior year's comparable period.
- 3Continued significant asset divestitures, with $5.2 billion in pending sales expected to close in Q4 2016.
- 4Received $1.4 billion in cash from asset sales in the first nine months of 2016.
- 5Managed debt levels, with total debt reduced to $19.0 billion as of September 30, 2016.
- 6Initiated at-the-market equity offerings to raise capital for debt reduction.
- 7Copper sales volumes increased due to higher production from Cerro Verde and PT Freeport Indonesia.