Summary
Freeport-McMoRan Inc. (FCX) reported robust financial results for the nine months ended September 30, 2018, demonstrating a significant recovery from the previous year. Net income attributable to common stockholders surged to $2.12 billion, a substantial increase from $776 million in the same period of 2017, driven by higher sales volumes and improved average realized prices for copper and gold. Total revenues also saw a notable uptick, reaching $14.94 billion compared to $11.36 billion in the prior year's comparable period. Operationally, FCX benefited from strong performance across its mining segments, particularly in North America and Indonesia, with higher ore grades and increased operating rates contributing to improved copper and gold production and sales volumes. The company also made progress in reducing its total debt by $2.0 billion during the first nine months of 2018 and reinstated its common stock dividend, signaling a return to shareholder returns. The company provided an optimistic outlook, expecting continued strength driven by underlying long-term fundamentals in the copper market.
Financial Highlights
47 data points| Revenue | $4.91B |
| Cost of Revenue | $3.53B |
| Gross Profit | $1.38B |
| SG&A Expenses | $101.00M |
| Operating Expenses | $3.59B |
| Operating Income | $1.31B |
| Net Income | $556.00M |
| EPS (Basic) | $0.38 |
| EPS (Diluted) | $0.38 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.46B |
Key Highlights
- 1Net income attributable to common stockholders significantly increased to $2.12 billion for the nine months ended September 30, 2018, up from $776 million in the same period of 2017.
- 2Consolidated revenues grew to $14.94 billion for the nine months ended September 30, 2018, compared to $11.36 billion in the prior year, driven by higher sales volumes and commodity prices.
- 3The company reduced total debt by $2.0 billion during the first nine months of 2018.
- 4FCX reinstated its quarterly cash dividend on common stock, declaring $0.05 per share in the third quarter of 2018.
- 5Higher ore grades and operating rates in Indonesia and North America contributed to increased copper and gold sales volumes.
- 6FCX maintained substantial liquidity with $4.6 billion in consolidated cash and cash equivalents and $3.5 billion available under its revolving credit facility at the end of the period.
- 7A significant agreement was reached for the divestment of a portion of PT-FI's shares, expected to close in late 2018 or early 2019, which will adjust FCX's ownership stake but maintain its operational management.