Summary
Southern Copper Corporation (SCCO) reported a decrease in net sales and net income for the six months ended June 30, 2015, compared to the same period in 2014. This was primarily driven by lower metal prices, particularly for copper and molybdenum, which impacted revenue. Despite the decline in profitability, the company saw an increase in copper sales volume, indicating underlying operational strength in its core product. Operationally, SCCO made significant capital investments, with $507.7 million allocated in the first half of 2015, focused on increasing copper production capacity. The company also experienced a substantial increase in cash and cash equivalents, more than tripling from December 31, 2014, to $1.57 billion, largely due to significant debt issuance. While facing a challenging commodity price environment, SCCO continues to focus on disciplined growth and cost management.
Financial Highlights
50 data points| Revenue | $1.38B |
| Cost of Revenue | $706.90M |
| Gross Profit | $550.70M |
| SG&A Expenses | $25.00M |
| Operating Expenses | $879.80M |
| Operating Income | $503.10M |
| Net Income | $294.70M |
| EPS (Basic) | $0.37 |
| Shares Outstanding (Basic) | 798.20M |
Key Highlights
- 1Net sales decreased by 6.5% to $2.66 billion for the six months ended June 30, 2015, compared to $2.84 billion in the prior year, primarily due to lower commodity prices.
- 2Net income attributable to SCC decreased by 12.6% to $577.1 million for the six months ended June 30, 2015, compared to $660.6 million in the prior year.
- 3Copper sales volume increased by 14.0% to 779.2 million pounds for the six months ended June 30, 2015, compared to 683.6 million pounds in the prior year.
- 4The company invested $507.7 million in capital expenditures in the first six months of 2015, a decrease from $697.0 million in the same period of 2014, primarily for expansion projects in Mexico and Peru.
- 5Cash and cash equivalents increased significantly to $1.57 billion as of June 30, 2015, from $364.0 million as of December 31, 2014.
- 6The company issued $2.0 billion in fixed-rate senior unsecured notes in April 2015 to fund general corporate purposes and its capital investment program.
- 7Operating cash cost per pound of copper produced, with by-product revenues, increased to $1.05 in the first six months of 2015 from $1.00 in the same period of 2014, largely due to lower by-product credits from decreased metal prices.