Summary
Southern Copper Corporation (SCCO) reported a strong performance for the nine months ended September 30, 2017, with net sales increasing by 20.3% to $4.79 billion and net income attributable to SCC growing by 68.0% to $1.016 billion, compared to the same period in 2016. This improvement was driven by a significant increase in metal prices, particularly copper, which saw an average LME price rise of 26.2%. The company's capital investment program continues, with significant spending on expanding production capacity, aiming to exceed one million tons of copper by mid-2018 and reach 1.5 million tons by 2023. SCCO also announced a higher dividend per share for the fourth quarter of 2017, reflecting its positive financial results and outlook.
Financial Highlights
46 data pointsBeta
Financial Statements
Beta
| Revenue | $1.68B |
| Cost of Revenue | $781.50M |
| Gross Profit | $725.70M |
| SG&A Expenses | $25.00M |
| Operating Expenses | $983.90M |
| Operating Income | $692.60M |
| Net Income | $401.80M |
| EPS (Basic) | $0.52 |
| Shares Outstanding (Basic) | 773.00M |
Key Highlights
- 1Net sales for the nine months ended September 30, 2017, increased by 20.3% to $4.79 billion, driven by higher metal prices and sales volumes.
- 2Net income attributable to SCCO for the nine months ended September 30, 2017, grew by 68.0% to $1.016 billion, reflecting improved profitability.
- 3Copper prices, a key driver for SCCO, saw a significant increase, with the LME average price rising 26.2% for the nine-month period compared to 2016.
- 4Capital investments totaled $710.4 million for the nine months of 2017, focused on increasing copper production capacity with ambitious targets set for 2018 and 2023.
- 5The company's operating cash cost per pound of copper, net of by-product revenues, slightly decreased by 1.1% to $0.93 for the nine-month period, indicating improved cost management or favorable by-product pricing.
- 6Dividends paid increased significantly, with $262.8 million distributed in the nine months of 2017, up from $100.6 million in the prior year, and a higher dividend of $0.25 per share authorized for the fourth quarter.
- 7The company's outlook remains positive, anticipating a copper market deficit after 2018 which should support prices, along with strong demand from China.