Summary
Southern Copper Corporation (SCCO) reported strong financial performance for the first quarter of 2018, with net sales increasing by 16.2% to $1.84 billion year-over-year, driven primarily by higher commodity prices for copper, molybdenum, and zinc. Net income attributable to SCC also saw a significant jump of 49.7% to $470.7 million, leading to an earnings per share of $0.61, up from $0.41 in the prior year. The company highlighted a positive outlook for copper demand, expecting demand growth between 2.5% to 3.0% for 2018, supported by a balanced market and limited supply growth. Capital expenditures remained robust, indicating continued investment in growth initiatives and operational improvements, with a focus on increasing copper production capacity. The company generated strong operating cash flow of $649.8 million, demonstrating effective cost management despite a slight increase in operating costs before by-product revenues. The improved by-product revenue significantly lowered the net operating cash cost per pound of copper, showcasing efficient resource utilization. SCCO also demonstrated a strong commitment to returning value to shareholders, significantly increasing dividends paid year-over-year, reflecting confidence in its financial health and future prospects.
Financial Highlights
46 data points| Revenue | $1.84B |
| Cost of Revenue | $876.50M |
| Gross Profit | $802.60M |
| SG&A Expenses | $24.10M |
| Operating Expenses | $1.07B |
| Operating Income | $773.30M |
| Net Income | $470.70M |
| EPS (Basic) | $0.61 |
| Shares Outstanding (Basic) | 773.00M |
Key Highlights
- 1Net sales increased by 16.2% to $1.84 billion in Q1 2018 compared to Q1 2017, driven by higher commodity prices.
- 2Net income attributable to SCC grew by 49.7% to $470.7 million, with EPS rising to $0.61 from $0.41.
- 3Operating cash flow was robust at $649.8 million, showing strong operational performance.
- 4The company reported a significant increase in dividends paid, up 275.0% year-over-year, reflecting shareholder value focus.
- 5Positive outlook for copper with projected demand growth of 2.5-3.0% in 2018 due to synchronized global economic growth and constrained supply.
- 6Capital investments totaled $295.7 million, indicating continued investment in growth and operational capacity.
- 7Operating cash cost per pound of copper, net of by-product revenues, decreased by 10.2% to $0.79, primarily due to higher by-product prices.