Freeport-McMoRan Inc. (FCX) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $100 million, or $ 0.21 a share in the quarter, against a net loss of $4,071 million, or $3.47 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $351 million, or $0.25 a share compared with a net loss of $25 million, or $0.02 a share in the last year period. Revenue during the quarter grew 24.49 percent to $4,377 million from $3,516 million in the previous year period.
Operating income for the quarter was $703 million, compared with an operating loss of $4,097 million in the previous year period.
Richard C. Adkerson, president and chief executive officer, said, "During 2016, we took aggressive actions in response to market conditions to restore our balance sheet strength. I am pleased to report that we were successful in reducing our net debt by over $8 billion during the year while completing a major expansion at our world class Cerro Verde mine. I am proud of our global team for their accomplishments in ‘Proving our Mettle.’ As we enter 2017, we are enthusiastic about opportunities to generate future values for shareholders through our portfolio of high-quality, long-lived copper resources. We remain focused on generating significant cash flows to complete our debt reduction plan and to build long-term values for shareholders."
Operating cash flow improves
Freeport-McMoRan Inc. has generated cash of $3,729 million from operating activities during the year, up 15.81 percent or $509 million, when compared with the last year. Cash flow from investing activities was $3,550 million from investing activities during the year as against cash outgo of $6,246 million in the last year.
The company has spent $3,166 million cash to carry out financing activities during the year as against cash inflow of $2,786 million in the last year period.
Cash and cash equivalents stood at $4,245 million as on Dec. 31, 2016, up 2,298.31 percent or $4,068 million from $177 million on Dec. 31, 2015.
Working capital increases sharply
Freeport-McMoRan Inc. has recorded an increase in the working capital over the last year. It stood at $6,170 million as at Dec. 31, 2016, up 95.56 percent or $3,015 million from $3,155 million on Dec. 31, 2015. Current ratio was at 2.45 as on Dec. 31, 2016, up from 1.73 on Dec. 31, 2015.
Debt comes down
Freeport-McMoRan Inc. has recorded a decline in total debt over the last one year. It stood at $16,027 million as on Dec. 31, 2016, down 21.14 percent or $4,297 million from $20,324 million on Dec. 31, 2015. Total debt was 42.95 percent of total assets as on Dec. 31, 2016, compared with 43.64 percent on Dec. 31, 2015. Debt to equity ratio was at 1.73 as on Dec. 31, 2016, up from 1.69 as on Dec. 31, 2015.
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