Freeport-McMoRan Loss Narrows on Fewer Write-Downs

Freeport-McMoRan Inc. said its second-quarter loss narrowed as the mining giant reported fewer write-downs related to its oil-and-gas business.

However, the Phoenix company's shares fell 6.8% to $11.52 premarket as the per-share loss, excluding certain items, was slightly wider than analysts feared and revenue missed expectations.

Freeport, the biggest U.S. mining company by market value, has been increasing copper production despite weak prices and it also has been shedding assets to help reduce its debt.

Freeport in May reached a deal to sell its stake in an African copper operation to a Chinese mining-and-processing firm for $2.65 billion, part of the company's strategy to repay debt. The deal comes as uneven global economic growth has raised concerns about demand for commodities, including copper.

Freeport said reported copper production increased 16% in the latest quarter, while average realized prices declined 20%.

Chief Executive Richard Adkerson said in prepared remarks Tuesday that Freeport has made significant progress improving its balance sheet and that since the beginning of the year Freeport has unveiled more than $4 billion in asset-sale deals. The company, which also continues to constrain costs and capital spending, is focusing on executing on its operating plans, he said

Over all, Freeport-McMoRan reported a loss of $479 million, or 38 cents a share, compared with a year-earlier loss of $1.85 billion, or $1.78 a share, a year earlier. The latest period included net charges of $452 million, or 36 a share, including write-downs of its oil-and-gas assets, asset-sale gains and other items. A year-earlier, such charges totaled a net $2 billion, or $1.92 a share.

Revenue decreased 15% to $3.33 billion.

Analysts polled by Thomson Reuters expected per-share loss of a penny and revenue of $3.7 billion.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

July 26, 2016 09:25 ET (13:25 GMT)

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