Freeport-McMoRan Posts Loss

Freeport-McMoRan Inc. swung to a second-quarter loss as the company posted an additional $2 billion of write-downs related to its oil-and-gas properties and other one-time items.

Still, adjusted per-share earnings topped analysts' forecasts, and shares—which have dropped 61% in the past 12 months—rose 1.3% premarket to $15.25.

The Phoenix-based company is focused on copper, deriving the bulk of its revenue from the metal, which is used for pipes and wiring and is essential to almost all economic growth.

Last month, the mining and energy company filed plans for an initial public of oil-and-gas assets. Investors likely will be watching for details about the planned IPO of Freeport-McMoRan Oil Gas Inc. The IPO plans come roughly two years after Freeport-McMoRan acquired Plains Exploration Production Co. and McMoRan Exploration Co. in deals valued at a combined $9 billion.

The acquisitions provided the Phoenix-based mining company with sizable assets in the then-booming U.S. oil- and natural-gas-production business. However in April, Freeport-McMoRan Inc. said it might spin off part of its energy business after recording a hefty write-down in that segment.

Overall, Freeport-McMoRan reported a loss of $1.85 billion, or $1.78 a share, compared with a year-earlier profit of $482 million, or 46 cents a share. Excluding one-time items and other items, per-share earnings were 14 cents. Revenue decreased 23% to $4.25 billion.

Analysts polled by Thomson Reuters expected per-share profit of seven cents and revenue of $4.28 billion.

Write to Tess Stynes at [e-mail]

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