Freeport-McMoRan Reports Loss on Hit From Oil Assets

By Tess Stynes 

Freeport-McMoRan Inc. swung to first-quarter loss as the company was hit by another big write-down of its oil-and-gas assets, while its mining business also was hit by weak commodity prices.

Shares fell 2.3% to $20.10 in recent premarket trading.

Freeport-McMoRan in January said it had slashed its capital budget for the year and is searching for outside funding for its oil-and-gas business as the mining company looks to shield itself from plummeting commodity prices.

Phoenix-based Freeport, one of the world's largest copper producers, expanded into oil and gas with 2013 acquisitions of energy explorers McMoRan Exploration and Plains Exploration Production. Recent drops in oil and copper prices have pressured the company.

Overall, Freeport-McMoRan reported a loss of $2.48 billion, compared with a year-earlier profit of $500 million. On a per-share basis, which reflects preferred dividend impacts, the company recorded a loss of $2.38, compared with a year-earlier loss of 49 cents.

Excluding asset write-downs and other items, the per-share loss was six cents. Revenue decreased 17% to $4.15 billion.

Analysts polled by Thomson Reuters expected per-share loss of seven cents and revenue of $4.06 billion.

Write to Tess Stynes at [e-mail]

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