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Interim Results

Antofagasta earnings up 87.8%

22 August 2017 07:22

Antofagasta had a strong first half with revenues up 41.9% at $2,049m, as realised copper prices increased by 25.3% and sales volumes rose by 14.3% and EBITDA increased 87.8% to $1,079.8m.

The EBITDA margin rose from 39.8% in the first half of 2016 to 52.7%, the highest half year margin reported by the group since 2012.

Operating cost reductions of $44m were achieved, as part of the 'costs and competitiveness' programme, contributing to savings of $0.06/lb in cash costs during the current period

The board has declared an interim ordinary dividend of 10.3 cents per share, which represents a pay-out ratio of 35%, consistent with the group's dividend policy.

Chief executive Ivan Arriagada said: "Antofagasta has had a strong first half year, with EBITDA up 88% versus HY 2016.

"Our performance benefited from increases in the copper price, higher sales volumes and tight cost management. As a result, EBITDA margins have returned to over 50% and cash flow from operations is up 48% to $1.1 billion.

"This better performance means the Company's interim dividend has significantly increased compared to last year to 10.3 cents per share with the Company's policy of paying out a minimum of 35% of underlying net earnings unchanged.

"Antofagasta's strategy remains focused on producing profitable tonnes through reducing costs, making improvements in productivity and efficiency and the application of innovative solutions.

"A disciplined approach to capital allocation underpins our decision-making process. Projects and future developments must compete internally for capital with any excess cash distributed to shareholders.

"The Company is well positioned for future growth, generating strong cash flows and improving returns against a background of a recovery in copper demand. The outlook for Antofagasta is positive - we have the assets, capabilities and strategy to continue to create long-term value for all of our stakeholders."

Story provided by StockMarketWire.com

Related Company: ANTO

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