| Freeport’s Oil and Gas Earnings Improve Sequentially in 2Q15 | |
| | |
|
Freeport-McMoRan’s 2Q15 Earnings: An Investor's Guide (Continued from Prior Part) Freeport’s oil and gas earnings
Previously, we saw that Freeport-McMoRan’s (FCX) copper unit production costs came down in 2Q15. Freeport expects unit production costs to drop further in the second half of 2015. It expects a reduction in unit production costs in 2016 as well.
Energy assets
Even though Freeport managed to bring down its unit production costs, it was clearly not enough to offset lower commodity prices that are falling at a much faster pace. In this part of the series, we’ll take a look at the 2Q15 financial performance of Freeport’s energy business.
In 2013, Freeport diversified into the energy exploration (XOP) business. Energy is a key component of Freeport’s portfolio, accounting for ~16% of its 2014 revenues.
ConocoPhillips (COP) and Suncor Energy (SU) are the other leading energy exploration companies. COP currently forms 3.48% of the Energy Select Sector SPDR ETF (XLE). Earnings for energy exploration companies have come under pressure due to the correction in energy prices.
Performance improves sequentially
The above chart shows the financial performance of Freeport’s energy business. Unit production costs in 2Q15 came down compared to 1Q15. Average selling prices also improved compared to the last quarter. The cumulative effect of lower unit costs and higher average selling prices resulted in a 24% rise in cash operating margins.
Sales volume also increased marginally in 2Q15 compared to the previous quarter.
Freeport has filed for an IPO (initial public offering) of its energy business. It’s also looking at other strategic alternatives. We’ll look at these in the coming parts of the series. But, before that, let’s look at some other highlights of Freeport’s 2Q15 financial results.
Continue to Next Part Browse this series on Market Realist:
|
|
|
Freeport McMoRan Copper and Gold Inc.
|
|
PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 69,8 milliards US$ (65,4 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 23 avril 2024 à 48,17 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |