| Why Freeport-McMoRan’s 3Q15 Revenues Fell Off a Cliff | |
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A Closer Look at Freeport-McMoRan’s 3Q15 Earnings (Continued from Prior Part) 3Q15 revenues
Revenues for commodity companies like BHP Billiton (BHP) and Vale (VALE) are a function of commodity (COMT) prices and shipments. Shipments depend on demand from end consumers as well as any portfolio actions undertaken by a company. Commodity prices are decided by market forces that in turn depend on demand and supply as well as prevailing sentiment. In this part of the series, we’ll explore the trend in Freeport-McMoRan’s (FCX) revenues.
Revenues fall
- Freeport-McMoRan reported revenues of $3.7 billion in 3Q15, a year-over-year (or YoY) decline of more than 35%. The graph above shows the falling trend in Freeport-McMoRan’s revenues.
- In 3Q15, Freeport-McMoRan sold 1.0 billion pounds of copper, 23 million pounds of molybdenum, 13.8 MMBOE (or million barrels of oil equivalents), and 294,000 ounces of gold.
- The company’s sales volumes fell year-over-year for copper and gold while energy and molybdenum volumes rose over the period. Copper producers like Freeport-McMoRan and Glencore (GLNCY) have cut production in an attempt to contain copper supply.
- Freeport-McMoRan reported average realized prices of $2.38 per pound for copper, $1,117 per ounce for gold, and $55.88 per barrel for oil. Please note that realized oil prices also include an $11.03 per barrel cash gain on derivative contracts. Freeport-McMoRan’s average realized copper and energy prices have respectively fallen 23.7% and 36.9% YoY.
Investors looking for direct exposure to copper can also consider the PowerShares DB Base Metals ETF (DBB). DBB invests one-third of its holdings in copper.
Outlook
- For 4Q15, Freeport-McMoRan has given guidance of 1.1 billion pounds of copper, 21 million pounds of molybdenum, 13.3 MMBOE, and 310,000 ounces of gold.
- However, its 4Q15 revenues will also depend on how commodity prices play out in the next two months.
Continue to Next Part Browse this series on Market Realist:
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VanEck Vectors Global Alternative Energy ETF
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière de cuivre et d'or basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice de cuivre, d'or, 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 2,1 milliards (1,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 , et son plus haut niveau récent le 18 septembre 2024 à 43,92 . Freeport McMoran possède 47 442 200 actions en circulation. |