Freeport To Boost Debt Cuts
27 January 2016 - 7:02PM
Dow Jones News
(FROM THE WALL STREET JOURNAL 1/27/16)
By Tess Stynes
Freeport-McMoRan Inc. said it would step up its debt-reduction
efforts in response to further weakening in commodities markets and
that it is in talks with third parties regarding a potential
transaction.
The Phoenix company, which is a major copper producer, also
reported that its fourth-quarter loss widened amid another big
write-down of its oil-and-gas business and slumping revenue.
Freeport said it would continue to focus on controlling costs
and is considering asset sales and joint ventures, including the
continuing review of options for its oil-and-gas business, as well
as potential deals including certain mining assets as it aims to
focus on copper.
Freeport has been cutting costs in response to declining metals
prices and as falling energy prices have exposed an investment in
oil and gas drilling.
Freeport, early last month, suspended its dividend and said it
would further reduce its capital spending by $1 billion during the
next two years.
Later in December, James R. Moffett, a wildcatter who built an
empire from one of the world's biggest copper mines, said he was
stepping down as the company's executive chairman. The move came
months after billionaire Carl Icahn took an 8.5% stake in Freeport.
The activist investor recently had a stake of roughly 8.7%,
according to FactSet.
Freeport said Tuesday that although concerns about the global
economy -- particularly China -- have hurt commodity prices, the
company believes the market for copper essentially is balanced.
Overall, Freeport-McMoRan reported a loss of $4.09 billion, or
$3.47 a share, compared with a year-earlier loss of $2.86 billion,
or $2.75 a share.
(END) Dow Jones Newswires
January 27, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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