Antofagasta’s net profit slides to £103.21 million in the fiscal first half

Antofagasta’s net profit slides to £103.21 million in the fiscal first half
Written by:
Wajeeh Khan
August 20, 2020
  • Antofagasta’s net profit slides to £103.21 million in the fiscal first half.
  • The copper mining firm says its EBITDA was 22% lower in H1.
  • The company's board declares 4.73 pence a share of interim dividend.

Antofagasta plc (LON: ANTO) said on Thursday that its profit for the first half (H1) of the current fiscal year came lower than the same period last year. The company attributed the decline to the Coronavirus pandemic that it said disrupted production and weighed on prices.

Antofagasta opened more than 2% down in the stock market on Thursday. The decline continued in the next hour as the stock slid another 2%. The FTSE 100 listed firm now has a per-share price of £10.93 that translates to roughly an 80% recovery since March.

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Antofagasta says its EBITDA was 22% lower in H1

Antofagasta reported £103.21 million of net profit in the six months that concluded on 30th June versus £230.85 million in the comparable period of 2019. Its peer from the British mining sector, Hochschild, also revealed £4.91 million of pre-tax profit in the first half on Wednesday.

In terms of EBITDA (earnings before interest, taxes, depreciation, and amortisation), the copper mining firm registered £770 million in the fiscal H1 that marks a 22% decline on a year over year basis. The figure, however, matched FactSet consensus.

According to Antofagasta, it generated a total of £1.63 billion in revenue, that was 15% lower than last year. CEO Ivan Arriagada commented on the report on Thursday and said:

“Following the outbreak of COVID-19 and its impact on consumer markets, the realised copper price was 12.5% lower compared with the same period last year, and this impacted our revenue.”

Antofagasta declares 4.73 pence a share of interim dividend

The company’s board declared 4.73 pence a share of interim dividend on Thursday that was lower than 8.17 pence a share last year but matched its earnings-linked policy.

Antofagasta reiterated on Thursday that copper production and prices are likely to remain under pressure in the rest of 2020. It refrained from giving its guidance for the full year that it said was entirely dependent on how the COVID-19 situation unravels in the upcoming months.

The statement was in contrast to last month when it said its copper output was steady despite the ongoing health crisis that has so far infected more than 22 million people worldwide and caused over 0.75 million deaths.

At the time of writing, Antofagasta is valued at £10.67 billion and has a price to earnings ratio of 28.44.