Antofagasta plc says its net profit climbed by 6% in 2020

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Mar 16, 2021
  • Antofagasta plc says its net profit climbed by 6% in 2020.
  • The mining firm reports £1.98 billion of full-year EBITDA.
  • Antofagasta declares 35.05 pence a share of final dividend.

Antofagasta plc (LON: ANTO) said on Tuesday that its net profit jumped 6% on a year over year basis in 2020, despite the ongoing Coronavirus pandemic that has so far infected more than 4.2 million people in the United Kingdom and caused over 125 thousand deaths. On the back of hawkish annual performance, Antofagasta also raised its dividend on Tuesday.

Antofagasta dropped roughly 0.5% in premarket trading on Tuesday and lost another 0.5% on market open to trade at £17.23 per share in the morning session. The stock had started the year at £15.02 per share. Learn more about how to invest in the stock market.

Antofagasta reports £1.98 billion of EBITDA

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Antofagasta said that its net profit in 2020 came in at £646.04 million. In the previous year, its net profit was capped at a lower £609.33 million. The company acknowledged a decline in copper production last year, but it was offset by stronger prices and lower costs. In January, Antofagasta said copper production matched expectations in Q4.

According to the mining firm, its earnings before interest, taxes, depreciation and amortisation (EBITDA) printed at £1.98 billion in 2020 that represents a 12% annualised growth. FactSet consensus for its EBITDA in the recently concluded year stood at a slightly lower £1.95 billion.

Antofagasta announced 35.05 pence per share of final dividend on Tuesday that pushed the full-year payment up, to 39.53 pence per share. In comparison, the British multinational had paid a lower 36.79 pence per share in 2019.

For 2021, the London-headquartered company reaffirmed its guidance for up to 760 thousand metric tons of copper production. Its estimate for net cash cost this year stands at 90 pence a pound.

CEO Ivan Arriagada’s comments on Tuesday

Chief Executive Ivan Arriagada commented on the financial update on Tuesday and said:

“The year has been challenging, but we have successfully kept our people safe and healthy, achieved our production and exceeded our cost targets, yielding a 53% EBITDA margin. I am proud of how everyone at Antofagasta has worked together and adjusted to overcome the year’s challenges.”

In separate news from the UK, student housing provider Unite Group said on Tuesday that its pre-tax loss widened to £120.1 million in 2020 due to COVID-19 disruptions.

At the time of writing, Antofagasta is valued at £17.09 billion and has a price to earnings ratio of 70.84.

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