Anglo American 2018 Net Profit Rose 12%
February 21 2019 - 1:55AM
Dow Jones News
By Oliver Griffin
Anglo American PLC (AAL.LN) on Thursday reported a 12% rise in
net profit for 2018 and said it had benefited from strong
commodities prices, particularly in its platinum, coal and nickel
businesses.
The diversified mining company said it made a profit of $3.56
billion in the year-ended Dec. 31 compared with $3.17 billion in
2017. A consensus estimate from 18 analysts compiled by FactSet
forecast profit at $2.8 billion.
Revenue for the year rose 5% to $27.61 billion, Anglo American
said. Net debt at Dec. 31 was $2.85 billion compared with $4.5
billion on Dec. 31, 2017.
Underlying earnings before interest, taxes, depreciation and
amortization--Anglo American's preferred metric, which strips out
certain one-off items--rose to $9.16 billion from $8.82 billion in
2017. A consensus estimate from 15 analysts compiled by Vuma
forecast underlying Ebitda of $9.05 billion.
Underlying Ebitda from Anglo American's majority-owned diamond
business De Beers fell 13% to $1.25 billion. Anglo American said De
Beers took on incremental expenditure on a number of new
initiatives, including the launch of Lightbox Jewelry, a business
that produces lab-grown diamond for jewelry purposes.
The company said the 2019 outlook for the consumer diamond
jewelry demand faces a number of challenges, including the risk of
a potential intensification of U.S.-China trade tensions, the
Chinese government's ability to rebalance economic growth towards
consumption, and further exchange-rate volatility.
In April last year, the company forecast that it would take a
$300 million-$400 million hit to underlying Ebitda due to
inspections and repairs halting operations at its Minas-Rio iron
ore operation.
Anglo American said the total hit on underlying Ebitda due to
the suspension of operations at Minas-Rio was $600 million.
The company declared a final dividend of 51 cents, taking the
total dividend for the year to $1 a share. Last year, it declared a
total dividend of $1.02 a share.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
February 21, 2019 02:40 ET (07:40 GMT)
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