SOUTHERN COPPER (SCCO) has reported 100.81 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $197.60 million, or $0.26 a share in the quarter, compared with $98.40 million, or $0.12 a share for the same period last year.
Revenue during the quarter grew 23.56 percent to $1,400.70 million from $1,133.60 million in the previous year period. Gross margin for the quarter contracted 18 basis points over the previous year period to 40.64 percent. Total expenses were 74.13 percent of quarterly revenues, down from 74.69 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 25.87 percent.
Operating income for the quarter was $362.40 million, compared with $286.90 million in the previous year period.
Commenting on the Company’s results and outlook, Mr. German Larrea, chairman of the Board, said "In the third quarter of 2016 we continue receiving the benefit of our new Buenavista concentrator, which operates at full capacity, while our investment program at the Toquepala mine is moving forward on schedule. We produced 672,372 tons of copper in the nine months of 2016, a new Company record for a nine-month period.
Operating cash flow declinesSOUTHERN COPPER has generated cash of $635.90 million from operating activities during the nine month period, down 22.18 percent or $181.20 million, when compared with the last year period. The company has spent $224 million cash to meet investing activities during the nine month period as against cash outgo of $1,486.70 million in the last year period.
The company has spent $172 million cash to carry out financing activities during the nine month period as against cash inflow of $803.70 million in the last year period.
Cash and cash equivalents stood at $511.50 million as on Sep. 30, 2016, up 1.39 percent or $7.01 million from $504.49 million on Sep. 30, 2015.
Working capital declines
SOUTHERN COPPER has witnessed a decline in the working capital over the last year. It stood at $1,614.70 million as at Sep. 30, 2016, down 24.74 percent or $530.67 million from $2,145.37 million on Sep. 30, 2015. Current ratio was at 2.73 as on Sep. 30, 2016, down from 3.48 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 82 days for the last year period. Days sales outstanding went down to 41 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 112 days for the previous year period. At the same time, days payable outstanding went down to 61 days for the quarter from 75 for the same period last year.
Debt remains almost stableTotal debt of SOUTHERN COPPER remained almost stable for the quarter at $5,953.50 million, when compared with the last year period. Long-term debt of SOUTHERN COPPER remained almost stable for the quarter at $5,953.50 million, when compared with the last year period. Total debt was 45.58 percent of total assets as on Sep. 30, 2016, compared with 46.26 percent on Sep. 30, 2015. Debt to equity ratio was at 1.04 as on Sep. 30, 2016, down from 1.07 as on Sep. 30, 2015. Interest coverage ratio improved to 5.08 for the quarter from 4.63 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
