Business
PRELIMINARY RESULTS ANNOUNCEMENT YEAR ENDED 2017
PRELIMINARY RESULTS ANNOUNCEMENT YEAR ENDED 2017.
About this update from Antofagasta Plc
[{"type":"text","content":"\n \nRNS Number : 4863H Antofagasta PLC 13 March 2018 \n\n \nNEWS RELEASE, 13 MARCH 2018\n \nPRELIMINARY RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 2017\n Strong earnings growth and improved margins\n \nAntofagasta plc CEO Iván Arriagada said: \"We have continued to invest through the cycle while maintaining our focus on cost discipline and operating performance. As a result, as copper prices rose in 2017 Antofagasta had another successful year completing the development of Encuentro Oxides, meeting our safety target of zero fatalities and achieving both our production and cost guidance.\n\"EBITDA increased by 59% to $2.6 billion with operating cash flow rising to $2.5 billion. Testament to the improved copper market and our continuing cost management programme, our EBITDA margin rose to 54% - the highest level since 2012 when the copper price was 30% higher. As a result of this performance the Board has recommended a final dividend of 40.6 cents per share which, combined with the interim dividend, brings the total dividend for the year to 50.9 cents per share, an increase of 177% on 2016, and represents a cash payout of 67% of earnings.\n\"Our priorities for 2018 are continued capital discipline and the next phase of our growth - notably the review and expected approval of the Los Pelambres Incremental Expansion project and progressing expansion plans at Centinela.\" \nHIGHLIGHTS\nFinancial performance \n· EBITDA(1) for the full year was $2,586.6 million, 59.1% higher than the previous year as revenue increased by 31.1% on higher realised metal prices \n· EBITDA margin(2) strengthened to 54.5%, the Group's highest margin since 2012\n· Operating cash flow of $2,495.0 million, up 71.2% compared to the same period last year on the back of stronger margins and higher sales\n· Free cash flow(3) for the year of $1,199 million\n· Capital expenditure increased to $899.0 million as planned, $103.9 million higher than in 2016. The increase partly reflected increased capitalised stripping costs at Centinela and Antucoya, and higher sustaining capital expenditure\n· Attributable net debt fell by $458 million to $42 million, reflecting stron...