Tags: Freeport-McMoRan | Dividend | Commodity | Prices

Freeport-McMoRan Cuts Dividend 84 Percent as Commodity Prices Slump

Tuesday, 24 Mar 2015 09:20 AM


Freeport-McMoRan Inc., the world’s largest publicly traded copper producer, cut its dividend by 84 percent as it tries to fund mining and energy projects in the face of lower commodity prices.

The quarterly payout was reduced to 5 cents a share from 31.25 cents, the Phoenix-based company said Tuesday in a statement. It’s still seeking funding for its oil and natural gas projects and will consider measures including additional spending cuts and asset sales “as required,” Freeport said.

“The reduction in the dividend is a prudent measure to strengthen our balance sheet during a period of volatile market conditions,” Freeport said in the statement.

Freeport has been trying to reduce debt, which totaled $19 billion at the end of 2014, while pursuing a diversification into oil and gas following its purchase of two energy companies in 2013 for about $9 billion.

The company announced in January that it will reduce planned spending this year by about 20 percent after copper and oil fell to five-year lows.

“We will continue to take steps to enhance our financial position and to preserve our high quality resources for improved market conditions in the future,” Freeport said in Tuesday’s statement.

Shares of Freeport, which operates in the Americas, Africa and Indonesia, fell 2.9 percent to $18.77 at 8:45 a.m. before the start of regular trading in New York. The shares declined 17 percent this year through Monday.

Freeport is just the latest U.S. mining company to cut or scrap its payout in recent months. Iron-ore producer Cliffs Natural Resources Inc. said in January it will stop paying a dividend after a sharp decline in the price of the steelmaking raw material.

The downturn in coal prices has seen U.S. producers Arch Coal Inc. and Peabody Energy Corp. cut their dividends this year while coal miner Walter Energy Inc. suspended its payout in January.


© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Freeport-McMoRan Inc., the world's largest publicly traded copper producer, cut its dividend by 84 percent as it tries to fund mining and energy projects in the face of lower commodity prices. The quarterly payout was reduced to 5 cents a share from 31.25 cents, the...
Freeport-McMoRan, Dividend, Commodity, Prices
309
2015-20-24
Tuesday, 24 Mar 2015 09:20 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved