By Jaime Llinares Taboada
Anglo American PLC reported results for the first half of 2020 on Thursday. Here's what you need to know:
REVENUE: The FTSE 100 miner's revenue fell 16% to $12.47 billion for the first half from a year earlier, as lockdowns disrupted mining operations. However, this was above the market consensus of $10.65 billion, taken from the company's website and based on nine analysts' estimates.
EBITDA: Anglo American said its underlying earnings before interest, taxes, depreciation and amortization declined 39% to $3.35 billion in the six first months of the year. This was also above market expectations of $3.00 billion. A Citi analyst said that the beat was mainly driven by lower-than-expected costs, on the back of higher production and the devaluation of currencies at producing countries.
WHAT WE WATCHED:
-DIVIDEND: The miner reduced its first-half dividend to 28 cents from 62 cents, in line with its earnings-linked payout policy.
-DEBT: Anglo American reported net debt of $7.62 billion as at June 30, slightly higher than expected. The company said this was due to investments and temporary working capital build-up at its De Beers and platinum-group metals operations. It represents gearing of 21%, up from 13% on Dec. 31, 2019.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT