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Xstrata plc Preliminary Results for the year ended 31st December 2007
Zug, 3 March 2007
Xstrata plc announces preliminary results for the year ended 31 December 2007.
Key Financial Results
| $m |
Statutory Year ended 31.12.07 |
Pro forma Year ended 31.12.06 |
% Change |
|---|---|---|---|
| Revenue* | 28,542 | 25,482 | 12 |
| EBITDA | 11,271 | 10,520 | 7 |
| EBITDA* | 10,888 | 10,155 | 7 |
| EBIT | 9,144 | 8,419 | 8 |
| EBIT* | 8,792 | 8,132 | 8 |
| Attributable profit | 5,543 | 4,885 | 13 |
| Earnings per share (basic) | $5.78 | $5.28 | 9 |
| Earnings per share (basic)* | $5.60 | $4.99 | 12 |
| Cash generated from operations | 11,046 | 9,370 | 18 |
| Net debt to net debt plus equity (%) | 32% | 41% | 22 |
| Net assets | 25,258 | 19,592 | 29 |
| Net assets per share** | 26.34 | 20.43 | 29 |
| Dividends per share: | |||
| - interim dividend (paid) | 16.0¢ | 11.6¢ | 38 |
| - final dividend (proposed) | 34.0¢ | 30.0¢ | 13 |
* Before discontinued operations and exceptional items
** Excluding own shares
Highlights
- Record annual production of ferrochrome, mined zinc, thermal and coking coal, nickel and platinum and strong second-half copper output boosted volumes to capture the benefit of continued robust commodity prices
- $6 billion of bolt-on acquisitions in thermal and coking coal, platinum and nickel in 2007 and early 2008
- EBITDA increased by 7% to $11.3 billion; attributable profit up 13% to $5.5 billion
- Real cost savings of $253 million achieved despite ongoing cost inflation in mining sector
- Free cash flow of $4.6 billion after total capital expenditure of $2.9 billion
- Strong operational cash flows reduced net debt to $12 billion, with gearing (net debt to net debt plus equity) of 32% at year-end
- Pipeline of $30 billion of organic growth projects, of which $12 billion is approved, to deliver compound annual volume growth of over 12% to 2013
- Full year dividend increased by 20% to 50¢ per share, reflecting confidence in Xstrata's prospects in buoyant commodity markets
Mick Davis, Xstrata Chief Executive commented:
“Growth and value creation continued to characterise Xstrata's performance in 2007. A strong operational performance, boosted by record production across much of the portfolio, enabled the Group to capture the benefits of continued robust demand for metals and energy in its key markets.
“Acquisitions continue to form an important element of our growth strategy and core capability. This was emphatically demonstrated through the completion of over $6 billion of acquisitions in six separate transactions in 2007 and in early 2008, following the recent successful conclusion of the acquisition of Jubilee Mines, a Western Australian nickel group, and the acquisition of a majority stake in Resource Pacific, an Australian thermal coal producer, in February.
“Xstrata's extensive growth pipeline, unveiled at our interim results presentation in August and outlined in further detail for the copper, coal and nickel businesses in early December, has increased to over $30 billion of green- and brownfield growth projects due to the addition of new growth projects from the acquisitions completed during the year.
“While a slowdown in the United States now seems highly probable, with likely negative consequences for short-term growth in the OECD countries, I expect any impact on Chinese GDP growth and emerging market demand for commodities, including metals, to be muted. I believe that the medium-term outlook for commodities is further strengthened by the return to growth of the Western economies over the next two to three years. As a result, I remain very confident in the outlook for all of Xstrata's commodities through the medium and long term.
“Xstrata's achievements in operational progress, volume growth, improving safety performance, continued reduction in real costs, determined delivery against our project pipeline and ability to capture opportunistic value-creating transactions are a testament to the skill and dedication of our employees and management teams. Xstrata is perfectly positioned to benefit from the positive demand outlook as we progress the transformation of our portfolio through industry-leading operating performance and the myriad internal and external growth options at our disposal, while continuing to play a central role in the industry's ongoing evolution.”
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Xstrata contacts
Claire Divver
Telephone +44 20 7968 2871
Mobile +44 7785 964 340
Email pbell@xstrata.com
Pam Bell
Telephone +44 20 7968 2822
Mobile +44 7799 626 715
Email pbell@xstrata.com
Brigitte Mattenberger
Telephone +41 41 726 6071
Mobile +41 79 381 1823
Email bmattenberger@xstrata.com
Michael Oke
Aura Financial
Telephone +44 20 7321 0033
Mobile +44 7834 368 299