Freeport-McMoRan Shares Rally 5% Premarket After Company Posts Smaller-than-expected Loss

By Ciara LinnaneMarketWatch Pulse

Mining and metals giant Freeport-McMoRan Inc. shares rose 5% in premarket trade Tuesday, after the company reported a smaller-than-expected loss for the fourth quarter. The company said it had a loss of $4.1 billion, or $3.47 a share, in the quarter, after a loss of $12.2 billion, or $11.31 a share, in the year-earlier period. Adjusted for charges that totaled $4.1 billion, the company had a loss per share of 2 cents, lower than the 8 cents loss consensus from FactSet. Revenue fell to $3.8 billion from $5.2 billion, matching the FactSet consensus. Chief Executive Richard Adkerson said the company's top goal in 2016 is to restore its balance sheet, which has been hurt by the slump in commodity prices. "Our high-quality asset base provides opportunities for significant debt reduction while retaining a substantial business with attractive low-cost, long-lived reserves and resources that will enable our shareholders to benefit from improved conditions in the future," he said in a statement. The company is planning a series of measures, including asset sales and joint ventures. It continues to review options for its oil & gas business and transactions involving mining assets. Shares have fallen 80% in the last 12 months, while the S&P 500 has lost about 8%.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below