Kazakhmys’ revenues and earnings take a tumble on heavy writedowns

City A.M. Reporter
KAZAKHMYS, the Kazakh miner, recorded lower full year profits on the back of heavy writedowns.
Revenue fell 27 per cent to $2.4bn and net profit was down 39 per cent in 2009 from $909m (£808) to $554m, the miner said yesterday.

It posted a 50 per cent fall in consolidated annual earnings per share (EPS), weaker than expected, after metals prices tumbled during the downturn.

But the London-listed firm said it was in good shape to pursue its expansion projects after slashing net debt to $689m from $1.63bn a year earlier.

“We have a sound balance sheet and access to attractive debt facilities, which will enable us to move forward with our growth projects in 2010,” chief financial officer Matthew Hird said.

Kazakhmys, the world’s eighth biggest copper producer, said 2009 underlying EPS fell to $1.13 from $2.27 in 2008. This was lower than a consensus forecast of $1.37.

Earlier this month, the company posted core earnings from its own operations, but yesterday’s figures include profit from its 26 per cent stake in rival Eurasian Natural Resources Corporation.

On 4 March Kazakhmys resumed dividend payments and posted earnings from its own operations before interest, tax, depreciation and amortisation down 26 per cent