Australia’s South32 has reported a 75 per cent rise in annual profit, lifted by strong alumina operations and higher prices across its portfolio, though the result fell short of analyst forecasts. For the year ended June 30, underlying earnings came in at USD 666 million, up from USD380 million a year earlier but just a bit less from USD697.7 million that was expected by Visible Alpha.
Shares slipped 2.1 per cent to AUD 2.85 in early trade, even as the broader index was little changed. Alumina was the standout performer, benefitting from a near 45 per cent surge in prices. That alone boosted divisional operating earnings by USD 714 million to USD 1.08 billion. The aluminium unit also enjoyed stronger prices, supported by supply tightness and higher costs across the sector.
Copper and aluminium production advanced by 20 per cent and 6 per cent respectively.
Chief Executive Graham Kerr said: “Strong operating performance during the year enabled us to capitalise on improved commodity prices, with Underlying EBITDA increasing to USD 1.9 billion and Underlying earnings increasing to USD 666 million. Key operational milestones were achieved, with Worsley Alumina securing environmental approvals for new bauxite mining areas, and Australia Manganese completing its operational recovery plan following the impacts of Tropical Cyclone Megan.”
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