Full-year returns for Eurasian Natural Resources (ENRC) fell slightly short of consensus estimates as the Kazakhstan-focused miner was forced to contend with a 24 per cent hike in total costs, primarily linked to rising bills for energy, raw materials and labour.
This was felt particularly keenly within the ferroalloy segment, which recorded a 20 per cent decline in operating profits to $1.04bn even though revenues rose 3 per cent to $3.08bn. As a result a 17 per cent increase in group revenues only translated into a 7 per cent rise in adjusted cash profits to $3.41bn (£2.14bn) as overall margins dropped four points to 44 per cent.
Nevertheless, if you exclude the prior year’s $298m one-off gain, underlying EPS crept-up by 5 per cent. However, shareholders would have been disappointed with an 11 per cent cut in the full-year dividend, but the board was possibly mindful of the funding required for this year’s planned $2.9bn in capital expenditure.
| EURASIAN NATURAL RESOURCES CORP. (ENRC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 655p | MARKET VALUE: | £8.4bn | |
| TOUCH: | 655-657p | 12-MONTH HIGH: | 986p | LOW: 509p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 846¢* | NET DEBT: | 9% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2007 | 4.11 | 1.32 | 79 | nil |
| 2008 | 6.82 | 3.83 | 205 | 31.0 |
| 2009 | 3.83 | 1.44 | 81 | 12.0 |
| 2010 | 6.61 | 2.98 | 170 | 30.5 |
| 2011 | 7.71 | 2.76 | 153 | 27.0 |
| % change | +17 | -8 | -10 | -11 |
Ex-div: 28 Mar Payment: 21 Jun £1 = $1.59 *Includes intangible assets of $1.41bn, or 109¢ a share | ||||
