These full-year figures from Eurasian Natural Resources Corporation (ENRC) make for pretty depressing reading as soaring operating costs, higher taxes, lower commodity prices and a huge capital spending programme meant a hefty headline loss. Still, the figures were not much worse than analysts had expected - there was no final dividend declared but, on the bright side, no big rights issue announced, either.
However, impairments were larger than anticipated at $1.5bn (£1.0bn), with much of that coming from the aluminium division amid onerous contract provisions. The copper division also turned in a pre-tax operating loss for 2012, reflecting hefty cost increases. Overall, the mining group generated $1.27bn of cash in 2012, but spent $2.54bn on capital expenditure, with the difference funded by debt. This means the company's balance sheet remains a big sentiment issue for the shares as the company continues to flirt with debt covenants - although there are no large repayments due in 2013, which should help.
Morgan Stanley expects adjusted EPS of 66.58¢ in 2013, although its adjusted EPS estimate for 2012 was 56.53¢ - somewhat more optimistic than the 41¢ adjusted figure that was actually reported.
EURASIAN NATURAL RESOURCES (ENRC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 303p | MARKET VALUE: | £3.9bn | |
| TOUCH: | 302-303p | 12-MONTH HIGH: | 685p | LOW: 260p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | na | |
| NET ASSET VALUE: | 757¢ | NET DEBT: | 49% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 6.82 | 3.83 | 205 | 31.0 |
| 2009 | 3.83 | 1.44 | 81.0 | 12.0 |
| 2010 | 6.61 | 2.98 | 170 | 30.5 |
| 2011 | 7.71 | 2.76 | 153 | 27.0 |
| 2012 | 6.32 | -0.55 | -62.0 | 6.50* |
| % change | -18 | - | - | -76 |
£1=$1.50 *Half-year dividend only | ||||
