South 32, the resources company spun out of BHP Billiton earlier this year, has reported its first annual results (on a pro-forma basis). In the financial year to end-June 2015, the company reported headline profit of US$28 million, down 56% from the previous year, leading to EPS of USc0.5, against USc1.2 previously.
The results include impairment adjustments as the company wrote down the value of its South African energy coal and its Cerro Matoso nickel mine by a total of US$416 million. Excluding this, and other adjustments, underlying earnings were US$575 million, up from US$407 million in the previous period.
Total revenue was US$7.7 billion, down from US$8.3 billion in 2014. The main contributors to revenue were the worldwide aluminium operations followed by the South African coal operations.
As at 30 June 2015, the company held cash and equivalents of US$644 million after net cash flows for the year were US$670 million.
South 32’s underlying earnings up 41% (pro-forma): S32