Kazakhmys First-Half Profit Falls 67% After Copper Prices Drop

Kazakhmys Plc (KAZ), the biggest copper producer in Kazakhstan, said first-half profit slumped 67 percent as volumes dropped and prices declined.

Net income shrank to $121 million, or 23 cents a share, from $374 million, or 70 cents, a year earlier, the London-based company said today in a statement. Sales fell 17 percent to $1.5 billion. Kazakhmys declared a dividend of 3 cents a share.

The company expects higher sales in the second half and sees “sound” copper prices, it said, maintaining its full-year output forecast at 285,000 metric tons to 295,000 tons of the metal. The price of copper on the London Metal Exchange averaged 14 percent lower in the period.

“Uncertainty prevails in the global markets, but we are encouraged by the continuing demand from our customers,” Chief Executive Officer Oleg Novachuk said in the statement. “With the growth projects moving closer to production and a sound balance sheet, the longer-term outlook also remains positive.”

Earnings before interest, tax, depreciation and amortization dropped to $949 million from $1.6 billion a year earlier.

To contact the reporter on this story: Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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