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Anglo America announced result for 2017
Highlights for the year ended 31 December 2017
1. Delivered attributable free cash flow of USD 4.9 billion, a 93% increase
2. Reduced net debt to USD 4.5 billion, a 47% reduction, equal to 0.5x net debt / EBITDA
3. Generated underlying EBITDA of USD 8.8 billion, a 45% increase
4. Profit attributable to equity shareholders doubled to USD 3.2 billion
5. Achieved cost and volume improvements of USD 1.1 billion – in excess of target
6. Targeting additional USD 3-4 billion annual underlying EBITDA run-rate improvement by 2022
7. Increased dividend of 54 US cents per share for the second half, equal to 40% of second half underlying earnings.
Mr Mark Cutifani CEO of Anglo American, said that “We have delivered a 93% increase in attributable free cash flow, almost halving net debt to USD 4.5 billion at the year end. These strong financial results benefit from transformed productivities and efficiencies across our business – including a 28% productivity improvement in 2017 alone – together with our portfolio upgrading and improved prices for many of our products. Our increased dividend for the second half equates to our targeted level of 40% of underlying earnings, totaling USD 1.02 per share for the year as a whole.
“We exceeded our cost and volume improvement target for the year, achieving USD 1.1 billion of underlying EBITDA benefit. Over the last five years, we have now delivered a USD 4.2 billion annual underlying EBITDA improvement. While we have already driven a material operational turnaround, we believe there is significant additional upside within the business both through further operating gains and from selected organic growth options. As part of how we run the business, we are therefore targeting an additional USD 3-4 billion annual run rate improvement by 2022 from production volumes, productivity improvements and cost reductions.”