26th Jul 2023 09:28
(Alliance News) - Rio Tinto PLC on Wednesday reported that its half year profit had fallen and its sales revenue was down, citing "softer market conditions".
The Anglo-Australian mining and metals company reported its half-year pretax profit in the six months ended June 30 was USD6.93 billion, plummeting from the restated USD12.32 billion year-on-year.
Sales revenue in the first half was USD26.67 billion, down from USD29.78 billion in the prior year.
The company's underlying earnings before interest, tax, depreciation, and amortization was USD11.73 billion, down 25% from USD15.60 billion the previous year.
Chief Executive Jakob Stausholm said: "We have a clear pathway to building an even stronger Rio Tinto and continue to make momentum in our strategy to set the business up for long-term success... Our robust financials, despite softer market conditions, are driven by the quality of our assets."
Free cash flow dropped to USD3.77 billion, from USD7.15 billion the previous year, and net debt on June 30 was USD4.35 billion, up from USD4.19 billion year-on-year.
The company declared an interim dividend of 177.0 cents, down 34% from 267.0 cents the previous year.
"We are taking real steps to shape our portfolio for the future, with first sustainable production from Oyu Tolgoi underground, just as we doubled our exposure through the acquisition of Turquoise Hill Resources," said Staushold.
The Oyu Tolgoi copper and gold mine is in Mongolia.
"We will continue paying attractive dividends and investing in the long-term strength of our business as we sustain and grow our portfolio, while contributing to society's drive to net zero," Staushold continued.
Shares in Rio Tinto PLC were down 2.3% at 5,268.00 pence in London on Wednesday morning.
Last week, Rio Tinto updated on its recent production and outlook. It expects to deliver iron ore shipments from Pilbara at the upper half of its annual guidance range, after building "further momentum" over the second quarter. However, it reduced guidance for annual alumina and refined copper production.
By Will Neill, Alliance News reporter
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