29th Jul 2005 10:36
Rio Tinto PLC29 July 2005 Rio Tinto's 75.7 per cent owned subsidiary, Coal & Allied Industries Limited,issued the following news release in Australia. All dollars are Australiancurrency. Coal & Allied benefits from market conditions - 2005 half year results SUMMARY • Net profit after tax was $126.4 million compared with $3.3 million for the same period last year • Net debt has reduced in Australian dollar terms by 21 per cent in the first half of 2005 to $203.7 million • An interim dividend of $1.10 will be paid on ordinary shares Commenting on the company's performance, Coal & Allied's managing director, DrGrant Thorne said, "This result reflects the strong global market for seabornetraded coal in 2005. Coal & Allied is now realising the opportunitiesavailable, with the large majority of its contract business having been pricedunder the much stronger market conditions that now prevail." Coal & Allied has declared a net profit after tax of $126.4 million.Shareholders will be paid an interim dividend of $1.10 on ordinary shares. "Production at all operations has been to the maximum consistent with therestrictions imposed by the Capacity Balancing System operating throughNewcastle's coal loading terminal. While there has been commitment toincreasing the future capacity of both port and rail, relief from the newinvestment will not be felt before mid 2006," Dr Thorne said. "The strength of the Australian dollar continues to have a moderating influenceon results. This, together with higher sea freight and other business inputsreflecting buoyant industry conditions, will continue to impact earnings in thesecond half of the year." All financial information contained in this release has been prepared on thebasis of the Australian Equivalents to International Financial ReportingStandards and Interpretations. SUMMARY OF FINANCIAL PERFORMANCE Coal & Allied's results for the first half of 2005 are shown compared withresults for the comparative period of 2004. Half-year ended 30 June 2005 2004 Sales revenue ($ millions) 679.6 454.5Net profit after tax ($ millions) 126.4 3.3Operating cash flow ($ millions) 172.8 56.9Dividends (cents per share) 110 NilCoal production1 (million tonnes) 14.0 13.6Coal shipments1 (million tonnes) 14.4 13.9 1 Production and shipments are on a 100% basis. Shipments exclude purchasedcoal. Sales revenue Sales revenue of $679.6 million was 50 per cent more than for the comparativeperiod of 2004, reflecting higher prices. Production Managed production of saleable coal of 14.0 million tonnes was three per centmore than in the first half of 2004. This was limited by the allocation throughPort Waratah in Newcastle under the Capacity Balancing System. Cash flow Net operating cash flow of $172.8 million was 204 per cent more than thecorresponding period of 2004. The increase was mainly the result of higherpriced coal. Dividends An interim dividend of $1.10 per ordinary share, fully franked, will be paid toshareholders on 31 August 2005. No interim dividend was paid on ordinary sharesin the first half of 2004. A preference dividend of 1.75 cents per share, fullyfranked, will be paid on 31 August 2005. Debt Net debt was lower at $203.7 million. Gearing (net debt to net debt + equity)was 21 per cent at 30 June 2005, compared with 44 per cent at 30 June 2004. Capital expenditure Total capital expenditure for the half year was $16.4 million compared with$11.0 million for the same period last year. Expenditure was predominantly formajor overhauls of draglines and rope shovels, and Mount Pleasant landacquisitions. Capacity Balancing System Since the Capacity Balancing System was introduced to replace the PortAllocation System through Port Waratah Coal Services, vessel arrivals havegenerally matched the capacity of the port and rail network and demurrage costshave been constrained to more acceptable levels. However, there were 33 vesselsin the queue at the port of Newcastle at the end of June as producers scheduledship arrivals to safeguard their entitlement to port allocations for thequarter. Market conditions The thermal coal market in the Asia Pacific region remains steady with pricescontinuing in the US$50-52 per tonne price range. For further information, please contact: LONDON AUSTRALIA Media Relations Media Relations Lisa Cullimore Ian Head Office: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620 Mobile: +44 (0) 7730 418 385 Mobile: +61 (0) 408 360 101Investor Relations Investor Relations Nigel Jones Dave Skinner Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628 Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 Richard Brimelow Susie Creswell Office: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639 Mobile: +44 (0) 7753 783 825 Mobile: +61 (0) 418 933 792 Website: www.riotinto.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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