31st Jul 2006 10:44
Rio Tinto PLC31 July 2006 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 a buoyant market - 2006 half year results SUMMARY • Net profit after tax was $146.5 million compared with $126.9 million for the same period last year • Coal & Allied's equity share of production is up 3.9 per cent to 11.0 million tonnes • An interim dividend of $1.10 will be paid on ordinary shares Commenting on the company's performance, Coal & Allied's Managing Director, MrDoug Ritchie said, "This good result reflects the continuing strong globalmarket for seaborne traded thermal coal." "Coal & Allied's equity share of production increased 3.9 per cent with sales inline with the shipment allocation set under the Capacity Balancing Systemoperating through the Port of Newcastle. Increased port and rail capacity fromnew investment is now expected to be available in early 2007," Mr Ritchie said. "The rising cost of business inputs is imposing increasing costs on Coal &Allied." Coal & Allied's net profit after tax was $146.5 million. Shareholders will bepaid an interim dividend of $1.10 on ordinary shares. *All financial information contained in this release has been prepared on thebasis of the Australian Equivalents to International Financial ReportingStandards and Interpretations. SUMMARY OF FINANCIAL PERFORMANCE Coal & Allied's results for the first half of 2006 compared with the same periodof 2005: Half-year ended 30 June 2006 2005 Sales revenue ($ millions) 722.8 679.6Net profit after tax ($ millions)1 146.5 126.9Operating cash flow ($ millions) 88.3 172.8Dividends (cents per share) 110 110Coal & Allied equity share of coal production (million tonnes) 11.0 10.6Coal & Allied equity share of coal shipments (million tonnes)2 10.6 11.0 1 2005 comparative includes the effects of changes in accounting policy asdisclosed in note 1 to the financial statements. 2 Shipments exclude purchased coal. Sales revenue Sales revenue of $722.8 million was 6.4 per cent more than for the comparativeperiod of 2005, reflecting higher prices partially offset by lower shipments in2006, which were in line with the allocation set under the Port Waratah CoalServices capacity balancing system. Production The Coal & Allied equity share of coal production of 11.0 million tonnes was 3.9per cent higher than in the first half of 2005. Production at Mount ThorleyWarkworth and Hunter Valley Operations was in line with the port and railallocation. Production at the Bengalla mine increased towards the end of thefirst half of 2006 due to mining of more productive seams. Cash flow Net operating cash flow of $88.3 million was 48.9 per cent lower than thecorresponding period of 2005. The decrease is attributable to payment of taxliabilities arising from 2005 profits. Dividends An interim dividend of $1.10 per ordinary share, fully franked, will be paid toshareholders on 31 August 2006 (2005: interim dividend of $1.10 per ordinaryshare, fully franked). A preference dividend of 1.75 cents per share, fullyfranked, will be paid on 31 August 2006. Debt Net debt increased to $123.2 million. Gearing (net debt to net debt + equity)was 12.5 per cent at 30 June 2006, compared with 7.6 per cent at 31 December2005. Capital expenditure Capital expenditure for the half year was $40.4 million compared with $16.4million for the same period last year. Expenditure for the first half of 2006was predominantly for major overhauls of draglines and shovels, and MountPleasant land acquisitions. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsNick Cobban Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 408 360 101 Investor Relations Investor RelationsNigel Jones Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 David Ovington Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792 Website: www.riotinto.comHigh resolution photographs available at: www.newscast.co.uk Coal & Allied Financial and Operating Statistics First half First half 2006 2005Production and shipments '000 tonnes '000 tonnes Total shipments 1 14,156 14,424Coal & Allied share of shipments 10,643 11,024 Total saleable production 2 Hunter Valley Operations 6,291 6,362 Mount Thorley Operations 2,167 1,738 Bengalla 2,494 2,704 Warkworth 3,632 3,227 Total 14,583 14,031 Coal & Allied equity share of production Hunter Valley Operations (100%) 6,291 6,362 Mount Thorley Operations (80%) 1,734 1,390 Bengalla (40%) 998 1,082 Warkworth (55.57%) 2,018 1,794 Total 11,040 10,628 Shipments by market 1 Japan 5,442 7,061 Asia (excluding Japan) 3,943 2,991 Europe 644 953 Other 2,205 1,464 Domestic 1,922 1,955 Total 14,156 14,424 Shipments by product 1 Export thermal 10,729 10,508 Domestic thermal 1,922 1,955 Coking 1,505 1,961 Total 14,156 14,424 Financial $ million $ million Total assets3,4 1,685 1,728 Capital expenditure and investments 40 16Depreciation and amortisation3 50 53Employees 1,489 1,388Net debt to net debt + equity (%)3,4 12.5 7.6Earnings per share (cents)3 169.2c 146.6cAverage USD:AUD exchange rate 74.3 77.3 1 Shipments are on a 100% basis and exclude purchased coal2 Production is on a 100% basis3 2005 comparative includes the effects of the changes in accounting policy as disclosed in note 1 to thefinancial statements4 Comparative figures are as at 31 December 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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