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Rio Tinto H1 underlying earnings 2.9 billion

Staff writer ▼ | August 7, 2015
Rio Tinto reported first half underlying earnings of $2.9 billion. First half cost savings were $641 million.
Rio Tinto
Rio Tinto   H1 cost savings were $641 million
Chief executive Sam Walsh said “This is a robust set of results, given the tough operating environment. Tier one assets and sound operating capability have delivered stable margins with underlying earnings of $2.9 billion during the half. Post-tax operating cash flows of $4.4 billion more than covered our sustaining capital expenditure of $1.2 billion and dividend payments of $2.2 billion.

“A continued focus on financial and operating discipline delivered first half cost savings of $641 million, representing 85 per cent of our original full year target, which we have now increased to $1 billion.

"We continue to invest in growth, and have reached key milestones in three of our growth projects with the expansion of our Pilbara iron ore infrastructure, first production from our expanded Kitimat aluminium smelter and an agreement to progress the development of the Oyu Tolgoi underground copper mine.

“The early and decisive actions we started taking in 2013 provide a strong base for the business. Our low level of absolute net debt and gearing allow us to maintain our commitment to capital returns in 2015, with $3.2 billion returned to shareholders in the first half through our progressive dividend and ongoing share buy-back programme.

"I am pleased to announce an increase in our interim dividend of 12 per cent, in line with our established dividend policy. I should like to thank all of my colleagues for their exceptional efforts in achieving these results. Rio Tinto is well placed to succeed in these volatile times, and we will use our competitive advantages for the benefit of all our stakeholders.”