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Rio Tinto saw 21% increase in H1 underlying earnings

Staff writer ▼ | August 11, 2014
Rio Tinto reported increased underlying earnings by 21 percent to more than $5 billion. Underlying earnings per share rose to 276.8 US cents.
Rio Tinto
First half results   Mining company reported good results
The company achieved $3.2 billion of sustainable operating cash cost improvements since 2012, exceeding the $3 billion reduction target six months ahead of schedule. Momentum in cost reductions is now expected to realise a further $1 billion of savings by the end of 2015.

Shipped record iron ore volumes, set production records for iron ore and thermal coal and delivered a strong operational performance in copper. Increased cash flows from operations by eight percent to $8.7 billion. Reduced capital expenditure to $3.6 billion in the first half. 2014 capex is now expected to be around $9 billion, $2 billion below previous guidance, and around $8 billion each year from 2015.

Decreased net debt by $1.9 billion in the first half to $16.1 billion at 30 June 2014. This compares with $22.1 billion at 30 June 2013. Reduced adjusted total borrowings by $2.5 billion in the first half to $25.7 billion at 30 June 2014.

Achieved EBITDA of $1.1 billion in Aluminium, up 26 percent on 2013 first half, despite London Metal Exchange (LME) aluminium prices averaging nine percent lower.

Completed the review of the Kitimat Modernisation Project: total approved capital now stands at $4.8 billion. Net earnings of $4.4 billion reflect $0.8 billion of further impairments related to Kitimat, non cash exchange rate gains of $0.6 billion and other excluded charges of $0.5 billion. Increased interim dividend by 15 percent to 96 US cents per share.