Rio Tinto saw 21% increase in H1 underlying earningsStaff 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.
First half results Mining company reported good results
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. ■