Mining giant Rio Tinto (RIO.L) announced a jump in H1 profits after its recent cost cutting. the group profited from lower capital expenditure, a decrease in net debt and increasing cash flows. the company says these results demonstrate the “strength of our business” and expects further improvements over the full year.
Over the period the company shipped a record amount of iron ore and achieved production records in iron ore and thermal coal. There was also a strong performance in copper production.
Interim dividend was increased 15% to 96 Cents a share.
Rio Tinto chief executive Sam Walsh said “Our outstanding half year performance reflects the quality of our world-class assets, our programme of operational excellence and our ability to drive performance during a period of weaker prices. These results show that our current strategic and management focus is making a meaningful contribution to cash flow generation.
“During the first half we have increased underlying earnings by 21 per cent to $5.1 billion and enhanced operating cash flow by eight per cent. We delivered what we said we would, exceeding our $3 billion operating cash cost reduction target six months ahead of schedule while producing record volumes and driving productivity improvements across all our businesses.
“We have decreased net debt by $6.0 billion compared with this time last year, through our stronger operating cash flows, sharply reduced capital spend and proceeds from divestments. We are confident Rio Tinto’s low cost, diversified portfolio will continue to generate strong and sustainable cash flows over the coming years. This solid foundation for growth will result in materially increased cash returns to shareholders, underscoring our commitment to deliver greater value.”
Mining giant Rio Tinto (RIO.L) announced a jump in H1 profits after its recent cost cutting. the group profited from lower capital expenditure, a decrease in net debt and increasing cash flows. the company says these results demonstrate the “strength of our business” and expects further improvements over the full year.
Over the period the company shipped a record amount of iron ore and achieved production records in iron ore and thermal coal. There was also a strong performance in copper production.
Interim dividend was increased 15% to 96 Cents a share.
Rio Tinto chief executive Sam Walsh said “Our outstanding half year performance reflects the quality of our world-class assets, our programme of operational excellence and our ability to drive performance during a period of weaker prices. These results show that our current strategic and management focus is making a meaningful contribution to cash flow generation.
“During the first half we have increased underlying earnings by 21 per cent to $5.1 billion and enhanced operating cash flow by eight per cent. We delivered what we said we would, exceeding our $3 billion operating cash cost reduction target six months ahead of schedule while producing record volumes and driving productivity improvements across all our businesses.
“We have decreased net debt by $6.0 billion compared with this time last year, through our stronger operating cash flows, sharply reduced capital spend and proceeds from divestments. We are confident Rio Tinto’s low cost, diversified portfolio will continue to generate strong and sustainable cash flows over the coming years. This solid foundation for growth will result in materially increased cash returns to shareholders, underscoring our commitment to deliver greater value.”
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