Improved operational performance with 5% volume uplift supports underlying EBITDA of $11.7 billion and interim dividend of 177 US cents per share
July 26 2023 - 2:21AM
Business Wire
- Net cash generated from operating activities of $7.0
billion.
- Profit after tax attributable to owners of Rio Tinto
(referred to as "net earnings" throughout this release) of $5.1
billion, after $0.8 billion of impairments relating to our
Australian alumina refineries.
- Underlying EBITDA of $11.7 billion and underlying earnings
of $5.7 billion, leading to an interim dividend of $2.9 billion, a
50% payout, in line with our practice.
Rio Tinto (LSE:RIO) (ASX:RIO):
Six months ended 30 June
2023
2022
Change
Net cash generated from operating
activities (US$ millions)
6,975
10,474
(33)%
Purchases of property, plant and equipment
and intangible assets (US$ millions)
3,001
3,146
(5)%
Free cash flow1 (US$ millions)
3,769
7,146
(47)%
Consolidated sales revenue (US$
millions)
26,667
29,775
(10)%
Underlying EBITDA1 (US$ millions)
11,728
15,597
(25)%
Profit after tax attributable to owners of
Rio Tinto (net earnings)2 (US$ millions)
5,117
8,943
(43)%
Underlying earnings per share (EPS)1 2 (US
cents)
352.9
534.9
(34)%
Ordinary dividend per share (US cents)
177.0
267.0
(34)%
Underlying return on capital employed
(ROCE)1
20%
34%
At 30 June 2023
At 31 Dec 2022
Net debt1 (US$ millions)
4,350
4,188
Rio Tinto Chief Executive Jakob Stausholm said: "We have a clear
pathway to building an even stronger Rio Tinto and continue to gain
momentum in our strategy to set the business up for long-term
success. We are making good progress on pursuing our four
objectives as we build further momentum in our Pilbara iron ore
business, mindful that we need to raise our game across many of our
other operations.
"Our disciplined investment in lifting the health of our assets
and focus on culture, mindset and relationships is delivering
results, with our Pilbara iron ore business consistently improving
its performance with five consecutive quarters of year-on-year
growth. We are taking real steps to shape our portfolio for the
future, with first sustainable production from Oyu Tolgoi
underground, just as we doubled our exposure through the
acquisition of Turquoise Hill Resources. Last week we signed an
agreement to form the Matalco aluminium joint venture to enter the
exciting and fast growing aluminium recycling industry in North
America. And the Simandou iron ore project in Guinea is advancing
at pace, with final approvals expected later this year.
"Our robust financials, despite softer market conditions, are
driven by the quality of our assets and our great people,
delivering underlying EBITDA of $11.7 billion, free cash flow of
$3.8 billion and underlying earnings of $5.7 billion, after taxes
and government royalties of $4.1 billion. Our balance sheet
strength enables us to continue to invest with discipline while
also paying an interim ordinary dividend of $2.9 billion, a 50%
payout, in line with our practice.
"We will continue paying attractive dividends and investing in
the long-term strength of our business as we sustain and grow our
portfolio, while contributing to society's drive to net zero."
The 2023 Half Year Results release is available here.
1 This financial performance indicator is a non-IFRS (as defined
below) measure, which is reconciled to directly comparable IFRS
financial measures (non-IFRS measures). It is used internally by
management to assess the performance of the business and is
therefore considered relevant to readers of this document. It is
presented here to give more clarity around the underlying business
performance of the Group’s operations. For more information on our
use of non-IFRS financial measures in this report, see the section
entitled “Alternative performance measures” (APM) and the detailed
reconciliations on pages 71 to 80. Our financial results are
prepared in accordance with IFRS — see page 39 for further
information. Footnotes are set out in full on page 25.
2 Comparative information has been restated to reflect the
adoption of narrow scope amendments to IAS12 'Income Taxes', refer
to page 41 for details.
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media.enquiries@riotinto.com
Media Relations, United Kingdom Matthew
Klar M +44 7796 630 637 David Outhwaite M
+44 7787 597 493
Media Relations, Americas Simon Letendre
M +1 514 796 4973 Malika Cherry M +1 418 592
7293 Media Relations, Australia Matt
Chambers M +61 433 525 739 Jesse Riseborough
M +61 436 653 412 Alyesha Anderson M +61 434
868 118 Investor Relations, United Kingdom
Menno Sanderse M +44 7825 195 178 David
Ovington M +44 7920 010 978 Laura Brooks M
+44 7826 942 797
Investor Relations, Australia Tom Gallop
M +61 439 353 948 Amar Jambaa M +61 472 865
948 Rio Tinto plc 6 St James’s Square London SW1Y 4AD United
Kingdom T +44 20 7781 2000 Registered in England No. 719885
Rio Tinto Limited Level 43, 120 Collins Street
Melbourne 3000 Australia T +61 3 9283 3333 Registered in
Australia ABN 96 004 458 404
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