Rio Tinto doubles six-month net profit to US$3.3 billion

SYDNEY: Rio Tinto, one of world’s largest mining companies, has posted an almost US$3.3 billion (RM14.1 billion) half-year net profit, an increase of 93% on the same period last year, due to higher iron ore and coal prices.

The mining giant said its revenue was up 25% year on year to US$19.3 billion in the first half of 2017.

The interim dividend has gone up 65 cents to US$1.10 per share.

Its underlying earnings, which excludes impairments and exchange losses, more than doubled to US$3.9 billion over the same period.

Chief executive Jean-Sebastien Jacques said Rio would deliver cash returns of US$3 billion to its shareholders.

“By driving performance, focusing on cash and allocating it with discipline we are delivering superior cash returns to our shareholders,” he said in a statement.

“These are strong results: operating cash flow was US$6.3 billion and we met our US$2 billion cash cost reduction target six months early.”

In February, prices for iron ore, Rio’s main income generator, peaked at nearly US$95 a ton.

It has decreased to US$73 dollars amid a slowing Chinese economy and concerns about oversupply.

The company’s underlying earnings from iron ore increased 87% to US$3.3 billion year on year, while earnings from its energy division increased almost eightfold to US$652 million.

Rio Tinto expects capital expenditure to remain at around US$5 billion in 2017 and around US$5.5 billion in 2018. – dpa