Rio Tinto's earnings for the first half of 2022 fell to their lowest in three years due to lower iron ore prices. The group posted underlying earnings of $5.1 billion, a drop from $8.7 billion a year ago.
Lower prices for its commodities, in line with slowing global demand, led by the service sector, contributed to a $3.3 billion decline in the group's underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) overall compared to the 2022 first half. The average iron ore price was $98.6/wet metric tonne, compared to $110.9/wmt for the first half of 2022.
Rio Tinto will pay an interim dividend of $1.77 per share. In 2023, Rio Tinto expects its share of capital investment to be $7 billion, excluding the Simandou iron ore project. In 2024 and 2025, its share of capital investment is expected to be up to $10 billion/year, including up to $3 billion in growth per year.
Each year, Rio Tinto also includes sustaining capital of around $3.5 billion, with $1.5 billion for Pilbara iron ore and $2-$3 billion of replacement capital.
The group does not expect to achieve its targeted 15% reduction in Scope 1&2 emissions until after 2025 due to delays in physical delivery of renewables, diesel replacement, and process heat abatement. However, the firm remains committed to reducing Scope 1&2 emissions by 50% by 2030.
Comments
No comment yet.