Australian iron ore giant Rio Tinto has announced its financial results for 2014, posting a net profit of US$6.52 billion in the given period, up 78 percent compared to the previous year. The company's net debt decreased by $5.5 billion year on year to $12.5 billion as of December 31, 2014.
Rio Tinto's net profit from its iron ore unit in 2014 amounted to US$8.1 billion, down 18 percent year on year. However, record sales volumes in the Pilbara region contributed to US$1.3 billion of additional earnings in 2014. Rio Tinto's underlying earnings before interest, taxes, depreciation and amortization (EBITDA) for its iron ore unit were 18 percent lower year on year at US$14.24 billion in the given period.
During 2014, Rio Tinto's iron ore sales were 302.6 million mt, up 17 percent year on year, setting a new record. Pilbara sales in 2014 exceeded production by around eight million mt largely due to the drawdown of stockpiled iron ore inventory built at Pilbara mine sites in previous years to facilitate an accelerated ramp-up of the expanded port and rail facilities to 290 million mt per year. In the whole of 2014, Rio Tinto's Pilbara mines produced 295.4 million mt of iron ore, rising 11 percent compared to 2013.
According to Rio Tinto's statement, in 2015 the company expects global iron ore shipments to reach 350 million mt.