Australian iron ore giant Rio Tinto has announced its financial results for the first half of 2012, registering solid financial results driven by the record operational performance of its iron ore division.
Rio Tinto posted a net profit of US$5.9 billion in the given period, down 22 percent compared to the net profit of US$7.6 billion in the corresponding period of 2011. The company's consolidated sales revenues amounted to US$25.33 billion, down 12.8 percent year on year. Rio Tinto's underlying earnings before interest, taxes, depreciation and amortization (EBITDA) were 29 percent lower year on year at US$10.07 billion in the first six months of the current year.
The company's net debt increased from US$8.5 billion at December 31, 2011 to US$13.2 billion at June 30, 2012 as strong operating cash inflows were offset by outflows relating to capital expenditure, acquisitions, the increase in dividend and the share buy-back program.
In the first half of the year, Rio Tinto's Pilbara mines in Western Australia achieved a record output of 114 million mt, up four percent year on year, while production continued to exceed sales as the business prepared itself for expansion to 283 million mt per year.