Global miner Rio Tinto Ltd
(ASX:RIO) has posted a 65 per cent drop in net profit for the first half.
Net earnings for the six months to June 30 came to $2.5 billion, down from $6.9 billion recorded in the first half of 2008.
Underlying earnings fell 54 per cent to $2.6 billion from $5.5 billion the year before.
As a result of the miner’s recent rights issue, the company has reduced its net debt by $14.8 billion.
Net capital expenditure fell 22 per cent to $2.8 billion; Rio forecast capital expenditure to be approximately $5 billion in 2009.
Rio confirmed it would not pay an interim dividend but says it expects to make a 2009 final dividend payment.
Chairman Jan du Plessis says the company expects that the total cash dividend for the 2010 financial year will be at least equal to the total cash dividend payment for 2008 of $1.75 billion.
CEO Tom Albanese says Rio’s Pilbara iron ore operations set a new quarterly record in the second quarter of this year, consistently operating at a run rate exceeding 200 million tonnes per annum.
Rio Tinto’s 2008 net profit was US$3.7 billion a big drop from the previous year.
