Rio Tinto’s underlying EBITDA drops 6% in H1 2020 on lower aluminium price

Rio Tinto reported results for the first half of 2020. The company reported underlying EBITDA of $9.6 billion, 6% lower than 2019 first half, primarily due to lower prices for aluminium and copper, with EBITDA margin of 47%.

Net earnings stood at $3.3 billion. That was down 20% from $4.1 billion in the first half of 2019. The company declared an interim dividend of $2.5 billion, equivalent to 155 US cents per share.

Revenues for the first six months of the year stood at $19.4 billion, 7% lower than 2019 first half, mainly due to lower prices and volumes for copper and lower aluminium prices.

Rio Tinto Chief Executive J-S Jacques said “We have been agile and adapted our way of working, to deliver another resilient performance while navigating the new and ongoing challenges of dealing with COVID-19.”

“Despite the challenging backdrop, we generated underlying EBITDA of $9.6 billion, with a margin of 47%, driven by our strong and stable operations, with all of our assets continuing to operate throughout the first half. As a result, we have declared an interim dividend of $2.5 billion, equivalent to 155 US cents per share, and have reconfirmed our 2020 production guidance across all commodities.”

“Our world-class portfolio of high-quality assets and our strong balance sheet consistently serve us well in all market conditions and particularly in turbulent times. This, together with our disciplined capital allocation, underpins our ability to sustain production, increase our investment in the business, pay taxes and royalties to governments and continue delivering superior returns to shareholders.”