South32’s revenue declines by 8% to US$2,943M in H1 FY21

South32 published results for the half year ended 31 December 2020 (H1 FY21). The Group reported statutory profit after tax of US$53M in H1 FY21, a drop of US$46M from last year. Underlying EBITDA stood at US$633M, down 7 per cent from US$678M in H1 FY20.

“As we continue to navigate the uncertainties created by the COVID-19 pandemic, our focus remains on keeping our people safe and well, maintaining safe and reliable operations and supporting our communities,” said Graham Kerr, South32 CEO.

 “During this period of volatility, we have focused on what we can control, delivering a strong operating result, including record production at Worsley Alumina, Brazil Alumina and Australia Manganese, supporting lower Operating unit costs at the majority of our operations during the half.”

Group Revenue declined by 8 per cent year-on-year to US$2,943M in H1 FY21 as lower realised prices for metallurgical coal, alumina and manganese ore were partially offset by increased sales volumes and higher silver and zinc prices.

“We are off to a strong start in 2021, as we continue to build on our recent operating performance. Our net cash has increased from US$275 million on 31 December to US$452 million at the end of January, and we are now seeing a rebound in demand from markets outside of China for some of our key commodities, that is underpinning a recovery in prices. With this, our business is well placed to benefit as the global economy recovers, enabling us to deliver value for all our stakeholders.”