Rio Tinto H1 Pre-tax Profit Rises - Quick Facts

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc. (RTNTF, RIO, RIO.L, RTPPF) reported that its profit before taxation for the first-half of 2016 increased to $2.10 billion from $1.75 billion in the same period last year.

Net profit attributable to the owners of the company for the period rose to $1.71 billion from $806 million in the prior-year period. Earnings per share from continuing operations increased to 94.9 cents from 43.5 cents last year.

Net earnings of $1.7 billion reflect net gains on disposals of business of $0.2 billion, non-cash exchange rate and derivative gains of $0.6 billion, an onerous contract provision of $0.5 billion and restructuring costs of $0.1 billion.

However, underlying earnings for the period were $1.56 billion, down 47 percent from $2.92 billion in the year-ago period. Underlying earnings per share fell to 87.0 cents from 159.1 cents last year.

The company noted that cash cost improvements, lower energy costs and positive currency and other movements partly offset the $1.9 billion impact of lower prices.

Consolidated sales revenues for the half year declined 13.8 percent to $15.50 billion from $17.98 billion in same period of last year, reflecting a $2.6 billion reduction due to the decline in commodity prices.

Looking ahead, Rio Tinto said that its production guidance in unchanged from the second quarter operations review, except for mined copper, which is now expected to be between 545 and 595 thousand tonnes in 2016.