Rio Tinto Chief Executive Jakob Stausholm said: “We remain focused on delivering on our long-term strategy, with a steady improvement in operating performance and some notable advances in our growth agenda. We continue to strengthen our partnership with the Mongolian government following commencement of underground mining at Oyu Tolgoi, delivered first iron ore from the Gudai-Darri mine and approved early works funding at the Rincon lithium project.
“Market conditions were good, albeit below last year’s record levels. We delivered largely flat production and solid financial results, with underlying EBITDA of $15.6 billion, free cash flow of $7.1 billion and underlying earnings of $8.6 billion, after taxes and government royalties of $4.8 billion. As a result, we are paying our second highest ever interim dividend of $4.3 billion, a 50% payout, in line with our policy. The market environment has become more challenging at the end of the period.
“We are committed to making lasting, long-term change to our culture, including to our workplace culture, and to building better relationships with Indigenous peoples, communities and partners. The progress we are making will ensure we continue to deliver attractive returns to shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society in the drive to net-zero carbon emissions.”
Six months ended 30 June | 2022 | 2021 | 2020 | Change vs 2021 | Change vs 2020 | ||||
Net cash generated from operating activities (US$ millions) | 10,474 | 13,661 | 5,628 | (23)% | 86% | ||||
Purchases of property, plant and equipment and intangible assets (US$ millions) | 3,146 | 3,336 | 2,693 | (6)% | 17% | ||||
Free cash flow1 (US$ millions) | 7,146 | 10,181 | 2,809 | (30)% | 154% | ||||
Consolidated sales revenue (US$ millions) | 29,775 | 33,083 | 19,362 | (10)% | 54% | ||||
Underlying EBITDA1 (US$ millions) | 15,597 | 21,037 | 9,640 | (26)% | 62% | ||||
Profit after tax attributable to owners of Rio Tinto (net earnings) (US$ millions) | 8,908 | 12,313 | 3,316 | (28)% | 169% | ||||
Underlying earnings per share1 (EPS) (US cents) | 532.7 | 751.9 | 293.7 | (29)% | 81% | ||||
Ordinary dividend per share (US cents) | 267.0 | 376.0 | 155.0 | (29)% | 72% | ||||
Special dividend per share (US cents) | – | 185.0 | – | (100)% | n/a | ||||
Total dividend per share (US cents) | 267.0 | 561.0 | 155.0 | (52)% | 72% | ||||
Underlying return on capital employed (ROCE)1 | 34% | 50% | 21% | ||||||
At 30 June 2022 | At 31 December 2021 | ||||||||
Net cash 1 (US$ millions) | 291 | 1,576 | |||||||
1 This financial performance indicator is a non-IFRS (as defined below) alternative performance measure (“APM”). It is used internally by management to assess the performance of the business and is therefore considered relevant to readers of this document. It is presented here to give more clarity around the underlying business performance of the Group’s operations. First half 2022 and first half 2021 APMs are reconciled to directly comparable International Financial Reporting Standards (IFRS) financial measures on pages 69 to 76. First half 2020 APMs are reconciled within the 2020 Half Year Results | |||||||||
