Rio Tinto PLC (LSE:RIO) slashed its interim dividend and reported a 26% drop in underlying earnings in the first half on lower iron ore prices, higher energy prices and general inflationary pressures.
Underlying profit (EBITDA) fell to US$15.6bn, from US$21.0bn in the year-earlier period, with lower commodity prices responsible for US$3.4bn of the decline and higher operating costs shaving off another US$1.3bn.
The mining giant plans to pay an interim dividend of 267 US cents per share, its second-highest interim payout, although it falls short of the record 376 cents paid the previous year when it also declared a special dividend of 185 cents.
“The market environment has become more challenging at the end of the period,” said chief executive Jakob Stausholm.
It retained its full-year production guidance, but noted that iron ore shipments and bauxite output guidance remained subject to weather and market conditions.
The shares were down 3.3% in early trading in London, underperforming the FTSE-100 index.