Anglo American slashes dividend after earnings dive
2022.07.28 09:46
FILE PHOTO: Smoke rises from the Duvha coal-based power station owned by state power utility Eskom, in Mpumalanga province, South Africa, 18 February, 2020. REUTERS/Mike Hutchings/
LONDON (Reuters) -Global miner Anglo American (LON:AAL) slashed payouts to shareholders after first-half earnings fell 28% due to lower production and higher costs.
Anglo joins rival miners Rio Tinto (NYSE:RIO) and Freeport-McMoRan (NYSE:FCX) in reporting a profit slump, partly blaming a tight labour market, supply chain snags and inflationary pressures.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $8.7 billion for the six months to the end of June, down from $12.1 billion for the same period last year, but beating an average forecast of $8.56 billion from 10 analysts compiled by research firm Vuma.
Anglo declared an interim dividend of $1.24 per share, down 27% from last year’s $1.71 per share interim payout. Over 2021 as a whole, Anglo declared a record $6.2 billion in payouts, including a $1 billion share buyback in August.
Capital expenditure increased 13% from the same period last year, to $2.6 billion, which Anglo put down to spending normalising after deferrals due to the pandemic.
