Weak demand in China dropped Rio Tinto’s profit by 38%
2023.02.22 02:36
Weak demand in China dropped Rio Tinto’s profit by 38%
By Kristina Sobol
Budrigannews.com – Rio Tinto Iron ore prices fell on slower demand, particularly from China, as well as higher labor and material costs ate into earnings on Wednesday, leading to a 38.0 percent decrease in annual profit and a more than halving of its dividend.
China, the world’s largest steel producer, slashed COVID-19 restrictions last year, lowering iron ore prices from record highs.
An average realised price of $106.1 per dry metric tonne (dmt) of iron ore was earned by Rio Tinto last year, compared to $143.8 per dmt in 2021.
The Anglo-American miner had to pay more for fuel and raw materials, in addition to higher wages because there was a lack of skilled workers.
One of the largest producers of iron ore in the world, the company reported underlying earnings of $13.3 billion in 2022, compared to a record $21.4 billion in 2021 and an estimate of $13.8 billion from Refinitiv.
It declared a dividend of $4.92 per share for the entire year, down from the record payout of $10.40 per share in 2021.
