By Ambar Warrick
Investing.com — Anglo Australian miner Rio Tinto Ltd (ASX:) posted a pointy decline in its 2022 revenue on Wednesday, hit mainly by shrinking margins on its iron ore manufacturing as weak demand in China dented iron ore costs.
The miner’s revenue attributable to shareholders for the 12 months to December 31 fell to $12.42 billion from $21.09B a 12 months in the past, the miner mentioned in an announcement. Consolidated gross sales additionally shrank to $55.55B from $64.49B a 12 months in the past.
Rio Tinto declared a full-year dividend of $4.92 per share, lower than half of 2021’s record-high $10.40 per share.
Iron ore costs fell sharply from report highs in 2022, particularly within the second half of the 12 months as an financial slowdown in China intensified. This noticed Rio Tinto, which is the world’s largest producer of iron ore, log smaller realized costs on gross sales of the steelmaking materials, with its core earnings from iron ore down 33% from the prior 12 months.
Earnings from and additionally shrank 16% and 40%, respectively, on waning demand throughout the globe. Rising rates of interest and inflation noticed a pointy pullback in financial development throughout most main economies in 2022.
Rio Tinto’s iron ore shipments had been flat at 322 million tonnes. But they had been additionally on the decrease finish of the miner’s steering.
Still, the miner mentioned it should proceed to spend money on increasing its tasks in Pilbara and Mongolia.
A slowdown in China weighed closely on world commodity markets, as a rash of COVID-related disruptions dented the nation’s urge for food for metallic and power imports.
While the nation has now withdrawn most anti-COVID restrictions, financial information launched to this point has painted a combined image of restoration, particularly within the manufacturing and actual property sector.
Rio Tinto’s Australian peer BHP Group Ltd (ASX:), the world’s largest miner, additionally logged a for the final six months of 2022, owing to a slowdown in China. But the corporate forecast a robust rebound in commodity demand this 12 months on the again of a Chinese restoration.