Diversified mining giant Eurasian Natural Resources Corp (ENRC) was hit by a fall in commodity prices and challenging economic conditions in the first half, meaning that both revenues and profits were significantly lower than the same period in 2011.
Therefore, while a dividend payout ratio of 18% was maintained, the dividend per share was slashed by 59.4% from 16 cents to 6.5 cents.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Meanwhile, with the cost of sales rising by 4% due to increases in inflation, depreciation and wage rates, profit before tax dropped 52% from $1,631m to just $667m.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 40.6% from $1,927m to $1,144m, while the underlying EBITDA margin fell from 48.0% to just 35.2%.
"ENRC has shown a resilient performance in the first half of 2012, a period characterised by deepening economic uncertainty and declining prices for our key products. In the light of these market conditions we have concentrated on controlling our costs and enhancing productivity, with unit cost inflation falling well below our earlier guidance," said Chief Executive Officer Felix Vulis.
"Our growth programme in both Kazakhstan and internationally, has progressed well and is on-track to deliver significant value in the coming years. We expect that demand will remain robust for our core commodities in the second half of the year," he said.
Net debt was flat at $3,411m.
BC
