Anglo American cuts interim dividend as earnings fall

In the six months to 30 June, underlying earnings before interest, tax, depreciation and amortisation fell 28% to $8.7bn. Anglo said this was due to a 2% decrease in the price of the group's basket of products versus a year earlier, unfavourable sales volumes and higher input costs.

Revenues were down 17% at $18.1bn, profit was 29% lower at $3.6bn and the interim dividend was slashed by 27% to $1.24 a share.

"The war in Ukraine, and resulting trade sanctions on Russia, have restricted the supply of certain key commodities to the market, and caused further disruption to already stretched global supply chains," Anglo said.

"This has resulted in higher prices for energy, agricultural and other commodities, exacerbating broader inflationary pressures across the global economy, and contributing to more aggressive interest rate rises by central banks than had been expected and an associated strengthening of the dollar.

"While the medium and longer-term demand outlooks for our products remain strong - not least given the role these play in sustaining global economic development for a growing population and enabling the decarbonisation of energy and transport systems - these deteriorating macro-economic conditions are contributing to a weaker near-term outlook for demand, due to weaker investment and slower real income growth."