Uranium producer Energy Resources of Australia Ltd (ERA) (ASX: ERA) said on Friday that its first half profit suffered declines as the company saw sliding production, spiralling maintenance costs and a better performing Australian dollar all conspiring in pulling down its revenues.

The company, which is majority-owned by Rio Tinto Ltd, reported that first half net profit after tax plunged by 82 percent to $22.7 million, coming from the $127.6 million realised in the previous corresponding period.

ERA admitted that it struggled in accessing higher grade ore this year and was subsequently compelled to downgrade its uranium oxide's production guidance for 2010, now projected to merely reach between 4,300 and 4,700 tonnes, coming from the prior production indication much similar to 2009 which peaked to 5,240 tonnes.

As a result of the reduced production, the company said that it would be inevitable that exports of uranium oxide for nuclear facilities to its major markets in Asia, Europe and North America would be greatly affected.