PROFIT & LOSS

Record Rio returns for shareholders

Rio Tinto has announced a record US$13.5 billion in returns to shareholders.

Kristie Batten
Record Rio returns for shareholders

That comprised a final dividend of $3.1 billion, or $1.80 per share, and a special dividend of $4 billion, taking the total final dividend to $3.07 per share, up 6% on last year.

Macquarie had tipped a special dividend of $2 per share, following the divestment of Rio's stake in Grasberg.

The bumper returns distracted from what was a flat but largely as-expected result.

Underlying EBITDA dropped just 2% to $18.1 billion, in line with Macquarie Bnk's forecast.

The Pilbara iron ore division accounted for $11.3 billion of the result, followed by aluminium with just under $3.1 billion.

Free cashflow was $7 billion.

Underlying earnings were 2% higher at $8.8 billion, while net earnings jumped 56% to $13.6 billion, driven primarily by gains on disposals and foreign exchange movements.

"We have once again announced record cash returns to shareholders of $13.5 billion on the back of $18 billion of underlying EBITDA and a return on capital employed of 19%,"Rio chief executive J-S Jacques said.

"These strong results reflect the efforts of the team to implement our value-over-volume strategy as we continued to strengthen the portfolio and invest in future growth.

"Our world-class portfolio and strong balance sheet will serve us well in all market conditions, and underpin our ability to continue to invest in our business and deliver superior returns to shareholders in the short, medium and long-term."

The company reported it is now in a net cash position of $255 million.

More to come...

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.