Rio Tinto Limited (ASX: RIO) shares fell 1.8% on Thursday following the release of its 2017 full year results.
In an announcement to the ASX on Wednesday, the $130 billion mining heavyweight revealed its financial performance for the year ended 31 December 2017.
Here is the key news (all figures are in USD):
- Revenue of $40 billion, up from $33.7 billion
- Net profit was $8.8 billion on a statutory basis, up from $4.8 billion
- A final dividend of $2.90 per share was declared, up 71%
- Capital expenditure rose 49% to $4.5 billion
- Net debt dropped from $9.6 billion to $3.8 billion
“Today we have announced a strong set of results with operating cash flow of $13.9 billion, a record full year dividend of $5.2 billion and an additional $1 billion share buy-back,” Rio Tinto CEO, J-S Jacques said. “The strength of our cash flow is a result of resilient prices during the year coupled with a robust operational performance and a focus on mine to market productivity.”
In addition to the financials noted above, Rio Tinto announced an additional $1 billion share buyback to be completed by the end of 2018.
“Our strong balance sheet, world-class assets and disciplined allocation of capital puts us in the unique position of being able to invest in high-value growth through the cycle, and consistently deliver superior cash returns to shareholders,” Jacques added.
Throughout 2017 Rio Tinto returned the equivalent of $9.7 billion to shareholders, with $5.2 billion of dividends, $2 billion of share buybacks and a $2.5 billion supplementary share buyback for the Coal & Allied proceeds.
Turning to the performance of key commodities, Rio Tinto’s total revenue from iron ore jumped from $14.6 billion up to $18.2 billion. Rio Tinto said its iron ore prices rose 20% on average, compared to the year prior.
Revenue from aluminium rose from $9.4 billion to $11 billion, with net earnings rising from $947 million to $1.6 billion. Average sales prices of aluminium were $1,969 per tonne, up 23%.
Copper & Diamonds revenue rose modestly to $4.8 billion, while the Energy & Minerals division, which includes Rio Tinto’s coal and uranium assets among other things, achieved net earnings of $1.2 billion up from $612 million.
Looking ahead, Rio Tinto’s production targets remain unchanged. The miner is targeting free cash flow productively benefits to the tune of $5 billion between 2017 and 2021, including $0.3 billion in 2018.
Rio Tinto shares were trading 1.8% lower at $76.90 on Thursday.
Rio Tinto competitor BHP Billiton Limited (ASX: BHP) is expected to report its half-year results February 20th.
Join Rask’s Investor Club Newsletter Today
You can join Rask’s FREE investor’s club newsletter today for all of the latest news and education on investing. Join today – it doesn’t cost a thing. BUT, you’ll need a good sense of humour and a willingness to learn.
Keep Reading
- The Best Investors Are Dead or Female
- Is Bitcoin Going To Zero?
- Did NAB Make $1.56 Billion in 3 Months?
- AMP’s Profit Result: What you need to know
Disclaimer: This article contains general information only. It is no substitute for licenced financial advice and should not be relied upon. By using our website you agree to our Disclaimer & Terms of Use and Privacy Policy.
