Port of StocktonBühler GmbHCoaltrans Asia 2021The Wolfson Centre for Bulk Solids Handling Technology TMS Awards 2021Van Aalst
  • Bühler GmbH
  • Coaltrans Asia 2021
  • Vigan
  • Van Aalst
  • Cimbria
  • Sailors Society

Rio Tinto’s $3.5 billion shareholders returns

Rio Tinto’s $3.5 billion shareholders returns

(Posted on 08/08/19)

Rio Tinto chief executive J-S Jacques said "We have delivered strong financial results with underlying EBITDA of $10.3 billion and EBITDA margin of 47%. Our financial performance was driven by our Pilbara operations with a 72% EBITDA margin, underpinned by strong iron ore prices.

"We are taking actions to protect the Pilbara Blend and optimise performance across our iron ore system, following the operational challenges which emerged in the first half.

"Our world-class portfolio and strong balance sheet serve us well in all market conditions. This, together with our disciplined capital allocation, underpins our ability to continue to invest in our business and deliver superior returns to shareholders in the short, medium and long term. Our delivery is in evidence today, with our record interim returns of $3.5 billion."

  • Sustained improvement in safety performance, with the All Injury Frequency Rate continuing to decline, a reduction in the severity rate and fewer process safety incidents.
  • Underlying EBITDA3 of $10.3 billion (excluding the contribution from the coking coal assets divested in 2018), was 19% above 2018 first half, with an EBITDA margin7 of 47%.
  • Operating cash flow of $6.4 billion is presented net of $0.9 billion of tax paid in 2019 first half relating to the 2018 coking coal disposals.
  • Free cash flow2 of $3.9 billion was 35% higher than 2018 first half.
  • Cash returns of $3.5 billion announced today, comprising record interim ordinary dividend of $2.5 billion, equivalent to 151 US cents per share, and special dividend of $1.0 billion, equivalent to 61 US cents per share.
  • $4.9 billion underlying earnings3, 12% higher due to a strong contribution from Iron Ore.
  • Following our update on the Oyu Tolgoi underground project on 16 July 2019, we completed an impairment assessment and concluded that the changes to project cost and schedule led to an impairment charge, net of tax and non-controlling interests, of $0.8 billion. The impairment is reflected in net earnings of $4.1 billion9.
  • Record 23% Return on Capital Employed6, a rise of four percentage points on 2018.
  • Strong balance sheet with net debt5 of $4.9 billion, mainly reflects $7.8 billion of cash returns to shareholders paid in 2019 first half, partly offset by free cash flow.

Latest News

Rio Tinto teams with Caterpillar for zero-emissions autonomous trucks

(Posted on 16/09/21)

Rio Tinto and Caterpillar have signed a Memorandum of Understanding (MoU) for Caterpillar’s development... Read more


German government commits to fund ArcelorMittal Hydrogen DRI plant

(Posted on 13/09/21)

During a visit to ArcelorMittal Germany’s steel plant in Hamburg, Federal Environment Minister... Read more


Fossil-free steel pioneered in cargo handling industry

(Posted on 07/09/21)

Cargotec and SSAB have agreed to work on the introduction of fossil-free steel to the cargo handling... Read more


Australian mining well placed to support Japan’s decarbonisation efforts

(Posted on 02/09/21)

Australian mining’s long-term partnership with Japan on commodity trade to support economic growth... Read more


ADM announces industry’s first carbon neutral milling operations

(Posted on 31/08/21)

ADM has announced that the company has achieved net carbon neutral status for its U.S. flour milling... Read more


Australian grain growers welcome Ag Visa despite tight timing

(Posted on 27/08/21)

GrainGrowers has welcomed the announcement by Australia’s Federal Government to deliver a dedicated... Read more


Marathon to invest in ADM’s soybean facility

(Posted on 23/08/21)

Marathon Petroleum Corp and ADM have announced an agreement to form a joint venture for the production... Read more


Hill Dickinson consolidates commodities expertise

(Posted on 20/08/21)

Maritime law specialist Hill Dickinson has boosted its commodities expertise in Asia and the Far East... Read more


NGFA commends US Senate for infrastructure deal

(Posted on 12/08/21)

The USA’a National Grain and Feed Association (NGFA) has commended Senate lawmakers for passing... Read more


BHP revs into Komatsu's GHG Alliance

(Posted on 09/08/21)

To accelerate its push to become a net-zero operator by 2050, BHP will become a founding member of Komatsu... Read more


ViganCleveland Cascades LtdTelestackPort of South LouisianaTOC EventsSailors Society
  • TMS Awards 2021
  • TBA Group

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping