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
Pilbara production record as Rio Tinto releases Q2 results
(Posted on 16/07/26)Rio Tinto has driven performance to achieve 3% YoY CuEq1 growth in the first half of 2026.Chief Executive... Read more
Record iron ore production helps strengthen BHP growth pipeline
(Posted on 16/07/26)BHP have released its Operational Review for the year ended 30 June 2026.Chief Executive Officer, Brandon... Read more
Stranded sulphur cargoes in Gulf face mounting corrosion risk, warns Brookes Bell
(Posted on 07/07/26)Bulk carriers carrying elemental sulphur cargoes in the Strait of Hormuz are at significant risk of... Read more
BHP and Faraday Copper sign definitive San Manuel agreement
(Posted on 06/07/26)Further to BHP’s announcement in February, BHP, through a wholly owned subsidiary, has executed... Read more
Urea price dive hits Australian grain suppliers
(Posted on 03/07/26)Australia’s Federal Government's fertiliser support package has come under scrutiny as global... Read more
SSAB pauses work at construction site in Luleå
(Posted on 30/06/26)SSAB has once again paused work at the construction site for its new steel mill in Luleå, Sweden... Read more
Trafigura issues USD500 million senior bond
(Posted on 29/06/26)Trafigura Group Pte Ltd. has announced the issuance of a USD500 million senior Reg S bond with a five... Read more
NGFA welcomes Senate Farm Bill proposal
(Posted on 29/06/26)The National Grain and Feed Association (NGFA) in the USA has welcomed the release of Senate Agriculture... Read more
Agreement paves way to deliver 2.7 million tonnes of additional copper production
(Posted on 25/06/26)Anglo American plc, through its 50.1%-owned subsidiary, Anglo American Sur S.A., and Codelco, have announced... Read more
SSAB and partners launch closed loop steel recycling initiative in US
(Posted on 24/06/26)SSAB Americas, The Greenbrier Companies and Alter Trading are partnering on a circular economy project... Read more
