Rio Tinto posts strong financial results for 2019; Revenues stand 7% above 2018

Rio Tinto has announced its full-year financial results of 2019, where it reveals strong safety performance with no fatalities and a slightly improved all injury frequency rates, coming from a strong base. The company’s net cash generated from operating activities stood at US$ 14.91 billion, up 26 per cent from US$ 11.82 billion in 2018. Free cash flow, as a result, rose by 31 per cent from US$ 6.97 billion to US$ 9.15 billion. Both are presented after $0.9 billion tax paid in 2019 relating to the 2018 coking coal disposals.

Rio’s 2019 capital expenditure remained consistent at US$ 5.48 billion, compared to US$ 5.43 billion in the previous year. Underlying EBITDA and underlying earnings came in at US$ 21.19 billion and US$ 10.37 billion, respectively, recording a growth of 17 per cent and 18 per cent from US$ 18,136 million and US$ 8,808 million in 2018. Underlying earnings per share also stood 24 per cent above at 512.3 US cents.

Taking exclusions into account, net earnings of $8.0 billion were 41% lower than 2018, mainly reflecting $1.7 billion of impairments in 2019, primarily the Oyu Tolgoi underground project, consistent with our 2019 interim results, and the Yarwun alumina refinery.

Total dividend per share, however, stood down by 19 per cent from 307 US cents to 382 US cents.

Rio Tinto in 2019 also saw stronger revenues of $43.2 billion, 7 per cent higher than 2018, primarily driven by higher iron ore prices. This was partially offset by lower copper and aluminium prices and the absence of revenues from assets divested in 2018. Underlying earnings from aluminium stood 56 per cent lower from US$ 1.34 billion to US$ 599 million.

Rio Tinto Chief Executive J-S Jacques said, “We have again delivered strong financial results. Our world-class portfolio and strong balance sheet serve us well in all market conditions, and are particularly valuable in the current volatile environment. We are closely monitoring the impact of the Covid-19 virus and are prepared for some short-term impacts, such as supply-chain issues. Our products are currently reaching our customers.”

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