SYDNEY: Rio Tinto rewarded shareholders on Wednesday with a record dividend as the mining giant reported a bumper annual net profit of $8.76 billion in 2017, a 90 per cent jump as commodity prices strengthened.
The Anglo-Australian firm had posted $4.62 billion in annual profit in the previous financial year, turning around a loss in 2015 when key metals prices slumped and the growth in Chinese demand slowed.
“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,” chief executive Jean-Sebastien Jacques said. He added that the firm’s strong position had allowed it to “invest in high-value growth through the cycle, and consistently deliver superior cash returns to shareholders”.Underlying profit for the year to December 31 — a measure preferred by the world’s second-largest miner — was $8.63 billion, a 69 per cent rise from the previous period and broadly matching analysts’ expectations.
The bulk of underlying earnings came from its main commodity, iron ore, at $6.69 billion.
The company issued a record full-year dividend of $5.2 billion — $2.90 per share — and announced a billion-dollar share buyback. — AFP
Oman Observer is now on the WhatsApp channel. Click here
