Rio Tinto delivers underlying earnings of $4.5 billion, maintains 2015 full year dividend

By Admin
Rio TintoChief Executive Sam Walsh said “Against a highly challenging environment, Rio Tinto delivered a strong performance in 2015 with underlyin...

Rio Tinto Chief Executive Sam Walsh said “Against a highly challenging environment, Rio Tinto delivered a strong performance in 2015 with underlying earnings of $4.5 billion. We continued to take decisive action to preserve cash through further cost reductions, lower capital expenditure and the release of working capital. This focus on cash resulted in operating cash flows of $9.4 billion.

“At the same time, we have significantly strengthened our balance sheet and finished 2015 with net debt of $13.8 billion, which is $700 million better than the $14.5 billion pro-forma position at the end of 2014.

“The continued deterioration in the macro environment has generated widespread market uncertainty. We are embarking on a new round of proactive measures to cut our operating costs by a further $1 billion in 2016 followed by an additional goal of $1 billion in 2017. We are also reducing our capital expenditure to $4 billion in 2016 and $5 billion in 2017, an overall reduction of $3 billion compared with our previous guidance.

• Related:Mining management: BHP Billiton, Rio Tinto and Vale

“These significant actions provide us with the confidence that we remain robustly positioned to maintain both balance sheet strength and deliver shareholder returns through the cycle.”

Rio Tinto chairman Jan du Plessis said “The board has announced today a final dividend of 107.5 US cents per share, bringing the 2015 full year dividend to 215 US cents per share, in line with 2014.

“Over the past five years we have returned more than $25 billion to our shareholders, underlining our commitment to shareholder returns. However, with the continuing uncertain market outlook, the board believes that maintaining the current progressive dividend policy would constrain the business and act against shareholders’ long-term interests. We are therefore replacing the progressive dividend policy with a more flexible approach that will allow the distribution of returns to reflect better the company’s position and outlook. For 2016, we intend that the full year dividend will not be less than 110 US cents per share.”

View the full year-to-year report here

Stay connected! Follow us on Twitter and like us on Facebook 

Check out the latest edition of Mining Global

Share

Featured Articles

Data-Driven ABB Smart Hoisting Solution 'is Safety Boon'

Electrification and automation multinational ABB announces Smart Hoisting solution to automatically harvest data for safer and more efficient hoisting

Deep Sea EV Metals Mining Firm in Greenpeace Clash

Greenpeace Face UN ban after disrupting research trip by The Metals Company, who mine battery-grade metals from rocks on sea bed

KPMG: Canada Critical Minerals Mining 'Needs tax Breaks'

KMPG survey shows Canada’s mining leaders see potential for success in critical minerals vital for sustainability, but say more government support needed

Saudi and UAE Oil Companies 'to Produce Lithium for EVs'

Technology

Mining Industry has Long Way to go on Addressing DEI Issue

Sustainability

KPMG: ESG Chief Worry for Australian Mining Companies

Operations