AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
On 28th February 2019, RIO Tinto (ASX:RIO) which is Australiaâs leading metals and mining company extracting metals like copper, diamond, gold etc. has presented its FY18 results and operational update.
The consolidated sales revenue increased from $40.03 billion in FY17 to $40.52 billion in FY18. The increase in revenue was contributed by enhanced volumes of copper and iron ore, higher prices for CU and AU offsetting the impact of lower FE prices and the companyâs coal divestments.
Product wise contribution to gross sales revenue are as follows: Iron ore contributed $18.5 billion in FY18 compared to $18.25 billion in FY17, Aluminium contributed $12.19 in FY18 billion compared to $11 billion in FY17, Bauxite contributed $2.3 billion in FY18 compared to $266 million In FY17, Copper contributed $6.46 billion in FY18 compared to $4.84 billion in FY17.Â
Few major projects were also completed in 2018 like Development of A21 pipe at the Diavik Diamond Mine in Canada (Rio Tinto 60%) worth $0.2 billion, Investment in AutoHaul, the automation of the Pilbara iron ore train system in Western Australia worth $0.9 billion.
The underlying EBITDA stood at a minor decline of 2% to $18.13 billion in FY18 from the previously reported number of $18.58 billion in FY17. The individual EBITDA contribution stood as follows; Iron ore at $11.32 billion, Aluminium at $3.09 billion, Copper and Diamonds at $2.77 billion, Energy and minerals at $2.19 billion and other operations reported negative EBITDA of $70 million. In 2018 the movements in the commodity prices resulted in an increase in EBITDA by $277 million compared with 2017.
The net earnings of the company were reported at $13.63 billion compared to the previously reported number of $8.76 billion in FY17. The primary component of this increased net earnings was the movement in exchange differences and gains on debt which stood at $1.51 billion and an increase in consolidation and disposal gains which were realised at $1.97 billion. It was primarily driven by a lower charge at Oyu Tolgoi due to some assets being fully depreciated, and the sale of the thermal coal assets in 2017 which resulted in the depreciation and amortisation charges were lower by $391 million than in 2017.
As far as cash flow is concerned, the company generated $11.8 billion of cash from the operating activities which decreased by 15% from $13.88 billion in FY17. The free cash flow generated also decreased from $9.54 billion in FY17 to $6.97 billion in FY18, which is a decline of more than 26% in a year. The company ended the year with the net cash of $0.3 billion.
The company is committed to increasing the shareholders' value. In FY18, the Company distributed a total of $2.4 billion out of the net profit in the form of the dividends which was higher than the distribution of $1.72 billion in FY17.
After the presentation, the stock price closed marginally higher around 1.093% at A$96.16 as of 28th February 2019, compared to the previous closing of A$95.12. The YTD return of the stock is 24.10%
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
