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Highlights
- Underlying profit after tax of US$10.9 billion, with EBITDA of US$23.3 billion.
- Revenue dipped slightly by 1% to US$53.6 billion, impacted by an 11% drop in iron ore prices.
- Dividend per share set at 402 US cents, down from 435 cents in 2023.
Mining giant Rio Tinto Ltd (ASX:RIO) has delivered a strong financial performance for the year ended December 31, despite facing weaker iron ore prices. The company reported an underlying profit after tax of US$10.9 billion and an underlying EBITDA of US$23.3 billion, reflecting a marginal 2% decline from the previous year.
Resilient Performance Amid Market Pressures
Rio Tinto’s total revenue stood at US$53.6 billion, down 1% from US$54.0 billion in the prior year. This decline was largely attributed to an 11% drop in iron ore prices, a key revenue driver for the company. However, CEO Jakob Stausholm noted that higher prices for bauxite, LME copper, and aluminium helped offset the impact.
“With underlying EBITDA of $23.3 billion and operating cash flow of $15.6 billion, we are increasing our investments to underpin our plans for a decade of profitable growth,” Stausholm stated.
Dividend Decline but Strong Capital Returns
Rio Tinto’s ordinary dividend per share was set at 402 US cents, a slight reduction from 435 US cents in 2023. The company reported that it had paid $8.2 billion in taxes and government royalties, emphasizing its commitment to maintaining strong capital returns while investing in future growth.
Additionally, Rio Tinto achieved a healthy return on capital employed (ROCE) of 18%, reinforcing its position as a leading global mining powerhouse.
Market Reaction & Future Outlook
The company’s stock has been trading at A$121.95,
