Rio Tinto reports record EBITDA and cash generation for full year 2017

Rio Tinto announces financial results for 2017 with a cash generation of $13.9 billion, full year dividend of record $5.2 billion and an additional $1 billion share buy-back. The share buy-back will be completed by the end of 2018.

Commenting on the results, Rio Tinto chief executive J-S Jacques said “Today we have announced a strong set of results with operating cash flow of $13.9 billion, a record full year dividend of $5.2 billion and an additional $1 billion share buy-back. This brings total cash returns to shareholders to $9.7 billion declared for 2017.”

Underlying EBITDA for the full year stood at $18.6 billion and a ten year record EBITDA margin of 44 per cent has been recorded. The company reported underlying earnings of $8.6 billion and net earnings of $8.8 billion.

Rio Tinto achieved $0.4 billion of additional free cash flow from mine to market productivity programme. This is an achievement at the backdrop of rising raw material costs across the industry. Amrun bauxite project is on track and progressing fast.

“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,” Jacques added.

According to him Rio Tinto’s ability to invest in high value growth and deliver higher cash returns to shareholders is driven by a strong balance sheet, world-class assets and disciplined allocation of capital.