You are here

Mining giant Rio Tinto half-year net profit almost doubles

Wednesday, August 2, 2017 - 15:43

file6w2eoho0bzl1kq9ja8lf.jpg
Mining giant Rio Tinto Wednesday reported a 93 per cent jump in first-half net profit on the back of rising commodity prices as it returned a bumper US$3 billion to shareholders.

[SYDNEY] Mining giant Rio Tinto Wednesday reported a 93 per cent jump in first-half net profit on the back of rising commodity prices as it returned a bumper US$3 billion to shareholders.

The Anglo-Australian firm said net profit was US$3.31 billion in the six months to June 30, compared to US$1.71 billion in the same period last year.

Underlying profit, the measure preferred by Rio, jumped 152 per cent to US$3.94 billion, narrowly missing analysts' estimates.

"These are strong results," chief executive Jean-Sebastien Jacques said in a statement.

sentifi.com

Market voices on:

"Today we have announced total cash returns to shareholders of $3 billion. By driving performance, focusing on cash and allocating it with discipline we are delivering superior cash returns to our shareholders."

As tipped by analysts, Rio declared a large interim dividend payout of 110 US cents, totalling US$2.0 billion, compared to 45 US cents for the corresponding period last year.

The company also announced an increased buy-back of US$1.0 billion in its London-listed shares by the end of the year, which are in addition to a US$500 million buy-back programme declared in February.

The miner is expected to come into more cash when the sale of most of its Australian coal assets to China-backed Yancoal for US$2.45 billion is completed.

Rio, like other miners, has benefited from the rebound in prices of its main commodity iron ore after a slump brought on by a supply glut and a slowdown in growth in the world's top commodities consumer China.

Shares in Rio closed 0.17 per cent down to A$65.84 ahead of the result.

AFP

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom