(Alliance News) - Miner Rio Tinto PLC on Wednesday reported a revenue rise in 2019, attributed to higher iron ore prices, but profits dipped on the absence of one-off gains in 2018.
In 2019, sales revenue rose 6.5% to USD43.17 billion from USD40.52 billion, but pretax profit was down 35% to USD11.77 billion from USD18.20 billion.
"USD43.2 billion consolidated sales revenue was 7% higher than 2018, primarily driven by higher iron ore prices. This was partially offset by lower copper and aluminium prices and the absence of revenues from assets divested in 2018," the company explained.
For 2019, the miner reported a USD291 million net loss on consolidation and disposals, compared to a USD4.6 billion gain in 2018. It also booked impairment charges of USD3.49 billion, swinging from a USD132 million gain the year prior.
Chief Executive Jean-Sebastien Jacques said: "We have again delivered strong financial results with underlying earnings before interest, tax, depreciation and amortisation of USD21.2 billion, underlying Ebitda margin of 47% and return on capital employed of 24%. This performance allows us to return a record final ordinary dividend of USD3.7 billion, resulting in a full-year ordinary dividend of USD6.2 billion and total cash returns of USD7.2 billion."
Its full-year ordinary dividend per share was 24% higher at 382 cents from 307 cents. Total dividend, however, was 19% lower at 443.0 cents from 550.0 cents in 2018.
The company added that it is evaluating the impact of the coronavirus spread, "which could create significant uncertainty for our business in the near term", Rio Tinto explained.
The company left its full-year production guidance unchanged. It cut its full-year guidance at the Pilbara iron ore operations earlier in February following infrastructure damage caused by cyclone Damien.
For 2020, the miner now expects shipments at Pilbara between 324 million and 334 million tonnes, having previously forecast between 330 million and 343 million tonnes.
In 2019, Pilbara iron ore shipments of 327 million tonnes were down 3% on 2018, hit by weather and operational challenges in the first half of the year.
Mined copper output is seen around 530,000 to 570,000 tonnes, which would put 2020 output below 2019's levels of 577,000 tonnes.
Aluminium production of 3.2 million tonnes in 2019 was 2% lower than 2018, and for the current year, Rio Tinto expects output of 3.1 million to 3.3 million.
Shares in the company closed 1.3% lower at 3,915.50 pence each in London on Tuesday. Rio Tinto Ltd shares lost 1.8% to AUD91.89 in Sydney on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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Rio Tinto (RIO)
