Rio Tinto Annual Profit Climbs, Ups Dividend, Proposes $2.0 Bln Share Buyback

(RTTNews) - Mining giant Rio Tinto Plc. (RTPPF.PK, RIO.L, RIO, RTNTF.PK) Thursday said full year net earnings surged to $6.527 billion from $3.665 billion reported last year. Earnings per share climbed to 351.2 cents from 197.3 cents. The results are from continuing operations.

Underlying earnings dropped to $9.305 billion from $10.217 billion in the prior year.

Profit before taxation increased to $9.552 billion from last year's $3.505 billion.

Consolidated sales revenue declined to $47.664 billion from $51.171 billion in 2013.

Net operating costs decreased to $33.91 billion from $36.10 billion, and impairment charges net of reversals were $1.062 billion, compared to $7.315 billion last year.

Further, the company increased full year dividend by 12 percent to 215 US cents per share.

The company also proposed a capital return of $2.0 billion, comprising a targeted A$500 million offmarket share buy-back tender of Rio Tinto Limited shares and the balance of approximately $1.6 billion for an on-market buy-back of Rio Tinto Plc shares.

Rio Tinto CEO Sam Walsh said: "With lower commodity prices and uncertain global economic trends, the operating environment remains tough...Our combination of world-class assets, disciplined capital allocation, balance sheet strength, operating and commercial excellence, and a culture of safety and integrity gives me confidence in our ability to continue to generate sustainable returns for our shareholders."

The company sees further cash cost improvements of $750 million, expected to be realized in 2015.

Capital expenditure is expected to decline to less than $7.0 billion in 2015 and remain at around $7.0 billion in 2016 and 2017.