Rio Tinto Posts Profit In 2013, Boosts Dividend

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc (RTNTF.PK, RIO, RIO.L, RTPPF.PK) Thursday reported profit for 2013, reflecting mainly lower impairment charges and increased revenues. The company also announced 15 percent increase in full-year dividend.

Chief Executive Sam Walsh said, "We have achieved underlying earnings of $10.2 billion, exceeded our cost reduction targets and set production records. In turn, this has enhanced our cash flow generation and lowered net debt. The 15 per cent increase in our dividend reflects our confidence in the business and its attractive prospects."

The company said its operational performance was strong with annual production records set for iron ore, bauxite and thermal coal and recovery in copper volumes. Iron ore production in 2013 increased 5 percent from last year to 266 million tonnes.

For the full year, net profit attributable to owners of the company was $3.67 billion, compared to a net loss of $3.03 billion last year. The firm had incurred hefty impairment charges on its aluminum and coal assets in 2012.

Earnings per share totaled 197.3 cents, compared to last year's loss per share 163.8 cents.

Profit before tax was $3.51 billion, as against a loss of $2.43 billion a year ago. The company said it has restated its prior-year results.

On an underlying basis, earnings grew 10 percent to $10.22 billion. Underlying earnings per share were 553.1 US cents, up from 501.3 cents a year earlier.

Consolidated sales revenues grew to $51.17 billion from $50.94 billion in the preceding year.

Net operating costs decreased to $36.10 billion from $37.53 billion a year ago. Net impairment charges in 2013 totaled $7.32 billion, lower than $14.70 billion in the previous year. The results for the year 2013 included non-cash exchange losses of $2.9 billion and impairments of $3.4 billion.

In addition, the group announced 15 percent increase in full-year dividend to 192 cents per share, payable on April 10, to shareholders on record on March 7.

For 2014, the Group expects to produce about 295 million tonnes from its global operations in Australia and Canada, subject to weather constraints.

In London, Rio Tinto shares are currently trading at 3,486.5 pence, down 23.5 pence or 0.67 percent, on a volume of 6.36 million shares.

In Australia, the shares closed today's trading at A$67.83, down 0.40 percent. RIO ended on Wednesday at $57.99 on the NYSE.