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Rio Tinto Earnings Drop In 2014; To Launch USD2 Billion Share Buy-Back

12th Feb 2015 06:43

LONDON (Alliance News) - Anglo-Australian miner Rio Tinto PLC on Thursday reported a fall in underlying earnings in 2014, but said it would hike its dividend and will launch a USD2 billion share buyback programme.

The FTSE 100-listed group said its underlying earnings for the year to the end of December hit USD9.31 billion, down from USD10.2 billion last year.

Revenue for the group fell to USD50.04 billion in the year, down from USD54.60 billion the year before, as revenue fell in the majority of its operating units. Iron ore revenue was down to USD23.28 billion from USD25.99 billion, while aluminium revenue edged down to USD12.12 billion from USD12.46 billion.

But the mining group said it would hike its total dividend by 12% to 215 US cents per share, up from 192 cents per share last year. The dividend comprises its 96 cents interim dividend and a 119 cents final dividend.

The group also said it would launch a USD2 billion share buyback programme, comprising a USD400 million off-market share buy-back tender and a USD1.6 billion on-market buyback of shares.

"With lower commodity prices and uncertain global economic trends, the operating environment remains tough. However, in these conditions Rio Tinto?s qualities and competitive advantages deliver superior value," said Chief Executive Sam Walsh.

By Sam Unsted; [email protected]; @SamUAtAlliance

Copyright 2015 Alliance News Limited. All Rights Reserved.


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