Rio Tinto has delivered strong financial results for the year ending December 31, 2024, highlighting its resilience and strategic growth despite challenges in the market.
The company reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $23.3 billion, demonstrating solid performance.
“We continue to build on our momentum with another set of strong operational and financial results,” Rio Tinto chief executive officer Jakob Stausholm said.
“With underlying EBITDA of $23.3 billion and operating cash flow of $15.6 billion, we are increasing our investments to underpin our plans for a decade of profitable growth. We are reporting underlying earnings of $10.9 billion, after taxes and government royalties of $8.2 billion, and a healthy return on capital employed of 18 per cent.
“Our strong balance sheet enables us to pay a $6.5 billion ordinary dividend, maintaining our practice of a 60 per cent payout, the ninth consecutive year at the top end of our payout range, as we continue to invest with discipline.”
The growth was driven by a well-balanced portfolio mix and effective working capital management.
Net earnings for the year reached $11.6 billion, a 15 per cent increase from 2023, reinforcing the company’s solid profitability and financial stability.
Rio Tinto declared a $6.5 billion ordinary dividend, maintaining its commitment to a 60 per cent payout ratio for the ninth consecutive year.
The company has a strong cash flow and disciplined approach to capital management, ensuring consistent returns to shareholders while continuing to reinvest in future growth opportunities.
Rio Tinto’s diversified portfolio has been key to its success, with production growth in iron ore, copper and other commodities.
The company’s iron ore operations in Pilbara saw increased production, with a five million tonne uplift, marking the second consecutive year of growth.
This was complemented by continued expansion at Oyu Tolgoi and progress on major projects like the Simandou iron ore development and the $2.5 invested to expand the Rincon lithium project in Argentina.
“We are excited as we head into 2025, with all the building blocks for an incredibly successful, diversified and growing business in place including the expected closing of the Arcadium acquisition in March,” Stausholm said.
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