Cashed up Rio sounds caution on dividend

Peter KerResources reporter

Jul 29, 2020 – 4.21pm

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Key Points

Revenue ($b) 19.36, down from 20.72
Underlying EBITDA ($USm) 9.64b, down from 10.25b
Net profit ($USm) 3.14b, down from 4.13b
Interim dividend (c) 155c

Bumper iron ore prices have enabled Rio Tinto to pay the second-biggest half-year dividend in its history, but its strong financial results have been marred by $US1 billion ($1.4 billion) of impairments on struggling Australian aluminium smelters and diamond mines.

Rio announced underlying earnings of $US4.75 billion on Wednesday, which was better than the $US4.36 billion expected by analysts surveyed by VUMA.