Rio Tinto has reported the full-year results of 2020, revealing a strong performance and successful response to the COVID-19 pandemic. Its net earnings grew year-on-year by 22 per cent from US$ 8,010 million to US$ 9,769 million, while its net cash generated from operating activities increased 6 per cent from US$ 14,912 million to US$ 15,875 million driven by robust operating performance.

Consolidated sales revenue saw a hike of 3 per cent at the end of 2020 from US$ 43,165 million in 2019 to US$ 44,611 million. Underlying EBITDA grew 13 per cent year-on-year from US$ 21,197 million to US$ 23,902 million, attributing to the agility and resilience of the business and employees, coupled with strong commodity prices, noted Rio Tinto’s Chief Executive Jakob Stausholm.

Mr Stausholm said, “During 2020, the agility and resilience of the business and our employees, coupled with strong commodity prices, enabled us to deliver underlying EBITDA of $23.9 billion and Return on Capital Employed of 27%. As a result, the Board has approved a total dividend of 557 US cents per share including a special dividend of 93 US cents per share, representing a 72% full year pay-out ratio, which builds on our five-year pay-out track record.”

He also said, "My new executive team and wider leadership of the company are all committed to unleashing Rio Tinto’s full potential. We will increase our focus on operational excellence and project development and strengthen our ESG credentials. Working closely with the Board, we must earn the right to become a trusted partner for Traditional Owners, host communities, governments and other stakeholders but we all recognise that this will require sustained and consistent effort.”

Capital expenditure also climbed 13 per cent from US$ 5,488 million in 2019 to US$ 6,189 million in 2020. Net debt decreased from US$ 3,651 million to US$ 664 million at the end of the last year, reflecting the strength of free cash flow.