Rio Tinto is giving back billions to shareholders as profit jumps by a third

Rio Tinto’s iron ore mine near Karratha in Western Australia’s Pilbara region. Image: Aaron Bunch/Getty Images

Rio Tionto is returning $US7.2 billion to shareholders after reporting a 33% lift in half year profit to $US4.38 billion.

The miner announced that the $US5 billion gathered from divestments in 2018 will be returned to shareholders, with the precise timing and form to be determined.

The company also announced a record interim ordinary dividend of $US2.2 billion, equivalent to 127 US cents a share, or about 50% of underlying earnings.

And there will be an additional share buy-back of $US1 billion to be completed by the end of February 2019.

“We have reported another strong set of results,” says Rio Tinto chief executive J-S Jacques.

“In a favourable market environment, our Tier 1 assets and strong operational capability have achieved a 43% EBITDA margin.

“Inflationary pressures are being experienced across the industry, but we have been able to offset these through our mine-to-market productivity program.”

Half year to June results at a glance:

Source: Rio Tinto

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