The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Thursday.
This follows the after-market release of the mining giant's full year results.
How did Rio Tinto perform in FY 2019?
For the 12 months ended December 31, Rio Tinto delivered a 6% increase in revenue year on year to US$45.4 billion.
Thanks to the expansion of its underlying EBITDA margin to 47%, underlying EBITDA grew 17% on the prior corresponding period to US$21.2 billion.
Underlying earnings lifted 18% to US$10.4 billion and share buybacks helped boost earnings per share by 24% to US$6.36.
Also growing strongly was the miner's cash flow from operations. This increased 32% year on year to US$15.8 billion.
This strong performance allowed the company to declare a record final ordinary dividend of US$3.7 billion or US$2.31 per share. This resulted in a full year ordinary dividend of US$6.2 billion or US$3.82 per share and total cash returns of US$7.2 billion or US$4.43 per share.
Management commentary.
Rio Tinto's Chief Executive, J-S Jacques, said: "We have again delivered strong financial results with underlying EBITDA of $21.2 billion, underlying EBITDA margin of 47% and return on capital employed of 24%."
Looking ahead, Mr Jacques appears confident that there are more good times to come thanks to its investments in development projects.
He explained: "In line with our disciplined approach to capital allocation, we invested $2.6 billion in development projects, including high-return iron ore and copper. Longer term, our $624 million exploration and evaluation expenditure in 2019 adds to our pipeline of attractive options. Our world-class portfolio and strong balance sheet serve us well in all market conditions, and are particularly valuable in the current volatile environment."
Coronavirus update.
Rio Tinto also provided an update on the impact of the coronavirus outbreak on its operations. The company is closely monitoring the impact of the Covid-19 virus and is prepared for some short-term impacts, such as supply-chain issues.
The company explained: "We are currently evaluating the impact of the Covid-19 virus, which could create significant uncertainty for our business in the near term."
For now its guidance remains unchanged and all "operations are looking at opportunities to adjust to the impact of the Covid-19 virus on market conditions."
Outside this, Mr Jacques remains positive on its prospects. He said: "Our resilience and value over volume strategy mean we can invest in our business and deliver superior returns to shareholders in the short, medium and long term."
The company also reiterated its plan to be carbon neutral between now and 2030. This will be underpinned by approximately US$1 billion of climate-related spend over the next five years. After which, it has ambitions for net zero emissions from its operations by 2050.
