Rio Tinto achieves $4.6 billion profit in 2016

Rio Tinto achieves $4.6 billion profit in 2016

Rio Tinto (ASX:RIO) enjoyed a strong end to 2016, making an overall annual net profit of US$4.6 billion as commodity prices underwent a phase of recovery in the second half of the year.

The mining giant’s latest financial performance mark a significant upturn on its 2015 results, when a loss of $866 million was posted.

The company reported a strong operating cash flow of $8.5 billion and underlying earnings of $4.1 billion.

Underlying earnings in particular were boosted by the revival in commodity prices over the last two quarters, as the figures more than doubled on those reported in the first six months of 2016.

Rio Tinto’s sustained attempts to streamline its existing assets also contributed to its encouraging financial results, as $1.3 billion worth of assets were sold in Rio’s coal and aluminium business.

Chief executive J-S Jacques said: “Today’s results show we have kept our commitment to maximise cash and productivity from our world-class assets, delivering $3.6 billion in shareholder returns while maintaining a robust balance sheet.”

“We enter 2017 in good shape. Our value over volume approach, coupled with a robust balance sheet and world-class assets, places us in a strong position to deliver superior shareholder returns through the cycle.”