RIO: Strong balance sheet and solid free cashflow
Published on 27 February 2020
Reporting season update saw RIO reported underlying NPAT of US$10.4bn, up 18% year on year. This was largely in line with our estimates as well as consensus. The balance sheet finished the year in a strong position with US$3.6bn of net debt (this was better than expected however seems largely timing related with a tax payment deferred to the 2H). The final dividend of US$2.31 represented a payout of 70% earnings which was higher than the company policy of 40-60% albeit slightly below market expectations.
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