Rio Tinto records 2017 profit of $US8.8 billion

Rio Tinto records 2017 profit of $US8.8 billion, up 90 per cent from 2016

Big miner Rio Tinto has ridden the wave of higher commodity prices for a big surge in annual profit.

Net profit for the 2017 financial year came in at $US8.76 billion ($11.13 billion), up 90 per cent from $US4.61 billion in 2016.

Underlying profit was $US8.6 billion for the year, more than the $US8.5 billion expected by analysts.

Payouts to investors totalled a record $US5.2 billion in 2017.

That is a pidend per share of $US2.90.


UK investors will get an additional $US1 billion in 2018 thanks to Rio's share buyback.

The bumper result is the first annual result for boss Jean-Sebestien Jacques, who took over from former chief executive Sam Walsh.

Mr Jacques told reporters on a conference call that it was "a very good day for Rio Tinto".

"I'm very proud of what the team has achieved. Biggest pidend ever in the 125-year history of the company," Mr Jacques said.

"Rio is in good shape, we are well positioned in the marketplace. We are confident about the future, we have real momentum."

Rio's biggest pision, iron ore, delivered the lion's share of revenue.

Iron ore prices are in a bull market, trading at about $US75 a tonne, amid China's crackdown on pollution, which has seen older and dirtier steel mills closed down.

Mr Jacques said Rio remained optimistic about the long-term outlook for China, although the big miner is concerned about a short-term slowdown.

But he said Chinese demand for Rio's high-grade iron ore remained strong at the moment.

"We don't have any problem to push more product into the marketplace," Mr Jacques said.

"We fully acknowledge there is volatility and some level of uncertainty."