Underlying EBITDA dropped 30% year-on-year to US$26.2 billion, with the dominant iron ore division accounting for $18.6 billion of the figure.

Profit after tax dropped 41% to $12.4 billion.

The result was in line with forecasts.

"After recent volatility in Rio's iron ore division, the in-line performance will likely be viewed positively, especially in the context of the strong production numbers in Q4," RBC Capital Markets analyst Tyler Broda said.

Revenue was down 13% to $55.5 billion, while free cashflow was 49% lower at $9.01 billion.

The company declared a full-year dividend of $4.92 per share, down 38% year-on-year but up 6% on 2020.

The $8 billion in returns represents a 60% payout of underlying earnings.

Rio chief executive Jakob Stausholm told reporters it was still the second-highest full-year ordinary dividend in the company's history.

He said the company had made real progress on its objectives, including operational performance, growth, culture and decarbonisation.

Stausholm said the company was making progress on growth at the Simandou iron ore project in Guinea and Rincon lithium project in Argentina.

Capital investment in 2023 is expected to be around $8 billion, down from $8-9 billion previously, including growth capital of $2 billion.

That's up from $6.8 billion in 2022.

In 2024 and 2025, capex will rise to $9-10 billion, including the ambition to invest up to $3 billion per year on growth, depending on opportunities.

Broda said Rio's growth options were among the highest in the sector which could drive performance after a challenging three years.

Rio had net debt of $4.2 billion at year-end, compared to net cash $1.6 billion a year earlier, reflecting lower free cashflow, $11.7 billion in shareholder returns and $3.8 billion for the acquisitions of Rincon and the remaining stake in Oyu Tolgoi owner Turquoise Hill Resources.