FMG reports third highest earnings in history on strong iron ore sales

Mining giant Fortescue Ltd (ASX:FMG) told investors that a strong record for iron ore shipments had propelled the company to its third highest earnings in history during the 2024 fiscal year.

FMG’s underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at US$10.7 billion – a 7% rise from FY23 – reflecting iron ore shipments of 191.6 million tonnes (Mt) during the same period.

The company also reported a net profit after tax (NPAT) of US$5.7 billion, plus earnings per share of US$1.85 (A$2.82).

Chief Executive Officer Dino Otranto said FY24 had been a year of achievements for FMG.

“The team has delivered another year of outstanding performance contributing to the third highest earnings in Fortescue’s history and free cash flow of US$5.1 billion,” he said.

“We celebrated a number of significant milestones including first ore from the Flying Fish and Hall Hub deposits as well as the commissioning of our gaseous and liquid hydrogen plant which is the largest of its kind on a mine site in Australia.

“We will use the hydrogen from this plant for our Green Metal Project, which we commenced works on earlier this month.

“Reflecting our ongoing commitment to delivering shareholder returns, the Board has declared a fully franked final dividend of A$0.89 per share, bringing total dividends declared for FY24 to A$1.97 per share. This represents a 70 per cent payout of net profit after tax.”

FMG shares rose half a percent on the news. At 10:48 AEST, they were trading at $18.72, a rise of 0.48% since the market opened.