- Iron ore giant Fortescue Metals (FMG) has recorded its third-highest first-half profit of US$2.8 billion (A$3.9 billion)
- The profit is a 32 per cent drop on the record US$4.1 billion (A$5.7 billion) achieved in the previous corresponding period
- FMG shipped a record 93.1 million tonnes of ore over the period, 3 per cent higher than the first half of FY21
- The financial results were impacted by the diving iron ore prices in second half of 2021 and discounts for FMG’s mainly lower grade ore
- Fully franked interim dividend of 86 cents per share
- FMG shares were down 2.25 per cent at $21.11
Fortescue Metals Group (FMG) has recorded a record half year in iron ore shipments which has contributed to a profit of US$2.8 billion (A$3.9 billion), the third highest in the company’s history.
This is a 32 per cent drop on the record US$4.1 billion (A$5.7 billion) that was achieved in the previous corresponding period.
The iron ore giant shipped 93.1 million tonnes of ore over the period, which is 3 per cent higher than the first half of FY21.
However, the financial results were impacted by the diving iron ore prices in the last six months of 2021 and the steeper discounts for FMG’s mainly lower grade ore.
This meant that Fortescue received an average of US$96 (A$134) per tonne for its ore, a 70 per cent realisation of the benchmark price over the period.
The iron ore company reported underlying earnings before interest, taxes, depreciation and amortisation of US$4.8 billion (A$6.7 billion).
CEO Elizabeth Gaines said the first half performance “has been outstanding” and FMG’s major project the Iron Bridge is progressing well, with first production scheduled in December 2022.
“We remain focused on managing industry cost pressures and challenges posed by Western Australia’s ongoing border restrictions, and we are working closely with the Western Australian Government and relevant authorities to ensure we have access to the specialist skills required,” she said.
“During the half, Fortescue Future Industries continued to advance a portfolio of renewable energy and green hydrogen project opportunities, while growing its green technology capabilities. As Fortescue continues its transition to a vertically integrated green energy and resources company, Fortescue Future Industries will be a key enabler of our industry-leading targets to decarbonise our operations by 2030 and to remove net emissions from our entire value chain by 2040.”
At the end of the period, FMG had US$2.9 billion (A$4 billion) cash in the bank, and net debt of US$1.7 billion (A$2.37 billion).
It declared a fully franked interim dividend of 86 cents per share.
On the market, FMG was down 2.25 per cent and was trading at $21.11 per share at 12:06 pm AEDT.