Photo by: Bloomberg
PERTH (miningweekly.com) – Higher iron-ore prices over the six months to December has allowed major Fortescue Metals to report a 10% increase in revenue and a 21% increase in underlying earnings before interest, taxes, depreciation and amortisation (Ebitda).
Fortescue on Wednesday reported that revenue for the six months to December was up to $3.5-billion, from $3.2-billion in the previous interim period, while underlying Ebitda was up from $1.3-billion to $1.6-billion,
This was despite a 3% slide in shipped tonnes, which was down from 85.2-million tonnes to 82.7-million tonnes.
“The Fortescue team have successfully delivered on our integrated and marketing strategy, resulting in an average realised price of $47/t for the half-year. This reflects strengthening iron-ore markets, demand for our products and the introduction of West Pilbara fines,” said CEO Elizabeth Gaines.
“Together with the ongoing contribution of our low cost operations, we generated strong margins and achieved a 66% increase in underlying net profit after tax, compared with the half-year ended June.”
Underlying net profit after tax for the half-year was up from $387-million to $644-million. Cash on hand at the end of December stood at $962-million.
Looking at the full year, Fortescue is expecting to ship between 165-million and 173-million tonnes, with shipped tonnage expected to be higher in the second half of the year with the inclusion of between 8-million and 10-million tonnes of Pilbara Fines production.
The higher volumes in the second half of the year is expected to contribute to lower C1 cash costs, with full-year costs expected to be towards the upper end of between $12/t and $13/t.
Meanwhile, Fortescue announced a special dividend of A$0.11 a share and an interim dividend of A$0.19 a share, representing a 65% payout ratio of half-year net profit after tax.