Fortescue Profit Down Despite Record Iron Ore Shipments


Fortescue Metals Group Ltd., Australia’s third-largest iron ore miner, posted a 40% drop in full-year profit, as record shipments for the year struggled to offset steep declines in prices for the steel-making material amid an economic slowdown in China.

Article content

(Bloomberg) — Fortescue Metals Group Ltd., Australia’s third-largest iron ore miner, posted a 40% drop in full-year profit, as record shipments for the year struggled to offset steep declines in prices for the steel-making material amid an economic slowdown in China. 

Article content

The Perth-based company reported underlying profit of $6.2 billion on Monday, down from a record $10.35 billion last year and almost exactly in line with average analyst projections. The result was Fortescue’s second-highest profit on record. 

Article content

The company will pay a final dividend of $A1.21 per share.

Under founder Andrew Forrest, Fortescue has overhauled the firm’s management aimed at accelerating a push into clean energy. The company is aiming for its Fortescue Future Industries unit to produce an initial 15 million tons a year of green hydrogen by 2030 with the aim of helping sectors including heavy industry and long-distance transport to decarbonize.

Fortescue Chief Executive Elizabeth Gaines said in a statement the company was “accelerating our transition to a vertically integrated green energy and resources company and are leading the way in decarbonization..

Australian Miner Profits Defy Gloom, But Headwinds Building

Fortescue said it would spend between $600 million and $700 million on Fortescue Future Industries in the coming financial year.



Source link

Comments are closed.