Strong iron ore price boosts Fortescue first-half earnings
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The news: Iron ore miner Fortescue posted healthy half-year results, as an increased iron ore price helped net profit climb 41%.
The numbers: Net profit over the six months to December 2023 grew 41% to USD3.34 billion ($5.1 billion) compared to USD2.37 billion in the prior corresponding period.
Underlying EBITDA rose 36% to USD5.91 billion, with revenue up 21% to USD9.5 billion compared to 1H23.
The Perth-based miner said that its iron ore shipments of 94.6 million tonnes were the second highest first-half shipments in the company's history.
The board declared an interim dividend of $1.08 per share, 44% higher than a year earlier.
The company's shares were up 1.54% to $27.67 in early trading on the ASX.
The context: Fortescue credited the increase in realised iron ore price with its rise in first-half revenue. Meanwhile, the company highlighted progress across its global portfolio of green energy projects, including the launch of its new green energy investment accelerator platform Fortescue Capital in New York.
What they said: Fortescue Metals CEO Dino Otranto said: "Whether it's through our first green energy projects, our diversification into the high grade segment of the iron ore market through Iron Bridge, or expansion of our global footprint with the Belinga Iron Ore Project in Gabon, we remain committed to creating value for all our stakeholders".
Fortescue Energy CEO Mark Hutchinson added: "Over the half we also continued to make important progress across the four verticals now established within our energy business — green energy production, battery technology development, hydrogen systems and capital".
The source: ASX announcement
