Fortescue Reports Strong First-Half Performance

Fortescue, the world's fourth-largest iron-ore producer, announced an impressive 41% increase in net profit for the first half of the year. This growth was attributed to a rise in the price of iron ore, which led to a net profit of US$3.34 billion compared to US$2.37 billion from the previous year.

Increased Payout to Shareholders

In response to its strong performance, Fortescue raised its midyear payout to shareholders, declaring an interim dividend of 1.08 Australian dollars (US$0.71) per share, up from 75 Australian cents in the same period last year. The company's underlying earnings before interest, tax, depreciation, and amortization (Ebitda) also saw significant growth, increasing by 36% to US$5.91 billion.

Revenue Boost from Higher Iron Ore Prices

Benefiting from higher iron ore prices, Fortescue reported an average price of around US$108 per metric ton for the first half of the year, a notable increase from US$87 per ton in the previous period. Despite facing a slight decrease in sales and higher costs, the company maintained a strong financial performance.

Focus on Sustainable Growth

In addition to its core iron ore business, Fortescue has been exploring opportunities in clean energy. The company recently approved green hydrogen projects in the U.S. and Australia as part of its expansion into the renewable energy sector. With a first-half capital expenditure of US$165 million for its energy projects and a total capital expenditure of US$1.5 billion for the group, Fortescue is committed to sustainable growth.

Overall, Fortescue's interim dividend payout reflects 65% of profits for the half, aligning with its strategy to distribute 50-80% of full-year underlying profit to shareholders. As the company continues to navigate market challenges and explore new opportunities, its robust financial performance sets a strong foundation for future growth and innovation.