Australia’s Fortescue Metals Group (FMG.AX) has reported a rise in annual profit, driven by increased iron ore shipments from its Iron Bridge project. The company announced a final dividend that exceeded expectations, leading to a rise in its share price.
In fiscal 2024, Fortescue achieved total iron ore shipments of 191.6 million tonnes, marking the third-highest earnings in its history. The underlying net profit after tax reached $5.66 billion, slightly up from $5.52 billion the previous year, although it fell short of the consensus estimate of $6.11 billion due to higher depreciation and amortization charges.
The final dividend declared was A$0.89 per share, down from A$1.00 last year but higher than the expected A$0.85. This maintained the dividend payout ratio at 70%, within the company’s target range, alleviating concerns that Fortescue would reduce dividends to fund its expanding green energy ventures.
Fortescue is leveraging improved market conditions, with hematite average realized prices rising to $103 per dry metric tonne from $95 a year earlier, to finance its green energy projects. The company has also accelerated two hydrogen projects in Norway and Brazil to the feasibility study stage.