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Iron Ore February 19, 2020 01:30:21 PM

Fortescue Metals Group's Shipments Hit Fresh Peak

Paul Ploumis
ScrapMonster Author
The company expects the shipments to remain at the upper end of the range of 170 – 175mt in FY20.
Fortescue Metals Group's Shipments Hit Fresh Peak

SEATTLE (Scrap Monster): Fortescue Metals Group announced its results for the half year ended 31 December 2019. The company’s record performance was mainly driven by operational excellence.

The company reported underlying EBITDA of US$4.2 billion with an EBITDA margin of 65% and net profit after tax of US$2.5 billion. The half-year revenue of US$6.5 billion was a new record. Fortescue posted net debt of US$0.7 billion, inclusive of US$3.3 billion cash on hand at 31 December 2019. The shipments totalled 88.6 million tonnes, notably higher by 7% from the corresponding six-month period in FY19.

Also, cash on hand at 31 December 2019 surged higher significantly by 77% from the closing balance at 30 June 2019 to $3.3 billion. The cash from operations stood at $4.2 billion in H1 20. The company reported total capital expenditure of US$852 million during this period.

The company expects the shipments to remain at the upper end of the range of 170 – 175mt in FY20.     

Elizabeth Gaines, Chief Executive Officer, Fortescue noted that the company’s r integrated mine to market infrastructure has delivered sustained operational efficiencies across the business. Also both Eliwana and Iron Bridge growth projects are in progress, in accordance with schedule and budget, he added.

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