Fortescue Annual Profit Tumbled, Weak Iron Ore Prices Blamed

SEATTLE (Scrap Monster): Fortescue reported 41% dip in full-year profit, hit by weakening iron ore prices. The profit until the one-year period ended June this year hit the lowest level in six years. Meanwhile, record shipments and reduced costs helped the company lower the impact.

The company’s net profit after tax for the year stood at $3.37 billion, down from $5.7-billion a year earlier. This stood below the average analysts’ estimate of $3.43 million. The annual revenue recorded year-on-year decline of 15% to $15.5 billion. Meanwhile, the company declared a final dividend of A$0.60 per share, bringing its full-year dividend to A$1.10 apiece.

The underlying EBITDA dropped 26% to $7.9-billion, with an EBITDA margin of 51%. The free cash flow halved to $2.6-billion.

Gus Pichot, CEO of growth and energy at Fortescue stated that the construction of a green iron pilot plant in Pilbara is currently in progress and is expected to soon begin production using green hydrogen. Pichot noted that green energy and green hydrogen remain key to its future. The company focuses on developing new green technologies to accelerate decarbonization, he added.

The company guided for iron-ore shipments of 195-million to 205-million tonnes in 2026.

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