SYDNEY: Fortescue Metals Group Ltd reported a record annual profit and dividend on Monday after the Australian iron ore miner shipped a record amount of the steelmaking material to take advantage of soaring prices.
Fortescue follows rivals BHP Group https://www.reuters.com/business/energy/bhp-sell-oil-gas-business-woodside-2021-08-17 and Rio Tinto https://www.reuters.com/business/energy/rio-tinto-first-half-earnings-more-than-doubles-2021-07-28/#:~:text=MELBOURNE%2C%20July%2028%20(Reuters),of%20%249.1%20billion%20in%20dividends in reporting record profits and paying bumper dividends after a strong year for prices on the back of resilient demand from China, the top consumer, and supply issues in Brazil.
The miner shipped 182.2 million tonnes (Mt) of iron ore in fiscal 2021, and expects as much as 185 Mt to go out in fiscal 2022.
The world’s fourth-largest iron ore miner posted an underlying net profit of $10.35 billion, up from $4.75 billion a year ago, just below a forecast compiled by Vuma of $10.41 billion.
Fortescue will pay a final dividend of A$2.11 per share, up from A$1 a share last year, taking its total dividend for the year to A$3.58, or A$11 billion ($8.04 billion).
Going forward, prices of the commodity are expected to come under pressure from a resurgence of output from Brazil and China taking a tougher stand on lowering emissions.
The company is also investing in its green energy business, Fortescue Future Industries, on which it expects to spend up to $600 million in fiscal 2022.
($1 = 1.3680 Australian dollars)- Reuters
