Fortescue has delivered its highest iron ore shipments in history at 182.2 million tonnes for the 2020-21 financial year, driving up earnings into record territory.
The company’s net profit after tax was $US10.3 billion ($14 billion), increasing dividends by 103 per cent to $3.58 per share.
Its record iron ore shipments surpassed its guidance range, which has been moved up to 180 to 185 million tonnes in the 2022 financial year.
Following the announcement, Fortescue’s share price is up by 5 per cent to $21 per share at the time of writing.
Fortescue chief executive officer Elizabeth Gaines said the results mark the second consecutive year of record shipments, earnings and operating cashflow.
“During the year, Fortescue celebrated a number of significant operational milestones, including the delivery of our newest mining operation at Eliwana,” Gaines said.
“The strong operating performance across our supply chain, along with the successful ramp up and integration of Eliwana, contributed to Fortescue’s outstanding results in the 2020-21 financial year.
“Reflecting our ongoing commitment to delivering enhanced shareholder returns, the board has declared a fully franked final dividend of $2.11 per share, bringing total dividends for the 2020-21 financial year to $3.58 per share, representing an 80 per cent payout of full year net profit after tax.”
Fortescue’s cash on hand is $US6.9 billion with a net cash balance of $US2.7 billion.
It also generated $US22.2 billion in revenue for the 2020-21 financial year, up by 74 per cent from the previous period.
Gaines said the company is also focussing on its Fortescue Future Industries initiative to achieve carbon neutrality by 2030 and make renewable green hydrogen the most sought-after seaborne energy commodity.
“Through the Iron Bridge Magnetite project and Fortescue Future Industries, we are investing in the growth of our iron ore operations, as well as pursuing ambitious global opportunities in renewable energy and green industries,” Gaines said.