Fortescue delivers profit boost as iron ore rebounds

Iron ore miner Fortescue Metals Group has reported a strong rise in half-year profit off the back of soaring prices for the commodity.

The Perth-based company announced that net profit for the six months to the end of December 2016 increased to $US1.22 billion ($1.59 billion). Revenues during the period were 34 per cent higher at $US4.49 billion.

Fortescue chief executive officer Nev Power said the company was continuing an unwavering focus on delivering against safety, productivity and cost reduction targets.

“We achieved further improvement in our operating costs to $US13.06 per wet metric tonne and shipped 86.1 million tonnes for the half year, slightly ahead of our targets.” Power said.

“Our successful operational performance combined with positive market conditions produced strong cash flows facilitating further debt repayments of $US1.7 billion.

“With ongoing improvements in productivity and efficiency driving consistent cash returns from our world class assets, the board has declared a 20 cents per share fully franked interim dividend.”

Fortescue shipped 86.1 million tonnes (Mt) of iron ore during the six months and has maintained a guidance of between 165-170Mt for the 2017 financial year.

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