Fortescue 1st Half Net Profit Up 41%, Raises Dividend

By Rhiannon Hoyle

Fortescue on Thursday reported a 41% rise in first-half net profit and raised its midyear payout to shareholders, reflecting an increase in the price it fetched for its iron ore.

The world's fourth-largest iron-ore producer said it made a net profit of US$3.34 billion in the six months through December, up from US$2.37 billion a year earlier.

Directors declared an interim dividend of 1.08 Australian dollars (US$0.71) a share, compared to 75 Australian cents a year ago.

Underlying earnings before interest, tax, depreciation and amortization, or Ebitda, increased by 36% to US$5.91 billion, the miner said.

Fortescue, which makes its money running iron-ore pits in remote northwest Australia, benefited from higher prices for the commodity used to make steel. The company said its average price for the half-year was roughly US$108 a metric ton versus about US$87 a ton a year earlier.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

Corrections & Amplifications

This item was corrected at 2303 GMT to clarify that Fortescue reported its half-year earnings on Thursday, not on Wednesday.

(END) Dow Jones Newswires

February 21, 2024 18:11 ET (23:11 GMT)

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