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Fortescue Metals Group announces full year results to 30 June 2018

Mining News - Published on Mon, 20 Aug 2018

Image Source: SteelGuru
Fortescue has released its 2018 full year results reporting underlying net profit after tax of US$1.1 billion and underlying EBITDA of US$3.2 billion.

HIGHLIGHTS

Underlying net profit after tax of US$1.1 billion, adjusting for the impact of one-off refinancing and early debt repayment costs, reported net profit after tax was US$878 million

Underlying EBITDA of US$3.2 billion

170 million tonnes (mt) of ore shipped

US$12.36 per wet metric tonne (wmt) C1 cost, a four per cent improvement compared to FY17

Fortescue Chief Executive Officer, Elizabeth Gaines said, “The Fortescue team has achieved an outstanding finish to FY18 with a record June quarter delivering total shipments of 170mt for the year. Importantly, our ongoing productivity and efficiency improvements have generated a record low annual C1 cost of US$12.36/wmt. We remain focused on maintaining our cost leadership position by capitalising on technology and innovation initiatives to offset inflation and optimise operating margins.

“During FY18, we completed the restructure of Fortescue’s balance sheet reducing debt, improving terms to investment grade conditions and significantly lowering the overall cost of borrowings. FY18 saw Fortescue’s capital allocation weighted more heavily towards shareholder returns resulting in a payout ratio of 62 per cent of full year net profit after tax, ensuring that our shareholders benefit from our success following the rapid de-gearing of the balance sheet.

“The development of Eliwana was approved by the Board, underpinning the delivery of a 60% iron content product which provides flexibility to capitalise on market dynamics while maintaining our low cost position. This new product will be called West Pilbara Fines and will be launched in the second half of FY19 from existing operations.

• C1 operating costs lowered to average US$12.36/wmt in FY18, a four per cent reduction compared to FY17. Fortescue achieved a C1 cost of US$12.17/wmt in the June 2018 quarter as productivity and efficiency initiatives continued to offset the impact of higher strip ratios, exchange rates and fuel prices.

• Total delivered cost to customers, inclusive of C1, shipping, royalty and administration costs, was US$24/dmt, as lower C1 costs and royalty payments were offset by a 24 per cent increase in average shipping cost.

• Underlying net profit after tax was US$1.1 billion. Taking into account one-off costs associated with early debt repayment, reported net profit after tax was US$878 million.

Source :

Posted By : Rabi Wangkhem on Mon, 20 Aug 2018
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