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Integrated operations and marketing strategy delivering increased earnings – FMG

Mining News - Published on Wed, 20 Feb 2019

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Fortescue has released its half year FY19 (1H19) results reporting net profit after tax of US$644 million and underlying EBITDA of US$1.6 billion. The half year results demonstrate Fortescue’s continued ability to generate strong cashflows from its highly efficient Pilbara operations, resulting in enhanced shareholder returns through increased dividends and the successful execution of the share buy-back program.

Fortescue Chief Executive Officer, Elizabeth Gaines, said “The Fortescue team have successfully delivered on our integrated operations and marketing strategy, resulting in an average realised price of US$47/dmt for the half year. This reflects strengthening iron ore markets, demand for our products and the introduction of West Pilbara Fines. Together with the ongoing contribution of our low cost operations, we generated strong margins and achieved a 66 per cent increase in underlying net profit after tax compared to the half year ended 30 June2018 (2H18).”

“The Board have declared a fully franked interim dividend of A$0.19 per share, which is a 65 per cent pay-out ratio of 1H19 net profit after tax (1H18: 40 per cent) and a fully franked special dividend of A$0. 11 per share. When combined, dividend payments for 1H19 total A$0.30 per share which is 30 per cent higher than the total dividends paid for the whole of FY18, reflecting confidence in the outlook.”

“Maintaining our disciplined approach to capital management together with our flexible balance sheet positions Fortescue strongly for the next phase of growth and delivery of returns to our shareholders.”

• Safety TRIFR of 4.0
• Net profit after tax of US$644 million
• Underlying EBITDA of US$1.6 billion
• 82.7 million wmt of ore shipped
• C1 cost of US$13.11/wmt
• Net debt of US$3.0 billion, inclusive of US$962 million cash on hand at 31 December 2018

Heading1H192H18(1H19 v1H18(1H19 v
Mined ore tonnes (wmt)101.191.411.00%93.19.00%
Processed tonnes (wmt)85.383.13.00%82.53.00%
Shipped tonnes (wmt)82.785.2-3.00%84.5-2.00%
Realised price (USS/dmt)474018.00%47-
C1 costs (USS/wmt)13.1112.614.00%12.118.00%
Revenue (USS millions)3.543.20810.00%3.679-4.00%
Underlying EBITDA (US$ millions)1.6331.35421.00%1.828-11.00%
Reported net profit after tax (USS millions)644197227.00%681-5.00%
Underlying net profit after tax (USS millions)64438766.00%693-7.00%
Basic earnings per share (US cents)20.86.3230.00%21.9-5.00%
Fully franked dividends (A$/share)AS0.30AS0.12150.00%AS0.11173.00%

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Posted By : Rabi Wangkhem on Wed, 20 Feb 2019
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