Australian iron ore miner Fortescue Metals Group has announced its financial results for the first half ended on December 31 of the financial year 2019-20.
During the given period, Fortescue's net profit amounted to US$2.5 billion, rising by 281 percent compared to the same period of the previous financial year, while the company's sales revenue amounted to US$6.5 billion, reaching a record high in the first half results and up 83 percent on year-on-year basis owing to the fact that the average realised iron ore price was up to $80/mt from $47/mt recorded in the same period of the previous year. Meanwhile, Fortescue's EBITDA increased by 159 percent year on year to US$4.2 billion in the given period.
In the full year of 2019-20, the company’s total capital expenditure which was recorded at $852 million in the first half of FY 2019-20 is expected to reach $2.4 billion, while its iron ore shipments are predicted to be at the upper end of the range of 170-175 million mt in the same period.
Fortescue’s chief executive officer Elizabeth Gaines said that the company’s strong results recorded in the first half of the financial year 2019-20 are the result of production and shipments reaching a record high, as well as rising iron ore prices.
“Fortescue is investing $700 million in energy transmission infrastructure and solar-gas hybrid generation, to optimise existing assets and deliver low-cost power to the Iron Bridge project. Consistent with our commitment to reduce emissions, it is estimated that 25-30 percent of stationary energy will be powered by solar on completion of these developments,” she added.