REPORTING SEASON: Fortescue Metals Group Ltd (FMG)
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Figure 1: Fortescue Metals Group Ltd 12 month chart
Fortescue Metals Group (FMG) profit follows iron ore prices lower
Falling iron ore prices have dragged FMG’s first half profit lower with NPAT falling by 81% to US$331 million.
In operational terms, during the period FMG increased shipments by 53% to 82.7 million tonnes. At the same time, costs fell by 9% to an average US$30 per wet metric tonne. The miner expects that costs will continue to fall to between US$25-$26 per tonne in the second half of the year.
Capital expenditure fell to US$436 million compared to US$1,354 million the same period last year, reflecting the completion of the 155mtpa expansion program the previous financial year. However, cash flow from operations fell by 75% in the period to US$905 million. While net debt went up from US$7.2 billion to US$7.5 billion.
FMG declared an interim dividend of $0.03 cents per share, compared with $0.10 for the previous corresponding period. The record date for the interim dividend is 4 March 2015 with the payment date being 7 April 2015.