- Full year revenue at Fortescue Metals fell 18% to $6.89 billion as the average iron ore price received shrunk.
- Net profit after tax dropped 58% to $US879 million.
- The company declared a fully franked dividend of $A0.12 a share, bringing the total shareholder payout to $A0.23.
Fortescue Metals posted a 58% drop in full year net profit after tax to $US879 million as demand for its lower grade iron ore fell.
Revenue at Billionaire Andrew Forrest’s pure play iron ore miner was down 18% to $6.89 billion.
Underlying net profit after tax was $US1.1 billion, after subtracting one-off costs associated with early debt repayment.
Over year, the average iron ore price received fell to $US44 per tonne, down from $US53.
The is mainly due to steel mills in China switching to higher iron content ore to maximise production.
The company is working on higher iron content ore. A 60% iron content product, named West Pilbara Fines, will be produced in the second half of 2019 in advance of the development of the Eliwana mine, also higher iron content, and rail project.
Fortescue shares close 1.1% higher at$4.26.
Fortescue CEO Elizabeth Gaines called the full year results outstanding.
Productivity and efficiency improvements generated a record low annual cost of $US12.36 a tone.
“We remain focused on maintaining our cost leadership position by capitalising on technology and innovation initiatives to offset inflation and optimise operating margins,” she says.
The company declared a fully franked dividend of $A0.12 a share, bringing the total shareholder payout to $A0.23.
The 2018 results at a glance:
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.