Fortescue profit falls 4pc to $US319m

Wednesday, 24 Feb 2016 07:04:47

FMG's Kings mine's production capacity is 155 million tonnes of iron ore a year. (ABC News: Sue Lannin)

Fortescue Metals Group has maintained its dividend and managed to restrict its profit fall to 4 per cent, despite tumbling iron ore prices.

The Western Australian miner posted a half-year profit of $US319 million ($444 million), despite a 31 per cent slump in revenue to $US3.34 billion, as iron ore prices collapsed last year.

Fortescue's profit benefitted from the early repayment of $US1.1 billion of debt at a discount, which generated a $US192 million pre-tax gain.

However, the company still carries about $US6.1 billion of debt.

The relatively stable net profit has allowed Fortescue to maintain its dividend at 3 cents per share.

Fortescue said the result came from heavy cost-cutting, with it now able to produce a wet metric tonne of iron ore for $US16, with the aim to lower that further to $US13 by the end of the financial year.

More to come.

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Fortescue profit falls 4pc to $US319m

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