Fortescue Metals Group Limited has released its 2017 full year results reporting a net profit after tax of US$2.1 billion and underlying EBITDA of US$4.7 billion.
Fortescue’s safety performance has improved by 33% during the year with production of 170.4 mt of ore. The strong 2017 financial results reflected higher iron ore prices during the year, as well as the addition of a continued focus on productivity and efficiency throughout the company, which worked to further reduce costs down to US$12.82 per wer metric tonne (wet).
By the end of 2017, cash was US$1.8 billion with net gearing reduced to 21% that followed an additional US$2.7 billion in debt repayment, leaving a further US$1.5 billion refinanced, extending maturities to 2022 on improved terms and conditions.
Fortescue Chief Executive Officer, Nev Power said, “The whole Fortescue team has delivered these outstanding results against our key stretch targets of safety, production and cost. Safety improved by 33 per cent compared to the previous year, while costs improved by 17 percent and we achieved a record low C1 operating cost of US$12.16/wmt in the June quarter.”
“Fortescue has continued to generate excellent cashflows allowing further repayment of debt, strengthening of our balance sheet and increasing returns to our shareholders.
“Our strong operating performance and financial outlook has led to the Board declaring a final fully franked dividend of A$0.25 per share, increasing total FY17 dividends to A$0.45 per share, a 52 per cent pay-out of net profit after tax.”
Underlying EBITDA of US$4 744 million was 48 per cent higher than 2016 reflecting higher average iron ore prices and the continued focus on operational efficiencies which have further reduced Fortescue’s operating costs. Revenue of US$8 447 million increased by 19% compared to FY16 as the average Platts 62 CFR index price rose to US$69.53/dmt. Total delivered cost to customers, inclusive of C1, shipping, royalty and administration costs, decreased to US$22/wmt, a 4% reduction compared to 2016 (US$23/wmt) as the earlier lower cost was offset by higher shipping and royalty costs.
Read the article online at: https://www.globalminingreview.com/finance-business/23082017/fortescue-metals-group-limited-release-annual-full-year-results/