Fortescue (ASX: FMG) has delivered a record half-year iron ore shipment of 97.1 million tonnes, a three percent increase from the same period last year. Despite the strong operational performance, lower iron ore prices weighed on financial results, with net profit after tax (NPAT) dropping 53% to US$1.6 billion. The company has declared a fully franked interim dividend of A$0.50 per share, maintaining a 65% payout ratio.
CEO Dino Otranto highlighted the company’s strong supply chain performance and cost discipline, allowing Fortescue to achieve its highest-ever half-year shipments while continuing to improve safety, with a 44% reduction in the Total Recordable Injury Frequency Rate (TRIFR) over the past 12 months.
While revenue for the first half of FY2025 fell 20% to US$7.6 billion, largely due to weaker iron ore prices, the company remained focused on efficiency. Hematite C1 costs rose 8% to US$19.17 per wet metric tonne, reflecting inflationary pressures and mine plan changes. Underlying EBITDA was US$3.6 billion, down 38%, with an EBITDA margin of 48%, while earnings per share (EPS) came in at US$0.51 (A$0.76).
Fortescue continues to push forward with its decarbonisation strategy, signing a US$2.8 billion partnership with Liebherr to supply zero-emission mining equipment. It has also released a Climate Transition Plan, aiming for Real Zero emissions by 2030.
Green energy projects remain a focus, but global policy uncertainty has led to timeline adjustments for some initiatives. The company reaffirmed its commitment to producing green electrons and green molecules but is reassessing development schedules in response to market conditions.
Looking ahead, Fortescue is maintaining its FY2025 shipment and cost guidance, with expectations of shipping between 190 and 200 million tonnes of iron ore. Metals capital expenditure guidance has been refined to US$3.5 – US$3.8 billion, while energy capital expenditure has been reduced to US$400 million.
The A$0.50 per share interim dividend will be paid on March 27, 2025, with the ex-dividend date set for February 26, 2025. Despite softer financial results, Fortescue remains focused on operational excellence and long-term sustainability.
