FORTESCUE | HALF YEAR RESULTS TO 31 DECEMBER 2023
Fortescue reported a strong financial performance for the half year ending 31 December 2023, with a significant increase in both EBITDA and NPAT compared to the previous year.
The company declared a fully franked interim dividend of A$1.08 per share, which is 44% higher than the FY23 interim dividend, reflecting a payout of 65% of H1 FY24 NPAT.
Iron ore shipments reached 94.6 million tonnes, marking the second highest first half shipments in Fortescue's history.
The company achieved a Total Recordable Injury Frequency Rate (TRIFR) of 1.8 for the 12 months to 31 December 2023, emphasizing its commitment to safety.
Underlying EBITDA increased by 36% to US$5.9 billion, with a margin of 62%, and NPAT rose by 41% to US$3.3 billion.
Net cash flow from operating activities was US$4.2 billion, and free cash flow amounted to US$2.7 billion after capital expenditure and investments of US$1.5 billion.
Net debt was reduced to US$0.6 billion, with a cash balance of US$4.7 billion as of 31 December 2023.
The Iron Bridge project commenced shipments of high-grade magnetite concentrate in September 2023.
Fortescue announced significant investments in green energy projects, including the Phoenix Hydrogen Hub in the USA and the Gladstone PEM50 Project in Australia, and launched Fortescue Capital, a green energy investment accelerator platform.
The company continues to progress on its decarbonization efforts, including deploying the first battery electric haul truck and Australia's first operational electric excavator in the Pilbara.
FY24 guidance for iron ore shipments, C1 cost, and capital expenditure remains unchanged.