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Highlights:
- Fortescue Metals Group Ltd's (ASX:FMG) net profit after tax dropped 15% over the year in H1FY23.
- FMG declared a fully franked interim dividend of AU$0.75 per share, for which the ex-dividend date is 27 February 2023.
- The company kept the guidance unchanged for FY23 C1 cost, shipments, etc.
Fortescue Metals Group Ltd (ASX:FMG) announced its earnings for the half year ended 31 December 2022 (H1FY23) today, 15 February 2023, post which the mining company's stock dropped. The stock ended the market session at AU$22, decreasing 0.811%.
| Company Name | Market Price (AU$) |
Market Cap (AU$) |
Yearly Return (%) |
Dividend Yield (%) |
PE Ratio (x) |
YTD (%) |
52W High (%) |
52W Low (%) |
|
|---|---|---|---|---|---|---|---|---|---|
| FORTESCUE FPO [FMG] | 22 | 67.737B | 1.90 | 9.41 | 7.58 | 7.26 | 22.92 | 14.50 | |
*Data powered by Morningstar®. Data delayed 20 minutes unless otherwise indicated. Read More
as of 15/02/2023, 07:02:33 PM AEDT
The vertically integrated company mines, processes, and transports iron ore for export incorporating green energy solutions.
For the half year, it recorded a revenue of US$7.8 billion, a 4% decline from the previous year due to reduced average iron ore price. In line with it, its underlying EBITDA declined by 9% to US$4.4 billion. Further, its net profit after tax was also impacted and came in at US$2.4 billion, reflecting a 15% drop over the year.
The respite was in the iron ore shipments, which grew 4% to 96.9 million tonnes (mt) compared to the previous year's first half and supported the fall in revenue affected by lower average price.
Among its projects, the mining company continued developing its Iron Bridge Magnetite Project during the first half, which it expects to be ready for first production by the end of March quarter in 2023. Iron Bridge is a joint venture (unincorporated) of FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd.
Besides, the company has commenced civil works near Iron Bridge for its North Star Junction 100MW Solar Generation Farm. It also plans to commence work for a network-connected large-scale battery storage system as component of the Pilbara Energy Connect Program.
The company declared an interim dividend of AU$0.75 per share (fully franked), for which the ex-dividend date is 27 February 2023. The dividend is payable by 29 March 2023.
Fortescue dividend policy set a payout of 50%-80% of full-year net profit after tax, and this interim dividend fell within the range with a 65% payout of NPAT in the first half of FY23. However, this payout was lesser than the previous year’s payout.
The company kept its guidance unchanged for FY23. It expects Iron ore shipments to be within 187 mt to 192 mt and C1 cost for hematite to remain between US$18.00 and US$18.75/wmt. Its expectation for capital expenditure lies between US$2.7 billion and US$3.1 billion (excluding FFI) for FY23.
