Andrew Forrest’s Fortescue trims dividend and green energy spending as iron ore profit falls

Andrew Forrest’s Fortescue has hit another shipment record, pumping out 97.1 million tonnes in the first half of the financial year.

That’s a 3 per cent improvement on the first half of the prior year.

But revenues of $US7.6 billion fell 20 per cent on the prior period as a tonne of iron ore decreased to $US85.

As a result, net profit of $US1.6b was down 53 per cent. It declared a fully franked interim dividend of 50c a share.

The group has indicated it will pull back spending in iron ore and green energy plans.

Releasing the results on Thursday, Fortescue Metals chief executive Dino Otranto described it as “an outstanding operational performance”, with the highest ever half-year shipments.

“The delivery of our decarbonisation plan is progressing well following a $US2.8b partnership signed with Liebherr for zero emissions mining equipment where Fortescue Zero will supply the battery power systems,” Mr Otranto said.

The miner’s cash balance stood at $US3.4b at the end of December, with gross debt of $US5.4b.

Total capital expenditure of $US1.8b in the first half included $US1.3b in sustaining and hub development, including $US139 million on decarbonisation and $US145m by Fortescue Energy.

It has lowered expected spending for its iron ore division for the full year to between $US3.2b and $US3.8b — down $US200m at the lower end of the range — and a big reduction in decarbonisation spending to $US500m — down from previously expected $US700m to $US900m.

More to come....