Fortescue Ltd has reported a 41% rise in first-half net profit to US$3.33 billion (A$5.1 billion) on the back of strong iron ore shipments and higher realised prices for the steel-making raw material.
The result was slightly better than analysts expected and came with a fully franked interim dividend of A$1.08 per share as compared to A$0.75 apiece declared a year ago.
The dividend is worth A$1.22 billion to the family interests of Fortescue chairman Andrew Forrest and Nicola Forrest, who separated last year after more than three decades of marriage.
Guidance reaffirmed
Imports to China, the world’s largest iron ore consumer, hit a record high last year as steel makers sought more lower grade ore for their mills to conserve margins, leading to higher demand for Fortescue’s lower grade product.
Fortescue shares gained 1.49% to A$27.67 intra-day on Thursday after its 2023-24 guidance for iron ore shipments, costs and capital spending was reaffirmed.