Fortescue Reports 88 Percent Drop in Net Profits for Financial Year

Fortescue Metals (ASX:FMG) announced its fiscal financial full-year results for the period ended June 30, which showed an 88 percent drop in net profits to US$316 million compared to $2.7 billion in 2014.
Highlights:

• Safety TRIFR target of 5.1 achieved, 15% improvement on prior period
• Net profit after tax of US$316 million, US$2.5 billion underlying EBITDA
• 165.4 million tonnes (mt) shipped  US$18/wmt C1 cost guidance for FY16
• US$27/wmt C1 costs in FY15, 21 per cent lower than prior year
• Capital expenditure of US$626 million including sustaining capital of US$2/wmt
• Realised price of US$57/dmt for the year, an 85% realisation of the 62% Platts contract value
• Cash on hand of US$2.4 billion at 30 June 2015
• Net debt of US$7.2 billion at 30 June 2015 with first debt maturity in 2019
• A$0.02 per share fully franked dividend

Nev Power, CEO of Fortescue, commented:

In a challenging environment of lower iron ore prices, this focus on efficiency and productivity from our world class assets will continue to see operational improvements and cost reductions while we maintain production at 165mtpa to create long term value for Fortescue shareholders.

Stephen Pearce, CFO of Fortescue, commented:

Our successful debt refinancing, closing cash balance of US$2.4 billion and sustained operational efficiency and productivity gains have delivered solid operating cashflows, further strengthening Fortescue’s balance sheet.

Click here to read the full Fortescue Metals (ASX:FMG) press release.