FMG profit surge
16th Feb 2012
PERTH, Feb 16 – Weather and lack of accommodation in Western Australia’s Pilbara region have delayed the construction of the Fortescue Metals Group’s vital harbour expansion by three months and added $200M to its bill.
Delays caused by the cyclone, which closed the Port Hedland harbour and dumped more than 400mm of rain across Fortescue’s mines, have reduced the iron ore production guidance for the March 2012 quarter to 13-13.5Mt from the previous 13.75Mt.
Despite the port construction delay, Fortescue says the project ramp-up to 155Mtpa remains on track for the end of June 2013.
A 37% increase in tonnes of iron ore processed translated to a 155% jump in net profit for Fortescue, Australia’s third largest iron ore producer, in the half year to December 2011.
Net profit after tax was US$801M compared to $314M in the December 2010 half year. Sales revenue was $3,357M, up from $2,533M primarily due to increased tonnes shipped.
Production from Fortescue’s mines was 26.5Mt, up from 19.3Mt in the corresponding period. Including third party product, the company shipped 27.1Mt of ore during the six months.
The company exceeded its 55Mtpa target rate in the December quarter, reaching an annualised 63.6Mtpa rate in December.
Directors approved an interim dividend of A$0.04 per share, up from $0.03 in the previous period.
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