Australian iron ore miner Fortescue Metals Group has announced its financial results for the first half of the financial year 2013-14 ended on December 31.
During the half year, Fortescue's net profit amounted to US$1.72 billion, compared to a net profit of US$478 million in the same period of the previous year. The company's sales revenue amounted to US$5.87 billion, up 77 percent year on year. Fortescue's EBITDA of US$3.22 billion in the given period increased from US$1.13 billion in the first half of the previous financial year, reflecting the expanded operational capacity of its mining, rail and port operations, improved product strategy and continued focus on reducing costs.
At the end of the first six months of the current financial year, Fortescue reduced its net debt to US$8.6 billion, from US$10.5 billion at June 30, 2013.
During the given period, Fortescue shipped 53.9 million mt of iron ore, up 51 percent year on year. The company's rail and port operations are fully ramped up with the port operating at a 155 million mt per year outload run rate for an extended period during December 2013. In the given period, the iron ore mined reached 66.9 million mt, increasing by 91 percent year on year.
According to Fortescue's statement, total iron ore shipments for the full financial year 2013-14 are estimated to be 127 million mt and remain sensitive to weather and the ramp-up of ore processing facilities to full production capacity. Delivery of the 155 million mt per year run rate remains on target for the end of March 2014 despite significant rainfall during January and February 2014 which has impacted all operations. Capital expenditure in the current financial year is expected to be US$2.1 billion, US$4.1 billion lower than the previous financial year's capital expenditure of US$6.2 billion.