Australian iron ore miner Fortescue Metals Group has announced its financial results for the financial year 2019-20 ended on June 30.
During the given period, Fortescue's net profit amounted to US$4.7 billion, rising by 49 percent compared to the previous financial year, while the company's sales revenue amounted to US$12.8 billion, up 29 percent on year-on-year basis owing to the fact that the average realized iron ore price was $79/mt, up by 21 percent year on year amid low iron ore inventory and good demand. Meanwhile, Fortescue's EBITDA increased by 38 percent year on year to US$8.4 billion in the given period.
Fortescue shipped 178.2 million mt of iron ore during the full financial year, six percent higher than the previous financial year.
In the full year of 2019-20, the company’s total capital expenditure was recorded at $2 billion and is expected to reach $3-3.4 billion in the financial year 2020-21, while its iron ore shipments are predicted to be at the range of 175-180 million mt in the same period.
“For the financial year 2019-20, we delivered record revenue, underlying EBITDA and net profit, demonstrating the continued ability of our operations to generate strong cash flows through the successful execution of our integrated operations and marketing strategy. Leveraging the capability in our value chain resulted in record shipments, sustained low-cost performance and excellent operating margins, which positioned us to deliver record net profit of US$4.7 billion,” said Fortescue’s chief executive officer Elizabeth Gaines.