Twiggy Forrest takes home 4b as Fortescue posts record profit
Mining giant Fortescue has delivered a record profit on the back of a stunning rally in iron ore prices and doubled its full-year dividends, sending nearly $4 billion to its founder and biggest shareholder Andrew “Twiggy†Forrest.
Fortescue’s profit for the 12 months to June 30 hit a record-high $US10.3 billion ($14.1 billion) as it achieved its highest annual shipments of the steel-making raw material from its Western Australian mines while prices soared.
Fortescue has doubled its dividend, resulting in a $4b windfall for founder, chairman and biggest shareholder,Andrew Forrest .Credit:Trevor Collens
The board announced a final dividend of $2.11, bringing total dividends to $3.58 for the full year.
Fortescue chief executive Elizabeth Gaines said the company was experiencing a “strong start†to the 2022 financial year.
“Through operational excellence, sustained focus on productivity and disciplined approach to capital allocation, we will continue to deliver benefits to all our stakeholders,†Ms Gaines said.
Analysts had expected Fortescue to deliver underlying profit of $US10.3 billion and dividends of $3.64.
Top Australian miners Rio Tinto, BHP and Fortescue have received a massive boost over the past year as the price of iron ore, the nation’s top export, hit a record-breaking $US230 a tonne thanks to aggressive Chinese stimulus measures fuelling an infrastructure-building blitz and enormous demand for steel. Meanwhile, global iron ore supply was constrained due to prolonged disruptions dragging on output at iron ore mines in Brazil.
In the past two months, however, iron ore has lost about 40 per cent of its value, retreating to about $US155 a tonne as China seeks to curb steel production to reduce carbon emissions.
Nick Toscano is a business reporter for The Age and Sydney Morning Herald.
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