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UPDATE 1-Australia's Fortescue lifts shipment forecast as first-half profit jumps 66%

Published 18/02/2021, 10:14 am
FMG
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(Adds details on shipment outlook, iron ore prices, China demand)

Feb 18 (Reuters) - Fortescue Metals Group FMG.AX on Thursday raised its annual shipment forecast and reported a 66% jump in half-year profit, boosted by strong gains in iron ore prices and higher demand from top steel producer China.

Iron ore prices scaled multi-year highs in December as China ramped up infrastructure spending to lift its economy out of a pandemic-induced slump.

The world's fourth-largest iron ore miner saw a whopping 60.5% jump in the average price it received for its iron ore in the December quarter to $122 per dry metric tonne.

It also reported record-half year output and forecast continued iron ore demand from Chinese steelmakers.

miner expects iron ore shipments to be in the range of 178-182 million tonnes, up from a prior range of 175-180 million tonnes.

It also declared a higher-than-expected interim dividend of A$1.47 per share, up from A$0.76 last year.

Net profit after tax for the first-half was $4.08 billion, up from $2.45 billion a year earlier. This was in line with a consensus of $4.09 billion from 10 analysts compiled by research firm Vuma Financial.

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