A slightly higher average price for 2023-24 helped Fortescue (ASX:FMG) offset a dip in exports, resulting in a solid rise in earnings and a higher dividend for the year to June.
However, according to some analysts, the actual result fell short of overly optimistic estimates, despite being the third highest in the company's history.
Fortescue reported a net profit increase of 18% to US$5.68 billion ($8.4 billion) for the year to June, which was lower than analyst estimates of around $6.11 billion.
Underlying earnings rose 7% to US$10.70 billion, while revenue increased 8% to US$18.22 billion, driven by higher prices. The company's average price was US$103 a tonne, up from US$95 a tonne in 2022-23.
The company will pay a final dividend of 89 Australian cents per share, down from $1.00 a year ago. However, the total dividend is higher at $1.97 per share compared to the $1.75 paid in 2022-23.
Chair Andrew Forrest receives approximately 36% of the dividends.
Australia's third-largest iron ore exporter stated that the 8% increase in average realised price contributed to higher revenue, although this was partially offset by the group falling short of its full-year shipment guidance. Cash costs increased by 4%, reflecting higher labour and other costs.
The company has projected shipments of 190 to 200 million tonnes in FY25, a slight improvement over the 192 million tonnes shipped in FY24. Its cash cost for hematite production is expected to be between US$18.50 and US$19.75 per tonne, up from US$18.24 in FY24.
