Fortescue Metals (ASX:FMG)
doubled its final dividend to $2.11, after a record year of annual shipments ending 30 Jun 2021.
The mining giant reported net profit after tax of US$10.3 billion, up 117 per cent from the prior year off the back of higher realised prices and maintenance of low cost production.
Revenue surged 74 per cent from the prior year to US $22.3 billion, while underlying earnings before interest, taxes, depreciation and amortisation rose 96 per cent to US$16.4 billion.
Price improvement was influenced by Fortescue's expansion of sales channels including its China based trading company, execution of operations and marketing with West Pilbara Fines and strength in Chinese steel production and iron ore price, reflecting the market supply and demand fundamentals.
Both market and volumes were driven by iron ore products averaging at US$135 per dry metric tonnes (dmt), which increased 72 per cent from the prior year.
Fortescue Metals, expect capital expenditure in the next financial year to be between US$2.8 and US$3.2 billion.
Final dividend jumped 103 per cent, set to be paid in September this year.
Shares in Fortescue Metals (ASX:FMG)
are trading 5.6 per cent higher at $21.12.