Highlights
·
Continued
focus on
safety contributed
to lowest
ever Total
Recordable Injury Frequency
Rate (TRIFR)
of 2.0
in the
12 months
to 30
June 2021
(FY21), 17
per cent lower
than 30
June 2020
·
Highest
ever
annual
shipments
of
182.2
million
tonnes
exceeded
guidance,
with
earnings and
operating cashflow
surpassing any
year in
Fortescue’s history
·
Underlying
EBITDA
of
US$16.4
billion, 96
per cent
higher than
FY20 with
the Underlying EBITDA margin
increasing to 73 per
cent
·
Net
profit
after
tax
(NPAT)
of
US$10.3
billion,
increasing
117
per
cent
from
FY20
and
representing
a
return on
equity of 66
per cent.
Earnings per
share (EPS)
was US$3.35
(A$4.48)
·
Net cashflow
from operating activities of US$12.6 billion and free cashflow of US$9.0
billion after
investing US$3.6 billion in capital
expenditure
·
Fully franked
final dividend of A$2.11 per share, increasing total dividends declared
in FY21 to A$3.58 per share,
equating to
A$11.0 billion
and an 80 per
cent payout
of NPAT
·
Cash
on hand
of US$6.9
billion and
net cash of US$2.7 billion at 30
June 2021
·
Fortescue
Future
Industries
(FFI)
established
during
FY21 to
advance a
global green
hydrogen and
renewable energy
portfolio. FFI
is a
key enabler
of Fortescue’s
decarbonisation strategy
·
Announced a
revised target to achieve carbon neutrality by 2030, ten years earlier
than the previous target, with
significant progress on
decarbonisation stretch
targets achieved
·
Total global
economic contribution of A$30.2 billion in FY21, including A$8.0 billion
in taxes and state
royalties.
Fortescue Chief Executive
Officer, Elizabeth Gaines, said “Guided by our unique culture and
Values, the
Fortescue family
has delivered
a second
consecutive year of
record performance,
with shipments,
earnings and operating cashflow surpassing any year in Fortescue’s
history. Through the Iron
Bridge Magnetite project and Fortescue Future Industries, we are
investing in the growth of our
iron ore operations, as well as pursuing ambitious global opportunities
in renewable energy and
green industries.
“Importantly, our team
achieved our lowest ever Total Recordable Injury Frequency Rate of 2.0,
while managing the continued challenges resulting from COVID-19
restrictions. Our commitment to providing
a safe
and inclusive
environment for all
team members
is our
key priority.
“During the year, Fortescue
celebrated a number of significant operational milestones, including
the delivery of
our newest
mining operation
at Eliwana.
The strong operating
performance across our
supply chain, along with the successful ramp up and integration of
Eliwana contributed to
Fortescue’s outstanding results
in FY21.
“The
establishment
of
Fortescue
Future
Industries
during
the
year underpinned our industry
leading target to
achieve carbon neutrality by 2030. FFI will be a key enabler of this
target through a
forward-looking approach to ensuring our capital investments in
decarbonisation are aligned with
strategic decisions
such as
fleet renewal.
“As we execute on our
strategy to become a global leader in the battle against climate change
we will establish goals to
tackle emissions across our value chain, with specific targets, and a framework for
our approach
to Scope
3 emissions,
to be
announced by 30
September 2021.
“Reflecting our ongoing
commitment to delivering enhanced shareholder returns, the Board has
declared a fully franked final dividend of A$2.11 per share,
bringing total dividends for FY21 to A$3.58 per
share, representing
an 80
per cent
payout of
full year
net profit after
tax.
“We have seen a strong start
to FY22 and 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.
Operational and
financial performance
·
Fortescue
achieved record shipments, revenue, earnings and cashflow in FY21,
reflecting outstanding performance across
the supply
chain and
strong customer
demand.
·
Revenue
of US$22.3
billion in
FY21 was 74
per cent
higher than
the prior
year, reflecting a two
per cent
increase in
ore sold to
181.1 million
tonnes (mt)
and a
72 per
cent increase
in average
revenue to US$135
per dry
metric tonne
(dmt).
·
Underlying
EBITDA of US$16.4 billion was 96 per cent higher than FY20, as the
Underlying EBTIDA margin
increased to 73 per cent or US$99/dmt, reflecting the strength in
revenue received and
disciplined cost
management.
·
NPAT of
US$10.3 billion increased 117 per cent compared to the prior year,
representing a return
on equity
of 66 per
cent. Earnings per
share was US$3.35 (A$4.48).
|
Operations |
FY21 |
FY20 |
Change
(%) |
|
Ore mined
(m wmt) |
226.9 |
204.3 |
11 |
|
Overburden removed
(m wmt) |
295.2 |
318.9 |
(7) |
|
Ore processed
(m wmt) |
185.8 |
176.3 |
5 |
|
Ore shipped
(m wmt) |
182.2 |
178.2 |
2 |
|
Ore sold
(m wmt) |
181.1 |
177.2 |
2 |
|
Average revenue
(US$/dmt) |
135.32 |
78.62 |
72 |
|
C1
cost (US$/wmt) |
13.93 |
12.94 |
|
differences may
occur between
shipments and
sales as
FMG Trading
holds inventory at
Chinese ports.
|
Earnings |
FY21 |
FY20 |
Change
(%) |
|
Revenue (US$
million) |
22,284 |
12,820 |
74 |
|
Underlying EBITDA (US$
million) |
16,375 |
8,375 |
96 |
|
Underlying EBITDA
margin (%) |
73 |
65 |
12 |
|
NPAT
(US$ million) |
10,295 |
4,735 |
117 |
|
Underlying NPAT (US$
million) |
10,349 |
4,746 |
118 |
|
Basic EPS (US
cents) |
335 |
154 |
117 |
|
Basic EPS (AUD
cents) |
448 |
229 |
95 |
FY22
guidance
·
Iron
ore shipments of 180
- 185mt
·
C1
cost of
US$15.00 -
US$15.50/wmt
·
Capital
expenditure (excluding FFI)
of US$2.8
- US$3.2
billion, inclusive
of:
o
US$1.1
billion on
sustaining capital
o
US$200
million on
hub development
o
US$250
- US$300
million on
operational development
o
US$180
million on
exploration and
studies
o
US$1.1
- US$1.4
billion on
major projects
(Iron Bridge
and PEC)
Guidance
for C1
cost and
capital expenditure
is based
on an
assumed FY22
average exchange
rate of AUD:USD 0.75. |
