Australian mining giant Fortescue today announced a 41 per cent drop in its annual profit after a year of falling iron ore prices.
The mining and green energy company run by Australian billionaire Andrew Forrest recorded a net profit after tax of $US3.37 billion ($5.2 billion), compared with $US5.68 billion a year ago.
The figure came in slightly below market forecasts.
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Shareholders will get a 60-cent final dividend next month, bringing the complete year total to $1.10 per share.
Shaky global iron ore prices, and falling demand from China’s factories and construction sector were behind the profit dip.
Executive chairman Forrest, an advocate for green hydrogen as a clean energy source, today acknowledged transforming his company into a major producer of the energy-rich fuel was challenging.
“No new industry or transformational shift has ever been linear or easy,” Forrest said in a statement to the ASX today.
“We haven’t always got it right, but we learn every day from advances and setbacks.”
In July, Fortescue announced it was cutting 700 jobs across its global operations amid reports it was scaling back its goals to be a major hydrogen producer.
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But the company insisted its green energy and zero emissions pushes will continue.
“Fortescue remains resolute in its commitment to be the world’s leading green technology, energy and metals company with a laser focus on achieving Real Zero by 2030,” it said in a statement.
Fortescue was founded in Western Australia in 2003 and exports more than 190 million tonnes of iron ore each year.
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