Fortescue's First-Half Profit Plummets 53% Amidst Weak Iron Ore Prices
Fortescue Metals Group reported a significant decline in its first-half profit due to the ongoing weakness in iron ore prices. The miner's underlying net profit after tax dropped by 53% to $1.55 billion for the six months ended December 31, 2023, compared to $3.34 billion in the same period a year ago.
The subdued demand from China's property sector and the high portside inventories of iron ore have been weighing heavily on prices. Despite stimulus measures from Beijing, the market has only partially recovered in recent months.
Reflecting the challenging conditions, Fortescue declared an interim dividend of A$0.50 per share, lower than the A$1.08 per share distributed in the previous year.