Fortescue's Annual Iron-Ore Shipments Roughly Flat on Year

By Rhiannon Hoyle

Australia's Fortescue said its iron-ore shipments were broadly flat over the past year, as it grappled with setbacks including a derailment and heavy rain.

Fortescue said it shipped 191.6 million metric tons of the steel ingredient in the 12 months through June, compared to 192.0 million tons in the year before.

Fortescue had previously forecast total iron-ore shipments of between 192 million and 197 million tons for the 12-month period, including around 2 million tons from its Iron Bridge project.

The company said in April that it expected annual iron-ore shipments at the lower end of its forecast range after an ore car derailment and wet weather affected its operations. Leaks in a water pipeline also slowed production at its Iron Bridge site.

Still, Fortescue was upbeat about its performance in the latest quarter, which saw iron-ore shipments hit a new all-time high of 53.7 million tons. That was up 10% on the corresponding period a year ago.

"This record result demonstrated the efficiencies gained through our recovery plan following the ore car derailment in December 2023," Chief Executive Dino Otranto said on Thursday.

Fortescue recently said it will make about 700 employees redundant as part of a restructuring aimed at removing duplication in its mining and energy arms.

The company, which makes its profits digging up iron ore in northwest Australia, has in recent years sought to rapidly build a clean-energy business focused on green hydrogen.

Fortescue last week said "initiatives are being implemented to simplify its structure, remove duplication and deliver cost efficiencies."

Turning to the outlook, Fortescue said it expects to ship between 190 million and 200 million tons of iron ore in the 12 months through June, 2025, including 5 million-9 million tons from Iron Bridge.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 24, 2024 18:55 ET (22:55 GMT)

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