Forrest affirms green dreams after FY fall

Australia's third-biggest iron ore miner Fortescue Metals Group has posted a sharply lower full-year profit despite record shipments as iron ore prices retreated.

Founder and chair Andrew "Twiggy" Forrest told reporters on Monday that progress on becoming a green energy and resources company has been achieved amid "immense headwinds" from COVID-19 and rising inflation.

"We are reminded again of our combined mission to commercially destroy global warming and create an even stronger global business," he said on a conference call.

Net profit after tax was down 40 per cent at $A9.0 billion for the year to June 30, 2022, as earnings fell.

Shares in Fortescue fell 5.0 per cent or 99 cents to $A18.88 in afternoon trade.

Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 36 per cent to $A15.4b.

The underlying EDITDA margin of 61 per cent for FY22, was down on the 73 per cent achieved a year earlier.

Revenue of $A25.4b fell by more than a fifth (22 per cent) compared to a year earlier due to the reduction in iron ore benchmark price and average price realisation, the company said.

But record shipments of 189 million tonnes, up 4 per cent on the previous year, contributed to the second-highest earnings and operating cash flow in the Pilbara miner's history.

Another record is forecast for the year ahead, of up to 192 million tonnes, with new Iron Bridge operations near Port Hedland set to come on line after time and cost blowouts.