Fortescue beats on first-half profit, posts strong dividend

Imports to China, the world's largest iron-ore consumer, hit a record high last year on strong demand as steel makers sought to conserve margins by using more lower grade ore, raising demand for Fortescue's products.

The world's fourth-largest iron ore miner said net profit after tax attributable for the six months ended December 31 came in at $3.34-billion, up from $2.37-billion a year ago. It beat an LSEG estimate of $2.89-billion.

The beat on profit flowed in to lift its interim dividend to A$1.08 per share, topping the consensus estimate of A$1.04, and up from A$0.75 apiece declared a year ago. The payout was in the middle of its 50% to 80% target range.