Fortescue shares the spoils

FORTESCUE Metals Group has declared a $2.11-a-share dividend on the back of record profits for the financial year, delivering a $2.39bn payout for founder and chairman Andrew Forrest.

Fortescue booked a $US10.3bn ($14.1bn) after-tax profit for the financial year, up 117 per cent on the previous period, finishing June 30 with $US2.7bn in net cash.

Chief executive Elizabeth Gaines said the $2.11-a-share final dividend brought the company’s total payout to $3.58 a share for the year – about 80 per cent of Fortescue’s net profit after tax.

Including the final dividend, Fortescue will now have paid out more than $6bn in dividends to Dr Forrest (pictured) over the last three years, as the iron ore price surged.

Fortescue’s revenue lifted 74 per cent to $US22.3bn for the full year, with the company’s underlying earnings before interest, tax, depreciation and amortisation up 96 per cent at $US16.4bn on revenue of $US22.3bn.

Ms Gaines said the result was Fortescue’s best ever return. “The Fortescue family has delivered a second consecutive year of record performance, with shipments, earnings and operating cashflow surpassing any year in Fortescue’s history,” she said.

The market liked the news, sending Fortescue shares surging 6.6 per cent, or $1.32, to $21.32 on Monday.