Fortescue lifts FY net profit

Iron ore giant aiming to lower capital expenditure, improve profit margins in year ahead, with view to commencing debt repayments.

Fortescue Metals (FMG) intends to decrease its capital expenditure and improve its operating margins as it moves toward the commencement of debt repayments in the year ahead, on the back of a solid lift in profit for fiscal 2013.

In the year to June 30, Fortescue's net profit was $1.75 billion, a 12% jump on the $1.56 billion recorded in 2012 and in line with market expectations.

In the same period revenue was $8.12 billion, a 21% increase on the $6.72 billion in the previous year.

Fortescue will pay a fully-franked final dividend of 10 cents on October 4 to shareholders on the register at September 6.

With the absence of an interim dividend, Fortescue's total divided was also a fully-franked 10 cents, an increase on the fully-franked eight cents paid in 2012.

The group reiterated the sale process of its TPI infrastructure business is ongoing, saying "while there is no imperative to undertake the sale, it is being considered to accelerate debt repayments and to release long term value for Fortescue's shareholders".

The iron ore giant said the process had attracted interest  and offers from major global investors, none have met Fortescue's objectives for values or terms.

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