Fortescue Metals Group has posted a sharply lower full-year profit despite record shipments as iron ore prices retreated.
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 Australia's third-biggest iron ore miner fell 2.1 per cent or 42 cents to $A19.45 in morning trade on Monday.
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.
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.
Outgoing Fortescue CEO Elizabeth Gaines said Fortescue was accelerating the transition to a green energy and resources company and was leading the way on decarbonisation.
She said the company had experienced a "strong start" to FY23.
"Fortescue Future Industries (FFI) is taking a global leadership position in green energy and technology and is committed to producing zero-carbon green hydrogen," the company said.
FFI's electrolyser manufacturing facility in Gladstone, Queensland, is under construction and will have an initial capacity of two gigawatts per annum with first production forecast for 2023.
Negotiations are continuing with Incitec Pivot to convert the Gibson Island ammonia plant in Queensland to be powered by green hydrogen.
Ms Gaines said the industry faced some "confronting truths" during the year about sexual harassment at mining operations in WA.
"The findings from the Western Australian parliamentary inquiry were deeply concerning for the industry," she said.
She said Fortescue had a zero tolerance approach to bullying, harassment and discrimination.
Net cash flow from operating activities was $A9.6b and free cash flow was $A5.2b after investing $A4.5b in capital expenditure.
Fortescue said it has a strong balance sheet with cash on hand of $A7.6b and net debt of $A1.3b at June 30.
The fully franked final dividend of $A1.21 per share brings the total dividend declared in FY22 to $A2.07 per share.
