Investors are giving Fortescue Ltd (ASX: FMG) shares a mixed reaction today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed yesterday trading for $18.63. In early trade on Wednesday, they were changing hands at $18.95 apiece, before slipping to the current price of $18.23, down 2.2%.
For some context, the ASX 200 is down 0.7% at this same time.
Fortescue is also trailing its chief competitors today, with BHP Group Ltd (ASX: BHP) shares down a lesser 1.8% and Rio Tinto Ltd (ASX: RIO) shares down 1.4%.
This underperformance comes following the release of Fortescue's full-year financial results (FY 2024).
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Fortescue shares fall on FY 2024 results
As the Motley Fool covered before market open this morning, Fortescue reported some strong growth metrics over the 12 months to 30 June, including the third-highest single-year earnings in the miner's history.
Although the 216.9 million wet metric tonnes of ore mined during the financial year was down 1% from FY 2023, revenue was up 8% to US$18.22 billion.
But Fortescue shares aren't likely catching a boost today from the 18% year-on-year increase in net profit after tax (NPAT), which came out at US$5.66 billion.
Passive income investors might be a bit disappointed with the 11% decline in Fortescue's final fully franked dividend of 89 cents per share. This brings the full-year dividend payout to $1.97 a share, which represents a 70% payout of NPAT.
But with Fortescue shares also having retraced over the year, this still sees the ASX 200 mining stock trading at a very tasty, fully franked dividend yield (part trailing, part pending) of 10.8%.
While the miner may have scaled back some of its green ambitions, FY 2024 saw Fortescue commence early works at Arizona Hydrogen, its green hydrogen project in the United States. The company also started work on Gladstone PEM50, a 50MW green hydrogen project.
Fortescue Energy CEO Mark Hutchinson said the miner was aiming for its first liquid green hydrogen production in 2026.
Commenting on the FY 2024 performance that have yet to sustainably lift Fortescue shares today, Fortescue Metals CEO Dino Otranto said:
The team has delivered another year of outstanding performance contributing to the third highest earnings in Fortescue's history and free cash flow of US$5.1 billion…
We celebrated a number of significant milestones including first ore from the Flying Fish and Hall Hub deposits as well as the commissioning of our gaseous and liquid hydrogen plant which is the largest of its kind on a mine site in Australia.
How has the ASX 200 mining stock been tracking?
Amid slumping iron ore prices, Fortescue shares are down 8% over 12 months, not including the dividend payouts.
