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Fortescue Metals (ASX:FMG) reported its 2021 financial year results, here’s what you need to know.

FMG’s financial year profit increased 118% to a record US$10.3 billion, in line with analyst expectations.

Earnings increased 96% to US$16.4 billion, as iron ore prices surged to a record high in the 2021 financial year. Revenue increased 74% to a record US$22 billion. Net cash after expenses hit US$2.7 billion.

FMG declared a final dividend of $2.11ps, which takes total dividends in FY21 to $3.58ps. This means FMG pays $11 billion or 80% of NPAT. The upcoming $2.11ps final dividend is payable on the 30th September and goes ex- dividend on the 6th September. You must hold or buy FMG shares by the 6th September to receive this dividend.

FMG’s future outlook sees iron ore shipments expected to be between 180 and 185 million tonnes, following FY21’s record 182 million tonnes. However iron ore has fallen over 20% so far in the 2022 financial year. In addition, FMG will be advancing its global green hydrogen and renewable energy portfolio, aiming to be carbon neutral by 2030. FMG is spending US$400 to US$600 million in FY22 on hydrogen and battery power technology, the identification of local solar, wind, hydro power resources, and the identification of international Greek projects, as well as innovation and technology.

FMG shares rose over 6% to $21.25 today, trading above its 15 day average. FMG trades 9% lower this year.

Macquarie and Ord Minnett have FMG as a BUY with $27 and $29 respective 12 month targets. UBS, Citi and Credit Suisse have FMG as a HOLD, with price targets ranging from $18 to $22.