PERTH (miningweekly.com) - Iron-ore major Fortescue Metals has seen a 40% decline in its net profit for the six months to December, as global iron-ore prices decreased.

Net profit for the period was down to A$478-million, compared with the A$801-million reported in the previous corresponding period, while revenue for the same period was down by 2% to A$3.3-billion.

Earnings before interest, tax, depreciation and amortisation were also down by 26% to A$1.1-billion.

The lower earnings and profit were reported despite record production volumes being achieved across Fortescue’s mine, rail and port operations, with the miner shipping some 35.7-million tons during the period, and reaching an annualised run rate of 100-million tons a year in December.

“Fortescue has continued to demonstrate our rock solid ability to deliver against expansion and growth targets,” CEO Nev Power said on Wednesday.

“Despite challenging market conditions during the half, we have delivered record operational performance from our world-class assets. Increased production volumes have, in part, offset price volatility,” he added.

Power noted that Fortescue had exited the half-year period a stronger and more resilient company, with renewed focus on achieving a production capacity of 155-million tons a year by the end of the calendar year, to underpin sustainable future earnings and increasing shareholder value.

“We have had a strong start to the second half with a high iron-ore price and cost savings initiatives flowing through to C1,” Power said.

He noted that the company’s C1 costs were expected to range between $45/t and $50/t for the remainder of the financial year, and added that once the Solomon Firetail and Kings mines were fully operational, total C1 costs were expected to fall to between $38/t and $40/t.

“Our focus remains on using existing assets together with realising operating-cost and capital savings initiatives. This provides confidence in our ability to deliver growth in production volumes to 155-million tons a year, reduce balance sheet gearing, and continue to deliver growth in shareholder value,” CFO Stephen Pearce added.

Meanwhile, the company said on Wednesday that it remained on track to ship between 82-million and 84-million tons of ore during the 2013 financial year.

The Firetail mine was expected to achieve a 20-million-ton-a-year run rate during April this year, which would increase Fortescue’s production capacity to 155-million tons a year.