Fortescue to front investors as market demands energy spend details

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The iron ore and renewables energy player’s executives will meet with major shareholders in Sydney and Melbourne after a volatile period.

under Dr Forrest, who is the largest shareholder. Peter White, who was one of the biggest investors last year, has sold much of his holding and said he was “very concerned” about Dr Forrest. “He is too focused on green [initiatives] and particularly [when he says] we are all going to die from humidity,” Mr White said.Others, however, support Dr Forrest and note the high profits and share performance.

“I’m delighted with the company’s position ... only those who distract from it must depart,” he wrote. “We ripped the band-aid off quickly.”“As you have heard me say many times, one in 20 of our Fortescue members may take the [company’s] values, particularly empowerment, deliberately the wrong way,” he wrote. “They may let you down. It may be truly hurtful. Be vulnerable. Suffer the pain, act, and move on.

Apart from Mr Shaw, other brokers have also questioned the rapid exit of executives. Citi analyst Paul McTaggart described Fortescue’s ranks as a “revolving door” and he said regardless of the profit and dividends, investors would “be unsettled by yet another senior management change”.Following the departure of Ms Hick, and Dr Forrest’s suggestion that the company would not abide by the 10 per cent cap on contributions to its energy division, Mr Shaw cut his price target from $16.

The impairment dragged the company’s $US5.5 billion underlying profit down to $US4.8 billion. Fortescue also cut its final dividend to $1 a share, taking total dividends for the year to $1.75 a share.

 

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