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Mining giant Fortescue Metals Group (ASX:FMG) has reported first half results this morning that have exceeded analysts’ expectations.

For the half, FMG reported record half year iron ore shipments of 96.9 million tonnes, 4% higher than the prior corresponding period, underlying EBITDA fell 9% to US$4.4 billion and declared a 75 cents per share interim dividend, which is a decline from the 86 cents per share dividend paid for the first half of FY22.

At the end of the first half, FMG finished the quarter with US$4 billion cash on hand and net debt of US$2.1 billion which is a strong position that at the same time last year.

Revenue for the first half decreased 4% to US$7.8 billion due to the reduction in iron ore price partly offset by higher sales volume. NPAT came in at US$2.4 billion, which represents a 15% decline compared to H1 FY22, reflecting the decrease in EBITDA.

The company decreased its CAPEX for the half from last year to US$1.4bn this year, including US$51 million to the company’s green energy division, Fortescue Future Industries.

Net cashflow from operating activities increased to US$2.9bn from US$2.1bn in the prior corresponding period.

Looking into the second half of FY23, FMG provided quantitative guidance including the expectation of iron ore shipments between 187-192mt, CAPEX of US$2.1bn to US$3.1bn and FFI’s FY23 anticipated expenditure comprises of US$500m-US$600 million in operating expenditure and US$230m of capital expenditure.

Investors are clearly unimpressed with the results, possibly due to the decline in interim dividend announced by FMG, as the share price is currently trading down 1.4% today so far.