Fortescue Ltd (FMG.AU) saw its stock price soar 5.11% in intraday trading on Thursday, following the release of its fourth-quarter production report. The Australian iron ore giant reported a 3% increase in quarterly iron ore shipments, pushing its full-year shipments to a record high.

The company shipped 55.2 million metric tons of iron ore in the fourth quarter, surpassing analyst expectations of 52.5 million tons. This strong performance contributed to a record annual shipment of 198.4 million tons for the 2025 financial year. Fortescue's impressive operational results were attributed to improved processing of the steel-making commodity and increased ore mining, which rose 9% to 64.3 million tonnes during the quarter.

However, the news wasn't all positive for Fortescue. The company announced it would not proceed with two green hydrogen projects - the Arizona hydrogen project in the United States and the PEM50 Project in Gladstone, Australia. This decision will result in a pre-tax write-down of US$150 million in the second half of FY25. Despite this setback in its green energy ambitions, investors appeared to focus on the strong performance of Fortescue's core iron ore business, driving the stock higher. The company also revised its FY26 energy capital expenditure down to approximately US$300 million, which may have further boosted investor confidence.