Steady iron ore volumes have delivered Gina Rinehart’s Hancock Prospecting another bumper profit, as the billionaire furthers her foray into energy and makes new investments in Australian fashion.
Australia’s biggest private company posted a $5.57 billion net profit after tax for 2024 on Thursday, buoyed by stronger revenues of $14.73b.
“Under the dedicated leadership of Mrs Rinehart, Hancock has become the most successful private company in Australia’s history. Our staff are rightly proud of being part of this successful company and the contribution they make,” the group said in a statement.
The group paid $3.9 billion in taxes during the year.
The strong result was augured earlier this week when Hancock’s rainmaker operations Roy Hill posted a $3.2b profit on shipments of 64 million tonnes of iron ore. A share in Hope Downs and its Atlas Iron operations lifted overall tonnes for the year to 96mt.
It comes on the same day Hancock revealed a $1.13b deal to buy Mineral Resources’ WA oil and gas assets, marking another substantial push for the group into the energy realm.
On the back of the deal, Mrs Rinehart called for a policy environment conducive to greater gas supply in Australia.
“The federal government’s Future Gas Strategy and policies should be changed to enable more gas supply. Currently, policy has been set up by the government to disincentivise investment in natural resources projects, including gas,” she said.
“The West Australian State Government has made some efforts to reduce tape and duplication, and encourage more investment through policy changes allowing some onshore gas to be sold into higher price export markets to encourage additional gas developments and supply in WA.”
“With the Collie coal power station closure having been announced by 2030 gas generation will become more critical to keep the lights on in WA.”
Diversification outside of commodities continued during 2024, with Mrs Rinehart’s S. Kidman & Co purchasing Australian brand Driza-Bone, known for its raincoats, and Rossi Boots in back to back deals late in 2023.
Hancock also bought a majority stake in popular shopping haunt Bunbury Farmers Market during the year, in a move the group said affirmed its commitment to the agricultural sector by investing “across the supply chain.”
The group’s Roy Hill offices are being relocated from Perth Airport to West Perth.
As at June 30 2024, Hancock had provided for more than $5.9b in its financial statements for the payment of dividends, which are quarantined because of a long-running family dispute.
“The company will continue to provide in its financial statements for those dividends in accordance with the Deed until the arbitration is resolved.”