Australia's Arrium H1 profit jumps 294 pct on iron ore; dividend upped

SYDNEY, Feb 18 (Reuters) - Australian steel maker and iron ore miner Arrium Ltd reported a 294 percent jump in its first-half net profit, thanks to record earnings in the mining business after doubling its iron ore sales.

Strong earnings have prompted the company to lift its interim dividend to 6 cents a share, a 200 percent jump on a year ago.

Underlying net profit for the six months ending December rose to A$201 million ($181.41 million), a 294 percent jump from A$51 million a year ago. That was broadly in line with three analysts' average forecast of A$200.6 million, according to Reuters calculation.

The company reported a net profit of A$220 million, compared with a net loss of A$448 million a year ago.

Arrium changed its name from OneSteel Ltd last year to reflect its shift towards a diversified global mining and materials business and to attract new investors.

Arrium shares closed at A$1.78 on Monday. The stock gained 41.3 percent in volatile trading over the past year, against a 6.3 percent rise in the broader market. ($1 = 1.1080 Australian dollars)

(Reporting by Maggie Lu Yueyang; Editing by Robin Pomeroy)

((maggie.luyueyang@thomsonreuters.com)(+61 2 93731819)(Reuters Messaging: maggie.luyueyang.thomsonreuters.com@reuters.net))

Keywords: AUSTRALIA ARRIUM/