Australia's third largest iron ore miner Fortescue Metals Group on Friday reported a leap in full- year net profit of 1.02 billion U.S. dollars amid strong iron ore demand.

The Perth-based mining company's profit was up 76 percent, from 581 million U.S. dollars in the prior year, the company said in a statement on Friday.

The profit was broadly in line with market expectations

Revenue from iron ore operations for the 12 months to June 30 was 5.4 billion U.S. dollars, from 3.2 billion U.S. dollars in the previous financial year, the miner reported.

Chinese customers accounted for 5.2 billion U.S. dollars in revenue, with other customers representing 172 million U.S. dollars.

Total liabilities jumped from 3.7 billion U.S. to 6.19 billion U.S. dollars as Fortescue moves to expand its iron ore operations in Western Australia's Pilbara region.

Fortescue said the profit increase was driven by strong sales of iron ore at an average price of 149 U.S. dollars a tonne in 2010/11.

"The 2011 financial result reflects Fortescue's substantial earnings power over a year that saw the completion of the Christmas Creek facility, the ramp up to 55mtpa (million tones per annum) production rate and the start of the rapid build out to our 155mtpa target," Fortescue Metals Group Chief Executive Officer Nev Power said in the statement.