Ferrexpo cuts net profit by 7.6% in H1 2020

Ferrexpo mining company with assets in Ukraine in the first half of 2020 saw $249.91 million in net profit, which is 7.6% less than in the first half of 2019 ($270.35 million).

According to the half year report posted by the company on the London Stock Exchange on Wednesday, its revenues for the reporting period decreased 1.4%, to $ 775.83 million, while pellets production and sales increased 5% and 22%, respectively.

EBITDA decreased 5.4%, to $352 million (in the first half of 2019 it was $372 million), and net debt decreased from $282 million to $174 million since the beginning of the year.

Ferrexpo's capital investment in the first half of this year was $96 million, up from $114 million in the first half of last year.

Non-Executive Chairman Steve Lucas was pleased to report a positive set of results for the half year, all in the context of a pandemic that has disrupted the global economy. He said that in light of the strong liquidity position the group is pleased to declare today a further interim dividend of 6.6 U.S. cents per share.

"The company has approached the uncertainty of current global events with caution, destocking throughout the period and has reduced net debt to $174 million and increased cash to $169 million as at June 30, 2020," he said.

Lucas said that the operations are now benefiting from the refurbishment work completed in 2019.

He said that Ferrexpo has continued its investment for growth in the first half year and aims to double output from the group's operations in Ukraine over the medium term.