(Sharecast News) – Iron ore pellet maker Ferrexpo reported a fall in half-year profits as its operations in Ukraine continued to be affected by the ongoing war.
Revenues fell 64% to $334m due to lower production and realised prices, while profit after tax declined 67% to $27m.
Pellet production fell 59% year on year to 1.967 million tonnes during the half due to the conflict in Ukraine and associated logistics constraints, but were up 57% compared to the previous six months as output and demand increased, Ferrexpo said on Wednesday.
“Improvements in sales volumes and prices helped lift revenues 7% to $334m for the first half of 2023 compared to the last six months of 2022, although admittedly lower than the first half of 2022 during which operations were running at full capacity until the invasion of Ukraine and iron ore prices were correspondingly higher,” it added.
“Our operations have changed too, adapting to become more nimble and responsive to different challenges as they develop. We are currently running two out of four pelletiser lines, which generate enough high-quality production to utilise the available logistics capacity to continue supplying our European customers.”
The company also revealed that 27 of its staff had been killed fighting against Russian invasion forces and chairman Lucio Genovese said many were still serving, while other veterans had returned to work.
“At the start of the war, a large part of our workforce moved away; but, at the same time, we have absorbed even more internally displaced people fleeing the conflict on the eastern border, providing them with accommodation, food and medical supplies, and wherever possible, employment too.”
Reporting by Frank Prenesti for Sharecast.com
