Ferrexpo PLC on Wednesday reported sharp drops in interim profit and revenue, due to substantially lower iron ore pellet production and lower prices.
Ferrexpo is an iron ore pellet producer and exporter with operations in Ukraine. Shares in the firm were down 1.6% at 91.18 pence on Wednesday morning in London. They are down 36% over the past 12 months.
The company reported a pretax profit of USD35.5 million in the six months ended June 30, down sharply from USD155.7 million in the previous year. Meanwhile, revenue in the half-year plunged 64% to USD334.0 million from USD935.9 million, due to lower production and realised prices.
Total pellet production dropped 59% to 2.0 million tonnes in the recent half from 4.8 million tonnes a year prior. Sales volumes declined by 52% to 2.1 million tonnes from 4.4 million tonnes the previous year. This came as the average Platts 62% Fe iron ore fines price fell to USD118 per tonne from USD140 per tonne, the company noted.
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