Ferrexpo PLC (LSE:FXPO) posted a 44% drop in first-half profit as the exporter of iron ore pellets from Ukraine saw its production and sales restricted by Russia’s invasion.
Underlying EBITDA fell to US$486mln, from US$868mln in the year-earlier period, on higher costs due to lower production volumes, rising global inflation and higher energy prices.
“The results announced today reflect an unprecedented period in the history of Ukraine, and Ferrexpo, and should be viewed as a result derived through the strength and determination of Ferrexpo's workforce in Ukraine and those involved in facilitating the export of the group's products,” said non-executive chair Lucio Genovese.
Revenue for the FTSE 250 group declined 31% to US$936mln on lower output and a deterioration in global iron ore markets.
The business continues to remain under significant pressure due to logistics constraints in Ukraine following the closure of the country’s Black Sea ports in February and disruptions on the railway network.
"Despite the ongoing conflict in Ukraine, the group continues to invest in the future - advancing both near-term projects to completion such as the group's newly completed medium and fine crushing plant, to the development of longer term projects such as development stripping activities at the group's third mine - Belanovo, which have continued despite the current environment,” said Genovese.
The Swiss headquartered iron ore company is deploying humanitarian support to the people of Ukraine through the Ferrexpo Humanitarian Fund, established in early 2022, with total approved funding of US$15mln.
"Twelve months ago, we spoke in our interim results announcement of an exciting future ahead for the Ferrexpo business, and whilst this positive growth story remains in the group's plans, today we are focused on supporting the people and communities of Ukraine following more than 150 days of Russia's continued invasion,” said Genovese.