5th Aug 2020 09:21
(Alliance News) - Ferrexpo PLC on Wednesday posted lower earnings for the first half of 2020 as it said its operations have continued with minimal Covid-19 related disruption.
Shares in the FTSE 250-listed miner were trading 10% higher at 199.76 pence each on Wednesday morning in London.
For the six months ended June 30, Ferrexpo posted pretax profit of USD294 million, down 7.5% from USD317.9 million reported the year prior. This was as revenue fell 1.4% to USD776 million from USD787 million.
The London-based company said that while pellet production rose 5% to 5.6 million tonnes, revenue was hurt by lower realised prices which were the result of lower pellet premiums.
An interim dividend of 6.6 US cents was declared, unchanged from the year prior.
Looking ahead, Non-Executive Chair Steve Lucas said: "Ferrexpo aims to double output from the group's operations in Ukraine over the medium term. Whilst the ongoing global Covid-19 pandemic has affected demand in most markets, Ferrexpo's operations continue to operate with minimal disruption. The group has adapted to a changing market environment, and has sold increased volumes to China where demand remains robust. As the market returns to more normal conditions in the second half, we expect to see a recovery in steel demand outside China which should be constructive for pellet premiums."
As at the end of June, Ferrexpo had cash of USD169.2 million.
By Ife Taiwo; [email protected]
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