11th Mar 2015 08:46
LONDON (Alliance News) - Ferrexpo PLC shares were trading higher on Wednesday despite the company reporting lower pretax profit and revenue, dragged down by significant lower selling prices over the year.
The company, which supplies iron ore pellets to the iron ore industry, said its pretax profit in 2014 fell to USD254 million from USD305 million last year as revenue fell to USD1.38 billion from USD1.58 billion.
The fall in revenue came despite a rise in total pellet production to 11 million tonnes from 10.8 million tonnes and a rise in sales volumes to 11.2 million tonnes from 10.7 million tonnes as its net realised sales price fell 18%, driven down by a fall in iron ore prices.
Ferrexpo said it would pay a flat dividend of 13.2 cents per share for the year.
"Ferrexpo has had a successful year against a backdrop of a dramatic fall in iron ore prices and significant political upheaval in Ukraine," said Chairman Michael Abrahams. "Ferrexpo's performance in 2014 demonstrated the resilience and strength of its business and gives the Board confidence in its ability to deliver further profitability when external conditions improve."
Ferrexpo shares were up 5.2% to 55.50 pence on Wednesday morning, one of the best performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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