Ferrexpo (FXPO) H2 2024 earnings summary

Executive summary

• Revenue rose 43% to $933M, driven by a 64% increase in sales volumes as access to Ukrainian Black Sea ports resumed, despite lower realised prices.

• Production increased 66% to 6.9MT, including record DR pellet output, as logistics constraints eased.

• Net cash position remained stable at $101M, with continued capital investment of $102M.

• Operations and workforce resilience maintained during ongoing war in Ukraine, with 9% of employees serving in the Armed Forces and significant humanitarian support provided.

Financial highlights

• Underlying EBITDA was $69M (margin 7%), down from $99M (margin 15%) in 2023, due to higher energy and consumable costs and lower prices.

• Operating profit fell 75% to $18M, impacted by a $72M impairment loss and higher input costs.

• C1 cash costs rose 10% to $83.9/t, mainly from increased energy prices and imported electricity.

• Loss for the period narrowed to $50M from $85M in 2023; diluted loss per share improved to 8.51 cents.

• Net cash from operating activities was $92M, stable year-over-year, despite higher tax payments and capital investment.

Outlook and guidance

• Focus remains on safety, asset preservation, and supporting Ukraine amid ongoing war.

• Plans to continue exports via Black Sea ports as long as conditions allow.

• Commitment to ESG leadership and defending against ongoing legal cases.