December 02, 2008
Ferrexpo doubles H1 profit
Ferrexpo Plc has announced that its January to June 2007 profits more than doubled as production increased and operating costs fell. Switzerland based Ferrexpo said in a statement that its net income in the six months to June 30th 2007 climbed to USD 36.6 million from USD 15.5 million in 2006. The volume of iron ore Ferrexpo mined during the H1 up by 15% to 14.4 million tonnes from a year earlier while pellet production increased by 19% YoY to 4.7 million tonnes.
Financial and production highlights for the H1 of 2007
| | Jan-Jun'07 | Jan-Jun'06 | Change |
| Iron ore production | 14.446 | 12.522 | 15% |
| Pellet production | 4.653 | 3.923 | 19% |
| Fe contents | 1.778 | 1.563 | 14% |
| Revenue | 327.915 | 236.217 | 39% |
| EBITDA | 112.300 | 51.218 | 119% |
| Profit for the period | 40.579 | 14.564 | 179% |
| Underlying earning | 67.408 | 16.501 | 309% |
Mr Michael Abrahams chairman of Ferrexpo plc commented that “These strong results are a testament to the continuing operational improvements at Ferrexpo. We believe the current positive market environment for our business is set to continue, with the outlook for steel, iron ore and particularly pellets remaining strong globally. These trends are likely to continue throughout the second half of this year and beyond.”
Mr Mike Oppenheimer CEO of Ferrexpo plc commented “I am pleased to report an excellent set of inaugural results, made possible through a combination of higher volumes, improved operational performance and strong pricing. Our Business Improvement Program has led to tight cost control, and we expect it to continue to yield results across our operations. We have already begun to deliver on our growth strategy, and we continue to look for appropriate methods of maximizing the value of our extensive undeveloped ore deposits.”
Ferrexpo is a Swiss headquartered resources company with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes approximately 90% of which is exported to steelmakers around the world.
