Ferrexpo the FTSE 250 iron ore pellet producer announces its interim results for the six months ended June 30 2011.
Highlights
| H1'11 | H1'10 | Change | |
| Revenue | 8,54,864 | 5,25,833 | 62.60% |
| EBITDA | 4,00,753 | 2,15,172 | 86.30% |
| Profit before taxation | 3,52,011 | 1,66,164 | 111.80% |
| Diluted earnings per share(US cents) | 49.73 | 23.57 | 111.30% |
| Final dividend per share (US cents | 3.3 | 3.3 | 0.00% |
In '000 USD
Record first half financial performance
1. Revenue increased 63% to USD 855 million
2. EBITDA1 increased by 86% to USD 401million
3. Diluted EPS increased 111% to 49.73 US cents
4. Dividend of 3.3 US cents per share
Production at full capacity and an increase in product quality
1. Production of 4.8 million tonnes of pellets
2. 4% increase in production of 65% Fe pellets to 2.2 million tonnes
3. Total CAPEX USD 120 million
4. Growth projects progressing as planned
5. Continued addition to logistics capabilities:
6. Purchase of 112 rail cars
7. Integration of Helogistics
8. Loading of first Capesize vessel
Mr Michael Abrahams Non-Executive Chairman commented said “Ferrexpo is pleased to report a very strong financial performance for the six month period ended 30 June 2011. This was underpinned by an excellent operational performance, with production of iron ore pellets once again at full capacity and costs effectively managed in an inflationary environment. This was further supported by continued growth in demand for iron ore, in particular pellets, during the period with global iron ore prices remaining at high levels.”
He said that “Demand for iron ore is expected to remain strong in the medium term while supply is proving slow to respond. Iron ore is a cyclical market and Ferrexpo will retain its operational and financial flexibility through its low cost base, well established marketing strategy, incremental approach to developing its assets and strong balance sheet. The Group will continue to invest in its growth projects and manage its costs where possible to ensure a strong financial performance in the second half of the year and through the commodity cycle."
