Ferrexpo mining company with assets in Ukraine at the end of 2020 saw $635.292 million in net profit, which is 57.5% higher than in 2019 ($403.293 million).
According to the annual statements published by the company on the London Stock Exchange on Wednesday, its revenue grew by 12.8% last year, to $1.7 billion from $1.507 billion.
Underlying EBITDA rose by 46%, to $859 million (in 2019 it was $586 million). The company increased its net cash flow from operations by 45%, to $687 million ($473 million). Capital investment decreased 17%, to $206 million ($247 million).
Non-executive Chair of Ferrexpo Lucio Genovese said that the year 2020 was one that will be remembered as a difficult time for communities around the world. In response to the global COVID-19 pandemic, Ferrexpo acted swiftly, setting up a dedicated COVID-19 Response Fund in March 2020, approving $2.5 million for supporting local communities, in addition to taking significant measures to protect our workforce.
“Although COVID-19 caused disruption to global iron ore demand patterns, our central geographic location between Europe and Asia, coupled with flexibility our logistics capacity, enabled us to efficiently pivot towards China in 2020, as it quickly emerged from the pandemic with a strong growth focus on metals. The resultant rise in iron ore prices, coupled with the group’s increase in production and cost control, has driven the strong financial performance for the group in 2020,” he said.
Genovese said that through consistent investment and capital management, the group has once again been able to deliver strong financial performance, coupled with shareholder returns. Dividends paid during the 2020 calendar year grew by 26% to $195 million, after re-investing $206 million back into operations and $148 million of debt repayments.
“In light of the Group’s strong operational and financial performance, coupled with the group’s transition to a net cash position and continued healthy iron ore prices, the group is pleased to announce today a further special interim dividend of 39.6 U.S. cents, bringing total dividends paid in respect of 2020 to 72.6 U.S. cents (2019: 19.8 U.S. cents). The Board will consider, as appropriate, whether or not to propose a final dividend in respect of 2020, which if proposed will be put to the group’s AGM,” he said.
As reported, Ferrexpo in 2020 increased its total pellet production by 7% compared to 2019, to 11.218 million tonnes. Concentrate output grew by 5.9%, to 14 million tonnes.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of shares in Poltava Mining, 100% in Yeristovo Mining and 99.9% in Belanovo Mining.
Ferrexpo is listed on the main floor of the London Stock Exchange.
