PJSC “Zaporizhzhia Ferroalloy Plant” (ZZF) reported a 17.2% decrease in net profit for January–June of this year compared to the same period last year, down to 103.958 million UAH.
According to the company’s interim report, published in the disclosure system of the National Securities and Stock Market Commission, the plant increased its net revenue by 9.1% during the reporting period, to 816.929 million UAH.
Retained earnings as of the end of June of this year amounted to 1 billion 900.380 million UAH.
The management report notes that operating the furnaces in a balancing mode between periods with the highest electricity costs is a strategy the company developed in the first quarter, which helped reduce production losses in the second quarter as well. Constant monitoring and analysis of the electricity market, along with collaboration between the production and finance departments, made it possible to develop and implement measures that optimized production schedules to avoid significant production losses and minimize losses as much as possible: April – estimated reduction in losses of 4.9 million UAH (excluding VAT), including a reduction of 3.6 million UAH due to electricity prices; estimated metal losses due to high electricity prices – 95.3 metric tons; May – estimated reduction in losses of 12.4 million UAH (excluding VAT), including a reduction of 4.18 million UAH due to electricity prices; estimated reduction in metal losses due to high electricity prices – 168.2 metric tons; June – estimated reduction in losses of 3.04 million UAH (excluding VAT), including a reduction attributable to electricity prices of 5.2 million UAH; estimated metal losses due to high electricity prices – 130.8 metric tons.
Regarding electricity costs—during the war, prices for electricity and its transmission more than doubled, solely due to increases in ceiling prices and tariffs for transmission and distribution services. Estimated losses for the second quarter of 2026 amounted to 6.1 million UAH (including VAT), including: – due to an increase in the tariff for electricity transmission services via the NEC “Ukrenergo” (+4% compared to the rate in effect in the first quarter of 2026, or 29.23 UAH/MW (excluding VAT)), additional expenses for the second quarter of 2026 were estimated at 0.88 million UAH (including VAT) – due to an increase in the distribution tariff of JSC “Zaporizhzhiaoblenergo” (+7.1% compared to the rate in effect in the first quarter of 2026, or 20.80 UAH/MW for the first voltage class; +3.7% compared to the rate in effect in the first quarter of 2026, or 102.38 UAH/MW for the second voltage class), additional expenses for the second quarter of 2026 were estimated at 0.42 million UAH (including VAT)—due to an increase in the RDN price caps effective April 30, 2026 (up to 15,000 UAH/MW (excluding VAT) during all hours), the estimated additional expenses for the second quarter of 2026 amounted to – 4.8 million UAH (including VAT).
In addition, due to the inability to promptly sell the purchased electricity, the company incurred additional losses resulting from imbalances—losses caused by ill-considered price caps in the balancing market. If the company does not draw the purchased volume of electricity, the remaining amount is directed to the imbalance market, where the purchase price for the company may be 0.01 UAH per 1 MW. In other words, we buy for 3,000–15,000 UAH but sell for 0.01 UAH. Conversely, if the company purchases more than it needs, the price for the excess is marked up by 5% to as much as 100–8,000%. This alone caused the company to lose 0.2–0.4 million UAH per month, and for the second quarter of 2026, estimated losses totaled 0.58 million UAH, including VAT. New technologies for the production and use of raw materials are being developed.
In June, two pilot-scale production campaigns were conducted: – production of MnS17P10 using the company’s own raw materials from ferromanganese production. The feasibility of production meeting the specified quality characteristics was demonstrated; – production of FMn78 using Grade 1b ore as an alternative to Grade 1 ore with a higher manganese content as the primary element. The results confirmed the feasibility of producing metal with specific quality characteristics.
Measures to optimize staffing levels, which were gradually implemented at the enterprise amid mobilization and to ensure minimal operations, led to a significant reduction in personnel.
“Currently, only the best professionals remain—those who have been working for many years and know and understand ferroalloy production. And this staff has remained, for now, to operate 3 furnaces (out of the 31 available),” the report states.
The actual number of employees as of June 24 of this year is 1,037. At the same time, to maintain the company’s image as one that implements new technological and technical solutions amid a complex economic and political situation, it became necessary to respond promptly to changes in the company’s operating conditions: – a constant search for potential markets for its core and other commercial products; – increasing the competitiveness of its products and, as a result, setting a primary objective; – finding ways to reduce costs in the production of both core and other products.
Based on the results of operations for the second quarter of 2026, the company reports the following key figures: The volume of commercial ferroalloy production amounted to 6,000 metric tons, with 7,800 metric tons sold for a total of 503.6 million UAH, including VAT. During the second quarter of 2026, taxes totaling 18 million UAH were paid to the state and local budgets, including to the state budget: customs duties—4.6 million UAH, military levy – 2.7 million UAH, and environmental tax – 0.2 million UAH; and to the local budget: personal income tax – 9.7 million UAH, and environmental tax – 0.2 million UAH.
In addition, a unified social contribution of 11.6 million UAH was paid. The main achievements of the second quarter include maintaining production operations despite low product prices and the steady rise in electricity and transportation costs. Plans are in place to continue operations within established targets, taking into account best practices across all areas of the company. New methods of motivating and rewarding staff are being developed.
The report notes that to reduce dependence on external factors affecting electricity supply—based on experience with the consequences of power grid failures — the company built and commissioned its own 0.8 MW/h solar power plant in December 2024 to meet its own needs. Since the project’s implementation, 980.6 MW of electricity has been generated. This has reduced electricity procurement costs by 4.51 million UAH and represented a significant step forward in developing the company’s modern, decentralized power supply.
Total sales for the reporting period amounted to 14,554 thousand metric tons of ferroalloys, worth 815.845 million UAH. Exports totaled 3,604 thousand metric tons of ferroalloys (23% of total ferroalloy sales for the first half of 2026).
As previously reported, based on its performance in January–March 2026, ZZF saw its net loss increase 2.4-fold compared to the same period last year—from 34.731 million UAH to 84.689 million UAH, while net revenue increased by 26.3%—to 377.006 million UAH from 298.557 million UAH.
Based on its 2025 results, ZZF reduced its net loss by 98.5% compared to 2024—to 27.962 million UAH from 1 billion 862.784 million UAH. At the same time, the plant increased its net revenue by 55.7%—to 1,522.567 million UAH from 977.660 million UAH.
In 2024, ZZF doubled its net loss compared to the previous year—to 1,862,784 million UAH. At the same time, net revenue decreased by 34.7%, to 977,660 million UAH.
PJSC “Zaporizhzhia Ferroalloy Plant” is one of Ukraine’s two main producers of these products.
According to the National Securities and Stock Market Commission’s data for the fourth quarter of 2025, Matrimax Limited and Soltex Limited each own 22.4486% of the company’s shares, Tapesta Limited owns 18.8903%, Walltron Limited (all based in Cyprus) holds 18.642%, and Halefield Holdings Limited (Belize) holds 7.7508%.
The authorized capital of ZZF PJSC is 227.955 million UAH, and the par value of one share is 0.1 UAH.
