Ferrexpo’s half-year profit tumbles on higher costs

Ferrexpo’s FPM mine. (Image courtesy of Ferrexpo)

Ferrexpo Plc reported a slump in its half-year profit on Wednesday, after the Ukraine-focussed miner saw a hit from higher costs and lower production volumes as it grappled with inflationary woes and energy prices.

The group said its pellet production fell 14% to 4.8 million tonnes, as constraints in its logistics increased following Russia’s blockade of Ukraine’s Black Sea ports in February.

The world’s third-largest exporter of iron ore pellets, which makes pellets used in steel industry and has all its operations in Ukraine, has been facing disruptions due to the crisis.

The company is in advanced talks to restart transportation of material sales through ocean-bound freight, which was hampered by the blockade, Ferrexpo said, adding that it processed small shipments from the Black Sea and Baltic Sea ports in June.

Underlying core profit for the six-month period ended June 30 dropped 44% to $486 million, the group said.

(By Muhammed Husain; Editing by Sherry Jacob-Phillips)

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