The Ferrexpo Group with assets in the Poltava region, specializing in the production of iron ore products, ended the first half of 2025 with a loss of $196 million. In particular, the company recorded losses from depreciation of fixed assets in the amount of $154 million.
According to the company's report, revenue in January-June amounted to $453 million, which is 17% less than in the first half of last year ($549 million) due to lower sales prices and a slight decrease in sales volumes. EBITDA for 6 months fell by 95% to $ 4 million (first half of 2024 - $ 79 million), which also reflects an increase in production costs.
"As we noted during the announcement of the annual results, the group recorded a total of USD 154 million in depreciation of fixed assets. The impairment is related to the suspension of VAT refunds and the impact on the group's long-term model, as well as reflects an expected decrease in cash flow, which, in turn, will negatively affect the book value of the group's assets in the future. Taking into account the impairment losses, EBITDA for the period amounted to USD 3.9 million, which, given the numerous challenges, is a sustainable result," said Nikolay Kladiev, the group's Chief Financial Officer.
Capital investments during the reporting period decreased to $28 million from $55 million in the first half of 2024. The group's net cash position as of June 30 was $50 million (as of December 31, 2024 – $101 million).
According to the results of the first half of 2025, the production of iron ore products at Ferrexpo's facilities amounted to 3.4 million tons, which is 9% less in the first six months of 2024. The share of pellets in total production is 64%, and of commercial concentrate is 36%, whereas in January–June 2024, 88% of the total volume was accounted for by pellets and 12% by concentrate.
"Due to the suspension of VAT refunds and, as a result, a reduction in financial liquidity, the group was forced to reduce the utilization of production facilities using a single supply line," the company said in a statement.
Sales remained at the same level as last year. In six months, the volume of products sold amounted to 3.8 million tons, which is 1% lower year-on-year. Ferrexpo exported about 60% of its products through the Ukrainian Black Sea ports, 35% by rail and 5% by river barges.
