The Ferrexpo mining company with its main assets in Ukraine received a net loss of $84.75 million in 2021, while in 2022 it ended with a net profit of $220 million.
"Damage of $85 million mainly Due to the recognition of provisions for ongoing litigation and disputes in Ukraine totaling $131 million as at 31 December 2023, excluding the impact of these provisions, the result for the 2023 financial year would have been a profit of $46 million, reflecting a decrease in group operating profit of 82. % as a result of the ongoing war, as well as significantly lower net foreign exchange gains of $23 million in 2023 compared to $276 million in 2022,” the company said in its annual report on Thursday.
According to it , Ferrexpo's revenue fell by almost half last year - by 47.8%, to $651.80 million, and operating profit - by 5.7 times, to $71.13 million.
It is noted that such a decrease revenue is due to limited access to export routes, and in physical terms sales decreased by 32% - to 4.2 million tons.
The report notes that, despite the loss for the year, underlying EBITDA remained positive in 2023, but decreased by 83% - to $130 million. In addition to the reasons listed above, its fall was also affected by a decrease in sales prices by 21%, due to a decrease in the base price for iron ore fines and premiums for pellets in 2023, which was partially offset reduction in expenses in category C1 by 8%.
