The mining company Ferrexpo with assets in Ukraine in 2021 increased its net profit by 37.1% to $870.99 million due to a 48.1% increase in revenue to $2,518.23 million, the company said in a report , made public on the London Stock Exchange on Friday.
According to the document, EBITDA profit increased by 67.5% to $1,438.76 million. The report also notes that the company's gross debt fell from $266 million to $50 million last year, while its net cash position rose from $4 million to $117 million.
Ferrexpo notes that its manufacturing assets were not affected by the hostilities after February 24, however, maritime transport has been suspended since February 25, and now only shipments are made by rail to Europe.
Commenting on the impact of the war on operations and financials, Ferrexpo said it has adjusted its long-term model to reflect lower sales volume caused by the lack of offshore sales to its customers. The expected lower sales volume will affect cash flow generation, which in turn will negatively affect the carrying value of the group's non-current assets in future periods. However, Ferrexpo has so far refrained from any assessments.
Ferrexpo is a Swiss iron ore company with assets in Ukraine. The main activity of the company is the production and export of high quality iron ore pellets used in steel production. Ferrexpo is the largest producer and exporter of pellets among the countries of the former USSR. Current production assets are Poltava and Yeristovsky GOK.
