Revenue of the Swiss iron ore company Ferrexpo, which controls the Poltava and Yeristovskiy mining and processing plants of Ukraine, decreased by 31% to $936 million in the first half of 2022 as a result of lower production and tightening market conditions.
First half of 2022 profit after tax decreased by 88% to $82 million, reflecting the realization of an impairment charge of $254 million during the reporting period.
Underlying EBITDA declined 44% to $486 million, reflecting higher costs mainly driven by lower production volumes, higher global inflation and higher energy prices.
As of June 30, 2022, the Group maintains a net cash position of $177 million in cash and cash equivalents.
Capital investment of US$102 million over the period, with the group continuing to invest in projects that provide short-term benefits.
Despite the ongoing conflict in Ukraine, the group continues to invest in the future, pushing both short-term projects to completion, such as the group's recently completed medium and fine crushing plant, and the development of longer-term projects, such as the development of stripping operations at the group's third mine, Belanovo, which continues despite current conditions. The group's main capital investment program, the 1st Wave Expansion Project, which will add another three million tons of annual pellet production, is still on hold but will resume once the risk of conflict the group is facing subsides,” said Lucio Genovese, non-executive chairman of Ferrexpo.
Ferrexpo is an iron ore company with assets in Ukraine. Fevamotinico S.a.r.l., controlled by Konstantin Zhevago, owns 50% of Ferrexpo, BlackRock owns 6.74%. Ferrexpo owns 100% of the shares of Poltava GOK, 100% of Eristovsky GOK and 99.9% of Belanovsky GOK.