Swiss-headquartered iron ore miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced its financial results for the full year of 2019.
In the given period, Ferrexpo recorded a net profit of $403 million, rising by 20 percent compared to a net profit of $335 million recorded in the previous year, owing to a 16 percent increase in operating profit and lower net financial expense. Sales revenues of the company totaled $1.5 billion, up 18 percent year on year, reflecting higher pellet sales volumes and a 17 percent rise in Ferrexpo’s realised FOB price. The company's sales volumes increased by 0.8 percent to 10.31 million mt, while its EBITDA amounted to $586 million, up by 17 percent, both compared to 2018.
Ferrexpo chairman Steve Lucas said that the spread of the coronavirus across Europe could cause further economic uncertainty. Before the virus outbreak, it had been expected that steel profitability in Europe would recover moderately in major markets from the second half of the current year, Lucas noted. It is possible that some pellet suppliers will switch their focus to customers in the domestic market in 2020 due to falling international pellet premiums compared to the previous year, he said. However, he said Ferrexpo expects to manage its business well in the course of the uncertainties, owing to its low-cost position compared to its competitors, its well-invested asset base, premium customer portfolio and strong balance sheet.