Swiss-headquartered iron ore miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced its financial results for the first half of 2015.
In the January-June period, Ferrexpo's profit before tax decreased by 42 percent to $143 million compared to the first half of 2014, while sales revenues of the company totaled $512 million, down 33 percent year on year, reflecting weak iron ore prices. In the given period, the company’s sales volume increased by three percent to 5.7 million mt, supported by strong demand, while the growth rate was limited due to the timing of shipments. In the same period, Ferrexpo's EBITDA decreased by 45 percent to $176 million compared to the corresponding period of the previous year. The decline reflected the fall in iron ore prices during the period offset by an improved sales mix, higher sales volumes and significant cost reduction.
According to Ferrexpo, during the first half of the year the company's capital investment reached $25 million, down 81 percent year on year, due to the completion of the company’s investment plan to increase the quality and quantity of its pellet output to 65 percent Fe and 12 million mt respectively.
As a result of the continued instability in Ukraine and the weak iron ore price environment, Ferrexpo remains cautious as regards the near-term outlook.