Miner Ferrexpo’s profit drops as Ukraine crisis hits output, raises costs
Ferrexpo Plc FXPO.L reported a slump in its full-year profit on Wednesday, as the Ukraine-focused miner took a hit from higher costs and lower production volumes.
Ferrexpo, the world’s third-largest exporter of iron ore pellets, has all its operations in Ukraine, and has been facing disruptions due to the conflict in the country.
The miner said in a statement it was currently operating with two of its four pelletiser lines, with products predominantly being delivered to European customers.
Ferrexpo said it intends to maintain its global inventory of finished iron ore pellets at a stockpile level in line with previous years, but warned this might not be possible due to logistical difficulties.
The group added that if it could increase its inventory of pellets, it might elect to moderate production volumes this year to ensure a drawdown in its stockpiles.
Ferrexpo reported an underlying core profit for the full year ended Dec. 31 of $765 million, down 47% from a year earlier.
Source: Reuters (Reporting by Muhammed Husain in Bengaluru; Editing by Rashmi Aich)