Business
Interim Results for six months ended 30 June 2023
Interim Results for six months ended 30 June 2023.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n\n\n2 August 2023\nFerrexpo plc\n(\"Ferrexpo\", the \"Group\" or the \"Company\")\nInterim Results for the six months ended 30 June 2023\n \nResilient performance in challenging circumstances\n \nFerrexpo plc (LSE: FXPO), a premium iron ore pellet producer and exporter to the global steel industry, with operations in central Ukraine, and customers across Europe and Asia, is pleased to report interim results for the six months ended 30 June 2023 (\"the interims\" or \"first half\" or \"1H 2023\").\nCommenting on the results, Lucio Genovese, Executive Chair, said: \"With the war approaching the middle of its second year, Ukraine continues to demonstrate an incredible resilience. At Ferrexpo, we have managed to increase production on the previous period which has mitigated a lower iron ore pellet price environment. Unfortunately, the war, coupled with the continued closure of the Ukrainian ports mean volumes remain lower than pre-war production levels. Whilst a renewed sense of optimism in Ukraine is noticeable, the situation continues to be challenging. We remain steadfast in our commitment to support our workforce and communities in every way we can. Their safety and wellbeing is our primary concern.\nOur workforce is very different today. Tragically, we have lost 27 brave men who served in the armed services. There are many still serving, and indeed many veterans that have returned to work. At the start of the war, a large part of our workforce moved away; but, at the same time, we have absorbed even more internally displaced people fleeing the conflict on the eastern border, providing them with accommodation, food and medical supplies, and wherever possible, employment too.\nOur operations have changed too, adapting to become more nimble and responsive to different challenges as they develop. We are currently running two out of four pelletiser lines, which generate enough high-quality production to utilise the available logistics capacity to continue supplying our European customers.\nI believe that our business is the right size in the current environment. We are able to respond to market conditions, remain cash flow positive, with a strong cash balance and no financial debt. As we enter an uncertain price environment for iron ore, we will continue to focus on managing costs and defer longer-term CAPEX projects whe...