The mining company Ferrexpo with its main assets in Ukraine in 2021 received a net loss of $84.75 million, while in 2022 it ended with a net profit of $220 million. Interfax-Ukraine reports this.
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“Loss of $85 million was primarily due to the recognition of provisions for ongoing litigation and disputes in Ukraine totaling $131 million as of December 31, 2023. Excluding the impact of these provisions, the result for the 2023 financial year would have been a profit of $46 million, reflecting an 82% decline in group operating profit due to the ongoing war, as well as a significantly lower net foreign exchange gain of $23 million in 2023 compared to $276 million in 2022,” the company said in its annual report on Thursday.
According to him, Ferrexpo's revenue fell by almost half last year – by 47.8%, to $651.80 million, and operating profit – by 5.7 times, to $71.13 million.
It is noted that This decrease in revenue is due to limited access to export routes, and in physical terms, sales decreased by 32% – to 4.2 million tons.
Read this: Ferrexpo explained the collapse in shares due to increased pressure from Ukrainian law enforcement officers
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The report notes that, despite the loss for the year, the underlying EBITDA indicator remained positive in 2023, but decreased by 83% – to $130 million. In addition to the reasons listed above, its fall was also affected by a decrease in sales prices for 21%, due to a decrease in the base price for iron ore fines and premiums for pellets in 2023, which was partially offset by a decrease in expenses for category C1 by 8%.
Recall
The Ministry of Finance wrote, that in March 2024 Ferrexpo reported a new judicial arrest of 49.5% of the shares of its subsidiaries in Ukraine.
