• 26/05/2024 11:58

Ferrexpo ended 2023 with a net loss of $84.8 million

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.

Ferrexpo ended 2023 with a net loss of $84.8 million

Read telegram channel “Ministry of Finance »: main financial news

“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


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%.


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.


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