Ferrexpo PLC on Tuesday said that its production has been temporarily suspended following a number of Russian missile strikes across Ukraine on Monday.
Shares in Ferrexpo were down 7.2% to 117.90 pence each in London on Tuesday morning.
On Monday, Russia launched a missile and drone barrage in retaliation against an explosion that damaged a bridge linking Russia with Crimea.
The missile attack, which left at least 11 dead and 64 injured, was on Ukraine’s capital Kyiv and other major cities.
The iron ore pellet producer with operations in central Ukraine said that state-owned electrical infrastructure, located outside the company’s operations, was damaged by the missile strike.
As a result, production at Ferrexpo’s operations has been temporarily suspended as it faces limited power supply, which is being prioritised for critical equipment required for essential services and local communities.
‘Engineers are currently conducting an assessment of the damage incurred to electrical infrastructure, and an estimate of the period of production downtime as repairs are carried out,’ the company said.
Ferrexpo said that it has enough stockpiles to meet expected sales volumes, though it noted this is ‘subject to logistics corridors remaining available to the group’. None of its workforce were injured as a result of the strikes.
The missile strikes have prompted an international outcry, with UK Prime Minister Liz Truss and fellow leaders of G7 nations expected to hold crisis talks on Tuesday.
In August, Ferrexpo reported a big drop in half-year profit as it continued to struggle with the fallout from Russia’s invasion of Ukraine.
Revenue in the six months to June 30 declined by 31% to $935.8 million, compared to $1.35 billion in the first six months of 2021. Pretax profit plunged 80% to $155.7 million from $796.9 million a year earlier.
Ferrexpo said pellet sales had been largely limited to European customers due to Russia’s blockade of Ukraine’s Black Sea ports in February. What’s more, average pellet prices fell by 22% in the first half, to $165 a tonne from $212 a year before.
Chief Executive Jim North said on Tuesday: ‘The events of yesterday have resulted in significant damage to major cities across Ukraine, as well as a power outage at our operations and local communities. We are working to ensure that power is provided in critical areas, both within our facilities and in local communities, in order to support the safety of our workforce and community members.’
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