Ferrexpo PLC on Monday reported its best period of output since Russia’s invasion of Ukraine, with shipments also boosted by access to the Black Sea maritime corridor.
The producer of iron ore pellets in Ukraine said total commercial production in the first half of 2024 totalled 3.7 million tonnes, rising 83% from 2.0 million in the second half of 2023. Pellet production totalled 3.3 million tonnes, a climb of 76% from the 1.9 million tonnes achieved in the second half of 2023,
Interim Executive Chair Lucio Genovese said: ‘This is our best performance since the start of the full-scale invasion of Ukraine in February 2022. During the quarter access to the Black Sea maritime corridor enabled us to continue shipments from Ukrainian ports.
‘Since the corridor was opened in late 2023, it is estimated that over 800 ships have safely passed through, including 90 with ferrous commodities. The increased number of owners prepared to charter vessels to Ukrainian ports, resulted in improved availability, however freight rates and insurance risk premiums remain high, not only for the passage to Ukraine, but also through the Red Sea.’
Other cost pressure have also continued to build, the interim chair added.
‘Attacks on energy generation and transmission infrastructure have greatly reduced Ukraine’s domestic power supply. Ferrexpo moved early to source alternative power from Ukraine’s European neighbours, which has so far resulted in minimal disruption to its production activities,’ Genovese said.
‘The war continues to challenge our business in many ways. I am saddened to report that four more of our colleagues have been killed while serving in the Ukrainian armed forces during the period, bringing the total to 39 since the full-scale invasion in February 2022.’
Shares in the company were 8.7% higher at 56.54 pence each in London on Monday morning. They are down by roughly a third over the past 12 months, however, and have tumbled around 80% since Russia launched its invasion of Ukraine.
The firm was demoted from the FTSE 250 index during an index review which took effect last month.
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