Ferrexpo PLC on Thursday said production surged by 25% during the final quarter of 2024, bringing its annual production totals nearly 50% higher.
The Baar, Switzerland-headquartered iron ore pellets producer in Ukraine said total commercial production for the year that ended December 31 was 6.9 million tonnes, up 49% from 4.2 million the year before.
For the fourth quarter, total commercial production rose 25% to 1.8 million tonnes from 1.4 million tonnes in the third quarter.
Total pellet production for the year increased 46% to 6.1 million tonnes from 3.8 million last year. It grew 14% on-quarter to 1.5 million tonnes in the fourth quarter from 1.3 million tonnes.
The group also produced a ‘record total’ of 489,720 tonnes for DR pellets in 2024, up from nothing the year before,
Interim Executive Chair Lucio Genovese said: ‘In the challenging circumstances, it is pleasing to report a strong increase in production for 2024 - our best annual production performance since the start of the full-scale invasion [of Ukraine] in 2022.
‘The higher production reflects our ability to access Ukranian Black Sea ports again and resume exports to customers in [the Middle East & North Africa] and Asia. In total, 37 ocean going vessels were loaded in 2024, comprising 32 vessels from Ukraine and five from other ports, compared to just 19 (from Romania) in 2023. The higher production also reflects the agility that we have built into the business, producing a wider variety of products.’
Genovese continued: ‘The group’s ability to produce a variety of products and sell to a broader customer base have helped during the current environment. However, the continued effects of lower iron ore prices and higher input costs, put pressure on our margins during the fourth quarter. Due to further attacks on Ukraine’s energy grid, we are still required to import at higher tariffs electricity from the EU.’
The group celebrated its return to the FTSE-250 index at the end of December.
Shares in Ferrexpo were up 2.5% at 95.10 pence each in London on Thursday morning.
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