Ferrexpo revenue falls in "exceptionally difficult" six months

Ferrexpo PLC on Friday reported a sharp drop in revenue and production in the first half of 2026, as the ongoing Russia-Ukraine war continued to weigh on the iron ore producer.

However, shares in Ferrexpo were up 12% at 32.02 pence on Friday afternoon in London.

The Baar, Switzerland-based company said pretax loss narrowed to USD11.0 million from USD186.9 million a year earlier, helped by the absence of a USD154 million impairment booked in the prior-year period.

However, revenue fell 57% to USD196 million from USD453 million, as lower production and sales volumes reflected constraints on power, liquidity and working capital.

Total commercial production fell 54% to 1.5 million tonnes from 3.4 million tonnes, while the company swung to an underlying Ebitda loss of USD4 million from a USD4 million profit.

Ferrexpo ended June with net cash of USD21 million. It said it had cut costs and scaled operations back to one pelletising line to preserve liquidity and remain financially viable.

Interim Executive Chair Lucio Genovese said: "The first six months of 2026 have been another exceptionally difficult period for Ferrexpo."

Genovese cited intensive attacks on Ukraine's electricity infrastructure and the continued suspension of value-added tax refunds by Ukrainian tax authorities as significant hurdles. The group's net VAT receivable in Ukraine stood at USD82.7 million.

In April, Ferrexpo agreed to sell its Iron Destiny shipping vessel for USD7.7 million to help manage liquidity constraints.

"The fact that Ferrexpo has continued to operate through these conditions reflects the resilience, professionalism and determination shown by our people across the group.

"The additional capital raised provides the group with greater financial resilience to manage the challenges ahead, and positions the business for recovery when conditions permit."

Looking ahead, Ferrexpo said its strengthened liquidity position would support operations, while a recovery in production depends on electricity availability, logistics, VAT refunds and legal proceedings in Ukraine. The company said it would restore production as conditions allow while maintaining tight cost controls.

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