Ferrexpo profits jump as iron ore price soars

3rd Aug 2011 11:10

Sales and profits soared at Ferrexpo in the six months to 30 June as the ferrochrome producer continued to benefit from strong demand for the steel ingredient.EBITDA (Earnings before interest, tax, depreciation and amortisation) rose by 86% from the same period last year to $401m (£246.1m) on revenues that climbed by 63% to $855m. Total production was steady at 4.8m tonnes of pellets, against 4.9m over the same period the previous year, though production of high grade (65% Fe) pellets increased by 4% to 2.2m tonnes."Ferrexpo is pleased to report a very strong financial performance for the six month period ended 30 June 2011," said chairman Michael Abrahams. "This was underpinned by an excellent operational performance, with production of iron ore pellets once again at full capacity and costs effectively managed in an inflationary environment. This was further supported by continued growth in demand for iron ore, in particular pellets, during the period with global iron ore prices remaining at high levels."He said demand for iron ore "is expected to remain strong in the medium term."At 11.50am, shares in Ferrexpo were down by 1% at 426p.---RG