Ferrexpo supplied pellets to Europe by rail and Danube in 2023, seaborne shipments disrupted - report

MOSCOW. April 18 (Interfax) - Mining company Ferrexpo plc, with assets in Ukraine, continued to ship iron ore pellets to the European market through the available railway network and its barging operations on the Danube throughout 2023, Ukrainian media reported, quoting the company's financial statement.

The Group's seaborne sales to other markets were suspended as the port of Yuzhny was unavailable for a large part of the year, the report says.

Ferrexpo said sales through the Black Sea port of Yuzhny to markets outside of Europe have represented approximately half of the Group's sales prior to February 2022.

The market in Europe was, however, not able to absorb all the volumes that would have been sold to other markets with ocean-going vessels. Although it does have a significant impact on the Group's revenue and its ability to commit to sales volumes to customers in other markets than Europe, the Group has refrained from using this new corridor during the financial year 2023 due to the associated risks.

The company gives data on sales volumes of iron ore pellets and concentrate by geographic area, according to which $599.869 million worth of iron ore was sold to Europe and Turkey in 2023 (in 2022 - $944.859 million), including $258.853 million ($460.492 million) to Austria, $115.873 million ($148.128 million) to the Czech Republic, no deliveries ($138.302 million) to Slovakia, $122.556 million ($86.64 million) to Turkey , $64.981 million ($38.195 million) to Germany, and $37.606 million ($73.102 million) to other European countries.

During 2023, sales made to four customers accounted for 81% of the revenues from sales of iron ore pellets and concentrate (2022: 70%).

Ferrexpo had a net loss of $84.75 million in 2023, compared with profit of $220 million in 2022. Revenue fell to $651.795 million in 2023 from $1.248 billion in 2022. EBITDA fell by 83% to $130.242 million from $765.113 million in 2022.

Ferrexpo owns 100% Yeristovo Mining and Poltava Mining and 99.9% of Belanovo Mining. The businessman Konstantin Zhevago is the majority shareholder.