Ferrexpo plc (LSE: FXPO), a FTSE 250 iron ore pellet producer, announces its audited financial results for 2022.
Lucio Genovese, Non-executive Chair of Ferrexpo, commented:
"For Ferrexpo, the year 2022 will be defined not only by the events since 24 February 2022, but also by the resilience and commitment of our workforce and communities across Ukraine throughout Russia’s invasion. With more than 95% of our workforce of 10,000 based in Ukraine, we have worked tirelessly to support them, their families and local communities since the start of the war, and we will continue to do so. Through years of investment in our people and our assets, working to build a resilient business, we have fortunately been able to continue to operate for most of the year. In doing so – we have been able to provide humanitarian support to communities across Ukraine, as well as support Ukraine’s government via our continued contribution.
"Operationally, our assets have produced in line with accessible markets, with the closure of Ukraine’s access to the Black Sea placing a significant impediment in our ability to access seaborne markets. We did, however, continue to deliver throughout the year to our European customers. This is testament to the long-term, sustainable relationships that we have built with our customer base.
“Looking to the future, we see positives in Ukraine’s potential as a supplier of high grade, high quality iron ore to the global steel industry, particularly in Europe, which is taking significant steps to reduce its greenhouse gas emissions footprint and embark on decarbonisation pathways. As a company with existing capacity to be one of the world’s largest producers of blast furnace iron ore pellets, we are well situated to serve this shift in the near term. Beyond blast furnaces, a number of steelmakers worldwide are looking towards a longer term pathway to Green Steel and electric arc furnaces, with direct reduction pellets representing a known pathway for Green Steel production. As such, we have continued to develop our offering of this particular product, which represented 6% of our production in 2022 (2021: 4%).
“We have navigated a difficult year with resilience. Our team has shown commitment to our stakeholders – ranging from our humanitarian efforts, to supporting the Ukrainian government through their need for industry to keep operating. We have remained in constant dialogue with our customers and investors throughout this war, and I would like to thank all of our stakeholders for the commitment shown to us during 2022. We look forward to a brighter future for Ukraine, whereby Ukrainians can realise their country’s true potential, and we look forward to supporting this next phase of growth.”
Financial highlights for 2022:
- Revenue: 50% lower at US$1.2 billion as a consequence of the war in Ukraine, with operational and logistics constraints imposed as a result (2021: US$2.5 billion).
Underlying EBITDAA: 47% reduction to US$765 million in 2022 (2021: US$1,439 million), reflecting a balance of lower production and market factors, partially offset by an operating foreign exchange gain of US$339 million.
- Net cash flows from operations of US$301 million (2021: US$1,094 million), with operations remaining profitable despite the significant challenges posed by the war in Ukraine.
- Capital investmentA of US$161 million in 2022, with a range of sustaining and expansion projects progressed in 2022, despite the war in Ukraine (2021: US$361 million).
- Net cash position maintained despite the restrictions imposed as a result of the war in Ukraine, with a 9% decline seen in 2022 to US$106 million as at 31 December 2022 (31 December 2021: US$117 million).
Financial summary for 2022:
1. Source: S&P Global Commodity Insights.
Items denoted with ‘A’ are Alternative Performance Measures. See FY2022 results announcement for more information.
Link to full PDF version of this release: click here.
For further information, please contact:
+44 207 389 8305
Jos Simson / Emily Moss / Gareth Tredway
+44 207 920 3150 / +44 7785 974 264
Notes to Editors:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and a premium listing on the London Stock Exchange in the FTSE 250 index (ticker FXPO). The Group produces high grade iron ore pellets, which are a premium product for the global steel industry and enable reduced carbon emissions and increased productivity for steelmakers when the Group’s iron ore pellets are converted into steel, compared to more commonly traded forms of iron ore. Ferrexpo’s operations have been supplying the global steel industry for over 50 years, and in 2022 the Group produced 6.1 million tonnes of iron ore pellets, despite the war in Ukraine. Historically, Ferrexpo has been the world’s third largest exporter of pellets to the global steel industry, recently having a market share of approximately 9% in 2021. The Group has a global customer base comprising of premium steel mills around the world, which includes steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and America. For further information, please visit www.ferrexpo.com.