(Alliance News) - Ferrexpo PLC on Wednesday said half-year revenue rose 74% from the same period last year, despite a 9% fall in sales volume, as iron ore prices doubled.
The London-based iron ore miner's revenue for the six months that ended June 30 nearly doubled to USD1.35 billion from USD775.8 million in the same period last year. Revenue for all of 2020 was USD1.70 billion.
Pretax profit surged beyond full-year results and more than doubled year-on-year, totalling USD896.9 million for the half year. Pretax profit was USD294.0 million for the same six months last year and USD747.9 million for 2020.
This was despite a 1% decline in iron pellet production and 9% fall in sales volume, as average iron prices doubled from a year before.
The company tipped that its market balance for pellet sales is "returning to historic levels" after a temporary shift in sales to China last year.
As part of Ferrexpo's investment programme, capital spending rose 48% to USD142 million from USD 96 million.
"Today's strong interim financial results reflect our multi-year investment programme in our assets, which has enabled us to not only take full advantage of the current strength of the iron ore market through our high grade iron ore products, but also deliver these results alongside excellent safety performance and continued progress in cutting carbon emissions," said Chair Lucio Genovese.
Genovese added that Ferrexpo invested USD93 million in growth capital expenditure for the half year and is already looking ahead to its next "phase of growth".
The FTSE 250 miner declared a 39.6 US cents per share dividend, tripled from 13.2 cents a year before.
Shares in Ferrexpo were down 4.2% at 474.59 pence in London on Wednesday morning trading.
By Josie O'Brien; josieobrien@alliancenews.com
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Ferrexpo (FXPO)