Ferrexpo (LON: FXPO), the iron ore pellet producer with mines in Ukraine, reported a 57% fall in first-half revenue to $196 million today, as war-driven power outages and Ukraine’s continued withholding of tax refunds pushed it to an underlying loss. Underlying EBITDA turned to a $4 million loss from a $4 million profit a year earlier.
Shares were quoted at 29.08p in early trade today, up 1.5% from yesterday’s close of 28.66p, against a 52-week range of 25.64p to 87.1p. Trading had only resumed on the 7th of September, after a suspension pending delayed 2025 annual accounts.
The cause was operational. Attacks on Ukraine’s electricity infrastructure forced Ferrexpo to suspend operations in January, and it has since run only one of its four pelletising lines. Production fell 54% to 1.556 million tonnes, dragging sales volumes down 62% to 1.455 million tonnes.
CFO Nikolay Kladiev said the drop in sales volumes was the principal driver of the revenue decline.
Revenue declined to US$196 million, compared with US$453 million in the first half of 2025, principally reflecting the 62% reduction in sales volumes. Underlying EBITDA was negative US$4.0 million compared with positive US$3.9 million in the comparative period.
Nikolay Kladiev, Ferrexpo plc
Ukraine’s tax authority has kept withholding VAT refunds owed to the group, with $102.2 million outstanding gross at the end of June and $86.9 million of claims formally refused. Net cash fell to $21 million from $47 million at the start of the year, even as the realised iron ore price rose 8% to $121.3 a tonne.
The strain forced the board to suspend LSE trading pending delayed 2025 accounts and launch a $100 million equity fundraise, roughly $60 million from a placing and $40 million from the largest shareholder, approved by shareholders on the 21st of September. That lifted the suspension and gives Ferrexpo enough resources to operate on a reduced basis for about the next 18 months.
Interim Executive Chair Lucio Genovese said the business had shown a continued ability to adapt to challenges outside its control during another exceptionally difficult period. The board declined an interim dividend, citing ongoing war-related and legal uncertainties, and said the Group can keep operating on a reduced basis for roughly 18 months, subject to operating and market conditions and legal matters.