REUTERS
Despite a sharp decline in prices for iron ore and the unfavorable situation in Ukraine, 2014 was a "relatively successful" year for Swiss mining company Ferrexpo, according to its report on the London Stock Exchange.
The net income of the company, which controls Poltava and Eristov mining and refining plants in Ukraine, declined in 2014 by a third - to $183.8 million, against $263.8 million last year, the report reads.
"The company increased its pellet production by 2% - up to 11 million tonnes, has completed a modernization program, and negotiated a number of long-term contracts with the world's leading mining companies," the report reads.
At the same time, the company reported a decline in total revenues in 2014 by 12% - to $1.38 billion, as compared to $1.58 billion last year, a decline in EBITDA (earnings before interest, taxes, depreciation and amortization) by 2% - to $496 million against $506 million in 2013, and a reduction in capital investment - to $235 million, against $278 million in 2013.
However, Ferrexpo said the company's operations in Ukraine do not intersect with the zone of conflict in the east. The current year has begun for the company with positive production and sales figures.
"In January 2015, Ferrexpo produced about one million tons of pellets, a record high for the company ... [while] sales volumes remain at or above the contracted levels," the report reads.
At the same time the company points out that the overall situation in Ukraine remains uncertain due to the difficult situation in the banking and financial system as a whole
Ferrexpo AG is the largest producer and exporter of raw materials for the steel industry in the CIS region. The company’s products are used at metallurgical plants in Europe, China, India, Japan and other countries.
The shares of Ferrexpo, the largest shareholder of which is the Ukrainian businessman Konstantin Zhevago, are listed on the main market of the London Stock Exchange.