Ferrexpo

Ferrexpo plc is the parent company of the Ferrexpo Group. Since 2007, Ferrexpo plc shares have been listed on the London Stock Exchange.

Ferrexpo’s raw material base includes 9 iron ore deposits with estimated resources of 19.7 billion tons. Iron ore is currently mined at two deposits, Gorishne–Plavninske–Lavrykivske (FPM, Ferrexpo Poltava Mining) and Yeristivske (FYM, Ferrexpo Yeristovo Mining). Another two deposits, Bilanivske and Galeschynske, will be exploited by FBM (Ferrexpo Belanovo Mining), the construction of which has just begun. The remaining areas (‘northern deposits’) are in reserve.

Ferrexpo is the world’s third largest exporter of iron ore pellets. Its global market share is 8.5% (2019). Over 99% of its output are high-quality 67% and 65% Fe pellets. All pellets produced by Ferrexpo are exported.

Ferrexpo lacks its own concentrate production capacity. It therefore buys iron ore concentrate for the production of pellets from other companies.

In 2018, the Group produced 10.6 million tons of pellets. The annual production is expected to rise to 12 million tons by 2020, and up to 20 million tons in a long-term perspective.

 

 

Location: UK, Switzerland, Ukraine
Shareholders: Kostyantyn Zhevago (51%), BXR Group Limited (25%)
Markets: Western and Central Europe (74%)
Products: Iron ore pellets

Charts and tables

Production results, thousand tons

4000035000300002500020000150001000050000
2012 29803 kt2012
2013 30599 kt2013
2014 29957 kt2014
2015 30168 kt2015
2016 29335 kt2016
2017 27230 kt2017
2018 27083 kt2018
2019 32525 kt2019
2020 29723 kt2020
20000150001000050000
2012 11830 kt2012
2013 13195 kt2013
2014 14378 kt2014
2015 13726 kt2015
2016 14006 kt2016
2017 12807 kt2017
2018 12750 kt2018
2019 13103 kt2019
2020 14007 kt2020
20000150001000050000
2012 9409 kt2012
2013 10466 kt2013
2014 10670 kt2014
2015 11258 kt2015
2016 11071 kt2016
2017 10394 kt2017
2018 10506 kt2018
2019 10518 kt2019
2020 11218 kt2020
500450400350300250200150100500
2012 281 kt2012
2013 347 kt2013
2014 351 kt2014
2015 403 kt2015
2016 129 kt2016
2017 50 kt2017
2018 101 kt2018
2019 0 kt2019
2020 0 kt2020
20000150001000050000
2012 9690 kt2012
2013 10813 kt2013
2014 11021 kt2014
2015 11662 kt2015
2016 11200 kt2016
2017 10444 kt2017
2018 10607 kt2018
2019 10518 kt2019
2020 11218 kt2020

Indicative sales structure by products in 2020*

Indicative sales structure by markets in 2020*

* structure of sales volumes, metric tons

Financial performance, $ million

 20132014201520162017201820192020
Sales158113889619861197127415071700
EBITDA506496313375551503586859
EBITDA margin32.0%35.7%32.6%38.0%46.0%39.5%39%50.5%
Net income26418431189394335403635
Net income margin16.7%13.3%3.2%19.2%32.9%26.3%27%37.4%
Net debt639678868589403339281n/a
Net debt/EBITDA1.31.42.81.60.70.70.480
CAPEX2782356548103135247206

Key facts

2021

Modernization of the pelletizer is scheduled for H1, which will increase the annual output of iron ore pellets by 0.5–1 million tons.

MSCI Ratings Upgrades Ferrexpo’s ESG Rating.

Ferrexpo announced a special interim dividend ($ 0.132 per share). The total dividend for 2020 was $ 0.33 per share.

2020

The Ferrexpo Group is going to spend $2 billion in capital investment in 2020–2030 to double pellet production.

Moody’s, an international credit rating agency, has upgraded Ferrexpo pls’s corporate family rating from B3 to B2. The outlook has changed from positive to negative,

Ferrexpo’s board of directors has decided to pay a final special dividend for the 2019 fiscal year of $ 0.033 per share.

2020

In 2020, Ferrexpo is going to ramp up pellet production by 9.5% to 11.5 million tons.

2019

Ferrexpo plc signed the first long-term contract for pellet supplies with the largest German steel producer, ThyssenKrupp.

In 2019, Ferrexpo increased its CAPEX volume to $247 million by 83% against 2018.

In 2019 Ferrexpo AG applied “squeeze out” procedure for  minority shareholders of Poltava Mining and increased its stock to 100%. Before that, Ferrexpo had held a 99.11% stock in Poltava Mining.

In 2019, Ferrexpo plans capital investment worth $220–300 million. It includes investing around $35 million in the Concentrator Expansion Program 1 (CEP1) which will enable the Group to increase pellet output up to 12 million tons per annum, by 2021.

2018

Ferrexpo to pay record big dividends. The amount of dividends will increase by 40% compared to 2017, up to $0.231 per share.

In 2018

Ferrexpo increased the amount of pre-export financing facility, approved in 2017, from $195 million to $400 million, and extended its maturity from 3 to 4 years. Financing will be arranged by BNP Paribas and Deutsche Bank. The rate under the new pre-export financing facility is USD LIBOR +4.5%.

In 2017

Ferrexpo invested $20 million in FYM, and $4.4 million in exploitation and development of Bilanivske, Galeschynske and northern deposits.

In 2017

Ferrexpo resumed its concentrate production expansion program. Its goal was to increase production of pellets by 1.5 million tons. The program is expected to be completed by 2020. The necessary volume of investment is estimated at $65 million.

In 2017

Dividends paid amounted to $0.165 per share.

Sources: websites of the companies, media outlets