Ferrexpo announces final dividend as trading remains 'in line'

Iron ore pellet producer Ferrexpo announced a final dividend for 2019 on Tuesday as it said it had continued to perform in line with its expectations since full-year results in March.

The company said last month that it was deferring its decision on a final dividend until there was more clarity on the impact of the Covid-19 outbreak. However, since then it has continued to perform "well", with pellet production in the first quarter up 7% compared to the same period a year ago and sales tonnages successfully re-allocated within its customer portfolio to markets less affected by the virus.

"Costs are benefitting from lower oil and energy prices and the group has continued to maintain a strong balance sheet and low debt levels with net debt further reducing since 31 December 2019," it said.

As a result, Ferrexpo announced a final special dividend for 2019 of 3.3 US cents per share, down from 6.6 cents in 2018, and a final ordinary dividend of 3.3 cents, also down from 6.6 cents.

Non-executive chairman Steve Lucas said: "Since the announcement of our full year results on 18 March, the group has continued to trade well despite current macro-economic difficulties. This has primarily been achieved by redirecting sales to Asia while our costs have also fallen. As a result, the board feels it is appropriate to declare a final special and ordinary dividend for 2019."