Ferrexpo H1 profits soar as dividend doubled

Iron ore pellet maker Ferrexpo said first-half core earnings rose 59% on the back of higher prices as the company doubled its dividend.

Earnings before interest, taxes, depreciation and amortisation rose 59% year on year to $372m, the company said on Friday.

The interim divdend rose to 6.6 cents a shares, up from 3.3 cents. First half revenue rose 28% to $787m and average cash production costs increased 11% to $46 per tonne.

Pre-tax profits rose to 77% to $317.8m as Ferrexpo maintained its full year output forecast of 10.6m tonnes.

“During the period we continued to benefit from strong pricing for our high-grade iron ore pellets, which helped deliver healthy cash flows,” said non-executive chairman Steve Lucas.

"Currently steel demand is muted in some regions reflecting increased raw material costs and weaker end-user demand. The group, however, has the ability to deploy tonnage to other markets to offset any regional weakness. Overall pricing remains attractive compared to historic levels."