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Ferrexpo Net Profit Rose 76% in 2017

21 Mar 2018 7:57 am

By Oliver Griffin

Ferrexpo PLC (FXPO.LN) said on Wednesday that net profit rose 76% in 2017, driven by a strong demand for iron ore which led to record pellet premiums.

The Swiss iron-ore company, which has assets in Ukraine, said that profit for the year ended Dec. 31 rose to $329.9 million, from $187.4 million in 2016.

Revenue rose 21% to $1.2 billion, while pretax profit almost doubled versus 2016 figures, rising to $449.8 million, Ferrexpo said.

Ferrexpo said that it expects further rationalization of steel capacity in China to provide a favorable setting for iron-ore pellet demand in 2018.

As a result of the confident outlook, Ferrexpo said it was declaring a final dividend and a special dividend of 3.3 cents and 6.6 cents per share respectively. Together with the interim dividend, Ferrexpo said that its total dividend for the year was 16.5 cents, up from 6.6 cents in 2016.

The company said that 2018 production volumes will reflect a 65-day shutdown in pellet production during the second quarter. Ferrexpo said that first-half production in 2018 was expected in line with the prior year, while second-half production is expected to exceed that of 2017.

Ferrexpo also said that it expects to benefit from higher pellet premiums in 2018, reflecting agreements with customers and strong demand for high quality pellets.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

March 21, 2018 03:57 ET (07:57 GMT)

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