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Ferrexpo H1 Profit Down, Sales Volume Up; Declares Dividend; Sees Demand Recovery; Stock Up

Ferrexpo Plc. (FXPO.L), a Swiss iron ore company with assets in Ukraine, reported Wednesday that its first-half profit after tax was $250 million, down 8 percent from last year's $270 million.

Earnings per share were 42.4 US cents, 7 percent lower than last year's 45.8 US cents a year ago.

Underlying EBITDA declined 5 percent to $352 million from $372 million last year. Underlying EBITDA margin was 45 percent, lower than 47 percent a year ago.

Revenues edged down 1 percent to $776 million from $787 million last year, reflecting lower pellet premiums.

In the first half, pellet production grew 5 percent and sales volumes grew 22 percent.

Further, citing strong cash flow and resulting liquidity position, the company announced a further interim dividend of 6.6 US cents per share, same as last year, payable on August 26 to shareholders on the register at the close of business on August 14.

Steve Lucas, Non-Executive Chairman, said, "As the market returns to more normal conditions in 2H 2020, we expect to see a recovery in steel demand outside China, which should be constructive for pellet premiums."

In London, Ferrexpo shares were trading at 196.40 pence, up 8.21 percent.

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