Page 71 - UKRRptApr21

§ EBITDA was materially stronger vs BCSe (19% beat due to lower vs expected costs) at $507mn – up 44% h/h and 137% y/y
§ Adjusted net income beat by 19%, on stronger EBITDA, reaching $378mn – up 56% h/h and 154% y/y
§ Net debt turned negative with $4mn net cash in 2H20 vs $174mn debt in 1H20
§ The company proposed a special interim dividend of $0.396/share (GBP 0.285/share), equivalent to c8% DY
§ Ferrexpo expects to see a further increase in production vs 2020. Pellet production is likely to be higher in 2H21, as pelletizer upgrade work is planned for 1H21, which will deliver an additional c0.5-1mt pa of pelletizer capacity from 2H21.
Former shareholders challenge sale of shares of Ferrexpo’s Poltava GOK. Interfax reported. Four former shareholders of Poltava Mining and Processing Plant (owned by Ferrexpo) are again suing Ferrexpo, seeking to invalidate a contract concluded in 2002, under which 40.19% of the shares of PGOC have been sold by those four companies (shareholders). The applicants also seek to invalidate subsequent additional share issues, which, in addition to the series of further resales and the squeeze out procedure, resulted in Ferrexpo becoming the only shareholder of PGOK. The next court sessions are scheduled for 25 March. Based on the legal advice received and the rejection of a similar claim filed by the former shareholders of PGOC back in 2015, Ferrexpo’s management believes that it has a strong case to defend its rights.
Ferrexpo declares DPS of USc 39.6 as 2020 EBITDA jumps 46%. Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN) will pay a special interim dividend of USc 39.6 per share on April 15, the company reported in a March 17 release on its 2020 results. The record date for the payment will be March 26.
The total dividends declared to date with respect to the 2020 financial year amount to USc 72.6 per share, compared with USc 19.8 per share for 2019, the release said. Ferrexpo’s board will consider whether or not to propose a final dividend in respect of 2020, which if proposed will be put to the Group’s AGM in May 2021.
Ferrexpo’s revenue increased 12.8% y/y to $1,700mn, while EBITDA jumped 46.5% y/y to $859mn and net income soared 57.5% y/y to $635mn. Operating cash flow before working capital gained 27.2% y/y to $792mn, while net cash from operating activities jumped 45.2% y/y to $687mn. CapEx dropped 16.8% y/y to $206mn, with sustaining and modernization investments inching up 1% y/y to $103mn. Dividends paid during 2020 amounted to $195mn, 26.2% more y/y.
Ferrexpo’s net cash amounted to $4mn at the end of 2020, compared with net debt of $281mn a year ago. Gross debt dropped 35.4% y/y to $266mn at the end of 2020.
Ferrexpo’s C1 cash production cost decreased 13.1%, or $6.3/t y/y to $41.5/t. The company disclosed that lower electricity, natural gas and fuel costs contributed approximately $4/t to the decrease in the C1 production cost in 2020. The depreciation of Ukraine’s hryvnya against the US dollar in 2020 also pushed down the C1 production cost.
71 UKRAINE Country Report April 2021 www.intellinews.com