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financial statements). Pokrovske coal business generated USD 144 mln in EBITDA for 2020 (2019: USD 259 mln), according to managerial accounting data disclosed by Metinvest in March. PrJSC Pokrovske Coal generated about USD 120 mln in EBITDA for 2019 (2018: USD 48 mln), according to Concorde Capital calculations.
● Ferrexport
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 Apr. 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.
The company disclosed that the committee of independent directors of its board has concluded in March a review into Ferrexpo’s sponsorship arrangements with its related party, football club (FC) Vorskla. The $17mn loan made by FC Vorskla to another related party, Collaton Limited, should be repaid in full by July 31, 2022, as per arrangements put in place by Ferrexpo’s majority owner and former CEO, Kostyantin Zhevago and his associated entities, according to the release. However, if it turns out that FC Vorskla or Collaton Limited misappropriated some funds provided by Ferrexpo, the company might accrue liabilities, including fines and penalties.
Ferrexpo’s total available distributable reserves stood at $318mn at the end of 2020, with dividends of $78mn (USc 13.2 per share) proposed in January and $233mn announced today. The amount of the distributable reserves takes into account the relevant thin capitalization rules and dividend-related covenants for the company’s major bank debt facility. The payment of further dividends during the
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