Ferrexpo, a producer of iron ore pellets under the FTSE 250, announces financial results for the 12 months of 2020 ended December 31.
- Revenue increased 13% to US $ 1.7 billion, reflecting increased production and inventory reduction in the first half of 2020.
- Underlying EBITDAA increased 46% to US $ 859 million (2019: US $ 586 million).
- 45% increase in net cash flows from operating activities to US $ 687 million (2019: US $ 473 million).
- Net cash position of US $ 4 million at year-end (31 December 2019: Net debt of US $ 281 million).
- Dividends paid in 2020 increase 26% to US $ 195 million (2019: US $ 155 million).
- In terms of strong operating and financial performance in 2020, coupled with the move to a net cash position and continued high iron ore prices, an additional special interim dividend of 39.6 US cents is proposed. The total dividend paid for 2020 is 72.6 US cents (2019: 19.8 US cents) In terms of safety, the Lost Time Injury Frequency rate in 2020 was 0.79, up by 22% below our five-year moving average, which is a significant effort for everyone involved. However, this year we did have fatalities in our factories, and we are determined to learn from this and improve as an organization.
During 2020, Ferrexpo achieved significant reductions in our carbon footprint per tonne of emissions for both Tier 1 (8%) and Tier 2 (21%), with a similar trajectory expected in 2021.
While COVID-19 has disrupted the global structure of iron ore demand, Ferrexpo’s central geographic location between Europe and Asia, coupled with the company’s flexible logistics capabilities, has enabled us to effectively turn towards China in 2020 as it quickly emerged from the pandemic and demonstrated high rates of growth. focus on metals. The resulting increase in iron ore prices, coupled with increased production volumes and control over the Group’s costs, ensured the Group’s strong financial performance in 2020.