Ferrexpo (LSE:FXPO) reported a 57% year-on-year decline in revenue to $196 million for the first half of 2026, as production was affected by damage to Ukraine’s power infrastructure and the continued suspension of VAT refunds.
Commercial production fell 54% from the corresponding period a year earlier to 1.6 million tonnes, with the group reducing operations to a single pelletising line.
Underlying EBITDA was slightly negative for the period. Ferrexpo also reported higher energy and logistics costs, while its VAT receivable from the Ukrainian authorities stood at $82.7 million.
Ferrexpo Completes $100 Million Equity Raise
Ferrexpo sold its Iron Destiny transhipping vessel for $7.7 million during the period. The company described the vessel as ageing.
In early September, the group also completed a $100 million equity raise. Ferrexpo said the additional funding enabled it to finalise its going-concern assessment and supported the relisting of its shares in London.
The company said the proceeds provide additional liquidity for its ongoing operations.
Operations Remain Affected by War and Infrastructure Constraints
Ferrexpo said its operations continue to face challenges associated with the war in Ukraine, including energy and logistics constraints, as well as the suspension of VAT refunds.
Management also reported continued safety performance during the period.
Ferrexpo produces iron ore pellets and high-grade concentrate for international steel customers, including products intended for direct reduction applications.
About Ferrexpo
Ferrexpo plc is a London-listed iron ore producer with mining and processing operations in Ukraine.
The company produces and exports iron ore pellets and high-grade concentrate for the global steel industry, including higher-grade products used in steelmaking and direct reduction processes.
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