Ferrexpo (FXPO) turned in double-digit increases in production, sales volumes and profits for 2013, paving the way for a repeat of last year’s special dividend payment of 6.6¢ (4p) a share. The trouble is that all the operational progress made by the Ukrainian iron-ore miner is being overshadowed by the well-publicised political turmoil - even though Ferrexpo’s operations are located around 200km south of Kiev and 400km north of Crimea.
Higher grades at the Yeristovo open-pit mine and an improved performance at the processing complex Ferrexpo Poltava underpinned a 12 per cent rise in pellet production to 10.8m tonnes. Global iron-ore prices were buoyant through much of last year. Combined with an 11 per cent hike in sales volumes, that allowed Ferrexpo to bump-up cash profits by a quarter to $506m.
The group also kept a lid on costs, largely due to a steady increase in the daily ore tonnage it can process. But it also mitigated a rise in local rail-freight charges by employing its own rolling stock. Presumably, continued weakness in the Ukrainian hryvnia will also lower Ferrexpo’s operating costs, which are payable in local currency but expressed in US dollars.
| FERREXPO (FXPO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 141p | MARKET VALUE: | £832m | |
| TOUCH: | 141-143p | 12-MONTH HIGH: | 225p | LOW: 128p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 291¢ | NET DEBT: | 37% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 0.7 | 81 | 12.1 | 6.6 |
| 2010 | 1.3 | 498 | 72.3 | 6.6 |
| 2011 | 1.8 | 691 | 97.1 | 6.6 |
| 2012 (restated) | 1.4 | 266 | 37.1 | 6.6 * |
| 2013 | 1.6 | 305 | 44.8 | 6.6 * |
| % change | +11 | +15 | +21 | - |
Ex-div:30 Apr Payment:30 May £1 = $1.66 *Excludes 6.6¢ special dividend payments (to be paid on 28 March 2014 with an ex-dividend date of 19 March 2014). | ||||
