Ferrexpo PLC on Wednesday said profit and revenue tumbled in 2022 as the war in Ukraine continues to affect production.

The Swiss-headquartered iron ore pellet producer with operations in central Ukraine reported 2022 pretax profit of $338.7 million, down 68% from $1.07 billion in 2021.

The decline in pretax profit was a result of the combination of lower production, rising energy prices and global inflation, as well as the increase in the cost of production, the firm said.

The company said revenue was $1.25 billion, down 50% from $2.52 billion a year ago. Ferrexpo attributed the drop in revenue to the operational and logistics effects of the war in Ukraine, noting that 95% of its workforce is based in Ukraine.

Ferrexpo said production volumes fell by 46% in 2022 due to the war, while Black Sea restrictions also made logistics routes for sales outside of Europe less cost-effective.

Basic earnings per share totalled 37.41 cents per share, dropping 75% from 148.2 cents in 2021.

Looking forward, Ferrexpo said it is difficult to provide a clear expectations for 2023 due to the continuation of the war, but that if the ‘conflict risks associated with the war in Ukraine subside during 2023, then the group would expect to return to its nameplate capacity as soon as it is practical to do so’.

Chair Lucio Genovese said: ‘We have navigated a difficult year with resilience. Our team has shown commitment to our stakeholders - ranging from our humanitarian efforts, to supporting the Ukrainian government through their need for industry to keep operating.

‘We look forward to a brighter future for Ukraine, whereby Ukrainians can realise their country’s true potential, and we look forward to supporting this next phase of growth.’

Ferrexpo shares fell 5.9% to 123.62 pence each in London on Wednesday morning.

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