Ukraine port closure hits exports at UK-listed Ferrexpo
- Stock Markets
- November 14, 2021
- No Comment
London-listed Ferrexpo, the world’s third-largest exporter of iron ore pellets for the metal business, has issued pressure majeure notices telling some prospects provides have been lower off after the port it operates from in Ukraine suspended operations.
The buying and selling and mining firm’s headquarters are in Switzerland but it surely operates in Ukraine, the place it has three mines and a manufacturing facility. It stated that export services on the port of Pivdennyi within the south-west of Ukraine have been “briefly suspended following notification from the port authorities”.
The corporate stated: “In consequence, the group’s advertising division has issued pressure majeure notices to sure prospects that have been attributable to obtain the group’s merchandise by way of oceangoing vessels within the close to time period.”
The group, which on Thursday stated that the Ukrainian authorities had suspended rail transportation, stated its mining operations close to town of Horishni Plavni in central Ukraine, have been persevering with to function.
“The group has the power to stockpile its iron ore pellets at website whereas Ukraine’s logistic networks proceed to expertise disruption,” the corporate stated. “The group’s continued major focus stays the security of its workforce in Ukraine.”
Ferrexpo shares have been down 2% in London on Friday morning.
The London-listed Russian mining group Evraz, through which the billionaire and Chelsea soccer membership proprietor, Roman Abramovich, owns a 29% stake, warned buyers of the danger of potential sanctions due to the battle.
Nevertheless, the corporate’s shares, which fell by 1 / 4 on Thursday, climbed 17% in morning buying and selling on Friday, making it the highest FTSE 100 riser, after it reported a rise in income for 2021.
“The most important a part of the group is predicated within the Russian Federation and is consequently uncovered to the financial and political results of the insurance policies adopted by the Russian authorities,” the corporate stated on Friday. “The worsening state of affairs associated to Ukraine has additional elevated the financial uncertainty and the danger of the imposition of sanctions.”
Evraz introduced a web revenue of £3.1bn for 2021, up from £858m the earlier yr.