Ferrexpo declares interim DPS of USc 6.6

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) will pay a special interim dividend of USc 6.6 per share on Jan. 28,
the company reported in a Dec. 22 release. The record date for the payment will
be Jan. 7.

Recall, in August Ferrexpo declared an interim dividend of USc 39.6 per share
for 2021.

Ferrexpo’s shareholder returns policy is to target a
payout of 30% of its free cash flow (net cash flow from operating activities
less net cash flows from investing and financing activities before dividends).
Additional special dividends might be considered by the company’s board.

Dmytro Khoroshun: Ferrexpo’s
total dividends for 2021 (USc 46.2 per share declared so far) might approach
USc 85.8 per share declared for 2020.

However, following the adoption of the shareholder returns policy
in November, much of such dividends for 2021 will now be more formally of a discretionary
nature. If the board foresees increasing CapEx needs and deteriorating market
prospects, it might decide to pay less in special dividends for 2021.

On the other hand, the company’s near-zero debt
leaves much room for financing activity inflows, such as from attracting
CapEx-related and green loans.