Ferrexpo declares interim DPS of USc 6.6

Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO
LN) will pay an interim dividend of USc 6.6 per share on July 3, the company
reported in a June 15 release. The record date for the payment will be June 19.

Recall, in August Ferrexpo declared an interim dividend of USc 6.6 per share for 2019,
followed by a declaration of a special interim dividend of USc 6.6
per share in January.

Ferrexpo’s dividend policy is to pay USc 6.6 (USc 3.3
interim and 3.3 USc final) per share of sustainable yearly dividends and, if
appropriate, USc 6.6 per share of special dividends per year.

Ferrexpo continues to perform strongly, the release
said, noting that its 5M20 production volume rose 6% yoy and its 5M20 sales
volumes jumped 21% yoy, with the latter helped by de-stocking. The company is
able to offset weaker European demand with sales to Asia, while lower freight
rates and production costs have compensated for weaker pellet premiums as iron
ore fines prices have remained resilient, according to the release. Ferrexpo
said there has been no adverse impact on operations to date due to the
coronavirus pandemic.

Dmytro Khoroshun: Ferrexpo is likely to continue paying dividends above the yearly level
of USc 13.2 per share foreseen in its policy for the rest of 2020 and beyond,
as long as the iron ore markets remain strong and Ferrexpo’s project of
capacity expansion beyond the current 12 mmt remains on the backburner.