Ferrexpo plc's total pellet production for 2023 decreased by 36% to 3,845,000 tonnes, while sales fell 32% to 4,174,000 tonnes.
The company's revenue fell by 48% to US$652 million. This sharp decline was due to lower sales as a result of logistical difficulties and lower iron ore prices. Despite these challenges, Ferrexpo demonstrated resilience by investing US$101 million in capital expenditure to maintain and optimise projects.
Despite challenges, Ferrexpo continued to fulfill its commitments to customers throughout 2023, leveraging various transportation methods including rail, barge, and ship from alternative Black Sea ports to serve customers in Europe and MENA regions.
The company's dedication to growth was evidenced by ongoing investments, including the installation of a press filtration complex aimed at enhancing pellet quality and reducing natural gas consumption per tonne of production.
Furthermore, Ferrexpo made significant advancements in environmental, social, and governance (ESG) factors, with notable reductions in Scope 1 (fell by 27% ) and Scope 2 (fell by 39%) emissions.
In 2022, DR pellets accounted for 6 % of total production, resulting in a decrease in scope 3 emissions for that year. However,DR pellets were not produced in 2023. Therefore, Scope 3 emissions per unit of production in 2023 increased to 1.33 tCO2/t of pellet production from 1.24 tCO2/t of pellet production in 2022, respectively. The absolute amount of emissions in scope 3 nevertheless decreased by 25 % compared to the previous year due to the overall decrease in production in 2023
A life cycle assessment by environmental consultants Ricardo plc has confirmed that the use of Ferrexpo's Direct Reduction (DR) pellets in steel production results in a 37% reduction in carbon emissions compared to conventional methods.
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