StockMarketWire.com - Ferrexpo hiked its dividend after profits rise sharply in the first half of the year as revenues were bolstered by higher pellet prices and sales.

For the six months ended 30 June 2019, pre-tax profits rose to 77% to $317.8m as revenue climbed 27% to $787.1m.

The company reported a 4% increase in first-half sales volumes compared to a year earlier amid a significant increase in iron ore fines price as pellets supply remained constraint during the half.

'During the period we continued to benefit from strong pricing for our high-grade iron ore pellets, which helped deliver healthy cash flows,' the company said.

The company reported, however, that steel demand in some regions was muted, which it blamed on increased raw material costs and weaker end-user demand, though added it had the ability to 'deploy tonnage to other markets to offset any regional weakness.'

The company declared an interim ordinary dividend up 100% to 6.6 US cents from last year.



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