Friday 7 June 2019 10:34 am

Ferrexpo shares increase on earnings expections rise

Shares in oil and gas giant Ferrexpo jumped eight per cent this morning after the miner announced that earnings are expected to rise.

Ferrexpo said group earnings before interest, tax, depreciation and amortization would “increase materially” compared with the first half of 2018.

Read more: Oil dips to four month low as US inventories soar

The announcement sparked an 8.5 per cent rise in the firm’s share price, peaking at 259.3p. Ferrexpo’s stock was trading 4.92 per cent up at 250p later in the morning.

An investigation into charity donations in Ukraine is ongoing but there is “no conclusive evidence of any wrongdoing”, Ferrexpo said.

Ferrexpo used this morning’s update to announce the appointment of former EY Graeme Dacomb to the board.

Dacomb will chair the audit committee and will sit on the independent review committee, which is investigating the charity scandal.

Ferrexpo chairman Steve Lucas said: “Ferrexpo continues to be well positioned to supply a high quality iron ore product to the top steel mills in the world receiving a record price premium for its product.

“The group’s balance sheet remains strong with net debt expected to further reduce compared to 31 December 2018.

“The independent review into how Ferrexpo’s donations to a third party charity in Ukraine were used remains ongoing.

Read more: Glencore head of oil retires amid US investigation

“The company will make an announcement to shareholders when the Independent Review Committee completes its work.

“To date, after a significant amount of work on the part of our forensic accountants and legal advisors, there has been no conclusive evidence of any wrongdoing.”