PJSC Zaporizhia Ferroalloy Plant (ZZF) reduced its net profit by 17.2% in January-June of this year compared to the same period last year to UAH 103.958 million.
During the reporting period, the plant increased its net income by 9.1% to UAH 816.929 million.
Retained earnings at the end of June this year amounted to UAH 1 billion 900.380 million
Blocks. Constant monitoring and analysis of the e/e market, the joint work of production and economic areas, made it possible to develop and implement measures that made it possible to optimize production schedules so as to avoid significant production losses and minimize losses: April – estimated loss reduction by UAH 4.9 million (excluding VAT), including a decrease in electricity price of UAH 3.6 million; estimated metal losses due to the high price of e/e – 95.3 tons; May – estimated damage reduction by UAH 12.4 million (excluding VAT), including reduction due to the price of e/e – UAH 4.18 million; estimated metal reduction due to the high price of electricity - 168.2 tons; June – estimated decrease in damage by UAH 3.04 million (excluding VAT), including a decrease due to the price of e/e – UAH 5.2 million; estimated metal losses due to the high price of e/e – 130.8 tons. tariffs for transmission and distribution services. Estimated losses for the second quarter of 2026 amounted to UAH 6.1 million (including VAT), including: – due to an increase in the tariff for electricity transmission services to Ukrenergo's NEK networks (+4% compared to the current one in the first quarter of 2026 or UAH 29.23/MW (excluding VAT), the estimated amount was UAH 0.88 million (including VAT) – due to an increase in the tariff for the distribution of JSC "Zaporizhiaoblenergo" (+7.1% to the effective in the first quarter of 2026 or 20.80 UAH/MW for the first voltage class, +3.7% to the effective in the first quarter of 2026 or 102.38 UAH/MW for the second voltage class), additional costs for the second qar0 VAT) – due to the increase in marginal VAT prices from April 30, 2026 (at all hours up to 15,000 UAH/MW (excluding VAT), additional expenses for the second quarter of 2026 were estimated at 4.8 million UAH (including VAT).
In addition, due to the inability to promptly sell the purchased e/e, the company suffered additional losses due to unbalances – losses due to reckless marginal prices in a balancing market. If the enterprise does not choose the purchased volume of electricity, its balance goes to the off-balance market, where the purchase price of the enterprise can be 0.01 UAH per 1 MW. That is, we buy by 3 000 – 15 000 UAH, and we sell for 0.01 UAH. And vice versa: if the company is busting, the bust price increases from 5% to +100-8000%. Only on this basis, the company lost 0.2-0.4 million UAH per month, and for the second quarter of 2026, the estimated losses amounted to 0.58 million UAH, including VAT. New technologies for the production and use of raw materials are being developed. The principal possibility of production with the provision of quality characteristics on request has been established; – production of FMn78 on grade 1b ore, as an alternative to using Grade 1 ore with a high content of manganese as a leading element. The result confirmed the fundamental possibility of obtaining a metal with certain qualitative characteristics. they led to a significant reduction in staff.
"Now there are only the best professionals who have been working for more than one year and know/feel ferroalloy production. And these personnel have remained, for now, for 3 furnaces (out of 31 existing furnaces)," the report states. As of June 24 of this year, there are 1,037 people. At the same time, in order to support the image of an enterprise implementing new technological and technical solutions in a difficult economic and political situation, it became necessary to respond promptly to changes in the working conditions of the enterprise: – constant search for potential sales markets for basic and other marketable products; – increasing the competitiveness of products and, as a result, setting the main task; – search for ways to reduce costs when manufacturing both basic and other products.
According to the results of operations for the second quarter of 2026, the company has the following key points: The volume of production of commercial ferroalloys amounted to 6 thousand tons, 7.8 thousand tons were sold for a total amount of UAH 503.6 million including VAT. During the second quarter of 2026, taxes in the amount of UAH 18 million were paid to the state and local budgets, including UAH 4.6 million in customs payments.UAH, military fee 2.7 million.UAH, environmental tax – 0.2 million.UAH; – to the local budget: personal income tax – 9.7 million.UAH, environmental tax – 0.2 million UAH.
In addition, a single social contribution of UAH 11.6 million was paid. The main achievements of the 2nd quarter are the preservation of the production process, the still low level of product prices and the constant increase in electricity and transportation prices. Planning of further work within the established indicators, taking into account developments in all areas of the enterprise. New methods of motivational encouragement of staff are being developed.
The report recalls that in order to reduce dependence on external factors for the supply of electricity, having experience of the consequences of the destruction of the energy system, the company built and commissioned 0.8 MW/hour for its own needs in December 2024. Since the implementation of the event, 980.6 MW of electricity has been generated. This reduced the cost of purchasing electricity by 4.51 million.UAH, to make a promising step forward in the development of modern decentralized power supply of the enterprise
The total sales for the reporting period amounted to 14,554 thousand tons of ferroalloys in the amount of UAH 815,845 million. 3,604 thousand tons of ferroalloys were exported (23% of total sales of ferroalloys for the first half of 2026). Compared to the same period last year, to UAH 84.689 million from UAH 34.731 million, net income increased by 26.3 to UAH 377.006 million to UAH 298.557 million and UAH 27.962 million from UAH 1 billion 862.784 million. At the same time, the plant increased its net income by 55.7 to UAH 1 billion 522.567 million from UAH 977.660 million.
In 2024, the ZZF increased its net loss compared to the previous year to UAH 1 billion 862.784 million. At the same time, net income decreased by 34.7%, to UAH 977.660 million.
PJSC Zaporizhia Ferroalloy Plant is one of the two main Ukrainian manufacturers of these products. 18.8903%, Walltron Limited (all Cyprus) – 18.642% and Halefield Holdings Limited (Belize) – 7.7508%.
The authorized capital of PJSC "ZZF" is 227.955 million UAH, the nominal value of 1 share is 0.1 UAH.
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