UPDATE 2-Ferrexpo year profit doubles, beats expectation

* EBITDA $503.9 mln, beats consensus of $476.2 mln

* Sees no significant cut in 2009 production

* Well placed to maintain positive margins, up market share

* Shares fall as London-listed miners decline

(Adds comments from conference call, analysts, share price)

By Julie Crust

LONDON, March 24 (Reuters) - Ukrainian iron ore producer Ferrexpo Plc (FXPO.L) said on Tuesday its 2008 profit doubled, beating expectations, on higher pellet prices.

Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped to $503.9 million in 2008 from $246.1 million the previous year. The London-listed company's consensus of nine analysts' forecasts was for EBITDA of $476.2 million.

Annual revenue surged 60 percent to $1.1 billion helped by a 72.3 percent jump in average iron ore pellet prices.

"Ferrexpo had a record year in 2008, and since the economic downturn has continued to trade profitably," chief executive Kostyantin Zhevago said. The group is well placed to maintain positive margins and to raise its market share in 2009, he said.

At 1051 GMT, the shares were down 7.6 percent at 61 pence, tracking a fall in London-listed mining stocks .FTNMX1770 on the back of lower base metals prices.

Ferrexpo's pellet production in 2008 was steady on the year earlier and Finance Director Chris Mawe said he does not expect 2009 output to be "significantly below" 2008's 9.0 million tonnes.

"We would expect to sell all the iron ore that we produce at a profit so we wouldn't expect any significant cuts," he said on a conference call.

In a research note, Cazanove said it anticipates sales falling about 15 percent this year to 7.4 million tonnes.

Lower iron ore demand from steelmakers and the drop in spot prices led Ferrexpo to reduce supply significantly in the final months of 2008.

Spot iron ore prices have fallen as much as 70 percent from their peaks and are still fairly volatile, Mawe said.

Ferrexpo's traditional markets represent about two thirds of sales, while the Asian markets account for just over a quarter of sales.

"We would expect that proportion to increase a little bit in the first quarter of this year," said Mawe. "Demand remains weak in the former CIS and western Europe."

The company sold more iron ore on the spot market in the first quarter, at lower prices than those under contract, and expects to sell slightly more on the spot market than under long-term contracts for the full year.

In 2008, 87.7 percent of sales were accounted for under contracts.

Iron ore prices are certain to fall in 2009, the first decline in seven years, but not by the 50 percent suggested by some steel makers, Rio Tinto RIO.A (RIO.L) said on Tuesday. [ID:nSYD419992] "The outlook remains uncertain but we remained cash flow positive during the final quarter and believe we are well placed to trade profitably in 2009," Mawe said.

(Editing by Simon Jessop)