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METLEN Energy & Metals Financial Results 2024

METLEN Energy & Metals has recently unveiled its financial results for the year 2024, demonstrating resilience and growth amidst fluctuating energy prices. The company reported revenue of €5.683 billion, a striking increase of 3% from €5.492 billion in 2023. This growth is notable given the backdrop of significant decreases in energy and natural gas prices, which have impacted the wider market.

Financial Highlights

One of the standout figures from METLEN's announcement was its EBITDA, which rose by 7% to reach a record €1.080 billion, compared to €1.014 billion in the prior year. This achievement reflects the company's robust operational performance, largely driven by its Renewable Energy Sources (RES) and the solid contributions from its Greek utility services. Though there was a slight decline in net profit after minority interests, dropping from €623 million in 2023 to €615 million in 2024, the earnings per share also saw a minor decrease from €4.51 to €4.46.

The company has proposed a dividend of €1.50 per share, with adjustments expected based on treasury shares prior to the ex-dividend date. Furthermore, the net debt, adjusted for various exclusions, stood at €1.776 billion, keeping the net debt-to-EBITDA ratio at a manageable 1.7x, in line with METLEN's financial strategies.

Strategic Partnerships and Future Transformations

In an innovative move, METLEN forged an eleven-year agreement with Rio Tinto, aimed at enhancing the supply security of bauxite. This collaboration is expected to significantly benefit the company, ensuring competitive returns on approximately 400,000 tons of alumina annually. Such strategic partnerships highlight METLEN's commitment to not just grow but also solidify its standing in the global metals and energy markets.

Evangelos Mytilineos, President and CEO of METLEN, expressed pride in the company’s historical performance, emphasizing that the achievements are a testament to METLEN's sustainability and operational excellence. He highlighted that this year marked the completion of the company's second major transformation, paving the way for significant future developments. Mytilineos articulated a vision to double the size of METLEN before 2028, positioning it among the elite companies in Europe by leveraging the successes of past transformations and continued prudent financial management.

Over the past year, METLEN has successfully closed key deals and completed acquisitions, further strengthening its energy and metals sectors. The company is committed to the ongoing expansion of its international footprint and has adopted a rebranding strategy that signals a new era defined by strategic foresight and operational excellence.

Energy Sector Performance

In 2024, METLEN’s energy sector continued to be a driving force, contributing 81% of total revenues with a turnover of €4.572 billion, consistent with previous levels despite the noted decrease in natural gas prices. While the EBITDA for the energy segment showed a slight decline to €753 million from €766 million in 2023, this financial stability amidst adversity reaffirms the effectiveness of METLEN’s operations in the energy market.

The company's focus on renewables has also paid dividends, with its total capacity exceeding 1.4GW in operational power, marking a substantial increase. Initiatives such as the new partnership with PPC for developing a portfolio of solar projects valued at €2 billion across several countries, including Italy and Bulgaria, signify METLEN's commitments to sustainable energy practices.

Metals Sector Dynamics

The metals sector reported revenues of €857 million, a 9% decrease, but with EBITDA increasing by nearly 20% to €297 million. Despite lower production of alumina and primary aluminum, the enhancement in operating margins illustrates METLEN's ability to navigate market challenges effectively. The average aluminum price increased, reflecting an overall positive trend, reinforcing the company's competitive stance in metal production amidst geographic supply challenges.

Conclusion

In conclusion, METLEN's financial results for 2024 not only exhibit the firm’s resilience in a challenging economic landscape but also highlight its strategic approach to growth through innovation, sustainability, and strong operational performance. As the company gears up for its next phase, stakeholders can anticipate a focused commitment to enhancing value across all fronts, solidifying its status as a leader in the energy and metals sectors. The outlook for METLEN remains optimistic, driven by a carefully structured strategy for continuous growth and transformation.