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Metlen Energy & Metals 2024 Financial Results

On February 20, 2025, Metlen Energy & Metals (RIC: MYTr.AT; Bloomberg: MYTIL.GA; ADR: MYTHY US) revealed its financial results for the year 2024, showcasing remarkable growth and strategic advancements that affirm its robust position in the energy and metals sectors.

Key Financial Highlights

The company's turnover for the year reached €5,683 million, marking a 3% increase from €5,492 million in 2023, despite the notable reduction in energy and natural gas prices. This is a testament to Metlen's resilience and operational efficiency in navigating market challenges.

Their EBITDA exhibited an impressive 7% growth, hitting an all-time high of €1,080 million compared to €1,014 million in 2023. It reflects the company's strong leadership in the energy segment, which is powered by its extensive investments and management strategies focused on renewable energy and utilities.

The net profit, however, saw a minor decline, recorded at €615 million, down from €623 million in 2023. Consequently, the earnings per share slightly decreased from €4.51 to €4.46. The company has proposed a dividend of €1.50 per share, with expectations of possible adjustments based on treasury shares at the ex-dividend date.

Strategic Initiatives

Metlen's net debt stood at €1,776 million on an adjusted basis, adhering to its financial policies despite intense capital expenditure and expansion efforts. Remarkably, the debt-to-EBITDA ratio remained stable at 1.7x, highlighting the company's financial discipline and commitment to long-term growth.

A notable feature of Metlen’s strategy is the recent 11-year agreement with Rio Tinto, a significant move aimed to secure bauxite supply and enhance profitability, promising an additional 400,000 tons of alumina annually. This agreement positions Metlen as a leader in bauxite and alumina production, fortifying its competitive edge in the global market.

Sector Performance

In terms of sectoral performance, the energy segment continues to drive substantial revenue, contributing 81% to the total turnover, which amounted to €4,572 million. EBITDA for this sector decreased slightly to €753 million due to lower natural gas prices but remains stable compared to previous years.

The renewable energy sector is witnessing rapid growth, with Metlen's installed capacity skyrocketing to 1.4 GW and projections for further expansions in solar and wind projects. This growth is backed by a sustainable business model focused on diversified geographical operations and partnerships.

In the metals sector, revenue recorded a decline to €857 million while EBITDA increased to €297 million, illustrating an effective cost management strategy amid fluctuating aluminum prices. The upward trend in alumina pricing, driven by supply chain constraints, reflects the critical need for vertically integrated production processes.

Future Outlook

Looking ahead, Metlen Energy & Metals is establishing a transformative growth phase termed 'Big 3', wherein the ambition is to double the company's scale by 2028. This will involve strategic investments in expanding existing projects and exploring new operational avenues, especially in renewable energy and metal production.

The company's commitment to green technologies and sustainability continues to shape its operational priorities, aligning with trends towards reducing environmental impact while boosting profitability. With solid financial results underpinned by ambitious growth strategies, Metlen is poised to maintain its trajectory towards becoming one of Europe's premier energy and metallurgy companies.

In conclusion, 2024 stands as a pivotal year for Metlen, leading to expectations of sustained growth and robust performance as the company adapts to evolving market landscapes while maintaining operational excellence.