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Metlen Energy & Metals S.A. Reports Impressive Q1 2025 Business Update

Introduction

On May 2, 2025, Metlen Energy & Metals S.A. (the “Company” or “METLEN”) released its trading update for the first quarter of 2025, reflecting the company’s commitment to transparency and accuracy in its financial disclosures. This update not only highlights the company's operational performance but also provides insight into its revenue growth across various sectors, particularly in metals and energy.

Financial Performance Overview

In Q1 2025, METLEN saw remarkable financial growth, driven by strategic investments and operational efficiencies. The company reported total sales revenues amounting to €1.5 billion, marking a 31% increase compared to €1.143 billion in the same quarter of 2024. This performance underscores METLEN's dedication to creating sustainable value for its shareholders.

Corporate Developments

Increased Investment

As METLEN embarked on 2025 with significant momentum, it attracted heightened investor interest following several key corporate developments. A notable event was the agreement with Fairfax Financial Holdings Limited to subscribe to a €110 million convertible bond, which allows Fairfax the option to purchase 2,750,000 of METLEN’s own shares over two years at €40 per share. This move will elevate Fairfax’s stake in the company to 8.35%, reflecting investor confidence in METLEN’s strategic direction and growth outlook.

Commitment to Sustainability

For the third consecutive year, METLEN has been included in the Dow Jones Sustainability Index for Emerging Markets, attesting to its ESG efforts. Their commitment was further validated when they recorded an improved overall performance in the 2024 evaluation, placing them amongst the top 6% of companies in their sector globally regarding sustainability practices.

Operational Updates

Energy Sector Initiatives

METLEN continues to cement its position in the global energy market by expanding its reach into vital regions and advancing strategic projects. The anticipated rise in demand for solar energy and Battery Energy Storage Systems (BESS) indicates promising growth prospects in the upcoming quarters:

• - Total Energy Production in Q1 2025 increased by 35% compared to Q1 2024, reaching 3.1 terawatt hours (TWh).
• - Renewable energy production soared to 0.6 TWh, up 78% year-on-year.

Battery Storage Projects

A commitment towards battery storage investments continued, showcasing METLEN’s dedication to enhancing energy safety and sustainability. Significant milestones include:

• - The initiation of the Eastern Green Link 1 (EGL1) project, a £2.5 billion undersea interconnector designed to facilitate renewable energy transmission between Scotland and England, which is expected to power over 2 million homes.

Metals Sector Growth

In the first quarter of 2025, METLEN's metals division became a key growth driver owing to crucial investments and strategic partnerships:

• - The establishment of a €295.5 million integrated production line for bauxite, alumina, and gallium in Greece reinforces Europe's self-sufficiency in these vital raw materials.
• - Strategic long-term agreements with Rio Tinto for securing bauxite and alumina supply reach a landmark transformative partnership over the next decade.

Infrastructure Segment Performance

The Infrastructure and Concessions sectors experienced meteoric growth, with revenue more than doubling in Q1 2025 compared to Q1 2024. Significant contracts, such as restoration projects for the railway damaged by natural disasters, showcase METLEN's capacity to deliver on large-scale projects efficiently.

Looking Ahead

Going forward, METLEN is poised to continue pursuing its strategic initiatives, especially in the energy and metals sectors. A comprehensive presentation detailing the company’s investment program and growth outlook will be showcased at the Capital Markets Day scheduled on April 28, 2025.

Conclusion

METLEN Energy & Metals, a multinational leader within the industrial and energy sectors, remains dedicated to advancing sustainability and circular economy principles. With a consolidated revenue of €5.68 billion and relentless innovation, the company is positioned for a future where green metallurgy defines its operational narrative, operating in over 40 countries across five continents.

For more information, visit www.metlengroup.com.

Certain statements in this announcement are forward-looking, involve risks and uncertainties, and could cause actual results to differ significantly from those expressed or implied.