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METLEN Energy & Metals Financial Results for 2024

METLEN Energy & Metals recently announced its financial outcomes for the year 2024, confirming its robust position in the energy and metals industries amidst a challenging economic backdrop. The company reported revenues of €5.683 billion, a notable increase from €5.492 billion in 2023. This growth comes despite a significant decline in energy and gas prices globally, showing METLEN's resilience in a competitive market.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached an all-time high of €1.080 billion, up 7% from €1.014 billion in the previous year. However, the net profit attributable to shareholders slightly decreased to €615 million from €623 million in 2023, alongside a corresponding Earnings Per Share (EPS) of €4.46, down from €4.51 last year. METLEN proposed a dividend of €1.50 per share, indicating a commitment to shareholder returns while planning an upward adjustment based on share buybacks on the ex-dividend date.

A closer look reveals that the adjusted net debt stood at €1.776 billion, which is a prudent level in relation to its EBITDA, calculated at 1.7x, aligning with METLEN's financial policy. The company also highlighted its significant 11-year strategic partnership with Rio Tinto, aimed at securing bauxite supply and enhancing profitability in its aluminum operations, which will substantially boost the daily production capacity by over 400,000 tons annually. This agreement is expected to provide substantial benefits to the company, ensuring a competitive edge within the sector.

Company Leadership's Comments

Evangelos Mytilineos, the Chairman and CEO of METLEN, expressed pride in the company’s outstanding financial performance for 2024. He emphasized that this achievement underscores METLEN's growth trajectory as not a transient phenomenon, but rather a precursor to even greater accomplishments ahead. He elaborated on the ongoing transformation within METLEN, identifying the recent investment in bauxite, alumina, and gallium production as the commencement of a transformative phase dubbed 'Big 3.'

Mytilineos outlined the ambitious objectives of doubling METLEN's size by 2028, driven by the lessons learned from previous transformations and the company's solid financial foundation. He committed to maintaining sound financial discipline while fostering continuous value creation for various stakeholders, including employees, partners, shareholders, and the broader community.

Financial Key Figures Breakdown

Operational Highlights

The revenue gleaned from energy activities accounted for nearly 81% of METLEN's total revenue, amassing €4.572 billion. The EBITDA from this sector was noted at €753 million, slightly dipping from the previous year but still indicative of stability amid fluctuating market variables. The growth in renewable energy projects has significantly contributed to maintaining profitability, even in the face of declining gas prices.

Renewables, made up of various energy generation sources, saw impressive growth, with a 40% increase in generated electricity from these projects compared to the prior year, pointing towards a strong strategic focus on green energy initiatives. METLEN also bolstered its international presence, engaging in significant new contracts and acquisitions in key markets across Europe, the UK, Italy, and Australia.

Moreover, the metals sector, although recording a revenue decline to €857 million, experienced a notable increase in EBITDA by nearly 20%. Factors contributing to this include rising aluminum prices due in part to supply constraints, indicating the promising potential within the sector despite necessary adjustments for external market fluctuations.

Future Outlook

As METLEN moves forward into 2025, the company remains cognizant of the increasingly unpredictable global economic climate driven by geopolitical tensions. Nevertheless, the robust financial results from 2024 lay a solid foundation for achieving the firm's ambitious targets. METLEN's commitment to enhancing operational efficiency through digital transformation initiatives aims to foster increased resilience, lower costs, and improve employee engagement.

With significant investments in digital capabilities projected, including AI technologies, METLEN aims to enhance its value creation across all sectors. The upcoming Capital Markets Day will likely provide further insights into the company’s strategic advancements and forthcoming initiatives, outlining plans for sustained growth and innovation in the energy and metals markets.