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Metlen Energy and Metals Reports Record Financial Results for 2024

Metlen Energy and Metals (RIC: MYTr.AT) has unveiled its financial outcomes for 2024, revealing remarkable growth in revenue and significant increases in profitability despite facing considerable downward pressure from global energy prices. The company achieved a total revenue of €5.68 billion, up from €5.49 billion in 2023. This 3% increase in revenue is especially notable as it occurred during a time when energy and natural gas prices saw marked declines, underscoring Metlen’s resilience and strategic positioning in the market.

Key Financial Metrics

• - Revenue: €5,683 million (2024) vs. €5,492 million (2023)
• - EBITDA: €1,080 million (up 7% from €1,014 million in 2023)
• - Net Profit: €615 million (compared to €623 million in 2023)
• - Earnings Per Share: €4.46 (slight decline from €4.51 in 2023)
• - Proposed Dividend: €1.50 per share

Metlen’s EBITDA reached a historic high of €1.08 billion, reflecting a strong operational performance, particularly within its renewable energy and metals divisions, which continue to drive profitability. Despite a slight dip in net profits due to fluctuating market conditions, the overall stability of Metlen's business model continues to attract investor confidence.

Strategic Partnerships and Investments

In a further boost to its operational scope, Metlen has secured an 11-year contract with Rio Tinto, aimed at bolstering its bauxite supply security and ensuring competitiveness in alumina production. This agreement is expected to facilitate an additional production capacity of over 400,000 tonnes per year, which complements Metlen’s ambitious growth trajectory leading up to 2028.

Evangelos Mytilineos, the CEO of Metlen, expressed pride in the company's performance, asserting that the figures not only signal robust financial health but also cement Metlen’s position among Europe’s elite businesses. He emphasized that the ongoing investment in industrial capabilities is a stepping stone to a transformative third phase of growth. The focus on innovative industrial practices will position the company to effectively double its operations before 2028.

Operational Update: Energy and Metals Sectors

Energy Sector Performance

In 2024, the energy sector generated revenues of €4,572 million, accounting for 81% of the company’s total revenue. Although this figure represents a slight improvement over the previous year's figures, the EBITDA of €753 million saw a decrease of 2%, attributed to the lower natural gas prices. Still, Metlen has strategically positioned itself as an integral player in the energy market, with a commitment to renewable sources and innovation.

• - Installed Renewable Power Capacity: 11.1 GW globally with a significant contribution from solar projects.
• - Electricity Generation from Renewables: Increased to 1.6 TWh, marking a growth of 40% compared to 2023.

Metals Sector Overview

On the metals front, Metlen registered revenues of €857 million, a 9% decline compared to 2023. However, EBITDA demonstrated a healthy rise of 19.7% to reach €297 million, showcasing improved efficiency. The company continues to adapt to the volatile pricing of aluminum, with average prices rising to $2,456 per tonne, fostering a competitive edge amidst fluctuating global conditions.

• - Alumina Production: 865,000 tonnes with an emphasis on scaling up operations in response to market demand.

In light of the company’s ongoing developments, Metlen’s ambitious digital transformation plan promises to streamline operations and enhance profitability. The plan, backed by a €30 million investment for 2024, will focus on leveraging AI technologies to improve operational efficiencies and stakeholder experiences.

Conclusion

As Metlen Energy and Metals prepares for 2025, it aims to solidify its leadership in diversified energy and metals markets through strategic investments and operational excellence. The company's forward-looking vision positions it well for sustained growth, ensuring it remains resilient in an unpredictable world economy.