RCS - Metlen Eng & Metals - METLEN - FLASH NOTE - FINANCIAL RESULTS 2024

Metlen Energy & Metals SAAnnouncement

20/02/2025 07:30

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RNS Number : 8508X  Metlen Energy & Metals SA  20 February 2025

METLEN - ENERGY & METALS

FLASH NOTE - FINANCIAL RESULTS 2024

 

New Record-high EBITDA

Consistently strong Turnover and Net Profit levels

 

 

Athens, Greece - February 20, 2025 -METLEN (RIC: MYTr.AT, Bloomberg: MYTIL.GA,
ADR: MYTHY US) announces 2024 financial results.

 

ü Turnover amounted to €5,683 million, compared to €5,492 million in
2023, despite the significant de-escalation of energy and natural gas prices.

ü 7% increase in Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) reaching a new all-time high of €1,080 million,
compared to €1,014 million in 2023.

ü Net Profit after minorities was €615 million vs. €623 million in 2023.
The corresponding Earnings per Share came in at €4.46 from €4.51 in 2023.

ü Proposed dividend €1.50 per share. It is noted that the final dividend
amount will be adjusted upwards, taking into account the treasury shares on
the ex-dividend date.

ü Net Debt, on an adjusted basis, came in at €1,776 million, excluding
non-recourse debt and related cash. Despite the intensive CAPEX program that
is in full swing, adjusted Net Debt to EBITDA stood at 1.7x, in line with
METLEN's financial policies.

ü 11-year breakthrough agreement with Rio Tinto, which is expected to bring
dual benefits for the company by enhancing bauxite supply security and
ensuring profitability from additional alumina quantities (+400,000 tons
annually) under competitive terms with one of the largest companies in the
sector globally.

 

 

Commenting on the Financial Results, the Chairman and CEO of the Company,
Evangelos Mytilineos stated:

 

"We take great pride in our 2024 strong financial performance as it affirms
METLEN's establishment at historically high levels. This confirms that the
remarkable growth in our performance of the last few years was not a temporary
phenomenon, but simply the warming up of much bigger things to come.

 

Our new flagship industrial investment in Bauxite, Alumina and Gallium
production announced at the beginning of this year, is only the beginning of
the third transformative phase, code-named Big 3, which, with the experience
of our two transformations since 2017, the massive financial firepower and our
realistic but ambitious plans has the goal of doubling the size of the
business before 2028, and place us among the elite of big European companies.

 

Always keeping an eye on our financial discipline and with our usual vision
and foresight, we remain committed and dedicated to our continuous value
creation for our people everywhere in the world, our upstream and downstream
partners, our shareholders and ultimately the society as a whole.

 

2024 was a landmark year for us where we completed our second major
transformation which is now clearly reflected in our performance. Our
continued international expansion and consolidation in top markets, combined
with our Company's rebranding, heralds a new era for METLEN defined by
strategic foresight and operational excellence. Over the past year, we have
achieved significant milestones, securing major agreements, completing
acquisitions, and further strengthening our position in the Energy and Metals
sectors."

 

 

1.   KEY FINANCIAL FIGURES

 

 

 Amounts in m. €    2024   2023   Δ %
 Turnover           5,683  5,492  3%
 EBITDA             1,080  1,014  7%
 EATam              615    623    -1%
 EPS*               4.460  4.505  -1%
 Margins (%)                      Δ(bps)
 EBITDA             19.0%  18.5%  51
 EATam              10.8%  11.3%  -49

 

 

Turnover amounted to €5,683 million compared to €5,492 million in 2023,
marking a 3% increase despite the significant de-escalation of energy prices
(electricity prices DAM: -25%, natural gas prices -16%).

 

Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased by 7% reaching €1,080 million, compared to €1,014 million in
2023, driven by both of the Company's main pillars, the Renewable Energy
Sources (RES) and the Greek Utility activities in the Energy Sector and the
Metals Sector, which continues to make a significant contribution.

 

METLEN achieved, once again, a record-high annual performance, led by the
Energy Segment. Specifically, M Renewables (RES in Greece and abroad), saw its
profitability increase significantly for yet another year (c.45% vs 2023),
supported by a geographically diversified, self-funded business model with
lower capital requirements. The latter, is M Renewables advantage compared to
other, traditional RES plays. During 2024, METLEN saw a substantial
strengthening of its Greek Utility, the integrated energy provider of the new
era, which market share approached the 20% at the end of the year, for both
the production and supply of electricity, leveraging on the Energy sector's
vertical integration.

 

The Metals Sector, in 2024, generated a new record profitability, in part, due
to both the strengthening of the aluminum premia as well as the alumina price
(API). Equally vital, were the timely actions taken by the Company's
Management regarding the security of favorable LME prices, fully capitalizing
on the opportunities presented in the previous period, while showcasing an
effective cost control. The latter, following the expiration of the PPC
contract and the subsequent electrification of the aluminum plant from
Protergia, has become a key driver of the Metal's sector's new profitability
record. The above, combined with the key synergies offered by the coexistence
of the Energy and Metals sectors, with a prime example being the aluminum's
plant capacity to act like a battery, taking advantage of the particularly low
energy prices due to oversupply, positioning METLEN among the most competitive
aluminum and alumina producers globally; without disregarding the
exceptionally high energy cost (in Europe) and the challenges they pose to
production activities.

 

Despite the tripling of the Company's profitability in the previous years,
METLEN's financial performance is expected to continue to strengthen
significantly, as the Company continues to steadily grow organically,
capitalizing on opportunities offered in all three main pillars of its
activity. The above should result in new, significantly higher profitability
levels, as strong cash flows will enable the execution of investments. This
will not only bolster METLEN's turnover, but also help to maintain the
Company's excellent credit profile.

 

Regarding the construction and concessions activity, the Earnings before
Taxes, Interests and Depreciation (EBITDA) amounted to €50 million compared
€18 million in 2023, posting an increase of 178%. The backlog of
infrastructure projects is approaching €1 billion, while including projects
that are in an advanced stage of contracting, it reaches €1.4 billion. The
outlook for the construction industry in Greece is positive, especially for
concession and Public & Private Partnerships (PPP), in which the
Infrastructure Sector (METKA ATE and M Concessions) aspires to play a leading
role.

 

 

2.   BUSINESS UNITS OPERATIONAL UPDATES

 

2.1. Energy Sector

 Amounts in m. €    2024   2023   Δ %
 Revenues           4,572  4,425  3%
 EBITDA             753    766    -2%
 Margins (%)                      Δ(bps)
 EBITDA             16.5%  17.3%  -84

 

Energy Sector reported turnover of €4,572 million, representing 81% of the
Company's total turnover, remained at the same levels with 2023. Earnings
before interest, taxes, depreciation and amortization stood at €753 million,
decreased by 2% compared to €766 million in 2023. It is important to
highlight, that this performance has been achieved with natural gas prices 16%
lower than those in 2023 (referring to Revenue and EBITDA).

 

METLEN ENERGY & METALS, through its new dynamic and flexible structure, is
able to face current as well as upcoming challenges. Moreover, the Company is
strategically positioned at the forefront of the Energy Transition as a
leading and integrated energy company, with an international presence in the
entire spectrum of the energy sector (Renewables, Energy & Generation
Management, Energy Customer Solutions, Integrated Supply & Trading and
Power Projects).

 

 

 RES - METLEN's Global portfolio            Power (GW)
 RES in Operation                           1.4
 RES Under Construction                     1.4
 RES RTB & Late stage of Development**      2.1
 RES Early Stage of Development             6.2
 Total                                      11.1

*Includes projects of all technologies (photovoltaic, energy storage, wind),
excluding the projects in Canada and also the projects that are included in
the deal with PPC

**Project ready to be Build (RTB) or that will reach RTB stage within the next
~ 6 months

 

 

In 2024, METLEN achieved significant results, strengthening its leading
position in the Renewable Energy sector and advancing sustainable development
through strategic agreements and completed projects on a global scale.

 

The Company's operational portfolio recorded dynamic expansion, reaching the
1.4GW of installed capacity by the end of the year, surpassing the 1 GW
milestone for the first time. Overall, METLEN's global portfolio exceeded the
11.1 GW, marking a total increase of c.0.6 GW compared to the beginning of the
year. The portfolio incorporates 4.9GW of operational and mature stage of
development projects, as well as 6.2GW of projects in early stages of
development.

 

The global power production from Renewable Sources, in the end of 2024
amounted to 1.6 TWhs, an increase of 40% compared to 2023. Of this total,
0.7TWhs were generated from Greek RES, with the balance of 0.9TWhs coming from
international projects. This remarkable performance reflects the ongoing
dynamic growth and the expansion of METLEN's presence in the "green energy"
sector, with projects in operation in Greece, UK, Italy, Ireland, Australia,
Chile and South Korea.

 

In 2024, as part of its growth strategy, METLEN, signed a Cooperation
Framework Agreement (CFA) with PPC, for the development and construction of a
2 GW portfolio of solar projects in Italy, Bulgaria, Croatia, and Romania,
reaffirming its commitment to maximizing the efficiency of its portfolio. The
agreement is valued at €2 billion, with a three-year implementation horizon.

 

Supported by its geographically diversified, self-funded business model, with
reduced capital requirements, the successful Asset Rotation Plan allows the
Company to consistently drive the growth in profitability of M Renewables,
capitalizing on its international experience and network of partners, with
operations and presence across more than 20 countries. During 2024 alone,
METLEN proceeded to conclude agreements for the sale of photovoltaic (PV)
projects (SPAs) with total capacity of c.1GW, in Europe.

 

With regards to METLEN's Greek pipeline, during 2024 commenced the
construction of 0.4GW of PV projects, 48MW of energy storage projects (BESS),
and 13MW of wind projects. The Greek portfolio utilizes resources from the
Recovery and Resilience Facility (RRF).

 

It is worth noting, that the Renewable Energy Sector, within the energy
division, continues to perform strongly, thanks to the collaborative Energy
and Metals model and the seamless operation of Energy Management.

 

In 2024, METLEN saw significant growth in the development, construction, and
management of energy storage systems (BESS), both for third parties and own
projects, solidifying its position as a leading renewable energy developer.
The Company reached a total storage capacity of approximately c.0.7GWh across
Greece, Italy, the United Kingdom, Puerto Rico, Tunisia, and Nigeria. At the
same time, METLEN is in the final stages of contracting new third-party energy
storage projects with a total capacity of 2.2GWh, while expanding its
portfolio with new projects. These projects are expected to become operational
in the coming years, further strengthening METLEN's position in the energy
storage sector, which is expected to play a key role in green transition
energy investments in the coming years.

 

Finally, during 2024, new third-party projects with a total capacity of
c.1.1GW were contracted in Greece, Spain, Italy, Chile, New Zealand, and the
United Kingdom, with the contracted backlog amounting to €463.1 million,
while an additional €530 million are in final stages of negotiation.

 

Greek Market Data

 

 Production per Unit type  TWh   2024  2023  Δ%     2024       2023
                                                    % of mix   % of mix
 Lignite                         3.2   4.5   -28%   6%         9%
 Natural Gas                     21.0  15.4  36%    41%        31%
 Hydros                          3.5   4.1   -14%   7%         8%
 RES(1)                          24.3  20.4  20%    47%        41%
 Net Imports                     -0.3  4.9   -106%  -1%        10%
 Total                           51.7  49.2  5.2%   100%       100%

(              1)Renewable Energy Sources

 

 METLEN Generation (TWhs)  2024  2023  Δ%
 Thermal Plants            8.7   5.1   71%
 RES                       0.7   0.6   12%
 Total                     9.4   5.7   65%

 

2024 was marked by a significant increase in electricity demand, recording a
year-on-year growth of 5%.

 

Production from domestic units was particularly high considering that, in
addition to the increase in consumption in the domestic market, Greece
exported electricity to third countries, for the first time since 2000,
whereas in 2023 imported c.10% of the demand (4.9TWh), on a net basis.

 

The largest increase, compared to 2023, was noted in electricity generation
from natural gas thermal plants, which increased by 36%, followed by a 20%
increase from Renewable Energy Sources (RES). On the contrary, lignite-based
electricity generation continued its steady downward trend (-28%).

 

With regards to electricity exports, 2025, is expected to mark a turning point
for the future of Greece's energy strategy. This significant development opens
the door to a new era, in which Greece is not limited to solely fulfill its
domestic needs, but expand its influence in the region, further strengthening
its position in the energy sector. Increasing demand expectations in the
coming years, coupled with the strengthening of the country's exporting
capacity, will lead to a constant improvement of the domestic power
production, which in 2024 alone increased by c.8 TWh, or 17%, compared to
2023.

 

Total power production in Greece, both from the Company's thermal and
renewable units, amounted to 9.4 TWh, representing 18.2% of total demand, from
11.6% at the end of 2023. METLEN, over the last year, has managed to nearly
double its production and thus its market share is expected to increase even
further in the coming period, driven by the anticipated rise in production
from RES units. At the same time, the contribution of both the strong
partnerships that the Company has developed, which in this specific sector are
expressed mainly through more competitive natural gas prices, as well as the
unique characteristics of its thermal fleet and in particular the higher
efficiency of its units compared to the market, is expected to be decisive.

 

 METLEN - Supply of Energy & Natural Gas      2024   2023   Δ%
 Market share                                 18.5%  13.5%  37%

 

Regarding the electricity supply activity, Protergia, is steadily
strengthening its presence in the retail market, with its market share at the
end of 2024 reaching 18.5% (HEnEx market shares - including Volterra's market
share), recording significant increase from 13.5% at the end of 2023. METLEN
in the upcoming period is expected to exceed the 20% of the Greek consumption,
aiming to create an integrated "green" utility with international presence,
while the ultimate goal of achieving a 30% market share, over the next 2-3
years, via both acquisitions as well as organic growth, remains intact. Taking
advantage of the vertical integration of the Company's operation in the Energy
Sector, METLEN has managed to establish the integrated energy provider of the
new era ("Utility of the Future"). This provides the Company with the ability
to withstand the pressure from significant price fluctuations, benefiting
consumers. The latter has been demonstrated by Protergia's pricing policy,
which has kept prices stable throughout the second half of 2024 and in the
first quarter of 2025 (nine months in total! throughout the year), thus
offering competitive prices to consumers. At the same time, it is steadily
strengthening its representation, which is now approaching 580 thousand
meters, from 525 thousand at the end of 2023.

 

Moreover, METLEN, beyond the Greek market, has achieved significant
penetration in other markets in the Southeast European region, in terms of
natural gas supply and trading, as part of the Company's internationalization
strategy. METLEN, by maintaining consistently high volumes of natural gas, has
become a major regional player in both the Balkans and wider Southeastern
Europe, securing competitive supply prices.

 

The benefit of this activity is distributed through METLEN's synergistic model
to all the Company's operations. Overall, for 2024, the Company was a leading
player in natural gas trading in SE Europe, representing 43% of the country's
total imports.

 

 Power Projects METLEN           2024
 Backlog of contracted projects  €1.1 billion

 

M Power Projects Sector, continuously strengthening its international presence
on projects that support the Energy Transition and Sustainable Development
goals, currently executing 22 projects in 8 different countries.

 

At the end of 2024, the backlog of contracted projects amounted to €1.1
billion, of which only 9% refers to Greek projects, with the balance being in
foreign markets, mainly in the UK and Poland. This activity is expected to
grow significantly, while the resources of the European Recovery Fund offer
further growth prospects, with Greece being the country that receives the
highest funding as a percentage of GDP.

 

M Power Projects focuses particularly on the construction and development of
critical infrastructures, specializing in electrical network projects,
interconnections, Data Centers construction and Power Supply Solutions for
Data Centers. With the main priority of ensuring reliable and efficient energy
systems, it leverages its expertise to meet the growing demands for robust and
reliable energy solutions. Through its commitment to innovation and quality,
it plays a key role in promoting, upgrading, and developing the energy
infrastructures necessary to strengthen the digital economy.

 

 

2.2. Metals Sector

 

 Amounts in m. €    2024   2023   Δ %
 Revenues           857    942    -9%
 EBITDA             297    248    19.7%
 Margins (%)                      Δ(bps)
 EBITDA             34.7%  26.4%  831

 

 Total Production Volumes (ktons)  2024  2023  Δ%
 Alumina                           865   869   -0.4%
 Primary Aluminium                 182   183   -0.7%
 Recycled Aluminium                56    56    0.0%
 Total Aluminum Production         238   239   -0.6%

 

 Aluminium & Alumina Prices ($/t)      2024   2023   Δ%
 3Μ LME                                2,456  2,287  7.4%
 Alumina Price Index (API)             503    344    46.2%

 

 

Metals Sector reported turnover of €857 million, representing 15% of the
Company's total turnover, posting a 9% decrease on a year-on-year basis.
Earnings before interest, taxes, depreciation and amortization (EBITDA) stood
at €297 million, increased by 20% compared to 2023.

 

The 2024 average aluminium price (3M LME) came in at 2,456$/t, from 2,287$/t
in 2023, marking a 7.4% increase. During 2024, aluminium prices maintained
their upward trend, reaching the 2,800$/t level in late May, following the ban
on deliveries of new Russian aluminium production from the London Metal
Exchange (LME).

 

Recently, the price of aluminium has stabilized at the $2,600/t level, moving
slightly upwards after the announcement by the new President of the United
States regarding the imposition of custom duties on aluminium. The ongoing
trend of the US dollar (USD) strengthening to levels approaching parity with
the Euro has a positive impact on the financial results of companies like
METLEN, with the European currency making up most of their costs.

 

Despite aluminium price fluctuations, the impact of the aluminum billet
premia, particularly in the regions where the Company operates (Europe), is
expected to be equally decisive. During 2024, premia, increased from the
$350/t level, at the beginning of 2024, to $550/t at the end of the year.
Premia's steady upwards trend is mainly attributed to the fact that Europe
remains a significantly deficit market, with most of its needs covered by
imports from third countries.

 

Alumina price index (API), followed a strong upward trend, rising by nearly
50%, surpassing the $500/t mark in 2024, increasing the contribution of
alumina in the production cost of those, non-integrated aluminium producers.
This change is mainly attributed to delays in bauxite shipments from Guinea
and Brazil, as well as reduced Chinese supply.

 

Therefore, the need for greater verticalization in the aluminum market is now
seen as imperative, not only for an even more effective cost management, but
also for the seamless

continuation of the production process, by securing bauxite supply, the raw
material for alumina, which in turn becomes aluminum's key input cost.

 

In this context, METLEN, following Imerys Bauxites acquisition, being one of
the largest producers in Europe, is strengthening its international presence.
At the same time, the recently announced new large investment, for the
expansion of bauxite and alumina production as well as the construction of a
new Gallium production plant, is expected to boost Europe's autonomy in
critical raw materials, while supporting both the Company's and Greece's
strategic position on the global stage.

 

With regards to the above, METLEN, yesterday announced a breakthrough
agreement with Rio Tinto, which is expected to have a twofold benefit for the
company as it enhances its bauxite security of supply, while ensuring future
profitability from the incremental alumina quantities (+ 400kt per annum),
under competitive terms, with one of the largest companies in the sector
globally. This 11-year strategic partnership, bulletproofs new large
investment's (announced in January) exceptional returns, while strengthens
METLEN's competitive position and deepens the Company's presence in the global
alumina market.

 

METLEN, starting from 2027-28, is expected to increase its bauxite production
by more than 65%, covering a large portion of its bauxite needs, while nearly
doubling alumina's third party sales. Moreover, the company is entering a new
market, that of Gallium, which on top of the significant contribution to the
Company's profitability, will enhance substantially Metal's Segment quality of
earnings.

 

The significant comparative advantages offered by the coexistence of the
Energy and Metals Segments, combined with the fact that METLEN has managed to
secure favorable LME prices, an advantageous €/$ FX rate, are expected to
maintain the Company among the most competitive aluminium and alumina
producers globally in years to come.

 

Prospects

 

At the outset of 2025, the global economic environment remains highly
volatile, marked by ongoing geopolitical instability and heightened
competition among the world's most powerful nations. Nonetheless, despite
these uncertainties and challenges, METLEN's exceptional performance in 2024
provides a solid foundation for achieving our objectives.

 

METLEN, always committed to competitiveness and optimal cost management, and
based on the principles of continuous improvement, is intensifying its efforts
by accelerating its digital transformation. The goal is to maintain its
resilience, drive growth, reduce costs, and enhance the employee experience.

 

At the same time, the company aims to leverage digital tools, and the progress
already made to maximize the value generated across all its activities.
Specifically, over the next five years, the digital transformation plan is
expected to enable value creation equivalent to approximately a 10% increase
in EBITDA.

 

In line with its culture of continuous improvement, METLEN designed and
launched "Trinity", a new operating and value delivery model through
accelerated digital transformation

 

Through this new model, which strengthens the collaboration of three core
pillars-Business Units, Operational Technology, and IT-the company is creating
cross-functional teams that develop innovative technology-enabled solutions
tailored to address real business needs and issues.

 

The digital transformation is supported by investments of approximately ~€30
million for 2024 and ~€50 million for 2025, aimed at developing 45+ digital
products and platforms across all its business activities, as well as central
functions.

 

Particular emphasis is placed on leveraging Artificial Intelligence, with 12
out of the 45 digital products and platforms currently under development
incorporating AI/GenAI technology.

 

Additionally, the plan is backed by 150+ employees (to date) and a specialized
upskilling program that offers targeted learning and development programs,
focuses on the enhancement of digital skills and places digital acumen at the
heart of performance management initiatives.

 

The upskilling program, already in place, reaffirming METLEN's commitment to
enhance the skills of its workforce, enabling them to drive strategic goals
and innovation within the organization.

 

Further analysis regarding the Company's financial results, prospects,
business developments and strategy will be provided by METLEN Management in
the scheduled conference call on Thursday 20/2/2025, 17:00 pm.

 

An extensive presentation of the company's prospects and the large-scale
investment program included in the company's 3rd transformation (code-named
Big 3) will be presented at the Capital Markets Day (CMD) which will be held
in a special room after a relevant invitation at the London Stock Exchange
around on 28(th) of April 2025.

 

Finally, it is noted that the presentation of the financial results of 2024 is
also available in an interactive environment (Metaverse) on the page
https://flashnote.metlengroup.com/ (https://flashnote.metlengroup.com/) .

 

 

 

For further information, please contact:

 

Investors Relations

Tel. +30 210-6877300 | Fax +30 210-6877400 | E-mail: ir@metlengroup.com
(mailto:ir@mytilineos.)

Press Office

Tel. +30 210-6877346 | Fax +30 210-6877400 | E-mail:
communications@metlengroup.com (mailto:communications@metlengroup.com)
 

 

Metlen Energy & Metals - evolution of MYTILINEOS Energy & Metals - is
a multinational industrial and energy company, a leader in the metallurgy and
energy industries, focused on sustainability and circular economy. The Company
is listed on the Athens Stock Exchange, with a consolidated turnover and
EBITDA of €5.68 billion and €1.08 billion, respectively. Metlen is a
reference point for competitive green metallurgy at the European and global
level, whilst operating the only vertically integrated bauxite, alumina and
primary aluminum production unit in the European Union (E.U.) with privately
owned port facilities. In the energy sector, Metlen offers comprehensive
solutions, covering thermal and renewable energy projects, electricity
distribution and trading, alongside investments in grid infrastructure,
battery storage, and other green technologies. The Company is active in the
markets of all five continents, in 40 countries, adopting a full-scale
synergetic model between the Metallurgy and Energy Sectors, while undertaking
end-to-end development of major energy infrastructure projects.

For more information, please visit: www.metlengroup.com
(http://www.mytilineos.gr/) | Facebook (https://www.facebook.com/metlengroup)
| Twitter (https://x.com/MetlenSA) | YouTube
(https://www.youtube.com/user/MytilineosGroup) | LinkedIn
(https://www.linkedin.com/company/6646293/)

 

 

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