Metinvest Reduces Debt by $620 Million and Increases EBITDA in 2024Metinvest B.V. (Netherlands), the parent company of Metinvest Mining and Metallurgical Group, has reduced its debt by more than $620 million since 2022.
As Yuriy Ryzhenkov, CEO of the company, noted in the annual report, despite the anxiety and uncertainty of the war, there were achievements over the past year that demonstrate the group’s resilience and ability to develop in the face of challenges.
“Metinvest’s global team has shown extraordinary strength and unity. We have maintained our status as a leading exporter and pillar of Ukraine, and we remain among the largest donors to the country’s defense efforts.
In 2024, Metinvest felt the positive impact of operational changes made possible by the opening of Black Sea navigation. This significant event reinforced our results for the year. It is important that we have restored our operational efficiency,” stated the top manager.
According to him, when a full-scale war broke out in 2022, the company made efforts to rebuild its supply chains and business processes. By 2023, the company managed to adapt to the new realities, and in 2024, significant improvements in operating performance were achieved, amounting to more than $200 million.
“Even in wartime, Metinvest continued to reduce its debt. Despite all the uncertainty, the Group has repaid more than $620 million of debt since the start of the full-scale invasion, demonstrating our strong commitment to our partners. Together with our partners, we have also made progress on the Adria project, our plan to build a green steel plant in Piombino, Italy. It is poised to deliver significant benefits to all stakeholders by prioritizing innovative technologies and sustainable business practices,” Ryzhenkov emphasized.
At the same time, the CEO acknowledged that despite these very real achievements, the company also faced numerous challenges, including electricity shortages, underutilization of some production assets and margin pressure in the second half of the year. In addition, when the security situation deteriorated in late 2024, Metinvest decided to suspend production at Pokrovskugol.
“Like the rest of the world, we are closely following the latest news, including expectations about the potential for a ceasefire. No matter what happens in the coming weeks and months, we will maintain our unwavering faith in the Ukrainian Armed Forces and remain committed to Ukraine’s recovery. We honor our defense employees, whose number has grown to more than 8,000, including those with joint ventures,” the CEO wrote in his commentary.
As of December 31, 2024, total debt amounted to $1.705 billion (down 14% from $1.981 billion in 2023), mainly as a result of a strong campaign to reduce bond debt and the use of trade finance. Net debt to EBITDA decreased to 1.1x (down 0.5x yoy) and amounted to $1.048bn (down 21%, in 2023 – $1.335bn).
As reported, Metinvest’s consolidated net loss in 2024 increased sixfold compared to 2023 – to $1.152 billion from $194 million, revenue increased slightly to $8.050 billion from $7.397 billion, and EBITDA increased by 12% to $957 million from $861 million. At the same time, the steel sector’s revenue amounted to $4.824 billion ($4.846 billion in 2023) and the mining segment’s revenue amounted to $3.226 billion ($2.551 billion).
Adjusted EBITDA of the group’s steel division was $289 million ($159 million) and mining segment $768 million ($770 million). Metinvest’s operating loss in 2024 amounted to $938 million compared to $445 million in operating profit in 2023. In addition, free cash and cash equivalents increased slightly to $657 million from $646 million at the end of 2023.
“Metinvest is a vertically integrated group of steel and mining companies. Its businesses are located in Ukraine, in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions, as well as in Europe. The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it. Metinvest Holding LLC is the management company of Metinvest Group.
