In 2024, the mining and metallurgical group Metinvest increased its spending on environmental projects by 2% compared to 2023, to $170.5 million.
According to NV Business, citing the group’s press service, capital investments in environmental projects reached $39.8 million, current expenditures amounted to $129.1 million, and other expenditures amounted to $1.5 million.
As noted, further integration into EU markets, where the “green agenda” dominates, is encouraging Ukrainian businesses to invest in reducing harmful emissions and saving energy resources despite the war.
Environmental investments in Ukraine are concentrated in several main areas: reducing greenhouse gas emissions, optimizing energy consumption, introducing renewable energy, modernizing equipment, and improving water treatment. These initiatives are driven by the need to comply with European legislation, in particular systems such as MRV (monitoring, reporting, and verification), CBAM (cross-border carbon adjustment mechanism), ESRS (sustainable development reporting standards), and ETS (emissions trading system). For every company that is ready to supply its products to the EU and integrate into the European community, this terminology translates into investments in environmental projects.
In particular, companies that pollute the air and consume a lot of electricity and natural gas are forced to address the issue of production modernization. For example, some Metinvest companies are optimizing their energy consumption and gradually switching to alternative energy sources. For example, at the Northern and Central GOKs, natural gas has been partially replaced by biofuel (sunflower husks), which is already contributing to a reduction in CO₂ emissions.
The Group is implementing CO₂ emission management systems such as MRV, CBAM, ESRS, and ETS. These systems enable us not only to comply with European standards, but also to optimize production processes, reducing fuel and energy costs. Compliance with these systems is expected to not only reduce the environmental impact but also provide economic benefits: lower energy costs, increased production efficiency, and the ability to export to the EU without interruption.
Environmental initiatives enable companies to not only reduce their impact on the environment, but also save money. The use of alternative energy sources, such as biofuels, reduces energy costs, while monitoring systems such as MRV and ETS provide tools for analyzing efficiency and making management decisions.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
Metinvest B.V. (Netherlands), the parent company of the Metinvest mining and metallurgical group, increased its revenue from product resale by 30% in 2024 compared to 2023, to $2.869 billion.
According to the group’s annual report, resales accounted for 36% of total revenue, up 6 percentage points (pp) from 2023.
It is specified that Metinvest’s revenue is mainly generated from the sale of metal, iron ore, coal, and coke products of its own production. The group also resells products manufactured by joint ventures and third parties.
In 2024, Metinvest’s consolidated revenue amounted to $8.05 billion, which is 9% more than in 2023. This growth is primarily due to the resumption of shipping in the Black Sea, which eased logistical restrictions on exports. In addition, the volume of steel and iron ore resales increased significantly amid improved operating performance of both joint ventures. At the same time, sales prices declined in line with global benchmarks.
In terms of markets, Metinvest’s revenue in Ukraine fell by 2% last year to $2.587 billion, mainly due to lower sales prices. As a result, Ukraine’s share in consolidated revenue fell by 3 percentage points to 32%.
At the same time, sales to other markets decreased by 15% compared to 2023, to $5.463 billion, accounting for 68% of total revenue.
Revenue in Europe (excluding Ukraine, European CIS countries, and Turkey) decreased by 8% due to weaker prices and lower shipments of iron ore concentrate (down 18%), coal concentrate (down 26%), and billets (down 34%). This was offset by a 10% increase in shipments of pellets and flat products. As a result, the region’s share in total revenue decreased by 7 percentage points to 41%.
Sales in Asia (excluding the Middle East and Central Asia) increased 2.6 times, mainly due to the resumption of iron ore concentrate shipments to China. This led to an increase in the region’s share of consolidated revenue by 9 percentage points to 16%.
Revenue in North America remained virtually unchanged at $443 million. Long products shipments increased by 43%, while pig iron volumes declined by 15%. The region’s share in consolidated revenue remained unchanged at 6%.
Sales to the Middle East and North Africa (MENA) increased 2.2 times, mainly due to a threefold increase in shipments of billets. The region’s share in consolidated revenue increased by 1 percentage point to 3%.
Revenue in the CIS countries increased by 25%, but the region’s share in consolidated revenue remained unchanged at 1%.
Sales in other regions increased by 13%, and their share in consolidated revenue remained unchanged at 1%.
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, while EBITDA increased by 11.1% to $957 million from $861 million. Revenue from the metallurgical sector amounted to $4.824 billion (in 2023 – $4.846 billion), and from the mining segment – $3.226 billion ($2.551 billion).
The adjusted EBITDA of the group’s metallurgical division was recorded at $289 million ($159 million), and that of the mining segment at $768 million ($770 million). Metinvest’s operating loss for 2024 amounted to $938 million, compared with an operating profit of $445 million 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 mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
In 2024, the Metinvest mining and metallurgical group reduced its rolled steel production in the UK and the EU by 13% to 1.367 million tons, which was caused by unfavorable market conditions in the EU, in particular the availability of cheap Russian slab, according to the group’s annual report.
According to the report, flat steel production at Metinvest Trametal decreased by 3% to 466,000 tons, at Ferreira Valsider by 45% to 190,000 tons, and at Spartan UK by 22% to 153,000 tons.
Overall, Trametal accounted for 34% of total production in the UK and the EU last year (31% in 2023), Ferreira Valsider for 14% (22%), Promet Steel for 41% (35%), and Spartan for 11% (12%).
As reported, in 2024, Metinvest reduced sales of finished metallurgical products by 5% compared to the previous year, semi-finished products by 3%, but increased coke sales by 6%, and sales of other products and services increased by 33%.
Revenue from the metallurgical segment remained virtually unchanged compared to 2023 and amounted to $4.824 billion, while the segment’s share in consolidated revenue decreased by 6 percentage points (pp) to 60%.
At the same time, sales of merchantable pig iron decreased by 15% to $266 million due to a 16% reduction in shipments to 558 thousand tons. In particular, the reduction in resales and production volumes of the group amounted to 12% and 52%, respectively. The share of resales in total sales increased by 4 p.p. to 95%. North America and Europe remained the main markets for this product. They accounted for 71% and 23% of total shipments last year, compared with 70% and 26% in 2023.
Sales of semi-finished products increased by 9% last year to $389 million, thanks to a 16% increase in sales volumes to 716,000 tons amid a reduction in inventories. Shipments to the Middle East and North Africa (MENA) increased by 237,000 tons, accounting for 50% of total shipments in 2024 (20% in 2023). In contrast, shipments to Europe decreased by 143,000 tons and accounted for 38% of total sales (68% in 2023). The average selling price declined in line with the dynamics of CFR Turkey square billet prices (down 7% compared to 2023).
In 2024, flat steel sales declined by 6% to $2.244 billion. This was due to lower sales prices following the dynamics of the corresponding benchmark for hot-rolled coils CFR Italy, which fell by 9%. Total shipments increased by 7% to 3.047 million tons, driven by a 26% increase in resales to 2.111 million tons, which increased their share in total shipments to 69% (up 10 percentage points). Deliveries were primarily to Europe, which accounted for 72% of the total (71% in 2023). Sales in the region increased by 193,000 tons thanks to demand from key customers, expansion of the customer base, and stable operations at Black Sea ports. Domestic sales accounted for 23% of sales (25% in 2023).
Sales of long products remained unchanged in 2024 at $948 million. Shipments increased by 5% to 1.372 million tons, primarily due to higher production volumes at Kametstal. Ukraine and Europe remained the main markets for these products. They accounted for 45% and 35% of total sales, respectively, compared with 48% and 39% in 2023. The Group increased its shipments to North America, which accounted for 17% of total sales in 2024, compared with 12% a year ago. Average sales prices declined in line with the benchmark for CFR Turkey square billets.
The report notes that in 2024, Metinvest achieved significant results from operational improvements. In particular, in the metallurgical segment, coke consumption at Kametstal was reduced and blast furnace productivity was improved thanks to the rapid adaptation of pulverized coal injection technology to alternative types of coal under military supply restrictions. In addition, the optimization of raw material procurement contributed to the positive results.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
EU, METINVEST, PRODUCTION, rolling, UK
Metinvest B.V. (Netherlands), the parent company of the mining and metallurgical group Metinvest, increased its EBITDA by 11% in 2024 compared to 2023, to $957 million, according to updated data published in its annual report.
According to the report, EBITDA in the metallurgical segment grew by 82% to $289 million, while in the mining segment it remained unchanged at $768 million.
At the same time, it is specified that last year, corporate overhead costs and eliminations amounted to $100 million (in 2023 – $68 million). As a result, in 2024, the mining segment’s share in the group’s EBITDA (excluding corporate overhead costs and eliminations) was 73% compared to 83% in 2023, while the metallurgical segment’s share last year increased to 27% compared to 17% in the previous year.
The growth in the group’s EBITDA was primarily due to an increase in sales of own iron ore products, as well as billets and long products, operational improvements, the positive impact of the hryvnia’s depreciation against the US dollar on costs, increased efficiency at both joint ventures, lower raw material costs due to lower prices for coal, coke, and iron ore, and reduced purchases of third-party raw materials for rolling mills.
These factors were partially offset by lower sales prices, higher overall logistics costs, primarily due to increased sea shipments from Ukraine to distant markets, and higher energy costs, primarily due to higher electricity costs.
In 2024, the Group’s EBITDA margin was 12% (unchanged from 2023). The EBITDA margin of the mining segment was 20% (down 6 percentage points (pp) compared to 2023), while the EBITDA margin of the metallurgical segment was 6% (up 3 pp).
In 2024, net cash used in investing activities amounted to $197 million, down 34% from 2023. The total amount of cash used to acquire property, plant, and equipment and intangible assets decreased by 29% to $216 million. Interest income doubled to $13 million, while proceeds from the sale of property, plant, and equipment and intangible assets decreased slightly to $6 million.
In 2024, net cash used in financing activities amounted to $241 million, compared to $115 million in 2023. Net repayment of loans and borrowings amounted to $216 million (in 2023 – $185 million), mainly due to bond redemptions. Net trade financing amounted to $25 million, compared to $70 million a year ago.
In 2024, Metinvest adhered to a fairly balanced investment policy, dictated by wartime restrictions in Ukraine and the need to decarbonize the European steel industry. Investments in Ukraine were primarily directed toward employee safety, ensuring the availability and operation of critical equipment, strengthening energy resilience, and complying with environmental standards at the companies.
In addition, particular attention was paid to resolving logistical issues. Although most large strategic projects remained frozen, Metinvest launched a new project to concentrate enrichment waste at the Northern GOK. It aims to reduce waste volumes, lower operating and capital expenditures, and minimize environmental impact while maintaining production volumes.
At the same time, the group is also preparing for the country’s post-war recovery. Outside Ukraine, Metinvest is working on the Adria project to build a low-carbon steel plant in Italy.
The group’s total capital expenditures decreased by 17% to $235 million. Approximately 83% of this amount was allocated to maintenance projects and 17% to strategic projects.
Metinvest increased the capacity utilization of most of its enterprises. This was an important achievement for the group, given the prolonged impact of the war. The resumption of shipping in the Black Sea played a decisive role in our work. This ensured a reliable export route and allowed us to increase delivery volumes. At the same time, significant challenges remained. Throughout the year, power outages had a negative impact on profitability. In addition, despite incredible resilience throughout most of the year, the approaching front line forced us to gradually suspend operations at the Pokrovsk Coal Group,” said Yuriy Ryzhenkov, CEO of the group, in the report.
As reported, Metinvest’s consolidated net loss in 2024 increased sixfold compared to 2023, to $1.152 billion from $194 million, while revenue rose to $8.050 billion from $7.397 billion.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
Metinvest Group, together with the administration and the Defense Council of Kryvyi Rih, has focused its efforts on major projects to renovate the city’s healthcare facilities, according to a press release citing Igor Toniev, CEO of United Mining and Processing Plant (UMPP).
“The largest project currently being implemented by Metinvest is the overhaul of the buildings of the polyclinic and X-ray department of Kryvyi Rih City Hospital No. 3. The company has allocated almost UAH 125 million for this large-scale work. This month, the overhaul of the main inpatient building of City Hospital No. 7 is scheduled to begin. Metinvest is allocating UAH 61.6 million for the development of project documentation, general construction, roofing, and facade work,” said the top manager.
At a meeting between Metinvest Group management and the head of the City Defense Council, Oleksandr Vilkul, it was noted that the project to overhaul the third hospital began in 2023, with funding from both Kryvyi Rih and Metinvest. Equipment for X-rays and fluorography was purchased with funds from the local budget. Also, the second and third floors of the polyclinic will be renovated at the expense of the city. As part of the project to overhaul the polyclinic of the third hospital, the group undertook the construction work and modernization of the first floor, the X-ray department, and the construction of a shelter for 350 people.
Vilkul stated that the city is actively implementing a large number of projects in the field of medicine. In particular, there is one large-scale project that is starting – the reconstruction of Hospital No. 7, which is the main cluster institution for the northern part of the district, Zhovti Vody, and the surrounding villages. The project involves the renovation of the main inpatient department. The project is being financed from three sources: the city budget, a grant won in a competition organized by the Ministry of Infrastructure (this will be co-financed by the European Investment Bank through the Ministry of Infrastructure), and funds from Metinvest.
“By joining forces, we are implementing a medical project that is important for the community,” Vilkul stated.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and a member of Metinvest Group, reduced blast furnace coke production by 0.3% year-on-year to 434.1 thousand tons from 435.3 thousand tons in January-June this year.
According to the company, it produced 76.3 thousand tons of coke in June, compared to 76 thousand tons in the previous month.
As reported, Zaporozhkoks increased its blast furnace coke production by 2.1% in 2024 compared to 2023 – to 874.7 thousand tons from 856.8 thousand tons.
“In 2023, Zaporozhkoks increased its blast furnace coke production by 16% compared to 2022, up to 856.8 thousand tons from 737.4 thousand tons.
“Zaporozhkoks has a full technological cycle of processing coke products.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.
