Metlen announced 2,482 million euro turnover in the first half of 2024 compared to 2,516 million euros in the same period last year, down 1%, despite the significant de-escalation of energy prices, namely of electricity as well as natural gas prices (-33%).
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 8% to 474 million euros compared to 437 million euros in the corresponding period of the previous year, benefiting from both the consistently strong performance of the metals sector and the continued upward course of the profitability of the energy sector and specifically the activity of Renewable Energy Sources (RES), which contributed approximately 1/3 to the company’s total EBITDA.
At the same time, METLEN succeeded in strengthening its profit margin, which in terms of EBITDA increased from ~17% in the first half of 2023 to ~19% in the first half of 2024. This was mainly the result of the greater contribution of the RES, Metallurgy and Greek Utility sectors to the company’s profitability.
METLEN once again achieved its historically highest performance in the first half of the year led by the energy sector. In particular, in addition to the significant contribution of M Renewables (RES of Greece and abroad), which saw its profitability increase significantly (+61%) compared to the first half of 2023, the Energy Sector also benefited from the substantial strengthening of the Hellenic Utility, which, in terms of market share, approached 20% at the end of the first half of 2024, both in the production and supply of electricity.
Historical levels for the metals sector
In the first half of 2024, the sector of metals exceeded the historically high levels of profitability of the first half of 2023, as a result of both the strengthening of aluminum premia and the price of Alumina API. The record six-month performance for the Metals Sector is mainly due to timely actions taken by the company’s management regarding both securing favorable LME prices, making the most of the opportunities given to it in the previous period, as well as the strict cost control. The latter, after the end of the contract with PPC and the full takeover of the electricity supply of the aluminum plant by Protergia, is a key axis of strengthening the profitability of the metals sector in 2024. The above, in combination with the important synergies offered by the coexistence of the energy and metals sectors, keep METLEN among the most competitive aluminum and alumina producers worldwide.
METLEN’s financial performance is expected to strengthen even more in the second half of 2024, led by the energy sector. The above will result in new, significantly higher levels of profitability, while the positive financial figures allow the realization of all these investments and the further strengthening of turnover with absolute control over key leverage ratios.
