Ukraine's Metinvest cuts debt by $620 mln since 2022 – CEO
Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, has reduced its debt by more than $620 million since 2022.
As noted by CEO Yuriy Ryzhenkov in the company's annual report, despite the anxiety and uncertainty brought by the war, the past year has seen achievements that demonstrate Metinvest's resilience and ability to adapt in challenging conditions.
"The truly global Metinvest team has shown remarkable strength and unity. We have maintained our status as a leading exporter and as a pillar of support for Ukraine and we remain among the largest donors to the country's defence efforts. In 2024, Metinvest felt the positive impact of the operational changes made possible by the reopening of Black Sea navigation. This significant development underpinned our results for the year," Ryzhenkov stated.
According to him, when the full-scale war began in 2022, the company focused on restructuring logistics and business processes. By 2023, Metinvest had adapted to the new reality, and in 2024, operational improvements exceeded $200 million.
"Even during wartime, Metinvest has continued to deleverage. Amid all the uncertainties, the Group has repaid over $620 million of debt since the start of the full-scale invasion, demonstrating a strong commitment to our partners. Together with our partners, we have also made progress in developing Project Adria, our plan to build a cuttingedge green steel plant in Piombino, Italy. It is poised to deliver substantial benefits for all stakeholders by prioritising innovative technologies and sustainable business practices," Ryzhenkov said.
At the same time, the CEO acknowledged that despite these tangible achievements, the company faced numerous challenges, including energy shortages, underutilization of some production assets, and margin pressures in the second half of the year. Moreover, as the security situation worsened in late 2024, Metinvest decided to suspend operations at Pokrovsk Coal.
"Like the rest of the world, we are closely watching the latest news, including expectations about the potential for a ceasefire. Whatever happens in the coming weeks and months, we will retain our abiding belief in the Armed Forces of Ukraine and remain dedicated to Ukraine’s eventual recovery. We honour our employees in the defence forces, whose number has increased to more than 8,000, including those from joint ventures," Ryzhenkov wrote in his commentary.
As of December 31, 2024, Metinvest's total debt stood at $1.705 billion, reflecting a 14% decrease compared to $1.981 billion in 2023, primarily due to a significant reduction in bond obligations and lower reliance on trade financing. Net debt to EBITDA dropped to 1.1x (down 0.5x year-over-year) and totaled $1.048 billion (a 21% reduction from $1.335 billion in 2023).