Metinvest ends H1 with loss of $58 mln, EBITDA down by 49%
Metinvest B.V. (the Netherlands), the parent company of the mining and metallurgical group Metinvest, ended January-June of this year with a net loss of $58 million, while in the same period last year it received a net profit of $179 million.
According to the report of Metinvest B.V. for the first half of the current year on Friday, revenue for the period decreased by 13%, to $3.555 billion.
The company reduced operating profit for the reporting period by 51%, to $186 million.
In the first half of 2025, adjusted EBITDA decreased by 49% compared to the same period last year - to $339 million. At the same time, EBITDA of the mining segment decreased by 69%, to $169 million, while EBITDA of the metallurgy segment increased by 22%, to $213 million.
Corporate overhead expenses in the first half of 2025 amounted to $47 million ($38 million in the first half of 2024), while eliminations amounted to $4 million in the reporting period (compared to negative $14 million in the first half of 2024).
As a result, the contribution of the mining segment to the Group's EBITDA (before adjustment for corporate overheads and exclusions) decreased to 44% (76% in H1 2024), and the contribution of the metallurgical segment increased to 56% (24% in H1 2024).
The decrease in the Group's EBITDA was mainly due to the suspension of operations at Pokrovsk Coal, lower selling prices for the entire product range and lower sales volumes, including reduced sales of iron ore concentrate, finished steel products of own production and billets.
In the first half of 2025, the group achieved an EBITDA margin of 10% (6 pp less than in the first half of 2024). The EBITDA margin of the mining segment was 12% (17 pp less), while the EBITDA margin of the metallurgy segment was 9% (2 pp more).
In the first half of 2025, Metinvest's financial income decreased by 65% compared to the same period last year, to $14 million, mainly due to a decrease in the profit from the redemption of bonds redeemed during the reporting period. As a percentage of consolidated income, financial income was less than 1% (1% a year earlier).
In the reporting period, financial expenses decreased by 19% compared to the same period last year, to $131 million. This mainly reflects the lower impact of foreign exchange losses from financing activities (a decrease of $23 million compared to the same period last year). As a percentage of consolidated revenues, financial expenses remained unchanged at 4%. In the first half of 2025, Metinvest's share of the net result of its associates and joint ventures was negative $19 million compared to a positive $28 million in the first half of 2024. The decrease was mainly due to an increase in non-cash expenses recorded by the mining joint venture.