Exclusive Metinvest recorded a loss of $58 million in 1H2025

The company suffered the greatest losses in the Ukrainian market due to the shutdown of Metinvest Pokrovskvugillya

In the first half of 2025, Metinvest Group recorded a loss of $58 million, compared to a profit of $179 million in the same period of 2024. Revenue decreased by 13% year-on-year to $3.55 billion. The main reason was the shutdown of Metinvest Pokrovskvugillya, which deprived the company of its own coking coal and weakened vertical integration. Additional pressure came from the shutdown of Ingulets Mining and the fall in world prices for steel and ore. This is stated in the company’s report.

The decline was most noticeable in Ukraine, where sales fell by 16% y/y – to $1.13 billion. This was due to the lack of coking coal sales and lower product prices. Ukraine’s share in the revenue structure fell to 32%. Revenue in foreign markets fell by 12% y/y – to $2.43 billion: in Europe by 13% y/y due to falling prices and shipments of pellets and concentrate, while in North America it grew by 20% y/y thanks to a sharp increase in pig iron exports.

By segment, the mining business declined the most, by 30% y/y, to $1.13 billion. In the metallurgical segment, the decline was only 2% to $2.43 billion, sustained by sales of semi-finished and finished products. EBITDA fell by half to $339 million. An additional negative factor was the $62 million loss from the US asset United Coal, which was deemed non-core and put up for sale.

Despite the challenging environment, Metinvest focused on optimizing costs and reducing its debt burden. Since the beginning of the year, debt has been reduced by $133 million, and Eurobonds 2025 have been fully redeemed. Capital investments decreased by 28% y/y to $91 million, with an emphasis on supporting production and energy efficiency projects.

Management acknowledges that the company’s financial stability is under pressure, but key assets in Ukraine (outside areas of active hostilities) continue to operate, and diversification of sales markets partially mitigates losses from the war and falling prices.

As GMK Center reported earlier, in 2024, Metinvest increased its revenue by 8.8% y/y – to $8.05 billion, mainly due to growth in exports of mining segment products, which was made possible by the operation of the maritime corridor. At the same time, the net result was a loss of $1.15 billion, which was due to the creation of a provision for impairment of Metinvest Pokrovskvugillya ($1.31 billion), which was shut down at the end of 2024.