Exclusive Metinvest suffered a $1.15 billion loss in 2024 due to the shutdown of Pokrovskvugillia

Despite the challenges of the war, the company improved its revenues in 2024, thanks to the work of the sea corridor

Metinvest Group increased its revenues by 8.8% – to $8.050 billion in 2024, mainly due to an increase in exports of mining products, which was made possible by the operation of the sea corridor. This is stated in the Company’s report.

However, Metinvest reported a net loss of $1.15 billion last year, primarily due to a $1.31 billion impairment provision for Metinvest Pokrovskvugillia, which was suspended at the end of the year.

Metinvest’s mining segment’s revenue increased by 26% in 2024, while the steel segment’s revenue remained unchanged. The company’s revenues grew last year despite falling prices in 2024. In particular, hot-rolled coil prices on the global market fell by 9%, while the benchmark price of Fe62% iron ore in China decreased by 10%.

“What is important is that we have restored our operational efficiency. When the full-scale war broke out in 2022, we focused all our efforts on restoring our supply chains and business processes. By 2023, we had adapted to the new realities, and in 2024 we achieved significant efficiency improvements worth more than USD 200 million,” said Yuriy Ryzhenkov, CEO of the Group, in the report.

Metinvest increased EBITDA (earnings before interest, taxes, depreciation and amortization) by 11% – to $957 million in 2024. More than two-thirds of this amount was used for capital investments ($235 million), debt repayment ($276 million) and interest payments on liabilities ($161 million).

In total, Metinvest will repay $620 million of its debt in 2022-2024, which has increased the company’s resilience and demonstrates its ability to continue to service debt efficiently – net debt was only 10% higher than annual EBITDA (debt/EBITDA ratio of 1.1).

About $50 million of the company’s capital investments in 2024, or 21%, were allocated to the development of Metinvest Pokrovskvugillia. Metinvest Pokrovskvugillia’s operations are currently suspended due to the deteriorating security situation and developments at the frontline, as well as power outages.

Following the suspension of coal supplies from Metinvest Pokrovskvugillia, Metinvest was forced to change its business model. In particular, the group’s coke plants import coal from the United States, United Coal, a Metinvest Group company, and other sources. They also use other types of Ukrainian coal in the coking charge.

«Ukrainian steelmakers were able to establish alternative ways of supplying coking coal after Pokrovsk mining was suspended. This allows us to demonstrate sustainable production results. In particular, steel production in Ukraine grew by 10% y/y in 2M2025 despite all the risks,” comments Andriy Tarasenko, Chief Analyst at GMK Center.