At the center of the crisis was the Protos Project, an ambitious initiative launched in 2020 by the company’s UK subsidiary, M Power Projects. Designed to generate clean energy from sustainable waste, reduce reliance on landfills, and provide low-emission power to local industries, the project had been positioned as a cornerstone of Metlen’s green strategy.
But progress was abruptly disrupted by a series of unforeseen challenges. A serious accident involving a third-party contractor led to significant delays and repeated work stoppages. The situation deteriorated further when one key subcontractor went bankrupt and another withdrew entirely from its regional operations. Together, these setbacks drove costs higher and pushed the project’s timeline far beyond original projections.
By July, Metlen and its partners were forced to agree on a revised execution plan and budget, with losses formally recognized after negotiations concluded. The impact on M Power Projects’ results was stark: EBITDA swung to a €132 million loss, compared with a positive €12 million in the first half of 2024.
Metlen’s management emphasized that these losses are confined to the Protos Project and do not reflect the overall performance of M Power Projects. To prevent similar disruptions, the group has strengthened oversight of contracts and project delivery, aiming for earlier detection and faster resolution of risks. It has also initiated legal action to seek compensation for damages beyond its control.
Despite the turbulence, Metlen insisted it remains firmly on track to achieve its full-year target of more than €1 billion in EBITDA for 2025.
