Category: Commerce

  • MIL-OSI: Kneat Achieves Record Revenue for Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    LIMERICK, Ireland, Feb. 26, 2025 (GLOBE NEWSWIRE) — kneat.com, inc. (TSX: KSI) (OTC: KSIOF) (“Kneat” or the “Company”) a leader in digitizing and automating validation and quality processes, today announced financial results for the three- and twelve-month periods ended December 31, 2024. All dollar amounts are presented in Canadian dollars unless otherwise stated.

    • Total revenue reaches $13.7 million in the fourth quarter, an increase of 40% year over year
    • Fourth-quarter gross profit grew 48% year over year to $10.4 million
    • Annual Recurring Revenue (ARR)1 at December 31, 2024, reaches $59.7 million, an increase of 60% year over year

    “Our sustained revenue growth, expanding margins and solid traction across all areas of Validation demonstrate the durability of our business model. With companies throughout the Life Sciences adopting new technologies to drive business value, Validation’s transition to digital is set to continue, with Kneat leading the way.”

    – said Eddie Ryan, Chief Executive Officer of Kneat. 

    Q4 2024 Highlights

    • Total revenues increased 40% to $13.7 million in the fourth quarter of 2024, compared to $9.8 million for the fourth quarter of 2023.
    • SaaS revenue for the fourth quarter of 2024 grew 41% to $12.5 million, versus $8.9 million for the fourth quarter of 2023.
    • Fourth-quarter 2024 gross profit was $10.4 million, up 48% from $7.0 million (adjusted)2 in gross profit for the fourth quarter of 2023.
    • Gross margin in the fourth quarter of 2024 was 75%, compared to 71% (adjusted)2 for the fourth quarter of 2023.
    • EBITDA3 in the fourth quarter of 2024 was $1.1 million, compared with ($0.1) million (adjusted)2 for the fourth quarter of 2023.
    • Adjusted EBITDA3 in the fourth quarter of 2024 was $2.6 million, compared with ($0.3) million (adjusted)2 for the fourth quarter of 2023.
    • Total ARR1, which includes SaaS license and recurring maintenance fees, was $59.7 million at December 31, 2024, an increase of 60% from $37.4 million at December 31, 2023.
    • SaaS ARR1, the proportion of ARR attributable to SaaS licenses, was $59.6 million at December 31, 2024, an increase of 60% from $37.3 million at December 31, 2023.

    Full Year 2024 Highlights

    • Total revenues for the full year 2024 increased 43% to $48.9 million, compared to $34.2 million for 2023.
    • SaaS revenue grew 48%, reaching $44.6 million for the full year 2024, versus $30.1 million for 2023.
    • Full-year 2024 gross profit was $36.8 million, an increase of 59% compared to $23.1 million (adjusted)2 for the full year 2023.
    • Gross margin for the full year 2024 was 75%, compared to 68% (adjusted)2 for all of 2023.
    • EBITDA3 for the full year 2024 was $5.6 million, compared with ($5.7) million (adjusted)2 for all of 2023.
    • Adjusted EBITDA3 for the full year 2024 was $7.0 million, compared with ($3.2) million (adjusted)2 for all of 2023.
    • Net Revenue Retention Rate (NRR)1, which reflects the expansion of ARR by customers on the platform at the start of 2024 over the course of the year, was 151% for the year ended December 31, 2024.

    2024 Business Highlights

    • Over the course of 2024, Kneat announced the addition of five large strategic customers, including a consumer products company; a critical care company; pharmaceutical company; a contract development and manufacturing organization; and a medical device maker.
    • In 2024, Kneat formalized its partner program further, exceeded its goal of new partner additions, and welcomed two large strategic partners, Körber and ALTEN Group, which plan to leverage Kneat Gx to digitize their own processes as well as those of their customers.
    • Throughout 2024, a number of business functions within Kneat leveraged AI tools to enhance productivity, including Customer Success, Support and R&D. Concurrently, our product team have been evaluating the potential for AI to enhance the efficiency of the Kneat Gx platform, and we expect to incorporate some AI capabilities into it this year.
    • Kneat completed two equity financings in 2024, in February and October. In total, 13,653,880 common shares of the Company were sold for aggregate gross proceeds of $55,625,110.
    • For the fourth consecutive year, Kneat was recognized as one of Ireland’s fastest-growing technology companies. At the 2024 Deloitte Technology Fast 50 Awards, which ranks the 50 fastest-growing technology companies across Ireland, Kneat was also honoured with the 2024 Scale Ireland award for global expansion.

    Kneat’s business momentum continues into 2025:

    • In January 2025, Kneat announced that it has partnered with Capgemini. The collaboration brings together Capgemini’s expertise in enterprise IT systems integration with Kneat’s digital validation platform, Kneat Gx. The partnership is designed to enable life sciences companies to seamlessly deploy Kneat Gx enterprise-wide; connect with core systems such as ERP, QMS, and DMS; and scale digital validation processes with ease.
    • Also in January 2025, Kneat announced that a European-headquartered leader in specialty therapeutics selected Kneat to digitize its validation processes.
    • In February 2025, Kneat announced that a European-headquartered global consumer products company selected Kneat to digitize its validation processes within a specialized health sciences division.

    “We expected 2024 to be a year of material progress toward profitability, and it was. Gross profit grew at almost four times the rate of operating expense in 2024 as our land and expand strategy continued to deliver. We enter 2025 with a solid balance sheet and well-positioned to invest in ways that best serve the needs of companies looking to modernize their data-intensive work processes.”

    – said Hugh Kavanagh, Chief Financial Officer of Kneat. 

    _______________
    1 ARR, SaaS ARR, and NRR are supplementary measures and are not recognized, defined or standardized measures under IFRS. These measures are defined in the “Supplementary and Non-IFRS Measures” section of this news release.
    2 The Company has adjusted the comparative consolidated financial information for immaterial errors related to the accounting for share-based compensation. Refer to note 21 to the audited consolidated financial statements for the year ended December 31, 2024 for further details.
    3 EBITDA and Adjusted EBITDA are non-IFRS measures and are not recognized, defined or standardized measures under IFRS. These measures are defined in the “Supplementary and Non-IFRS Measures” section of this news release.

    Quarterly Conference Call

    Eddie Ryan, Chief Executive Officer of Kneat, and Hugh Kavanagh, Chief Financial Officer of Kneat, will host a conference call to discuss Kneat’s fourth-quarter and full-year 2024 results and hold a Q&A session for analysts and investors via webcast on February 27, 2025, at 9:00 a.m. ET.

    Interested parties can register for the live webcast via the following link:

    Register Here

    Supplementary and Non-IFRS Financial Measures

    The Company uses supplementary financial measures as key performance indicators in its MD&A and other communications. Management uses both IFRS measures and supplementary, non-IFRS financial measures as key performance indicators when planning, monitoring and evaluating the Company’s performance.

    Annual Recurring Revenue (“ARR”)

    ARR is used by Kneat to assess the expected recurring annual revenues from the customers that are live on the Kneat Gx platform at the end of the period. ARR is calculated as the licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the full agreed annual SaaS license or maintenance fee. Since many of the customer contracts are in currencies other than the Canadian dollar, the Canadian dollar equivalent is calculated using the related period end exchange rate multiplied by the contracted currency amount.

    Software-as-a-Service Annual Recurring Revenue (“SaaS ARR”)

    SaaS ARR is a component of ARR that is used by Kneat to assess the expected recurring revenues exclusively from license subscriptions to the Kneat Gx platform at the end of the period. SaaS ARR is calculated as the SaaS licenses delivered to customers at the period end, multiplied by the expected customer retention rate of 100% and multiplied by the full agreed SaaS license fee. Since many of the customer contracts are in currencies other than the Canadian dollar, the Canadian dollar equivalent is calculated using the related period end exchange rate multiplied by the contracted currency amount.

    Net Revenue Retention Rate (“NRR”)

    We believe that our Net Revenue Retention Rate is a key measure to provide insight into the long-term value of our customers and our ability to retain and expand revenue from our customer base over time. Our Net Revenue Retention Rate is calculated over a trailing twelve-month period by considering the cohort of customers on our platform as of the beginning of the period and dividing the ARR attributable to this group of customers at the end of the period by the ARR at the beginning of the period. By implication, this ratio excludes any ARR from new customers acquired during the period but includes revenue changes for this cohort base of customers during the period being measured. This measure provides insight into customer expansions, downgrades, and churn, and illustrates the level of scaling by those customers.

    Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

    EBITDA is calculated as net income (loss) attributable to kneat.com excluding interest income (expense), provision for income taxes, depreciation and amortization. We provide and use this non-IFRS measure of our operating performance to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures and to inform financial comparisons with other companies. A reconciliation of EBITDA to IFRS financial measures is provided in the financial statements accompanying this press release.

    Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)

    Adjusted EBITDA is calculated as net income (loss) attributable to kneat.com excluding interest income (expense), provision for income taxes, depreciation and amortization, foreign exchange loss (gain), and stock-based compensation expense. We provide and use this non-IFRS measure of our operating performance to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures and to inform financial comparisons with other companies. A reconciliation of Adjusted EBITDA to IFRS financial measures is provided in the financial statements accompanying this press release.

    About Kneat

    Kneat Solutions provides leading companies in highly regulated industries with unparalleled efficiency in validation and compliance through its digital validation platform Kneat Gx. As an industry leader in customer satisfaction, Kneat boasts an excellent record for implementation, powered by our user-friendly design, expert support, and on-demand training academy. Kneat Gx is an industry-leading digital validation platform that enables highly regulated companies to manage any validation discipline from end-to-end. Kneat Gx is fully ISO 9001 and ISO 27001 certified, fully validated, and 21 CFR Part 11/Annex 11 compliant. Multiple independent customer studies show a 40% or more reduction in validation cycle times, nearly 20% faster speed to market, and 80% reduced changeover time. For more information visit www.kneat.com.

    Cautionary and Forward-Looking Statements

    Except for the statements of historical fact contained herein, certain information presented constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, the relationship between Kneat and the customer, Kneat’s business development activities, the use and implementation timelines of Kneat’s software within the customer’s validation processes, the ability and intent of the customer to scale the use of Kneat’s software within the customer’s organization, our ability to win business from new customers and expand business from existing customers, our expected use of the net proceeds from the IPF Facility and the public equity financing completed in both February and October 2024 and the anticipated effects thereof on the business and operations of the company, and the compliance of Kneat’s platform under regulatory audit and inspection. These and other assumptions, risks and uncertainties may cause Kneat’s actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements.

    Material risks and uncertainties relating to our business are described under the headings “Cautionary Note Regarding Forward-Looking Statements and Information” and “Risk Factors” in our MD&A dated February 26, 2025, under the heading “Risk Factors” in our Annual Information Form dated February 26, 2025 and in our other public documents filed with Canadian securities regulatory authorities, which are available at www.sedarplus.ca. Forward-looking statements are provided to help readers understand management’s expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kneat assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at an investor’s own risk.

    For further information:

    Katie Keita, Kneat Investor Relations
    P: + 1 902-706-9074
    E: katie.keita@kneat.com

    kneat.com, inc.
    Consolidated Statements of Loss and Comprehensive Loss
    (expressed in Canadian dollars)
     
      Three-month period ended   Year ended
      December 31, 2024   December 31, 2023   December 31, 2024   December 31, 2023
          (Adjusted)       (Adjusted)
    Revenue              
    SaaS License fees   12,537,109       8,922,491       44,569,846       30,066,905  
    On-premise license fees                     436,126  
    Maintenance fees   123,667       46,819       322,335       277,199  
    Professional services and other   1,072,835       844,689       4,046,238       3,443,178  
    Total Revenue   13,733,611       9,813,999       48,938,419       34,223,408  
                   
    Cost of Revenue   (3,372,387 )     (2,811,181 )     (12,179,880 )     (11,091,576 )
    Gross Profit   10,361,224       7,002,818       36,758,539       23,131,832  
    Gross Margin   75 %     71 %     75 %     68 %
                   
    Expenses              
    Research and development   (4,545,776 )     (3,733,887 )     (17,268,722 )     (15,387,726 )
    Sales and marketing   (4,828,335 )     (4,500,992 )     (17,163,189 )     (14,266,739 )
    General and administrative   (1,823,992 )     (1,925,415 )     (8,273,995 )     (7,411,540 )
    Total Expenses   (11,198,103 )     (10,160,294 )     (42,705,906 )     (37,066,005 )
                   
    Operating Loss   (836,879 )     (3,157,476 )     (5,947,367 )     (13,934,173 )
                   
    Finance Expense   (1,034,424 )     (629,794 )     (3,665,098 )     (1,081,853 )
    Interest income   298,308       621       678,388       6,635  
    Foreign exchange loss/(gain)   (828,354 )     1,083,675       1,399,547       545,776  
                   
    Income (loss) before income taxes   (2,401,349 )     (2,702,974 )     (7,534,530 )     (14,463,615 )
    Income tax expense   (61,907 )     (47,342 )     (192,598 )     (55,891 )
                   
    Net loss for period   (2,463,256 )     (2,750,316 )     (7,727,128 )     (14,519,506 )
                   
    Other comprehensive loss              
    Foreign currency translation adjustment to presentation currency   411,921       750,382       (995,322 )     (263,950 )
                   
    Comprehensive loss for the period   (2,051,335 )     (1,999,934 )     (8,722,450 )     (14,783,456 )
                   
    Loss per share – Basic and diluted $ (0.03 )   $ (0.04 )   $ (0.09 )   $ (0.19 )
                   
    Weighted Average Number of Common Shares Outstanding – Basic and diluted   93,005,493       78,093,350       86,545,119       77,833,268  
                   
    Reconciliation:              
    Total income (loss) for the period   (2,463,256 )     (2,750,316 )     (7,727,128 )     (14,519,506 )
    Interest expense   863,766       629,794       3,494,441       1,081,853  
    Interest income   (298,308 )     (621 )     (678,388 )     (6,635 )
    Income taxes   61,907       47,342       192,598       55,891  
    Depreciation expense   174,751       192,038       745,639       786,085  
    Amortization expense   2,791,627       1,803,172       9,560,000       6,889,552  
    EBITDA   1,130,487       (78,591 )     5,587,162       (5,712,760 )
                   
    Adjustments to EBITDA              
    Foreign exchange (gain) loss   828,354       (1,083,675 )     (1,399,547 )     (545,776 )
    Stock-based compensation expense   669,201       834,569       2,785,906       3,049,967  
    Adjusted EBITDA   2,628,042       (327,697 )     6,973,521       (3,208,569 )
                                   
    kneat.com, inc.
    Consolidated Statements of Financial Position
    (expressed in Canadian dollars)
                   
      December 31,     December 31,  
      2024     2023  
              (Adjusted)  
    Assets              
                   
    Current assets              
    Cash   58,889,572       15,252,526  
    Amounts receivable   18,377,009       11,601,558  
    Prepayments   1,870,095       1,138,382  
        79,136,676       27,992,466  
    Non-current assets              
    Amounts receivable   2,368,006       1,650,795  
    Property and equipment   6,782,179       7,209,953  
    Intangible assets   36,290,869       29,005,092  
                   
    Total Assets   124,577,730       65,858,306  
                   
    Liabilities              
                   
    Current liabilities              
    Accounts payable and accrued liabilities   8,580,104       7,874,332  
    Contract liabilities   21,631,416       13,647,071  
    Loan payable and accrued interest   4,116,723        
    Lease liabilities   434,096       535,832  
        34,762,339       22,057,235  
    Non-current liabilities              
    Contract liabilities   33,393       41,084  
    Lease liabilities   5,671,952       5,976,380  
    Loan payable and accrued interest   19,038,203       21,657,423  
                   
    Total Liabilities   59,505,887       49,732,122  
                   
    Equity              
    Shareholders’ equity   65,071,843       16,126,184  
                   
    Total Liabilities and Equity   124,577,730       65,858,306  
                   
    kneat.com, inc.
    Consolidated Statement of Cash Flows
    (expressed in Canadian dollars)
    For the years ended
           
      December 31,   December 31,
        2024       2023  
          (Adjusted)
    Operating activities      
    Net loss for the year   (7,727,128 )     (14,519,506 )
    Charges to loss not involving cash:      
    Depreciation of property and equipment   745,639       786,085  
    Share-based compensation   3,825,512       3,998,749  
    Interest Expense   3,494,441       1,081,853  
    Tax expense   192,598       55,891  
    Amortization of the intangible asset   9,389,343       6,828,213  
    Amortization of loan issuance costs   171,593       61,164  
    Write-off of property and equipment         26,721  
    Impact of lease termination         (67,600 )
    Foreign exchange (gain)   (1,399,547 )     (545,776 )
    Decrease in non-current contract liabilities   (9,436 )     (905,846 )
    Net change in non-cash working capital related to operations   1,107,145       2,868,609  
    Net cash provided by/(used in) operating activities   9,790,160       (331,443 )
           
    Financing activities      
    Payment of principal and interest on loans payable   (2,475,283 )     (630,410 )
    Proceeds from the exercise of stock options   2,086,699       295,350  
    Repayment of lease liabilities   (744,061 )     (752,802 )
    Proceeds received from loan financing         21,978,000  
    Issuance costs associated with loan financing         (624,596 )
    Proceeds received from public equity financing   55,625,110        
    Share issuance costs associated with public equity financing   (3,869,212 )      
    Net cash provided by financing activities   50,623,253       20,265,542  
           
    Investing activities      
    Additions to the intangible asset   (19,716,562 )     (17,879,014 )
    Collection of research and development tax credits   2,360,342       1,185,720  
    Additions to property and equipment   (165,592 )     (181,358 )
    Net cash used in investing activities   (17,521,812 )     (16,874,652 )
           
    Effects of exchange rates on cash   745,445       (89,399 )
           
    Net change in cash during the year   43,637,046       2,970,048  
           
    Cash – Beginning of year   15,252,526       12,282,478  
           
    Cash – End of year   58,889,572       15,252,526  
                   
                   

    The MIL Network

  • MIL-OSI Australia: Albanese Labor Government building Brisbane’s future

    Source: Australian Ministers 1

    The Albanese Labor Government is building Brisbane’s future, investing over $200 million in transport projects that will revitalise the city and reshape the way we move. 

    People living in Brisbane will have more opportunities to walk, cycle and catch public transport through the city thanks to support from the Albanese Government.

    $50 million will support the delivery of a business case, in partnership with the Queensland Government and Brisbane City Council, to expand the Brisbane Metro to the city’s northern suburbs. 

    This investment builds on $51.5 million of additional funding recently committed to Brisbane Metro to ensure the project’s delivery, taking the Australian Government’s total contribution to this transformative public transport project to over $400 million.

    The Government will also contribute to the development of business cases to improve important transport links and enhance infrastructure across the city, including: 

    • $2.25 million to investigate the cost and scope of works required for the restoration and future maintenance of the iconic Story Bridge.
    • $1 million to deliver an updated business case for the construction of a new active travel bridge from Toowong to West End. 

    The Albanese Government also recently committed $78.5 million towards cost pressures on the Moggill Road Corridor Upgrade project, replacing the Indooroopilly roundabout with an overpass over Moggill Road, upgrading key intersections and providing new on-road cycling facilities and footpaths. This new investment takes the Government’s total contribution to this project to $128.5 million. 

    Brisbane City Council will also receive $5 million towards a $12 million project to construct the Sylvan Road Bikeway under the Albanese Government’s $100 million Active Transport Fund. This will complete the link between the Western Freeway Bikeway and the Bicentennial Bikeway – providing 20 kilometres of continuous dedicated cycling path between Brisbane’s west and the CBD. 

    The Albanese Government is also contributing a further $20 million for the Brisbane Valley Highway Safety Upgrades project, for a total Australian Government commitment of $40 million. This project will improve road safety and reduce road injuries and fatalities along this important highway. 

    In total, the Australian Government is investing $28.9 billion in transport infrastructure projects in Queensland over the next ten years. 

    Quotes attributable to Infrastructure, Transport, Regional Development and Local Government Minister Catherine King:

    “With southeast Queensland being one of the fastest growing regions in the country, we’re delivering the infrastructure Brisbane needs to be well connected – boosting the river city’s liveability and economic activity.

    “I’m proud to be part of a Government which is building this country’s future, partnering with local and state governments to invest in the infrastructure our communities need to thrive.”

    Quotes attributable to Senator the Hon Murray Watt:

    “With Brisbane continuing to grow at a rapid pace, it’s important we invest in projects that improve connectivity and build safe and active transport options for our residents – and that what this funding does.

    “Whether you’re jumping on the new metro, cycling out west or crossing the most quintessential of Brisbane of landmarks, the Story Bridge, the Albanese Government is contributing strongly to keeping this city moving.”

    Quotes attributable to Brisbane Lord Mayor Adrian Schrinner: 

    “Better roads and better transport are critical to keeping Brisbane moving and we need all three levels of government working together to achieve this. 

    “With the Australian Government’s support, we can now progress a rapid business case to progress the expansion of Brisbane Metro to Carseldine, Capalaba, Springwood and out to the airport.

    “This funding will also help us progress a business case to ensure the Story Bridge continues to play a critical role in the national transport network for another 100 years.”

    Quotes attributable to Federal Member for Blair Shayne Neumann: 

    “The Brisbane Valley Highway is a busy highway with a significant number of vehicles using it to travel in and out of Ipswich every day, and I have been strongly advocating for action to address safety concerns. 

    “This additional funding boost to what we have already delivered in our community will greatly improve safety and connectivity along what is the main artery between the Somerset region and South East Queensland.” 

     

    New Projects

    Project name

    AG Commitment ($m)

    Brisbane Metro Expansion

    50.0

    Story Bridge Renewal Business Case

    2.25

    Sylvan Road Bikeway

    5.0

    Bridges for Brisbane

    1.0

    Total

    58.25

     

    Projects receiving additional funding

    Project name

    Additional AG Funding ($m)

    Moggill Road Corridor Upgrade (Indooroopilly Roundabout Project)

    78.5

    Brisbane Metro

    51.5

    Brisbane Valley Highway Safety Upgrades

    20.0

    Total

    150.0

    MIL OSI News

  • MIL-OSI USA: SBA Relief Still Available to Minnesota Private Nonprofits Affected by Severe Storms and Flooding

    Source: United States Small Business Administration

    ATLANTA – The U.S. Small Business Administration (SBA) is reminding eligible private nonprofit (PNP) organizations in Minnesota of the March 28, 2025, deadline to apply for low interest federal disaster loans to offset economic losses caused by the severe storms and flooding occurring June 16 through July 4, 2024. 

    The disaster declaration covers the counties of Blue Earth, Brown, Carver, Cass, Cook, Cottonwood, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Houston, Itasca, Jackson, Lake, Le Sueur, Martin, McLeod, Mower, Murray, Nicollet, Nobles, Pipestone, Redwood, Renville, Rice, Rock, Sibley, St. Louis, Steele, Wabasha, Waseca, Watonwan and Winona. 

    Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to PNPs providing non-critical services of a governmental nature who suffered financial losses directly related to the disaster. Example of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.  

    EIDLs are available for working capital needs caused by the disaster and are available even if the PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster. 

    “SBA loans help eligible small businesses cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.” 

    The loan amount can be up to $2 million with interest rates as low as 3.25% for PNPs, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.  

    To apply online visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. 

    The deadline to return economic injury applications is March 28, 2025. 

    ### 

    About the U.S. Small Business Administration 

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov. 

    MIL OSI USA News

  • MIL-OSI USA: Duckworth Statement on Second Wave of VA Layoffs, Including Veteran Crisis Line Workers

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    February 26, 2025

    [WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL)—a member of both the U.S. Senate Armed Services and Veterans’ Affairs Committees who still receives her own health care services through the U.S. Department of Veterans Affairs (VA)—issued the following statement after Donald Trump’s VA laid off an additional 1,400 employees, including workers with the Veteran Crisis Line (VCL), after laying off more than 1,000 employees earlier this month:

    “Donald Trump has fired more Veterans than any other Administration in our lifetimes. With yet another indiscriminate purge at the VA, Trump is leaving devoted public servants jobless—many of whom are Veterans themselves—and continuing to inflict needless pain on our nation’s heroes. Contrary to what VA Secretary Collins says, there are no ‘non-critical’ VA positions when it comes to ensuring Veterans receive the care they’ve earned—including at the Veteran Crisis Line.

    “After I pushed Secretary Collins to reinstate workers with VCL in the wake of the first VA purge, I’m outraged to learn that more VCL workers were caught up in the latest firings—and worse yet, that Secretary Collins continues to double down and deny that he ever inflicted any damage on the department at all. Well, that’s a lie. I heard from several workers who all play pivotal roles in helping ensure the hotline can best serve our Veterans in their darkest moments. Claiming that only those who answer the phones are essential is an insult to the service and commitment to our heroes of so many who ensure that someone is ready to listen and help in a moment of crisis.

    “Donald Trump promised to look out for our Veterans, but every day he allows Elon Musk—the world’s richest man—to fire VA employees or any Veteran in an effort to fund tax cuts for billionaires, he is proving he has no problem selling out our heroes if it means a chance to line his own pockets.”

    Last week, Duckworth joined U.S. Senator and SVAC Ranking Member Richard Blumenthal (D-CT) and a group of 34 Democratic Senators calling on Department of VA Secretary Collins to immediately reinstate the more than 1,000 VA employees terminated earlier this month who serve Veterans and their families nationwide, including critical employees addressing Veteran suicide working at the Veterans Crisis Line.

    Additionally, Duckworth led her fellow Democratic SVAC colleagues in demanding that the Trump Administration and unelected billionaire Elon Musk immediately restart operations at the Consumer Financial Protection Bureau (CFPB) in order to protect our nation’s heroes from financial predators.

    If you are a VA employee or Veteran impacted, please reach out to the Senate Veteran Affairs Committee by filling out this form.

    -30-



    MIL OSI USA News

  • MIL-OSI USA: Senator Coons, colleagues introduce bipartisan, bicameral bill to restore injunctive relief for patent infringement

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons

    WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Tom Cotton (R-Ark.) today introduced the Realizing Engineering, Science, and Technology Opportunities by Restoring Exclusive (RESTORE) Patent Rights Act of 2025. This bipartisan, bicameral bill would restore the presumption that courts will issue an injunction to stop patent infringers, strengthening protections for U.S. inventors, entrepreneurs, universities, and startups. This legislation was initially introduced in the 118th Congress. Representatives Nathaniel Moran (R-Texas) and Madeleine Dean (D-Pa.) also introduced the House companion bill. 

    “Thanks to a wrongheaded decision from the Supreme Court, there are now companies who steal patented technologies rather than license them from inventors and then justify their actions as simply the cost of doing business. Innovators at universities and startups who lack resources are often unable to stop patent infringement in court and are forced into licensing deals they do not want,” said Senator Coons. “The RESTORE Patent Rights Act will protect innovators across the country, stop the infringe-now, pay-later model in its tracks, and strengthen America’s economic competitiveness for generations to come.”

    “American ingenuity should be rewarded and protected,” said Senator Cotton. “Current patent law fails to protect inventors and leaves them vulnerable to intellectual property theft from adversaries like China. This bipartisan legislation will help solidify America’s edge in technological innovation.”

    For more than two centuries, courts granted injunctive relief in most patent cases upon a finding of infringement, preventing patent infringers from continuing to produce goods that ran afoul of patent laws. However, this practice was upended in 2006 when the Supreme Court’s decision in eBay v. MercExchange created a four-factor test to determine whether a permanent injunction is warranted in infringement cases, altering the longstanding remedy for patent infringement.

    Since that decision, obtaining injunctive relief in patent cases has become significantly more difficult and rare. A recent study found that requests for permanent injunctions in patent cases fell by 65% for companies that use their patented technology to manufacture a product; grants of permanent injunctions to those companies fell even more significantly. Requests and grants for licensing patent owners like universities and research clinics dropped even further: Requests fell by 85%, and grants fell by 90%. 

    The RESTORE Patent Rights Act would undo the damage of the eBay decision by returning to patent owners a rebuttable presumption that an injunction is warranted after a court makes a final ruling that their rights are being infringed. This would deter predatory infringers and restore meaning to the right to exclude.

    “American innovation is only as strong as the confidence in knowing ideas cannot be stolen by competitors. In the last two decades, innovators have found it harder to obtain a permanent injunction from U.S. courts, which stops bad actors from stealing their intellectual property (IP). Our legislation will restore the rights of American innovators by ensuring permanent injunctions are accessible from U.S. courts. This bill will provide greater certainty in the protection of IP and prevent cases from being taken overseas to countries like China. When U.S. courts enforce the exclusivity of patent rights, America becomes a world leader in innovation,” said Congressman Moran.  

    “Enforceable patents are vital to our ability to invent, improve and advance – yet today, it is increasingly difficult for patent holders to enforce their rights through permanent injunctions, even after proving infringement in court,” said Congresswoman Dean. “The bipartisan, bicameral RESTORE Act addresses this issue and safeguards American innovation. I’m grateful to be joined by Congressman Moran, Senator Coons, and Senator Cotton in our push to protect patentholders, including universities, research laboratories, and startups.”

    The Innovation Alliance, Council for Innovation Promotion, Association of University Technology Managers, Conservatives for Property Rights, Alliance of U.S. Startups & Inventors for Jobs, The Institute of Electrical and Electronics Engineers-USA, Inventors Defense Alliance, and the Medical Device Manufacturers Association have endorsed the RESTORE Patent Rights Act.

    “The Innovation Alliance applauds Senators Coons and Cotton and Representatives Moran and Dean for reintroducing the bipartisan, bicameral RESTORE Patent Rights Act. With a simple, single-sentence clarification of the law, RESTORE will bring balance back to patent law and allow small inventors to stand toe to toe with Big Tech after a court has ruled that Big Tech is stealing their inventions. We urge Congress to pass this vital bill,” said Brian Pomper, Executive Director of the Innovation Alliance.

    “Our nation’s economic success and national security depend on inventors having confidence that their intellectual property will not be unfairly exploited,” said Andrei Iancu, board co-chair of C4IP and former Under Secretary of Commerce for Intellectual Property and USPTO Director from 2018 to 2021. “The RESTORE Patent Rights Act will provide inventors with the reassurance they need to propel American leadership in critical technology fields.”

    “Now more than ever, it’s critical that our leaders stand up for the startups and entrepreneurs who drive our nation’s economy and create life-changing breakthroughs,” said David Kappos, board co-chair of C4IP and former Under Secretary of Commerce for Intellectual Property and USPTO Director from 2009 to 2013. “By passing the RESTORE Patent Rights Act, Congress can reinvigorate the U.S. patent system and reaffirm America’s commitment to protecting its innovators.”

    “AUTM thanks Senator Coons and the other co-sponsors for introducing this legislation. Strengthening the ability of patent holders to protect their patents via injunction is crucial to incentivizing innovation. We look forward to working with the committee on this important legislation,” said Steve Susalka, CEO of AUTM. 

    “The RESTORE Patent Rights Act restores meaning to the promised exclusive rights to one’s invention. Without fully enforceable exclusive rights, the inventor’s end of the ‘patent bargain’ is broken. Since 2006, the Supreme Court’s eBay v. MercExchange ruling has made permanent injunction extremely difficult to obtain in patent infringement cases. Courts have thereby turned the right to exclude into a compulsory licensing clause. This is unjust. The RESTORE Patent Rights Act ends the judicially created categorical rule of routinely denying injunctions. It restores the historical remedy of injunctive relief in patent cases, as it is with other forms of property, including other intellectual property,” said James Edwards, Executive Director, Conservatives for Property Rights

    “The RESTORE Patent Rights Act is, perhaps, the most impactful thing that can be done to empower American inventors, entrepreneurs and disruptive startups. The ability to pursue injunctive relief when a competitor infringes on a patented invention was the standard in the United States for over 200 years. The Supreme Court moved the goalposts in 2006 and set up a convoluted test that makes it nearly impossible for a growth tech startup to stop the predatory infringement of their intellectual property by larger competitors. This practice has been perfected by Big Tech companies that now routinely ingest the innovations of disruptive competitors knowing that they cannot be stopped. Patent law and legislation is often complicated. The RESTORE Act is not. It is a clear and unambiguous bill that simply restores balance between large corporations that ingest others’ IP and the startups and entrepreneurs that invent it,” said Chris Israel, Executive Director of The Alliance of U.S. Startups & Inventors for Jobs (USIJ).

    “A functioning IP system must be fair, and as importantly, be perceived to be fair. Nondiscriminatory access to the legal system for enforcing and defending IP property rights is essential for securing the property rights necessary for investment. When innovators are unable to secure the property right embodied in a patent, investment is deterred and commercial activity, innovation and job creation impeded,” said Timothy Lee, IEEE-USA president.

    “The RESTORE Patent Rights Act is a crucial step in safeguarding America’s small businesses, startups, and entrepreneurs from predatory patent infringement. By providing a clear path for justice and injunctive relief, this bill empowers innovators and fosters a more equitable patent system that benefits American inventors and consumers,” said Kristen Osenga, the chief policy counselor at the Inventors Defense Alliance.

    “There unfortunately continues to be ongoing efforts across the world to steal American innovations and intellectual property, and it is critical that Congress establishes new protections so that the United States can remain the global leader in medical technology innovation,” said Mark Leahy, President and CEO, Medical Device Manufacturers Association. “The ‘RESTORE Patent Rights Act’ would help restore a level playing field if enacted, and would codify the presumption that a permanent injunction will be granted after infringement is proven.  MDMA applauds Senators Coons and Cotton and Representatives Moran and Dean for their leadership in helping America’s innovators protect their intellectual property, and we will continue to work closely with them so the medical technology ecosystem can deliver the cures, therapies and diagnostics that patients and providers need.”

    The text of the bill is available here.

    A one-pager is available here.

    MIL OSI USA News

  • MIL-OSI USA: Luján, Klobuchar, Agriculture Committee Democrats Press USDA on Indiscriminate Layoffs

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)

    Washington, D.C. – U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Agriculture, Nutrition, and Forestry Committee, joined U.S. Senator Amy Klobuchar (D-MN), Ranking Member of the Senate Agriculture, Nutrition, and Forestry Committee, and all Committee Democrats in pressing the U.S. Department of Agriculture (USDA) to explain recent mass layoffs at the Department. The Senators asked how many USDA employees were fired and for a breakdown by state, agency, job position, and veteran status—all details the Administration has not provided to date.

    In a letter to Secretary of Agriculture Brooke Rollins, the Senators wrote: “These widespread layoffs jeopardize USDA’s ability to respond to the ongoing avian flu outbreak, process farm loans, disaster relief and other assistance for farmers, and distribute grants and loans for infrastructure and services that rural Americans rely on.”

    The Senators continued: “We have deep concerns that the termination of thousands of nonpartisan USDA employees and contracts in less than a month will hinder the Department’s ability to address the challenges facing American agriculture and rural America.”

    In addition to Senators Luján and Klobuchar, the letter was joined by Senators Michael Bennet (D-CO), Tina Smith (D-MN), Richard Durbin (D-IL), Cory Booker (D-NJ), Raphael Warnock (D-GA), Peter Welch (D-VT), John Fetterman (D-PA), Adam Schiff (D-CA), and Elissa Slotkin (D-MI).

    Full text of the letter is available here and below.

    Dear Secretary Rollins,

    Amid layoffs across the federal government, we write to express grave concerns regarding the recent layoffs at the U.S. Department of Agriculture (USDA) and how they will affect the Department’s ability to serve farmers, ranchers, and rural America.

    On February 14, USDA issued a statement outlining the actions USDA has taken to eliminate positions at the Department and has reportedly terminated or put on administrative leave thousands of nonpartisan public servants across the Department, including at the Animal and Plant Health Inspection Service’s (APHIS) National Animal Health Laboratory program office, the Forest Service (FS), the National Resources Conservation Service (NRCS), the Farm Service Agency (FSA), and the Rural Development mission area (RD).

    These widespread layoffs jeopardize USDA’s ability to respond to the ongoing avian flu outbreak, process farm loans, disaster relief and other assistance for farmers, and distribute grants and loans for infrastructure and services that rural Americans rely on.

    We request that USDA respond to the following questions:

    1. Please provide a list of the total number of USDA employees terminated or placed on administrative leave since January 20, 2025, with a break down by state, by USDA agency or office (e.g., APHIS, FSA, RD’s Rural Utilities Service and Rural Business and Cooperative Service, FS, NRCS, Food Safety and Inspection Service, Agricultural Research Service, Food and Nutrition Service, Office of General Counsel) by job position, and by veteran status. Please include any individuals whom USDA may have rehired after February 14, 2025.
      1. For the Animal and Plant Health Inspection Service, please provide a breakdown of the number of employees terminated or placed on leave who worked as part of the National Animal Health Laboratory Network, worked in an office handling animal disease prevention or control, or worked as a veterinarian.
      2. For the Food Safety and Inspection Service, please provide a breakdown of the number of employees terminated or placed on leave who worked as a veterinarian.
      3. For the Agricultural Research Service, please provide a breakdown of the number of employees terminated or placed on leave who worked on research related to animal diseases.
      4. For the Farm Service Agency, please provide a breakdown of the number of employees terminated or placed on leave in each state who processed or handled farm loans.
    2. What criteria and process did the Administration use when determining which employees to terminate or put on leave?
      1. Please provide examples of the termination notices sent out by each USDA agency or office, with any personal identification information removed.
      2. Please provide details on any employees exempted from terminations or leave.
    3. Has the Administration conducted any assessments of how the terminations will impact the services provided by each USDA agency and office? If so, please provide a copy of any such assessments.
    4. Has USDA rescinded any termination letters or rehired any individuals who were terminated on or after January 20, 2025?
      1. If so, what is the total number of individuals USDA attempted to rehire? Please provide a list of the positions that USDA rehired or rescinded termination letters to, with a breakdown by state, USDA agency or office, whether the individual was successfully rehired, as well as an explanation for why the individual was rehired.
    5. Does USDA intend to hire new employees to replace the employees who have recently been terminated? If so, please describe in detail the timeline and expected hiring process to replace employees.
    6. Does USDA have any plans to terminate any additional employees? If so, please describe in detail what criteria and process USDA will use to terminate additional employees and the estimated number of employees that will be terminated in each USDA agency and office.

    We have deep concerns that the termination of thousands of nonpartisan USDA employees and contracts in less than a month will hinder the Department’s ability to address the challenges facing American agriculture and rural America. Please provide responses to the information requested in questions 1, 2, 3, and 4 not later than Friday, February 28, and responses to questions 5 and 6 not later than Friday, March 7. Thank you for your attention to this urgent matter.

    MIL OSI USA News

  • MIL-OSI Canada: RTR Bill Improves Housing, Trades and Charities

    Source: Government of Canada regional news (2)

    MIL OSI Canada News

  • MIL-OSI New Zealand: Changes to SafePlus online self-assessment tool coming soon

    Source: Worksafe New Zealand

    From April there will be a new way of doing a SafePlus self-assessment.

    The current SafePlus online tool is at the end of its life and would require significant resource to rebuild.

    It is being replaced with downloadable questions – in multiple languages – that can be used much more flexibly as a paper-based survey or in any online survey tool (at the user’s cost).

    Registered users of the online tool have been contacted to let them know that no new assessments using the current tool can be started after 11 April 2025.

    Those who have run a previous assessment using the tool can access their data and reports until 12 June 2025. After 12 June 2025, the personal data put into the tool by users will be destroyed, to meet Privacy Act requirements.

    See our FAQs for more information(external link) including data export instructions. 

    From April the survey questions and a results calculator will be available to download from the SafePlus section of the WorkSafe website. Businesses can use the questions either as a paper-based survey, or in their own choice of online survey platform.

    They are the same questions currently used in the online tool. The questions were developed using the SafePlus framework. They focus on three key areas of health and safety – leadership, worker engagement, and risk management.

    Businesses can use their workers’ responses to the questions to calculate a SafePlus health and safety maturity rating in the three key areas, and they can repeat the survey to see their progress year on year.

    WorkSafe will not have access to the data. The questions and results calculator are downloadable files, so the business using them will save them in their own system. This means all data will remain with the business itself.

    Providing the survey questions for businesses to pick up and use means more flexibility to run their own surveys using their own choice of survey tool. The new way of providing the survey questions also means we can incorporate user-requested enhancements to provide a paper-based option for completing surveys and translation of the questions into multiple languages.

    The survey questions and results calculator will be free to use. However, WorkSafe will no longer provide the survey functionality, so if a business decides to use an online survey tool then that may have some cost to them to use.

    Onsite assessments by independent SafePlus assessors are also available.

    You can find out more on the SafePlus section of the WorkSafe website

    We aim to make it easy for businesses to do regular self-assessments of their health and safety environment to identify areas they can improve.

    We would like to thank everyone who has used the SafePlus online tool to help keep people healthy and safe at work.

    MIL OSI New Zealand News

  • MIL-OSI: Athene Names Louis-Jacques Tanguy Chief Financial Officer

    Source: GlobeNewswire (MIL-OSI)

    WEST DES MOINES, Iowa, Feb. 26, 2025 (GLOBE NEWSWIRE) — Athene Holding Ltd. (“Athene”), the leading retirement services company and subsidiary of Apollo Global Management, Inc. (NYSE:APO), announced today that it has appointed Louis-Jacques (LJ) Tanguy as Executive Vice President and Chief Financial Officer, effective March 1, 2025.

    LJ has served as the Chief Accounting Officer for Apollo since early 2022 and has over 25 years of extensive accounting and financial experience. Prior to joining Apollo, he spent 13 years at Deutsche Bank as a Managing Director in various finance leadership roles in London and New York. Prior to that, LJ was the Head of the Asia Pacific Product Valuation Group for Merrill Lynch Japan Securities in Tokyo and has also worked at Société Générale in Paris and Asia in various roles in Finance and Risk. He holds a Ph.D. in Business Management, a Master’s in Finance and a Bachelor’s in Economics from the University of Aix-Marseille.

    “We are very pleased that LJ will be Athene’s new CFO,” said Jim Belardi, CEO of Athene. “As Apollo’s Chief Accounting Officer, he successfully built and led a multifaceted organization spanning across the asset manager and retirement services businesses and played a key role in our successful merger. LJ is a champion for excellence and cross-functional collaboration, and his appointment appropriately supports the business now and for the long term.”

    “I am excited to support the continued growth and innovation of our firm by serving as Athene’s next CFO,” said Tanguy. “I look forward to working even more closely with my outstanding colleagues who have driven Athene to be the leading retirement services provider and partnering with them to achieve the next phase of our growth.”

    About Athene
    Athene is the leading retirement services company, with over $360 billion of total assets as of December 31, 2024 and operations in the United States, Bermuda, Canada, and Japan. Athene is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations. For more information, please visit www.athene.com.

    Contact:
    Jeanne Hess
    Vice President, External Relations
    +1 646 768 7319
    jeanne.hess@athene.com

    The MIL Network

  • MIL-OSI Australia: Negotiations for social security agreement with Sweden to begin

    Source: Ministers for Social Services

    The Albanese Labor Government will soon commence negotiations with the Swedish Government on a bilateral social security agreement.

    An agreement would boost access to certain Australian and Swedish social security benefits for eligible people who have lived or worked in both countries.

    Minister for Social Services Amanda Rishworth said Australia has much to gain from an agreement and she looks forward to strengthening the ties between our two countries.

    “It’s great to see negotiations will soon get underway for a social security agreement with Sweden, giving people greater freedom and choice in how and where they spend their retirement, secure in the knowledge they will be supported,” Minister Rishworth said.

    “Businesses operating across both countries may also benefit, with this arrangement ensuring they don’t have to pay compulsory superannuation and insurance contributions in both countries for seconded employees.”

    Minister for Foreign Affairs Penny Wong said the agreement will be an important step in deepening the Australia-Sweden relationship.

    “With growing family and community links between Sweden and Australia, more Australians are dividing their lives between the countries,” Minister Wong said.

    “This agreement will provide greater choice for retiring Australians with Swedish connections, and will help to remove burdens for Australian and Swedish businesses seeking to invest in each other’s economy.”

    Swedish Ambassador Pontus Melander said an agreement would be a significant milestone in growing Australia’s relationship with Sweden.

    “Agreements like this are very important to facilitate for our citizens and bring Australia and Sweden even closer together,” Mr Melander said.

    “We are already close friends and partners, and it is excellent that negotiations on a bilateral social security agreement have started.”

    Australia has social security agreements with 32 countries.

    More information is available on the Department of Social Services website.

    MIL OSI News

  • MIL-OSI Security: Shelbyville Woman Pleads Guilty To Employment Tax And Wire Fraud Charges; Agrees To Pay More Than $1.1. Million In Restitution

    Source: Office of United States Attorneys

    CHATTANOOGA, Tenn. – On February 26, 2025, Rebekah Proctor, 33, of Shelbyville, Tennessee, pleaded guilty in the United States District Court for the Eastern District of Tennessee in Chattanooga to one count of willful failure to collect, account for, and pay over a tax, in violation of Title 26, United States Code, Section 7202, and one count of wire fraud, in violation of Title 18, United States Code, Section 1343.               

    Proctor will be sentenced on July 11, 2025, by the Honorable Travis R. McDonough, United States District Judge. She faces up to five years of imprisonment on the tax offense and up to 30 years of imprisonment for wire fraud.

    According to the plea agreement filed in this case, Proctor operated Franklin Springs Academy, a daycare business in middle Tennessee.  Although she withheld income taxes and Federal Insurance Contributions Act (“FICA”) taxes (commonly known as Social Security and Medicare taxes) from her employees’ paychecks and additionally owed the employer’s portion of the FICA taxes, Proctor willfully failed to truthfully account for and pay such taxes to the IRS for the first quarter of 2022.  For that quarter alone, she owed tens of thousands of dollars in unpaid taxes.

    Proctor also fraudulently applied for and received a COVID-relief Paycheck Protection Program (“PPP”) loan to which she was not entitled.  Proctor made several false certifications on her April 4, 2020, application for over $100,000 in PPP funds, including that she was current on her federal tax obligations and that the loan funds would be used to retain workers and for other business expenses.  In fact, Proctor used the funds for her own personal expenses and for her husband’s personal expenses.

    As set forth in her plea agreement with the government, Proctor agreed that the restitution owed to the IRS, for her employment taxes only, is $893,232.26, which includes unpaid taxes plus penalties and interest required by law.  She further agreed that the restitution owed to the Small Business Association is $223,800, which is comprised of the $105,800 in PPP loan proceeds she received in April 2020 and $118,000 in additional fraudulently obtained PPP loan proceeds she received in February 2021.

    United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation, Charlotte Field Office, made the announcement.

    Assistant United States Attorney Joseph G. DeGaetano represents the United States.  

                                                                                                       ###

    MIL Security OSI

  • MIL-OSI USA: New Reed-backed Bill to Combat Crypto ATM Fraud

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed
    WASHINGTON, DC – With scams using crypto kiosks (also known as ‘crypto ATMs’ or ‘Bitcoin ATMs’) to steal from older Americans on the rise, U.S. Senator Jack Reed (D-RI) is stepping up efforts to help fight fraud and prevent criminal from preying on senior citizens.  Federal law enforcement officials have referred to these crypto kiosks as ‘payment portals for scammers.’
    Reed is teaming up with U.S. Senators Dick Durbin (D-IL), Richard Blumenthal (D-CT) and Peter Welch (D-VT) to introduce the Crypto ATM Fraud Prevention Act (S. 710) to help prevent scammers from stealing Americans’ savings through cryptocurrency schemes.  The bill would improve fraud warnings on all crypto kiosks; make cryptocurrency ATM operators develop a comprehensive anti-fraud policy, which must be submitted to the Financial Crimes Enforcement Network (FinCEN); and protect new customers — who are most likely to be victims of fraud — by limiting initial transaction amounts, requiring  verbal confirmation of major transactions, and making victims of fraud eligible for refunds if they file a report within 30 days.
    “Crypto kiosk operators need to ensure their machines aren’t being used to victimize vulnerable citizens and launder money for illegal activities.  This bill takes commonsense steps to ensure the businesses that profit from these machines are doing their part to prevent fraud.  It’s a positive first step towards stopping the surge in crypto kiosk scams and cracking down on criminals,” said Senator Reed.  “We must also continue working to educate vulnerable populations, especially older Americans, to recognize and avoid crypto scams.”
    Today, there are over 30,000 crypto kiosks nationwide, which are largely unregulated.  Many of them are placed in locations such as gas stations, vape shops, and laundromats.  These entities are paid a monthly fee by the crypto kiosk owner to allow the crypto kiosk to be operated on site.  While crypto ATMs are touted by operators as an easy way to change cash into crypto, in reality, they have become a preferred payment platform for international criminal enterprises who utilize the machines to carry out millions of dollars’ worth of anonymous, irreversible fraud – especially against older Americans.
    The proposed federal legislation would replace a patchwork of state regulations with a uniform national standard that would defer to state regulations as long as they don’t weaken or conflict with federal law.
    The Crypto ATM Fraud Prevention Act, which is led by Senator Durbin, will require crypto ATM operators to warn consumers about scams and take reasonable steps to prevent fraud at their machines.  It will also put in place measures to limit the amount that new consumers lose when they do fall victim to scams and will give law enforcement new tools to track down scammers.
    Often, crypto scammers will contact elderly Americans, and using threats, intimidation, and fabricated backstories, try to coerce them into depositing large sums of money into the criminals’ crypto wallets via cryptocurrency ATMs.  According to data recently released by the Federal Trade Commission (FTC), the amount consumers reported losing annually in this form of fraud increased nearly tenfold between 2020 and 2023—from $12 million to $114 million and topping $65 million in the first half of 2024.  In 2023, the FBI’s Internet Crime Complaint Center received nearly 2,700 crypto ATM fraud complaints from individuals aged 60 and older—more than all other age groups combined.
    Specifically, the Crypto ATM Fraud Prevention Act will:
    Require warnings about the risk of fraud: This bill would require cryptocurrency ATM operators to provide clear warnings to consumers about the risk of fraud, including warnings of common types of scams and that consumers should never send money to someone they have never met.
    Require operators to develop fraud prevention policies: For the first time, cryptocurrency ATM operators would be required to appoint a chief compliance officer and develop comprehensive anti-fraud policies, which must be submitted to the FinCEN Network.  Operators also would be required to provide live customer support during all operating hours.
    Special protections for first tim-users and new customers—who are most likely to be victims of fraud: New customers, defined as a customer within 14 days of their first transaction, would be protected by the following provisions:
    – Transaction limits of $2,000 per day, and $10,000 total over the first 14 days.
    – Full refunds for fraudulent transactions if the customer makes a report within 30 days.   
    – Requiring live, verbal confirmation for any transaction greater than $500.
    Require crypto ATM operators to register and disclose ATM locations: Cryptocurrency ATM operators would be required to register with the U.S. Treasury Department and to disclose and regularly update the locations of all their ATMs.  Operators also would be required to provide a point of contact to relevant regulators and law enforcement agencies.
    Require receipts and information sufficient to trace the transaction: Operators would be required to provide receipts for each transaction, including information sufficient to trace the transaction, such as the time, place, and amount of the transaction, and a transaction hash.  Receipts also would have to include contact information for relevant law enforcement and a link to the operator’s refund policy.
    The bill has earned the endorsement of Americans for Financial Reform, National Consumers League, Public Citizen, Better Markets, and the National Consumer Law Center on behalf of its low-income clients.
    To spot and avoid scams visit ftc.gov/scams. Report scams to the FTC at ReportFraud.ftc.gov.

    MIL OSI USA News

  • MIL-OSI USA: Scott, Wicker, Griffith Push Back on EPA Overreach

    US Senate News:

    Source: United States Senator for South Carolina Tim Scott
    WASHINGTON — U.S. Senator Tim Scott (R-S.C.), Senator Roger Wicker (R-Miss.), and Congressman Morgan Griffith (R-Va.) introduced a Congressional Review Act (CRA) resolution to overturn the U.S. Environmental Protection Agency’s (EPA) Rubber Tire Manufacturing National Emissions Standards for Hazardous Air Pollutants (NESHAP) rule. Amendments to NESHAP were finalized by the Biden administration in November 2024, despite the EPA’s own risk review finding that the rule was not necessary to protect public health or the environment and could not quantify any public health benefits from the rule.
    “The amended Biden NESHAP rule is counterproductive in every sense and the type of government inefficiency and overreach Americans are sick of. It will increase emissions and cost job creators millions in compliance expenses each year,” said Senator Scott.“I’m proud to join my Republican colleagues in pushing back on this rule that only serves to hurt South Carolina workers, businesses, and our economy.”
    “As Chairman of the House Committee on Energy and Commerce Subcommittee on Environment, a key focus of mine is to get the EPA back to a compliance-focused regulatory regime,” said Representative Griffith. “In the waning days of the Biden Administration, scores of ill-advised, unreasonable regulations were issued to overburden American industry. Rubber tire manufacturers already comply with stringent air emission rules. I am introducing this CRA resolution to roll back a last-minute Biden EPA regulation that was based on questionable data and imposes onerous one-size-fits-all pollution controls. I am glad to join this legislative fight with strong leaders like Senators Tim Scott and Roger Wicker.”
    “In the final weeks of the Biden-Harris Administration, the EPA implemented burdensome rules that increase costs and harm American manufactures,” said House Committee on Energy and Commerce Chairman Guthrie. “Unsurprisingly, the EPA failed to collect the necessary and specific data needed to inform this rulemaking, but went ahead and implemented a new set of emissions standards that will raise prices for consumers and put family-sustaining jobs at risk anyway. I’m grateful to Chairman Griffith for his work and look forward to working with my Energy and Commerce Committee colleagues as well as President Trump and Administrator Zeldin to address this issue.” 
    “Tire manufacturing facilities have long understood and complied with the existing National Emission Standards for Hazardous Air Pollutants (NESHAP) standards to reduce hazardous air pollutant emissions from rubber mixers. However, the agency’s revised final NESHAP rule actually creates an adverse environmental impact, while imposing significant financial burdens on tire manufacturing facilities and providing negligible, if any, benefits. While we continue to work with the EPA, we urge Congress to take action to undo this final rule in order to limit the deleterious effects on the U.S. tire manufacturing industry, the U.S. economy, and the environment,” said Anne Forristall Luke, President and CEO, U.S. Tire Manufacturers Association (USTMA).
    In addition to Senators Scott and Wicker, the resolution is cosponsored by Senators Lindsey Graham (R-S.C.), Shelley Moore Capito (R-W.Va.), Marsha Blackburn (R-Tenn.), Cindy Hyde-Smith (R-Miss.), and Tim Sheehy (R-Mont.).
    In the House of Representatives, additional cosponsors include Reps. Troy Balderson (R-Ohio), Randy Weber (R-Texas), Dan Crenshaw (R-Texas), Bob Latta (R-Ohio), and Buddy Carter (R-Ga.).
    BACKGROUND
    The Rubber Tire Manufacturing source category is comprised of facilities that produce rubber components such as rubber compounds, tread, tire cords, and liners. The category is split into rubber processing, tire production, tire cord production, and puncture seal application subcategories. 
    In 2002, the original Rubber Tire Manufacturing NESHAP established emissions limits for the tire production, tire cord production, and puncture seal application subcategories.
    In 2020, a residual risk and technology review (RTR) found that the current NESHAP provided an ample margin of safety to protect public health and that the risk associated with air emissions from rubber tire manufacturing was acceptable. The RTR also clarified that emissions during startup, shutdown, and malfunction are subject to the NESHAP.
    The DC Court determined in Louisiana Environmental Action Network v. EPA that the agency should address unregulated emissions from a source category when the EPA conducts an eight-year technological review as required by the Clean Air Act.
    On November 16, 2023, the EPA proposed the emission standards to address unregulated hazardous air pollutants from the rubber processing subcategory pursuant to the decision in Louisiana Environmental Action Network.
    The EPA’s risk review found that the rule was not necessary to protect public health or the environment and could not quantify any public health benefits from the rule.
    To comply with the rule, tire manufacturers will have to install regenerative thermal oxidizers (RTOs), which will cause an increase in CO2 emissions. As a result, the EPA quantified public health disbenefits associated with the rule ranging from $2.7 million to $8.1 million per year, in addition to $13.3 million per year in compliance costs.
    Full text of the resolution can be found here. 

    MIL OSI USA News

  • MIL-OSI: Expand Energy Corporation Reports Fourth Quarter and Full-Year 2024 Results, Issues 2025 Outlook

    Source: GlobeNewswire (MIL-OSI)

    OKLAHOMA CITY, Feb. 26, 2025 (GLOBE NEWSWIRE) — Expand Energy Corporation (NASDAQ:EXE) (“Expand Energy” or the “Company”) today reported fourth quarter and full-year 2024 financial and operating results and issued its 2025 outlook.

    Fourth Quarter Highlights

    • Net cash provided by operating activities of $382 million
    • Net loss of $399 million, or $1.72 per fully diluted share; adjusted net income(1)of $131 million, or $0.55 per share
    • Adjusted EBITDAX(1)of $964 million
    • Produced approximately 6.41 Bcfe/d net (91% natural gas)
    • Debut $750 million Investment Grade issuance, setting record spread for energy rising star (+132 bps to 10-year Treasury)

    2025 Outlook

    • Increasing expected synergy capture to ~$400 million in 2025, with the total target of $500 million in annual synergies expected to be achieved by year end 2026
    • Quarterly base dividend of $0.575 per common share to be paid in March 2025, 16th straight quarter paying a dividend
    • Expected to produce ~7.1 Bcfe/d for ~$2.7 billion of capital and deploy $300 million of incremental capital to create an additional ~300 MMcfe/d of productive capacity in 2026

    (1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this news release.

    “The global need for reliable, affordable, lower carbon energy has never been greater. Our strong fourth quarter results and 2025 outlook clearly demonstrate, as the nation’s largest gas producer, we are ready to answer the call and expand opportunity for consumers and investors alike,” said Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer. “The powerful combination of our attractive, market-connected portfolio, peer-leading returns program, and resilient financial foundation is distinctly unique among domestic natural gas producers. Our focus on integration and operational execution continues to deliver, allowing us to capture 80% of our $500 million synergy target in 2025 as we drive to lower our breakeven costs and more efficiently reach markets in need. Importantly, our capital plan positions us to continue our strategy to build productive capacity, positioning the company to efficiently and rapidly respond with production in 2026 should market conditions warrant.”

    Operations Update

    In the fourth quarter, Expand Energy operated an average of twelve rigs to drill 44 wells and turned 41 wells in line, resulting in net production of approximately 6.41 Bcfe per day (91% natural gas). A detailed breakdown of fourth quarter production, capital expenditures and activity can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

    2025 Annual Synergy, Capital and Operating Outlook

    In 2025, Expand Energy expects to run ~12 rigs and invest approximately $2.7 billion yielding an estimated daily production of approximately 7.1 Bcfe/d. The company intends to build incremental productive capacity for an additional $300 million by running ~15 rigs in the second half of the year. This positions the company to efficiently grow production from a year-end 2025 exit rate of approximately 7.2 Bcfe/d to average approximately 7.5 Bcfe/d in 2026 should market conditions warrant.

    Expand Energy is increasing its 2025 expected annual synergy target by $175 million to approximately $400 million. The company expects to achieve the full $500 million in annual synergies by year end 2026.

    A detailed breakdown of 2025 annual synergy, capital, and operating outlook can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

    Shareholder Returns Update

    Expand Energy enhanced its capital return framework in 2024 to more efficiently return cash to shareholders and reduce net debt. The company plans to pay its quarterly base dividend of $0.575 per share on March 27, 2025 to shareholders of record at the close of business on March 11, 2025. The company expects to allocate $500 million to net debt reduction in 2025, and at current market conditions, to have additional free cash flow available to allocate to the combination of variable dividends, share repurchases, and the balance sheet.

    Conference Call Information

    A conference call to discuss Expand Energy’s fourth quarter and full-year 2024 financial and operating results and 2025 outlook has been scheduled for 9 a.m. EDT on February 27, 2025. Participants can access the live webcast at https://edge.media-server.com/mmc/p/jwd532c5/. Participants who would like to ask a question, can register at https://register.vevent.com/register/BIada59e18f58249708a9b9b311a92efae, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.

    Financial Statements, Non-GAAP Financial Measures and 2025 Guidance and Outlook Projections

    This news release contains the non-GAAP financial measures described below in the section titled “Non-GAAP Financial Measures.” Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the company’s 2024 fourth quarter and full-year financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2025 can be found on the company’s website at www.expandenergy.com.

    Expand Energy Corporation (NASDAQ: EXE) is the largest independent natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.

    Forward-Looking Statements

    This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, our ability to capture synergies, the amount and timing of any cash dividends and our ESG initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange commission (“SEC”). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “aim”, “predict”, “should”, “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.

    Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:

    • Reduce demand for natural gas, oil, and natural gas liquids;
    • negative public perceptions of our industry;
    • competition in the natural gas and oil exploration and production industry;
    • the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
    • risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
    • write-downs of our natural gas and oil asset carrying values due to low commodity prices;
    • significant capital expenditures are required to replace our reserves and conduct our business;
    • our ability to replace reserves and sustain production;
    • uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
    • drilling and operating risks and resulting liabilities;
    • our ability to generate profits or achieve targeted results in drilling and well operations;
    • leasehold terms expiring before production can be established;
    • risks from our commodity price risk management activities;
    • uncertainties, risks and costs associated with natural gas and oil operations;
    • our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
    • pipeline and gathering system capacity constraints and transportation interruptions;
    • risks related to our plans to participate in the global LNG value chain;
    • terrorist activities and/or cyber-attacks adversely impacting our operations;
    • risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
    • disruption of our business by natural or human causes beyond our control;
    • a deterioration in general economic, business or industry conditions;
    • the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
    • our inability to access the capital markets on favorable terms;
    • the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
    • challenges with employee retention and increasingly competitive labor market
    • risks related to acquisitions or dispositions, or potential acquisitions or dispositions; risks related to loss of management personnel, other key employees, customers, suppliers, vendors, landlords, joint venture partners and other business partners as a result of the merger with Southwestern Energy Company (“Southwestern”); the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; and the risk that the combined company may be unable to achieve synergies or other anticipated benefits of the Southwestern merger or it may take longer than expected to achieve those synergies or benefits;
    • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;
    • our ability to achieve and maintain ESG certifications, goals and commitments;
    • environmental and ESG legislation and regulatory initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, methane emissions, flaring or water disposal;
    • federal and state tax proposals affecting our industry;
    • risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of the Southwestern merger, as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; and
    • other factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K filed with the SEC.

    We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.

    All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

             
    CONSOLIDATED BALANCE SHEETS (unaudited)        
             
    ($ in millions, except per share data)   December 31, 2024   December 31, 2023
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 317     $ 1,079  
    Restricted cash     78       74  
    Accounts receivable, net     1,226       593  
    Derivative assets     84       637  
    Other current assets     292       226  
    Total current assets     1,997       2,609  
    Property and equipment:        
    Natural gas and oil properties, successful efforts method        
    Proved natural gas and oil properties     23,093       11,468  
    Unproved properties     5,897       1,806  
    Other property and equipment     654       497  
    Total property and equipment     29,644       13,771  
    Less: accumulated depreciation, depletion and amortization     (5,362 )     (3,674 )
    Total property and equipment, net     24,282       10,097  
    Long-term derivative assets     1       74  
    Deferred income tax assets     589       933  
    Other long-term assets     1,025       663  
    Total assets   $ 27,894     $ 14,376  
             
    Liabilities and stockholders’ equity        
    Current liabilities:        
    Accounts payable   $ 777     $ 425  
    Current maturities of long-term debt, net     389        
    Accrued interest     100       39  
    Derivative liabilities     71       3  
    Other current liabilities     1,786       847  
    Total current liabilities     3,123       1,314  
    Long-term debt, net     5,291       2,028  
    Long-term derivative liabilities     68       9  
    Asset retirement obligations, net of current portion     499       265  
    Long-term contract liabilities     1,227        
    Other long-term liabilities     121       31  
    Total liabilities     10,329       3,647  
    Contingencies and commitments        
    Stockholders’ equity:        
    Common stock, $0.01 par value, 450,000,000 shares authorized: 231,769,886 and 130,789,936 shares issued     2       1  
    Additional paid-in capital     13,687       5,754  
    Retained earnings     3,876       4,974  
    Total stockholders’ equity     17,565       10,729  
    Total liabilities and stockholders’ equity   $ 27,894     $ 14,376  
                     
         
    CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
        2024   2023   2024   2023
    ($ in millions, except per share data)                
    Revenues and other:                
    Natural gas, oil and NGL   $ 1,595     $ 763     $ 2,969     $ 3,547  
    Marketing     649       513       1,290       2,500  
    Natural gas, oil and NGL derivatives     (245 )     533       (38 )     1,728  
    Gains on sales of assets     2       139       14       946  
    Total revenues and other     2,001       1,948       4,235       8,721  
    Operating expenses:                
    Production     158       63       316       356  
    Gathering, processing and transportation     556       190       1,035       853  
    Severance and ad valorem taxes     39       31       97       167  
    Exploration     3       8       10       27  
    Marketing     654       514       1,310       2,499  
    General and administrative     53       32       186       127  
    Separation and other termination costs           2       23       5  
    Depreciation, depletion and amortization     647       379       1,729       1,527  
    Other operating expense, net     277       3       332       18  
    Total operating expenses     2,387       1,222       5,038       5,579  
    Income (loss) from operations     (386 )     726       (803 )     3,142  
    Other income (expense):                
    Interest expense     (64 )     (22 )     (123 )     (104 )
    Gains (losses) on purchases, exchanges or extinguishments of debt     1             (1 )      
    Other income, net     28       31       86       79  
    Total other income (expense)     (35 )     9       (38 )     (25 )
    Income (loss) before income taxes     (421 )     735       (841 )     3,117  
    Income tax expense (benefit)     (22 )     166       (127 )     698  
    Net income (loss)   $ (399 )   $ 569     $ (714 )   $ 2,419  
    Earnings (loss) per common share:                
    Basic   $ (1.72 )   $ 4.34     $ (4.55 )   $ 18.21  
    Diluted   $ (1.72 )   $ 4.02     $ (4.55 )   $ 16.92  
    Weighted average common shares outstanding (in thousands):                
    Basic     231,539       130,999       156,989       132,840  
    Diluted     231,539       141,491       156,989       142,976  
                                     
         
    CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
    ($ in millions)   2024   2023   2024   2023
    Cash flows from operating activities:                
    Net income (loss)   $ (399 )   $ 569     $ (714 )   $ 2,419  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
    Depreciation, depletion and amortization     647       379       1,729       1,527  
    Deferred income tax expense (benefit)     (18 )     109       (123 )     428  
    Derivative (gains) losses, net     245       (533 )     38       (1,728 )
    Cash receipts on derivative settlements, net     252       187       947       354  
    Share-based compensation     9       8       38       33  
    Gains on sales of assets     (2 )     (139 )     (14 )     (946 )
    Contract amortization     (57 )           (57 )      
    (Gains) losses on purchases, exchanges or extinguishments of debt     (1 )           1        
    Other     51       (17 )     35       18  
    Changes in assets and liabilities     (345 )     (93 )     (315 )     275  
    Net cash provided by operating activities     382       470       1,565       2,380  
    Cash flows from investing activities:                
    Capital expenditures     (536 )     (379 )     (1,557 )     (1,829 )
    Receipts of deferred consideration     50             166        
    Business combination, net     (459 )           (459 )      
    Contributions to investments     (4 )     (82 )     (75 )     (231 )
    Proceeds from divestitures of property and equipment     4       566       21       2,533  
    Net cash provided by (used in) investing activities     (945 )     105       (1,904 )     473  
    Cash flows from financing activities:                
    Proceeds from Credit Facility     20             20       1,125  
    Payments on Credit Facility     (20 )           (20 )     (2,175 )
    Proceeds from issuance of senior notes, net     747             747        
    Funds held for transition services           (91 )            
    Proceeds from warrant exercise     2             3        
    Debt issuance and other financing costs     (7 )           (11 )      
    Cash paid to repurchase and retire common stock           (42 )           (355 )
    Cash paid to purchase debt     (767 )           (767 )      
    Cash paid for common stock dividends     (134 )     (75 )     (388 )     (487 )
    Other     (3 )           (3 )      
    Net cash used in financing activities     (162 )     (208 )     (419 )     (1,892 )
    Net increase (decrease) in cash, cash equivalents and restricted cash     (725 )     367       (758 )     961  
    Cash, cash equivalents and restricted cash, beginning of period     1,120       786       1,153       192  
    Cash, cash equivalents and restricted cash, end of period   $ 395     $ 1,153     $ 395     $ 1,153  
                     
    Cash and cash equivalents   $ 317     $ 1,079     $ 317     $ 1,079  
    Restricted cash     78       74       78       74  
    Total cash, cash equivalents and restricted cash   $ 395     $ 1,153     $ 395     $ 1,153  
                                     
             
    NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)        
                                     
        Three Months Ended December 31, 2024
        Natural Gas   Oil   NGL   Total
        MMcf per day   $/Mcf   MBbl per day   $/Bbl   MBbl per day   $/Bbl   MMcfe per day   $/Mcfe
    Haynesville   2,338   2.57           2,338   2.57
    Northeast Appalachia   2,425   2.34           2,425   2.34
    Southwest Appalachia   1,067   2.42   12   60.41   85   27.44   1,649   3.42
    Total   5,830   2.45   12   60.41   85   27.44   6,412   2.70
                                     
    Average NYMEX Price       2.79       70.27                
    Average Realized Price (including realized derivatives)       2.91       61.28       26.90       3.11
        Three Months Ended December 31, 2023
        Natural Gas   Oil   NGL   Total
        MMcf per day   $/Mcf   MBbl per day   $/Bbl   MBbl per day   $/Bbl   MMcfe per day   $/Mcfe
    Haynesville   1,497   2.41           1,497   2.41
    Northeast Appalachia   1,801   2.15           1,801   2.15
    Eagle Ford   52   2.42   6   82.49   7   25.67   129   6.30
    Total   3,350   2.27   6   82.49   7   25.67   3,427   2.42
                                     
    Average NYMEX Price       2.88       78.35                
    Average Realized Price (including realized derivatives)       2.87       82.49       25.67       3.01
        Year Ended December 31, 2024
        Natural Gas   Oil   NGL   Total
        MMcf per day   $/Mcf   MBbl per day   $/Bbl   MBbl per day   $/Bbl   MMcfe per day   $/Mcfe
    Haynesville   1,532   2.14           1,532   2.14
    Northeast Appalachia   1,809   1.88           1,809   1.88
    Southwest Appalachia   270   2.42   3   60.41   21   27.44   417   3.42
    Total   3,611   2.03   3   60.41   21   27.44   3,758   2.16
                                     
    Average NYMEX Price       2.27       75.72                
    Average Realized Price (including realized derivatives)       2.75       61.04       26.91       2.84
        Year Ended December 31, 2023
        Natural Gas   Oil   NGL   Total
        MMcf per day   $/Mcf   MBbl per day   $/Bbl   MBbl per day   $/Bbl   MMcfe per day   $/Mcfe
    Haynesville   1,551   2.30           1,551   2.30
    Northeast Appalachia   1,834   2.22           1,834   2.22
    Eagle Ford   85   2.25   21   77.80   10   25.62   274   7.64
    Total   3,470   2.25   21   77.80   10   25.62   3,659   2.66
                                     
    Average NYMEX Price       2.74       77.63                
    Average Realized Price (including realized derivatives)       2.64       72.89       25.62       2.99
                                     
         
    CAPITAL EXPENDITURES ACCRUED (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
        2024
      2023
      2024
      2023
    ($ in millions)                
    Drilling and completion capital expenditures:                
    Haynesville   $ 300     $ 187     $ 777     $ 891  
    Northeast Appalachia     97       119       377       443  
    Southwest Appalachia     103             103        
    Eagle Ford                       222  
    Total drilling and completion capital expenditures     500       306       1,257       1,556  
    Non-drilling and completion – field     51       50       157       150  
    Non-drilling and completion – corporate     42       20       115       76  
    Total capital expenditures   $ 593     $ 376     $ 1,529     $ 1,782  
                                     
       
    NON-GAAP FINANCIAL MEASURES  
       

    As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items.

    Expand Energy’s definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.

    Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

    Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.

    Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on natural gas and oil derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the company’s ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

    Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the company’s ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

    Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the company’s ability to service or incur debt and return cash to shareholders and is used to determine Expand Energy’s payout of enhanced returns framework. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

    Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.

    Present Value of Estimated Future Net Revenues or PV-10: Present Value of Estimated Future Net Revenues or PV-10 is defined as the estimated future gross revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices calculated as the average natural gas and oil price during the preceding 12-month period prior to the end of the current reporting period, (determined as the unweighted arithmetic average of prices on the first day of each month within the 12-month period) and costs in effect at the determination date (unless such costs are subject to change pursuant to contractual provisions), without giving effect to non-property related expenses such as general and administrative expenses, debt service and future income tax expense or to depreciation, depletion and amortization, discounted using an annual discount rate of 10%. PV-10 is derived from the standardized measure, which is the most directly comparable financial measure computed using GAAP and differs in that PV-10 does not include the effects of income taxes on future net revenues. Management uses PV-10, which is calculated without deducting estimated future income tax expenses, as a measure of the value of the Company’s current proved reserves and to compare relative values among peer companies. Present Value of Estimated Future Net Revenues or PV-10 should not be considered an alternative to, or more meaningful than, the standardized measure presented in accordance with GAAP. Neither PV-10 nor the standardized measure represents an estimate of the fair market value of the Company’s natural gas and oil properties.

         
    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
    ($ in millions)   2024   2023   2024   2023
    Net income (loss) (GAAP)   $ (399 )   $ 569     $ (714 )   $ 2,419  
                     
    Adjustments:                
    Unrealized (gains) losses on natural gas and oil derivatives     490       (347 )     979       (1,278 )
    Separation and other termination costs           2       23       5  
    Gains on sales of assets     (2 )     (139 )     (14 )     (946 )
    Other operating expense, net(a)     267       4       325       22  
    (Gains) losses on purchases, exchanges or extinguishments of debt     (1 )           1        
    Contract amortization     (57 )           (57 )      
    Other     (21 )     (18 )     (38 )     (37 )
    Tax effect of adjustments(b)     (146 )     114       (271 )     517  
    Adjusted net income (Non-GAAP)   $ 131     $ 185     $ 234     $ 702  
    (a)   The three- and twelve-month periods ended December 31, 2024 include an adjustment for costs incurred related to the Southwestern Merger.
    (b)   The three- and twelve-month periods ended December 31, 2024 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22% and the three- and twelve-month periods December 31, 2023 include a tax effect attributed to the reconciling adjustments using a statutory rate of 23%.
         
         
    RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
    ($/share)   2024   2023   2024   2023
    Earnings (loss) per common share (GAAP)   $ (1.72 )   $ 4.34     $ (4.55 )   $ 18.21  
    Effect of dilutive securities           (0.32 )           (1.29 )
    Diluted earnings (loss) per common share (GAAP)   $ (1.72 )   $ 4.02     $ (4.55 )   $ 16.92  
                     
    Adjustments:                
    Unrealized (gains) losses on natural gas and oil derivatives     2.12       (2.44 )     6.24       (8.94 )
    Separation and other termination costs           0.01       0.14       0.04  
    Gains on sales of assets     (0.01 )     (0.99 )     (0.09 )     (6.62 )
    Other operating expense, net(a)     1.16       0.03       2.07       0.15  
    (Gains) losses on purchases, exchanges or extinguishments of debt                 0.01        
    Contract amortization     (0.24 )           (0.36 )      
    Other     (0.09 )     (0.13 )     (0.24 )     (0.26 )
    Tax effect of adjustments(b)     (0.64 )     0.81       (1.73 )     3.62  
    Effect of dilutive securities     (0.03 )           (0.08 )      
    Adjusted diluted earnings per common share (Non-GAAP)   $ 0.55     $ 1.31     $ 1.41     $ 4.91  
    (a)   The three- and twelve-month periods ended December 31, 2024 include an adjustment for costs incurred related to the Southwestern Merger.
    (b)   The three- and twelve-month periods ended December 31, 2024 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22% and the three- and twelve-month periods December 31, 2023 include a tax effect attributed to the reconciling adjustments using a statutory rate of 23%.
         
         
    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
        2024   2023   2024   2023
    ($ in millions)                
    Net income (loss) (GAAP)   $ (399 )   $ 569     $ (714 )   $ 2,419  
                     
    Adjustments:                
    Interest expense     64       22       123       104  
    Income tax expense (benefit)     (22 )     166       (127 )     698  
    Depreciation, depletion and amortization     647       379       1,729       1,527  
    Exploration     3       8       10       27  
    Unrealized (gains) losses on natural gas and oil derivatives     490       (347 )     979       (1,278 )
    Separation and other termination costs           2       23       5  
    Gains on sales of assets     (2 )     (139 )     (14 )     (946 )
    Other operating expense, net(a)     267       4       325       22  
    (Gains) losses on purchases, exchanges or extinguishments of debt     (1 )           1        
    Contract amortization     (57 )           (57 )      
    Other     (26 )     (29 )     (83 )     (65 )
    Adjusted EBITDAX (Non-GAAP)   $ 964     $ 635     $ 2,195     $ 2,513  
    (a)   The three- and twelve-month periods ended December 31, 2024 include an adjustment for costs incurred related to the Southwestern Merger.
         
         
    RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)    
             
        Three Months Ended December 31,   Year Ended December 31,
        2024   2023   2024   2023
    ($ in millions)                
    Net cash provided by operating activities (GAAP)   $ 382     $ 470     $ 1,565     $ 2,380  
    Cash capital expenditures     (536 )     (379 )     (1,557 )     (1,829 )
    Free cash flow (Non-GAAP)     (154 )     91       8       551  
    Cash paid for merger expenses     231             269        
    Cash contributions to investments     (4 )     (82 )     (75 )     (231 )
    Free cash flow associated with divested assets(a)           (48 )           (243 )
    Adjusted free cash flow (Non-GAAP)   $ 73     $ (39 )   $ 202     $ 77  
    (a)   In March and April of 2023, we closed two divestitures of certain Eagle Ford assets. Due to the structure of these transactions, both of which had an effective date of October 1, 2022, the cash generated by these assets was delivered to the respective buyers through a reduction in the proceeds we received at the closing of each transaction. Additionally, in November 2023, we closed the divestiture of the final portion of our Eagle Ford assets, with an effective date of February 1, 2023 and the cash generated by these assets was delivered to the buyer through a reduction in the proceeds we received at the closing of the transaction.
         
         
    RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited)    
         
    ($ in millions)   December 31, 2024
    Total debt (GAAP)   $ 5,680  
    Premiums, discounts and issuance costs on debt     6  
    Principal amount of debt     5,686  
    Cash and cash equivalents     (317 )
    Net debt (Non-GAAP)   $ 5,369  
             
             
    PROVED RESERVES (unaudited)        
             
        SEC pricing(a)   Five-year strip pricing(b)
    ($ in millions)        
    Proved reserves (Bcfe)     20,800       26,816  
    Standardized measure   $ 7,531     $ 22,120  
    PV-10(c)   $ 7,567     $ 25,975  
    (a)   SEC proved reserves as of December 31, 2024 were based on a natural gas price of $2.13 per Mcf and an oil price of $75.48 per barrel of oil and NGL. Pricing was determined in accordance with the SEC requirement using the unweighted arithmetic average of the prices on the first day of each month within the 12-month period ended December 31, 2024. The average adjusted product prices weighted by production over the remaining lives of the properties are $0.65 per Mcf of gas, $65.16 per barrel of oil and $15.20 per barrel of NGL.
    (b)   Pricing used in the five-year strip pricing sensitivity reflects five-year strip pricing as of February 19, 2025 and held constant thereafter using (i) the NYMEX five-year strip adjusted for regional differentials using Henry Hub for gas and (ii) the NYMEX West Texas Intermediate five-year strip for oil, adjusted for regional differentials consistent with those used in the SEC pricing, and holding all other assumptions constant. The average adjusted product prices weighted by production over the remaining lives of the properties would be $2.35 per Mcf of gas, $54.16 per barrel of oil, and $12.86 per barrel of NGL.

    The NYMEX strip price for proved reserves and related metrics are intended to illustrate reserve sensitivities to market expectations of commodity prices and should not be confused with SEC pricing for proved reserves and do not comply with SEC pricing assumptions. Management believes that the presentation of reserve volume and related metrics using NYMEX forward strip prices provides investors with additional useful information about the Company’s reserves because the forward prices are based on the market’s forward-looking expectations of oil and gas prices as of a certain date. The price at which the Company can sell its production in the future is the major determinant of the likely economic producibility of the Company’s reserves. The Company hedges certain amounts of future production based on futures prices. In addition, the Company uses such forward-looking market-based data in developing its drilling plans, assessing its capital expenditure needs and projecting future cash flows. While NYMEX strip prices represent a consensus estimate of future pricing, such prices are only an estimate and are not necessarily an accurate projection of future oil and gas prices. Actual future prices may vary significantly from NYMEX prices; therefore, actual revenue and value generated may be more or less than the amounts disclosed. Investors should be careful to consider forward prices in addition to, and not as a substitute for, SEC pricing, when considering the Company’s reserves.

    (c)   PV-10 differs from the standardized measure because the former does not include the effects of estimated future income tax expense. PV-10 using SEC pricing excludes $36 million of estimated future income tax expense, and PV-10 using February 19, 2025 strip pricing excludes $3,855 million of estimated future income tax expense.
         
         
    INVESTOR CONTACT: MEDIA CONTACT: EXPAND ENERGY CORPORATION
    Chris Ayres Brooke Coe 6100 North Western Avenue
    (405) 935-8870 (405) 935-8878 P.O. Box 18496
    ir@expandenergy.com media@expandenergy.com Oklahoma City, OK 73154
         

    The MIL Network

  • MIL-OSI: Gibson Energy Announces 2024 Key Industry-Leading Sustainability Achievements and Safety Leadership

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 26, 2025 (GLOBE NEWSWIRE) — Gibson Energy Inc. (“Gibson” or the “Company”), a leading North American energy infrastructure company, today highlights the significant progress in its annual sustainability performance. The Company’s exceptional operational management and safety commitment to achieve zero harm to people, the environment and assets is foundational to these efforts. 2024 marked the Company’s latest safety leadership milestone by recording 8.8 million hours without a lost time injury for its employee and contract workforce.

    “Sustainable practices and operational safety will always be embedded into our day-to-day, and I’m proud of our team reaching this latest safety milestone,” said Curtis Philippon, President and Chief Executive Officer. “Looking broadly at our sustainability commitments, to be externally recognized by key global rating agencies, including the A- we recently received from the Climate Disclosure Project, scoring 96 out of 100 points in the Globe and Mail Board Games Governance Ranking and placing in the 97th percentile of all energy companies by the S&P Global Corporate Sustainability Assessment, reinforces the progress we made this year. Our focus will not change in 2025, we remain committed to safety, innovation, collaboration and accountability as we continue to work toward our ambitious goals.”

    Gibson’s sustainability strategy is built on strong governance and strategic initiatives that focus on long-term value for our shareholders, employees, communities, Indigenous Peoples, governments, customers and suppliers.

    “On behalf of the Management team, I’d also like to extend sincere thanks to our employees for their commitment to safety and our sustainability goals,” said Riley Hicks, Senior Vice President, Chief Financial Officer. “We will continue to build off this momentum, further leverage our world-class asset base and identify additional strategic growth opportunities to meet the evolving global energy demands.”

    2024 Ratings:

    The Company is proud to continue to rank at the top among its Canadian and US midstream peers, reaffirming its position as a global leader in sustainability.

    Rating Agency   Score / Ranking   Description of Score / Ranking
             
    MSCI ESG Risk Ratings   AAA   Gibson is one of only 10% of companies globally in the Oil & Gas Refining, Marketing, Transportation & Storage industry to receive this leadership rating

    Measurement of resilience to long-term, industry material ESG risks on a relative ranking from AAA being the best to CCC being the worst

    More information is available at www.msci.com

    CDP – Climate Change   A-   Maintained this leadership position within the CDP and among midstream peers for the fifth year in a row

    A- Supplier Engagement Rating

    A detailed and independent methodology is used by CDP with more information available at www.cdp.net

    S&P Global Corporate Sustainability Assessment   66   Gibson placed in the 97th percentile of all energy companies and was the highest scoring Canadian midstream company

    Gibson was recognized in the S&P Global Sustainability Yearbook for the fourth year in a row

    More information about The Sustainability Yearbook can be found here

    Sustainalytics ESG Risk Rating   16.0   Top 1% within Refiners & Pipelines industry group (2nd out of 208 companies)

    Gibson was once again recognized on the Sustainalytics 2024 Industry Top-Rated List

    More information about Sustainalytics is available at www.sustainalytics.com

    Globe and Mail Board Games Governance Ranking   12th   Top quartile, ranking 12th out of 215 companies and trusts in the S&P/TSX Composite Index

    Received a score of 96 based on a rigorous set of governance criteria on a scale of 100 being the best to 1 being the worst, tying the Company with a peer as the highest ranked energy company

             
    ISS Governance Quality Score   1   Denotes decile ranking score on a scale of 1 being the best to 10 being the worst, with a score of 1 indicating top 10% performance within Energy industry group
           
    ISS Environmental Quality Score   1  
           
    ISS Social Quality Score   2  


    Note: ESG ratings as at February 21, 2025

    Key Achievements:

    Environmental and Operations Impact

    • Published the 2023 Sustainability Report, detailing progress toward ambitious 2025 and 2030 ESG targets, including the Net Zero by 2050 commitment for Scope 1 and 2 emissions
    • Gibson, in its pursuit of Mission Zero, recorded 8.8 million hours without a lost time injury for its employee and contract workforce
    • Successfully completed the Gateway Terminal acquisition and implemented several key mitigation strategies to safeguard marine environments
    • Gibson received the ‘Union Pacific Railroad Pinnacle Award’, which recognizes customers who implement release prevention protocols, corrective action plans and have zero non-accident releases of regulated hazardous materials shipments
    • Continued to regularly conduct Process Hazard Analysis to proactively identify, monitor and mitigate any potential impacts to operational excellence

    Social Responsibility

    • Exceeded its 2025 target with over 24% racial and ethnic minority representation and 5% Indigenous representation in the workforce
    • Successfully implemented Gibson’s inaugural Indigenous Peoples Development Program and announced a partnership with the Canadian Council for Indigenous Business by participating in the PAIR program at the Committed level, both of which further embeds Indigenous Peoples culture, decision-making and business practices at all levels of the organization
    • Named as one of Alberta’s Top Employers and Canada’s Best Diversity Employers by the annual Canada’s Top 100 Employers Project for the third consecutive year
    • Maintained a best-in-class position in employee participation in our community giving program with a rate of 94%
    • Gibson was awarded the ‘Better Benefits Award’ from Fertility Matters Canada for its leadership position in creating a family-friendly benefit plan and also, the ‘Best Wellness Program’ at the Canada’s Safest Employers Awards

    Governance and Transparency

    • In the Globe & Mail annual Board Games results, Gibson ranked 12th out of 215 companies, scoring 96 out of 100 points, which recognized the company’s approach to strong governance practices and tied the Company with a peer as the highest ranked energy company
    • Ahead of the 2025 target dates, achieved both Governance ESG targets by having 50% female representation and three racial, ethnic and or Indigenous representation on its Board of Directors
    • In line with the Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act, published its inaugural Modern Slavery Report
    • Demonstrated a commitment to responsible procurement with 100% participation and completion of Supply Chain Human Rights training by members of Supply Chain Management, Legal and Sustainability teams
    • Published Gibson’s Sustainability Policy, which formalizes the Company’s long-standing sustainability commitments and enhances the governance approach

    Additional information on Gibson’s approach to Sustainability and ESG, is available at: https://www.gibsonenergy.com/sustainability.

    About Gibson
    Gibson is a leading liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products, as well as waterborne vessel loading. Headquartered in Calgary, Alberta, the Company’s operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside and Wink, Texas, and a facility in Moose Jaw, Saskatchewan.

    Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.

    Advisory Statements

    Definitions
    Scope 1 emissions are direct emissions from facilities owned and operated by Gibson.

    Scope 2 emissions are indirect emissions from the generation of purchased energy for Gibson’s owned and operated facilities.

    All references in this press release to Net Zero include Scope 1 and Scope 2 emissions only. Targets currently do not include the Gateway Terminal.

    All references in this press release to Gibson’s business and asset base are only inclusive of the equity portion of facilities Gibson owns and operates.

    Forward-Looking Statements

    Certain statements contained in this press release constitute forward-looking information and statements (collectively, forward-looking statements). These statements relate to future events or future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “aim”, “target”, “goal”, “contemplate”, “continue”, “commit”, “estimate”, “expect”, “future”, “forecast”, “forward”, “further”, “intend”, “long-term”, “propose”, “might”, “may”, “maintain”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”, “opportunity”, “predict”, “pursue”, “potential” and “progress” and similar expressions are intended to identify forward-looking statements. The forward-looking statements reflect Gibson’s beliefs and assumptions with respect to, among other things, its commitment to sustainability, ESG leadership and strong governance practices, its focus areas for 2025, its commitment to, and ability to maintain, its position as an industry ESG and sustainability leader; its ability to identify and realize opportunities to advance its sustainability journey and leverage its asset base and growth opportunities to a more secure and resilient energy future; its commitment to a safe and effective working environment; its sustainability strategy generating long-term value for key stakeholders; its Mission Zero commitment and the efforts undertaken to achieve such goal; the anticipated benefits of its renewable PPA and the timing thereof; the impact of the acquisition of STGT on Gibson’s sustainability profile; its ability to improve its operations, including with respect to emission reductions, biodiversity and Indigenous relations; its ESG goals, including its 2025 and 2030 ESG goals and its Net Zero by 2050 commitment; embedding Truth and Reconciliation principles into its culture and business practices; Gibson’s future climate and ESG targets and metrics and future ambitions, the global energy transition, and other assumptions inherent in management’s expectations in respect of the forward-looking statements identified herein.

    Forward-looking statements involve known and unknown risks, assumptions, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Gibson believes these statements to be reasonable, no assurance can be given that the results or events anticipated in these forward-looking statements will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. Actual results or events could differ materially from those anticipated in these forward-looking statements as a result of, among other things, Gibson’s ability to execute its current strategy, related milestones; Gibson’s ability to meet its sustainability and ESG goals; risks inherent in applicable laws and government policies; economic, societal, political and industry trends; Gibson’s ability to access capital; Gibson’s ability to obtain the anticipated benefits of the acquisition of STGT and its renewable PPA; risks inherent our business and the businesses of our industry partners; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, materials, services and infrastructure; the development and execution of projects; prices of crude oil, natural gas, natural gas liquids and renewable energy; the development, performance and viability of technology and new energy efficient products, services and programs including but not limited to the use of zero-emission and renewable fuels, carbon capture and storage, electrification of equipment powered by zero-emission energy sources and utilization and availability of carbon offsets; assumptions relating to long-term energy future scenarios; carbon price outlook; the cooperation of joint venture partners in reaching the Net Zero by 2050 commitment and other ESG goals; the power system transformation and grid modernization; levels of demand for our services and the rate of return for such services; the likelihood, timing and financial impact of certain risks and uncertainties described under the heading “Risk Factors” and “Forward-Looking Information” in our current annual and interim management’s discussion and analysis and Annual Information Form (“AIF”) and identified in other documents the Company files from time to time with securities regulatory authorities, in each case as filed on SEDAR+ at www.sedarplus.ca and available on the Gibson website at www.gibsonenergy.com.

    The forward-looking statements contained in this press release represent Gibson’s expectations as of the date hereof and are subject to change after such date. Gibson disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable laws. Readers are cautioned that the foregoing lists are not exhaustive. For a full discussion of our material risk factors, see “Risk Factors” in our current annual and interim management’s discussion and analysis and AIF, in each case as filed on SEDAR+ at www.sedarplus.ca and available on the Gibson website at www.gibsonenergy.com.

    For further information, please contact:

    Investor Relations:
    (403) 776-3077
    investor.relations@gibsonenergy.com

    Media Relations:
    (403) 476-6334
    communications@gibsonenergy.com

    The MIL Network

  • MIL-OSI: ARKO Corp. Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    RICHMOND, Va., Feb. 26, 2025 (GLOBE NEWSWIRE) — ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the fourth quarter and the full year ended December 31, 2024.

    Fourth Quarter and Full Year 2024 Key Highlights (vs. Year-Ago Period)1,2

    • Net loss for the quarter was $2.3 million compared to net income of $1.1 million.  For the year, net income was $20.8 million compared to $34.6 million.
    • Adjusted EBITDA for the quarter was $56.8 million compared to $61.8 million.  For the year, Adjusted EBITDA was $248.9 million compared to $276.3 million. 
    • Merchandise margin rate for the quarter increased to 33.0% compared to 32.9%.  For the year, merchandise margin rate increased to 32.8% compared to 31.8%.
    • Merchandise contribution for the quarter was $134.9 million compared to $146.8 million; more than half of the merchandise contribution decline for the quarter was associated with the Company’s accretive dealerization program.  For the year, merchandise contribution was $579.6 million compared to $585.1 million.
    • Retail fuel margin for the quarter was 38.7 cents per gallon compared to 39.2 cents per gallon, resulting from macroeconomically-driven lower fuel prices and reduced price volatility. For the year, retail fuel margin increased to 39.6 cents per gallon compared to 38.8 cents per gallon.
    • Retail fuel contribution for the quarter was $100.2 million compared to $109.3 million. For the year, retail fuel contribution was $428.2 million compared to $435.3 million.

    Other Key Highlights

    • As part of the Company’s developing transformation plan, the Company converted 153 retail stores to dealer sites during the year ended December 31, 2024, including approximately 100 stores converted in the fourth quarter of 2024. The Company expects to convert a meaningful number of additional stores throughout 2025, including another approximately 100 retail stores by the end of the first quarter of 2025. The stores converted to dealer locations in 2024 are expected to produce an annualized benefit to combined wholesale segment and retail segment operating income of approximately $8.5 million. The Company now expects that, at scale, its channel optimization will yield a cumulative annualized benefit of operating income in excess of $20 million. This channel optimization is also expected to enable the Company to better focus and prioritize future investments in its remaining retail stores.
    • In 2024, the Company expanded its planned pipeline of NTI (new-to-industry) stores to eight, including two stores that opened in 2024 and an additional two stores opened in the first quarter of 2025. The Company expects to open the four remaining NTI locations over the course of 2025.
    • The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on March 21, 2025 to stockholders of record as of March 10, 2025.

    1 See Use of Non-GAAP Measures below.
    2 All figures for fuel costs, fuel contribution and fuel margin per gallon exclude the estimated fixed margin or fixed fee paid to the Company’s wholesale fuel distribution subsidiary, GPM Petroleum LP (“GPMP”) for the cost of fuel (intercompany charges by GPMP).

    “We navigated a challenging macroeconomic environment in 2024, while advancing the development of our multi-year transformation plan,” said Arie Kotler, Chairman, President, and CEO of ARKO. “We made progress with our dealerization program by strategically refining our retail footprint, strengthening merchandising initiatives, and enhancing customer engagement through value-driven promotions for in-store merchandise and, more recently, a more aggressive value offer at the pump. Our focus on operational efficiencies and the dealerization program allowed us to manage through industry-wide headwinds while making strategic investments in high-growth areas, such as food service and other tobacco products to meet evolving customer preferences.”

    Mr. Kotler continued: “Looking ahead to 2025, we remain committed to driving sustainable long-term growth and value creation for our stakeholders. We plan to strengthen our competitiveness by continuing to invest in higher-growth categories, delivering further value to our customers and further optimizing our store portfolio. We are acutely focused on delivering innovative, value-driven solutions that enhance the customer experience while maximizing profitability and expanding revenue opportunities.”

    Fourth Quarter and Full Year 2024 Segment Highlights

    Retail

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Fuel gallons sold   258,856       279,035       1,080,990       1,122,321  
    Same store fuel gallons sold decrease (%) 1   (4.4 %)     (7.5 %)     (6.1 %)     (5.3 %)
    Fuel contribution 2 $ 100,212     $ 109,336     $ 428,216     $ 435,322  
    Fuel margin, cents per gallon 3   38.7       39.2       39.6       38.8  
    Same store fuel contribution 1,2 $ 96,830     $ 104,262     $ 403,503     $ 422,090  
    Same store merchandise sales (decrease) increase (%) 1   (4.3 %)     (2.8 %)     (5.4 %)     0.4 %
    Same store merchandise sales excluding cigarettes (decrease) increase (%) 1   (2.1 %)     (1.8 %)     (3.8 %)     2.5 %
    Merchandise revenue $ 408,826     $ 446,727     $ 1,767,345     $ 1,838,001  
    Merchandise contribution 4 $ 134,873     $ 146,773     $ 579,569     $ 585,122  
    Merchandise margin 5   33.0 %     32.9 %     32.8 %     31.8 %
    Same store merchandise contribution 1,4 $ 129,376     $ 135,532     $ 543,368     $ 560,321  
    Same store site operating expenses 1 $ 179,302     $ 181,527     $ 736,727     $ 737,158  
                           
    Same store is a common metric used in the convenience store industry. The Company considers a store a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. Refer to Use of Non-GAAP Measures below for discussion of this measure.  
    Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.  
    Calculated as fuel contribution divided by fuel gallons sold.  
    Calculated as merchandise revenue less merchandise costs.  
    Calculated as merchandise contribution divided by merchandise revenue.  
       

    Merchandise contribution for the fourth quarter of 2024 decreased $11.9 million, or 8.1%, compared to the fourth quarter of 2023, while merchandise margin increased to 33.0% in the fourth quarter of 2024 compared to 32.9% in 2023. The decrease in merchandise contribution was due to a decrease in same store merchandise contribution of $6.2 million and a decrease of $7.7 million related to underperforming retail stores that were closed or converted to dealers, partially offset by an increase in merchandise contribution of $2.0 million from the SpeedyQ acquisition that closed in April 2024.  Merchandise contribution at same stores decreased in the fourth quarter of 2024 primarily due to lower contribution from several core destination categories and cigarettes, partially offset by higher contribution from other tobacco products.

    For the year ended December 31, 2024, merchandise contribution decreased $5.6 million, or 0.9%, compared to the year ended December 31, 2023, while merchandise margin increased to 32.8% in 2024 from 31.8% in 2023. The decrease in merchandise contribution was due to a decrease in same store merchandise contribution of $17.0 million and a decrease in merchandise contribution of $11.6 million related to underperforming retail stores that were closed or converted to dealers, partially offset by incremental merchandise contribution from recent acquisitions of $21.7 million.

    For the fourth quarter of 2024, retail fuel contribution decreased $9.1 million to $100.2 million compared to the prior year period, with a same store fuel contribution decrease of $7.4 million attributable to gallon demand declines reflecting the challenging macro-economic environment. Fuel margin of 38.7 cents per gallon was down 0.5 cents per gallon compared to the fourth quarter of 2023, resulting from lower fuel costs and reduced price volatility this year. In addition, a decrease in retail fuel contribution of $3.7 million was related to underperforming retail stores that were closed or converted to dealers, partially offset by incremental fuel contribution from the SpeedyQ acquisition of approximately $1.8 million. 

    For the year ended December 31, 2024, fuel contribution decreased $7.1 million, or 1.6%, compared to the year ended December 31, 2023, while fuel margin per gallon increased. Same store fuel margin per gallon for 2024 increased to 39.7 cents per gallon from 39.0 cents per gallon for 2023. Incremental fuel contribution from recent acquisitions of approximately $16.8 million was more than offset by a decrease in same store fuel contribution of $18.6 million. In addition, a decrease in fuel contribution of $6.1 million was related to underperforming retail stores that were closed or converted to dealers compared to 2023.

    Wholesale

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Fuel gallons sold – fuel supply locations   201,317       199,861       794,796       801,260  
    Fuel gallons sold – consignment agent locations   38,563       40,144       154,560       168,005  
    Fuel contribution – fuel supply locations $ 12,004     $ 11,499     $ 47,930     $ 48,396  
    Fuel contribution – consignment agent locations $ 10,270     $ 10,101     $ 42,420     $ 44,512  
    Fuel margin, cents per gallon – fuel supply locations   6.0       5.8       6.0       6.0  
    Fuel margin, cents per gallon – consignment agent locations   26.6       25.2       27.4       26.5  
                           
    Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.  
    Calculated as fuel contribution divided by fuel gallons sold.  
       

    Fuel contribution was approximately $22.3 million for the fourth quarter of 2024 compared to $21.6 million for the fourth quarter of 2023. Fuel contribution for the fourth quarter of 2024 at fuel supply locations increased by $0.5 million, and fuel contribution at consignment agent locations increased by $0.2 million, as compared to the prior year period, with fuel margin increases of 0.2 cents per gallon and 1.4 cents per gallon, respectively. For the fourth quarter of 2024, other revenues, net, increased by approximately $1.8 million, while site operating expenses increased by $0.6 million compared to the prior year period, resulting from the retail stores that were converted to dealers.

    For the year ended December 31, 2024, wholesale operating income increased $0.8 million, compared to 2023. An increase of approximately $3.4 million in other revenues, net, was partially offset by a decrease in fuel contribution of approximately $2.6 million in 2024 compared to 2023. At fuel supply locations, fuel contribution decreased by $0.5 million, and fuel margin per gallon remained consistent with 2023, primarily due to decreased prompt pay discounts related to lower fuel costs and lower volumes at comparable wholesale sites, which was partially offset by incremental contribution from recent acquisitions and the retail stores converted to dealers. At consignment agent locations, fuel contribution decreased $2.1 million while fuel margin per gallon increased for 2024 compared to 2023, primarily due to incremental contribution from recent acquisitions and the retail stores converted to dealers, which was offset by lower rack-to-retail margins and decreased prompt pay discounts related to lower fuel costs.

    Fleet Fueling

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Fuel gallons sold – proprietary cardlock locations   32,888       33,285       136,104       130,995  
    Fuel gallons sold – third-party cardlock locations   3,239       3,201       12,814       9,832  
    Fuel contribution – proprietary cardlock locations $ 15,823     $ 13,146     $ 62,612     $ 54,685  
    Fuel contribution – third-party cardlock locations $ 509     $ 245     $ 1,677     $ 1,215  
    Fuel margin, cents per gallon – proprietary cardlock locations   48.1       39.5       46.0       41.7  
    Fuel margin, cents per gallon – third-party cardlock locations   15.8       7.6       13.1       12.4  
                           
    Calculated as fuel revenue less fuel costs; excludes the estimated fixed fee paid to GPMP for the cost of fuel.  
    Calculated as fuel contribution divided by fuel gallons sold.  
       

    For the fourth quarter of 2024, fuel contribution increased by $2.9 million compared to the fourth quarter of 2023. At proprietary cardlocks, fuel contribution increased by $2.7 million, and fuel margin per gallon also increased for the fourth quarter of 2024 compared to the fourth quarter of 2023. At third-party cardlock locations, fuel contribution increased by $0.3 million, and fuel margin per gallon also increased for the fourth quarter of 2024 compared to the fourth quarter of 2023.

    For the year ended December 31, 2024, fuel contribution increased by $8.4 million compared to the year ended December 31, 2023. At proprietary cardlocks, fuel contribution increased by $7.9 million, and fuel margin per gallon also increased for the year ended December 31, 2024, compared to the year ended December 31, 2023. At third-party cardlock locations, fuel contribution increased $0.5 million, and fuel margin per gallon also increased for 2024 compared to 2023. These changes were primarily due to higher volumes and the cardlocks acquired in the Company’s acquisition of certain sites from WTG Fuels Holdings, LLC in 2023.

    Site Operating Expenses

    For the quarter ended December 31, 2024, convenience store operating expenses decreased $13.0 million, or 6.5%, compared to the prior year period primarily due to a decrease of $14.3 million from underperforming retail stores that were closed or converted to dealers and a decrease in same store operating expenses of $2.2 million, or 1.2%. The decrease in convenience store operating expenses was partially offset by incremental expenses related to the SpeedyQ acquisition that closed in April 2024.

    For the year ended December 31, 2024, convenience store operating expenses increased $11.2 million, or 1.4%, as compared to the year ended December 31, 2023, primarily due to $33.1 million of incremental expenses related to recent acquisitions. The increase in site operating expenses was partially offset by a decrease in same store operating expenses of $0.4 million, and $22.1 million of reduced expenses for underperforming retail stores that were closed or converted to dealers.

    Liquidity and Capital Expenditures

    As of December 31, 2024, the Company’s total liquidity was approximately $841 million, consisting of approximately $262 million of cash and cash equivalents and approximately $579 million of availability under lines of credit. Outstanding debt was $881 million, resulting in net debt, excluding lease related financing liabilities, of approximately $619 million. Capital expenditures were $36.1 million, and $113.9 million for the quarter and year ended December 31, 2024, respectively. 

    Quarterly Dividend and Share Repurchase Program

    The Company’s ability to return cash to its stockholders through its cash dividend program and share repurchase program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position.

    The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on March 21, 2025 to stockholders of record as of March 10, 2025.

    There was approximately $25.7 million remaining under the share repurchase program as of December 31, 2024. 

    Company-Operated Retail Store Count and Segment Update

    The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented:

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
    Retail Segment 2024     2023     2024     2023  
    Number of sites at beginning of period   1,491       1,552       1,543       1,404  
    Acquired sites               21       166  
    Newly opened or reopened sites   1             3       4  
    Company-controlled sites converted to                      
    consignment or fuel supply locations, net   (102 )     (3 )     (153 )     (16 )
    Sites closed, divested or converted to rentals   (1 )     (6 )     (25 )     (15 )
    Number of sites at end of period   1,389       1,543       1,389       1,543  
                                   
      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
    Wholesale Segment 1 2024     2023     2024     2023  
    Number of sites at beginning of period   1,832       1,825       1,825       1,674  
    Acquired sites                     190  
    Newly opened or reopened sites 2   9       25       39       83  
    Consignment or fuel supply locations converted                      
    from Company-controlled or fleet fueling sites, net   102       2       153       15  
    Closed or divested sites   (21 )     (27 )     (95 )     (137 )
    Number of sites at end of period   1,922       1,825       1,922       1,825  
                           
    Excludes bulk and spot purchasers.  
    Includes all signed fuel supply agreements irrespective of fuel distribution commencement date.  
       
      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
    Fleet Fueling Segment 2024     2023     2024     2023  
    Number of sites at beginning of period   281       295       298       183  
    Acquired sites                     111  
    Newly opened or reopened sites         2       1       6  
    Fleet fueling locations converted                      
    from fuel supply locations, net         1             1  
    Closed or divested sites   (1 )           (19 )     (3 )
    Number of sites at end of period   280       298       280       298  
                                   

    First Quarter and Full Year 2025 Guidance

    The Company currently expects first quarter 2025 Adjusted EBITDA to range between $27 million and $33 million, with an assumed range of average retail fuel margin from 37.0 to 39.0 cents per gallon. The Company currently expects full year 2025 Adjusted EBITDA to range between $233 million and $253 million, with an assumed range of average retail fuel margin from 39.5 to 41.5 cents per gallon.   

    The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth.

    Conference Call and Webcast Details

    The Company will host a conference call today, February 26, 2025, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-605-1792 or 201-689-8728.

    A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days.

    About ARKO Corp.

    ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

    Forward-Looking Statements

    This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

    Use of Non-GAAP Measures

    The Company discloses certain measures on a “same store basis,” which is a non-GAAP measure. Information disclosed on a “same store basis” excludes the results of any store that is not a “same store” for the applicable period. A store is considered a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. The Company believes that this information provides greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”).

    The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition and divestiture costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures.

    The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance.

    EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be considered as a substitute for net income or any other financial measure presented in accordance with GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

    Because non-GAAP financial measures are not standardized, same store measures, EBITDA and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies.

    Company Contact
    Jordan Mann
    ARKO Corp.
    investors@gpminvestments.com

    Investor Contact
    Sean Mansouri, CFA
    Elevate IR
    (720) 330-2829
    ARKO@elevate-ir.com

      Consolidated Statements of Operations  
      For the Three Months
    Ended December 31,
        For the Year Ended
    December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Revenues:                      
    Fuel revenue $ 1,556,185     $ 1,759,216     $ 6,858,919     $ 7,464,372  
    Merchandise revenue   408,826       446,727       1,767,345       1,838,001  
    Other revenues, net   27,098       27,217       105,698       110,358  
    Total revenues   1,992,109       2,233,160       8,731,962       9,412,731  
    Operating expenses:                      
    Fuel costs   1,416,234       1,613,230       6,271,696       6,876,084  
    Merchandise costs   273,953       299,954       1,187,776       1,252,879  
    Site operating expenses   209,906       222,751       875,272       860,134  
    General and administrative expenses   39,690       38,102       162,920       165,294  
    Depreciation and amortization   33,989       32,648       132,414       127,597  
    Total operating expenses   1,973,772       2,206,685       8,630,078       9,281,988  
    Other expenses, net   3,962       1,168       7,858       12,729  
    Operating income   14,375       25,307       94,026       118,014  
    Interest and other financial income   4,229       2,197       30,591       20,273  
    Interest and other financial expenses   (23,942 )     (25,099 )     (97,752 )     (91,516 )
    (Loss) income before income taxes   (5,338 )     2,405       26,865       46,771  
    Income tax benefit (expense)   2,995       (1,317 )     (6,144 )     (12,166 )
    Income (loss) from equity investment   45       38       124       (39 )
    Net (loss) income $ (2,298 )   $ 1,126     $ 20,845     $ 34,566  
    Less: Net income attributable to non-controlling interests         48             197  
    Net (loss) income attributable to ARKO Corp. $ (2,298 )   $ 1,078     $ 20,845     $ 34,369  
    Series A redeemable preferred stock dividends   (1,445 )     (1,449 )     (5,750 )     (5,750 )
    Net (loss) income attributable to common shareholders $ (3,743 )   $ (371 )   $ 15,095     $ 28,619  
    Net (loss) income per share attributable to common shareholders – basic $ (0.03 )   $ (0.00 )   $ 0.13     $ 0.24  
    Net (loss) income per share attributable to common shareholders – diluted $ (0.03 )   $ (0.00 )   $ 0.13     $ 0.24  
    Weighted average shares outstanding:                      
    Basic   115,771       116,638       116,139       118,782  
    Diluted   115,771       116,638       116,949       119,605  
                                   
      Consolidated Balance Sheets  
      December 31, 2024     December 31, 2023  
      (in thousands)  
    Assets          
    Current assets:          
    Cash and cash equivalents $ 261,758     $ 218,120  
    Restricted cash   30,650       23,301  
    Short-term investments   5,330       3,892  
    Trade receivables, net   95,832       134,735  
    Inventory   231,225       250,593  
    Other current assets   97,413       118,472  
    Total current assets   722,208       749,113  
    Non-current assets:          
    Property and equipment, net   747,548       742,610  
    Right-of-use assets under operating leases   1,386,244       1,384,693  
    Right-of-use assets under financing leases, net   157,999       162,668  
    Goodwill   299,973       292,173  
    Intangible assets, net   182,355       214,552  
    Equity investment   3,009       2,885  
    Deferred tax asset   67,689       52,293  
    Other non-current assets   53,633       49,377  
    Total assets $ 3,620,658     $ 3,650,364  
    Liabilities          
    Current liabilities:          
    Long-term debt, current portion $ 12,944     $ 16,792  
    Accounts payable   190,212       213,657  
    Other current liabilities   159,239       179,536  
    Operating leases, current portion   71,580       67,053  
    Financing leases, current portion   11,515       9,186  
    Total current liabilities   445,490       486,224  
    Non-current liabilities:          
    Long-term debt, net   868,055       828,647  
    Asset retirement obligation   87,375       84,710  
    Operating leases   1,408,293       1,395,032  
    Financing leases   211,051       213,032  
    Other non-current liabilities   223,528       266,602  
    Total liabilities   3,243,792       3,274,247  
                   
    Series A redeemable preferred stock   100,000       100,000  
               
    Shareholders’ equity:          
    Common stock   12       12  
    Treasury stock   (106,123 )     (74,134 )
    Additional paid-in capital   276,681       245,007  
    Accumulated other comprehensive income   9,119       9,119  
    Retained earnings   97,177       96,097  
    Total shareholders’ equity   276,866       276,101  
    Non-controlling interest         16  
    Total equity   276,866       276,117  
    Total liabilities, redeemable preferred stock and equity $ 3,620,658     $ 3,650,364  
                   
      Consolidated Statements of Cash Flows  
      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Cash flows from operating activities:                      
    Net (loss) income $ (2,298 )   $ 1,126     $ 20,845     $ 34,566  
    Adjustments to reconcile net (loss) income to net cash provided by operating activities:                      
    Depreciation and amortization   33,989       32,648       132,414       127,597  
    Deferred income taxes   (9,136 )     (652 )     (12,796 )     (4,680 )
    Loss on disposal of assets and impairment charges   1,661       660       6,798       6,203  
    Foreign currency (gain) loss   (6 )     (101 )     35       29  
    Gain from issuance of shares as payment of deferred consideration related to business acquisition               (2,681 )      
    Gain from settlement related to business acquisition               (6,356 )      
    Amortization of deferred financing costs and debt discount   669       661       2,669       2,518  
    Amortization of deferred income   (4,351 )     (1,840 )     (14,477 )     (8,142 )
    Accretion of asset retirement obligation   661       709       2,532       2,399  
    Non-cash rent   3,530       3,750       14,335       14,168  
    Charges to allowance for credit losses   112       244       845       1,265  
    (Income) loss from equity investment   (45 )     (38 )     (124 )     39  
    Share-based compensation   4,077       1,777       12,339       15,015  
    Fair value adjustment of financial assets and liabilities   (222 )     842       (10,985 )     (10,785 )
    Other operating activities, net   (627 )     352       125       2,631  
    Changes in assets and liabilities:                      
    Decrease (increase) in trade receivables   21,946       44,550       38,058       (17,937 )
    Decrease (increase) in inventory   5,262       15,373       22,689       (2,013 )
    (Increase) decrease in other assets   (16 )     (957 )     13,893       (29,386 )
    Decrease in accounts payable   (18,032 )     (35,836 )     (24,169 )     (6,169 )
    (Decrease) increase in other current liabilities   (20,664 )     (8,002 )     (2,820 )     990  
    Decrease in asset retirement obligation   (634 )     (69 )     (917 )     (23 )
    Increase in non-current liabilities   6,852       2,090       29,606       7,809  
    Net cash provided by operating activities   22,728       57,287       221,858       136,094  
    Cash flows from investing activities:                      
    Purchase of property and equipment   (36,133 )     (35,561 )     (113,914 )     (111,164 )
    Purchase of intangible assets                     (45 )
    Proceeds from sale of property and equipment   2,196       3,134       53,549       310,240  
    Business and asset acquisitions, net of cash         33       (54,549 )     (494,871 )
    Prepayment for acquisitions         (1,000 )           (1,000 )
    Loans to equity investment, net   14       18       56       18  
    Net cash used in investing activities   (33,923 )     (33,376 )     (114,858 )     (296,822 )
    Cash flows from financing activities:                      
    Receipt of long-term debt, net         20,810       47,556       99,643  
    Repayment of debt   (5,794 )     (5,640 )     (26,357 )     (22,157 )
    Principal payments on financing leases   (1,360 )     (1,260 )     (4,940 )     (5,497 )
    Early settlement of deferred consideration related to business acquisition               (17,155 )      
    Proceeds from sale-leaseback                     80,397  
    Payment of Additional Consideration   (3,354 )     (3,505 )     (3,354 )     (3,505 )
    Payment of Ares Put Option                     (9,808 )
    Common stock repurchased         (8,495 )     (31,989 )     (33,694 )
    Dividends paid on common stock   (3,473 )     (3,497 )     (14,015 )     (14,272 )
    Dividends paid on redeemable preferred stock   (1,445 )     (1,449 )     (5,750 )     (5,750 )
    Net cash (used in) provided by financing activities   (15,426 )     (3,036 )     (56,004 )     85,357  
    Net (decrease) increase in cash and cash equivalents and restricted cash   (26,621 )     20,875       50,996       (75,371 )
    Effect of exchange rate on cash and cash equivalents and restricted cash   18       106       (9 )     23  
    Cash and cash equivalents and restricted cash, beginning of period   319,011       220,440       241,421       316,769  
    Cash and cash equivalents and restricted cash, end of period $ 292,408     $ 241,421     $ 292,408     $ 241,421  
                                   

    Supplemental Disclosure of Non-GAAP Financial Information

      Reconciliation of EBITDA and Adjusted EBITDA  
      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Net (loss) income $ (2,298 )   $ 1,126     $ 20,845     $ 34,566  
    Interest and other financing expenses, net   19,713       22,902       67,161       71,243  
    Income tax (benefit) expense   (2,995 )     1,317       6,144       12,166  
    Depreciation and amortization   33,989       32,648       132,414       127,597  
    EBITDA   48,409       57,993       226,564       245,572  
    Acquisition and divestiture costs (a)   1,249       1,099       5,168       9,079  
    Loss on disposal of assets and impairment charges (b)   1,661       660       6,798       6,203  
    Share-based compensation expense (c)   4,077       1,777       12,339       15,015  
    (Income) loss from equity investment (d)   (45 )     (38 )     (124 )     39  
    Fuel and franchise taxes received in arrears (e)               (1,427 )      
    Adjustment to contingent consideration (f)   978       68       (20 )     (604 )
    Other (g)   519       230       (438 )     956  
    Adjusted EBITDA $ 56,848     $ 61,789     $ 248,860     $ 276,260  
                           
    Additional information                      
    Non-cash rent expense (h)   3,530       3,750       14,335       14,168  
                           
    (a) Eliminates costs incurred that are directly attributable to business acquisitions and divestitures (including conversion of retail stores to dealer sites) and salaries of employees whose primary job function is to execute the Company’s acquisition and divestiture strategy and facilitate integration of acquired operations. 
                           
    (b) Eliminates the non-cash loss from the sale or disposal of property and equipment, the loss recognized upon the sale of related leased assets, and impairment charges on property and equipment and right-of-use assets related to closed and non-performing sites. 
                           
    (c) Eliminates non-cash share-based compensation expense related to the equity incentive program in place to incentivize, retain, and motivate employees, certain non-employees and members of the Board. 
                           
    (d) Eliminates the Company’s share of (income) loss attributable to its unconsolidated equity investment. 
                           
    (e) Eliminates the receipt of historical fuel and franchise tax amounts for multiple prior periods. 
                           
    (f) Eliminates fair value adjustments to the contingent consideration owed to the seller for the 2020 Empire acquisition. 
                           
    (g) Eliminates other unusual or non-recurring items that the Company does not consider to be meaningful in assessing operating performance. 
                           
    (h) Non-cash rent expense reflects the extent to which GAAP rent expense recognized exceeded (or was less than) cash rent payments. GAAP rent expense varies depending on the terms of the Company’s lease portfolio. For newer leases, rent expense recognized typically exceeds cash rent payments, whereas, for more mature leases, rent expense recognized is typically less than cash rent payments. 
     

    Supplemental Disclosures of Segment Information

    Retail Segment

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Revenues:                      
    Fuel revenue $ 779,352     $ 913,534     $ 3,509,935     $ 3,858,777  
    Merchandise revenue   408,826       446,727       1,767,345       1,838,001  
    Other revenues, net   15,768       17,104       65,264       74,406  
    Total revenues   1,203,946       1,377,365       5,342,544       5,771,184  
    Operating expenses:                      
    Fuel costs 1   679,140       804,198       3,081,719       3,423,455  
    Merchandise costs   273,953       299,954       1,187,776       1,252,879  
    Site operating expenses   187,981       200,952       790,645       779,448  
    Total operating expenses   1,141,074       1,305,104       5,060,140       5,455,782  
    Operating income $ 62,872     $ 72,261     $ 282,404     $ 315,402  
                           
    Excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.  
       

    The table below shows financial information and certain key metrics of the SpeedyQ acquisition in the Retail Segment for which there is no comparable information for any of the prior periods.

      For the Three Months
    Ended December 31, 2024
        For the Year
    Ended December 31, 2024
     
      SpeedyQ 1  
      (in thousands)  
    Date of Acquisition: April 9, 2024  
    Revenues:          
    Fuel revenue $ 11,359     $ 38,937  
    Merchandise revenue   6,469       20,719  
    Other revenues, net   311       809  
    Total revenues   18,139       60,465  
    Operating expenses:          
    Fuel costs 2   9,580       33,455  
    Merchandise costs   4,473       14,709  
    Site operating expenses   3,373       9,760  
    Total operating expenses   17,426       57,924  
    Operating income $ 713     $ 2,541  
    Fuel gallons sold   3,768       11,865  
    Fuel contribution 3 $ 1,779     $ 5,482  
    Merchandise contribution 4 $ 1,996     $ 6,010  
    Merchandise margin 5   30.9 %     29.0 %
               
    Acquisition of seven Speedy’s retail stores.  
    Excludes the estimated fixed margin paid to GPMP for the cost of fuel.  
    Calculated as fuel revenue less fuel costs.  
    Calculated as merchandise revenue less merchandise costs.  
    Calculated as merchandise contribution divided by merchandise revenue.  
       

    Wholesale Segment

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Revenues:                      
    Fuel revenue $ 652,016     $ 700,026     $ 2,799,869     $ 3,039,904  
    Other revenues, net   8,681       6,909       29,140       25,775  
    Total revenues   660,697       706,935       2,829,009       3,065,679  
    Operating expenses:                      
    Fuel costs 1   629,742       678,426       2,709,519       2,946,996  
    Site operating expenses   10,997       10,400       39,679       39,703  
    Total operating expenses   640,739       688,826       2,749,198       2,986,699  
    Operating income $ 19,958     $ 18,109     $ 79,811     $ 78,980  
                           
    Excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.  
       

    Fleet Fueling Segment

      For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
      2024     2023     2024     2023  
      (in thousands)  
    Revenues:                      
    Fuel revenue $ 117,196     $ 136,801     $ 515,462     $ 530,937  
    Other revenues, net   2,131       2,616       9,135       7,818  
    Total revenues   119,327       139,417       524,597       538,755  
    Operating expenses:                      
    Fuel costs 1   100,864       123,410       451,173       475,037  
    Site operating expenses   6,056       6,259       24,917       22,298  
    Total operating expenses   106,920       129,669       476,090       497,335  
    Operating income $ 12,407     $ 9,748     $ 48,507     $ 41,420  
                           
    Excludes the estimated fixed fee paid to GPMP for the cost of fuel.  

    The MIL Network

  • MIL-OSI: Encore Capital Group Announces Fourth Quarter and Full-Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Favorable U.S. market for portfolio supply continues
    • Global portfolio purchases in 2024 up 26% to record $1.35 billion
    • Global collections in 2024 up 16% to $2.16 billion
    • Actions taken to resolve Cabot issues resulted in a loss for the quarter and the year

    SAN DIEGO, Feb. 26, 2025 (GLOBE NEWSWIRE) — Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the fourth quarter and full year ended December 31, 2024.

    “2024 was a year of significant growth for Encore,” said Ashish Masih, Encore’s President and Chief Executive Officer. “Our global portfolio purchases increased by 26% to an all-time high for us and global collections increased by 16% compared to 2023. Higher portfolio purchasing in recent years is a key driver of our growth in collections and ultimately cash generation growth of 20% for the year.”

    “In the U.S. in 2024, continued growth in bank lending, coupled with rising delinquencies and charge-offs, led to record supply for non-performing loan portfolios and a continuation of the favorable purchasing environment in the U.S. market. As a result, our largest business, MCM, increased U.S. portfolio purchases in 2024 by 23% to a record $1 billion. In addition, anchored by stable consumer payment behavior throughout the year, MCM collections increased by 20% compared to 2023.”

    “For our Cabot business in the U.K. and Europe, 2024 was a year of progress, but also significant restructuring to resolve certain persistent issues and enable future success. Cabot portfolio purchases increased by 36% compared to 2023, driven by exceptional Q4 purchases of $200 million that included large spot-market portfolio purchases at attractive returns. For the year, Cabot collections increased by 8% compared to 2023. Despite these successes, Cabot’s business environment continued to be highly competitive and impacted by macroeconomic factors such as subdued lending growth and low charge-offs. In 2024, we took certain restructuring actions including the exit from two underperforming markets, beginning with the Spanish secured non-performing loan (NPL) market in Q3 followed by the Italian NPL market in Q4. We also made adjustments to Cabot’s estimated remaining collections (ERC), particularly in the fourth quarter. These actions resulted in a $101 million goodwill charge in Q4.”

    “We believe our reported financial results in 2024, and in particular our net loss of $139 million, or ($5.83) per share, are not indicative of the operational performance of our business due to certain non-cash charges, the largest of which were the goodwill impairment related to our Cabot business and the adjustments to Cabot’s ERC in Q4, which reduced earnings for the quarter and the year. We believe these Cabot ERC adjustments, in addition to other actions taken during the year, place Cabot on a more solid footing. We expect Cabot’s future performance to align closely with its rebased ERC.”

    “Looking ahead, guided by our three pillar strategy, we remain committed to our long-standing financial objectives and our capital allocation priorities. We anticipate our global portfolio purchases in 2025 to exceed the $1.35 billion of purchases we made in 2024. We expect global collections in 2025 to increase by 11% to $2.4 billion. As a result of our continued growth in cash generation and its impact on our improving leverage, we plan to resume share repurchases in 2025. We also remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih.

       
    Financial Highlights for the Full Year of 2024:
       
      Year Ended December 31,
    (in thousands, except percentages and earnings per share)   2024       2023     Change
    Collections $ 2,162,478     $ 1,862,567     16 %
    Revenues $ 1,316,361     $ 1,222,680     8 %
    Portfolio purchases(1) $ 1,352,035     $ 1,073,812     26 %
    Estimated Remaining Collections (ERC) $ 8,501,370     $ 8,191,913     4 %
    Operating expenses $ 1,159,031     $ 1,206,145     (4 )%
    GAAP net loss $ (139,244 )   $ (206,492 )   NM
    GAAP loss per share $ (5.83 )   $ (8.72 )   NM

    __________________

    (1) Includes U.S. purchases of $998.9 million and $814.6 million, and Europe purchases of $353.2 million and $259.3 million in 2024 and 2023, respectively.
       
    Financial Highlights for the Fourth Quarter of 2024:
       
      Three Months Ended December 31,
    (in thousands, except percentages and earnings per share)   2024       2023     Change
    Collections $ 554,595     $ 458,350     21 %
    Revenues $ 265,619     $ 277,387     (4 )%
    Portfolio purchases(1) $ 495,144     $ 292,497     69 %
    Operating expenses $ 399,809     $ 494,580     (19 )%
    GAAP net loss $ (225,307 )   $ (270,762 )   NM
    GAAP loss per share $ (9.42 )   $ (11.40 )   NM

    __________________

    (1) Includes U.S. purchases of $295.3 million and $208.5 million, and Europe purchases of $199.8 million and $84.0 million in Q4 2024 and Q4 2023, respectively.
       
    Key Impacts from Cabot Actions and other items for the Fourth Quarter of 2024:
       
      Three Months Ended
    December 31,
    (in thousands, except earnings per share impact)   2024     EPS Impact(1)
    Cabot changes in expected future recoveries $ (129,128 )   $ (5.40 )
    Goodwill impairment $ (100,600 )   $ (4.21 )
    Cabot IT-related asset impairment $ (18,544 )   $ (0.78 )
    Loss on extinguishment of debt $ (7,832 )   $ (0.28 )
    Cabot restructuring charges $ (6,087 )   $ (0.25 )
    Total $ (262,191 )   $ (10.92 )

    __________________

    (1) Basic share count was used to calculate EPS impacts.
       

    Conference Call and Webcast

    The Company will host a conference call and slide presentation today, February 26, 2025, at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to discuss fourth quarter and full year results.

    Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore’s website at www.encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.

    For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company’s website shortly after the call concludes.

    Non-GAAP Financial Measures

    This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure, when added to collections applied to principal balance, is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered an alternative to, or more meaningful than, net income as an indicator of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has attached to this news release a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

    About Encore Capital Group, Inc.

    Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers. 

    Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.

    Forward Looking Statements
    The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including portfolio purchase volumes, collections and cash generation), performance, business plans or prospects as well as statements regarding future supply, consumer behavior, or macroeconomic environment. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.

    Contact:
    Bruce Thomas
    Encore Capital Group, Inc.
    Vice President, Global Investor Relations
    bruce.thomas@encorecapital.com

    SOURCE: Encore Capital Group, Inc.

    FINANCIAL TABLES FOLLOW

           
    ENCORE CAPITAL GROUP, INC.
    Consolidated Statements of Financial Condition
    (In Thousands, Except Par Value Amounts)
           
      December 31,
    2024
      December 31,
    2023
    Assets      
    Cash and cash equivalents $ 199,865     $ 158,364  
    Investment in receivable portfolios, net   3,776,369       3,468,432  
    Property and equipment, net   80,597       103,959  
    Other assets   225,090       293,256  
    Goodwill   507,808       606,475  
    Total assets $ 4,789,729     $ 4,630,486  
    Liabilities and Equity      
    Liabilities:      
    Accounts payable and accrued liabilities $ 233,545     $ 189,928  
    Borrowings   3,672,762       3,318,031  
    Other liabilities   116,091       185,989  
    Total liabilities   4,022,398       3,693,948  
    Commitments and contingencies      
    Equity:      
    Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding          
    Common stock, $0.01 par value, 75,000 shares authorized, 23,691 shares and 23,545 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively   237       235  
    Additional paid-in capital   19,297       11,052  
    Accumulated earnings   909,927       1,049,171  
    Accumulated other comprehensive loss   (162,130 )     (123,920 )
    Total stockholders’ equity   767,331       936,538  
    Total liabilities and stockholders’ equity $ 4,789,729     $ 4,630,486  
                   

    The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.

           
      December 31,
    2024
      December 31,
    2023
    Assets      
    Cash and cash equivalents $ 23,875   $ 24,472
    Investment in receivable portfolios, net   895,704     717,556
    Other assets   3,699     19,358
    Liabilities      
    Accounts payable and accrued liabilities   2,946     1,854
    Borrowings   599,830     494,925
    Other liabilities   887     2,452
               
               
           
    ENCORE CAPITAL GROUP, INC.
    Consolidated Statements of Operations
    (In Thousands, Except Per Share Amounts)
           
      (Unaudited)
    Three Months Ended
    December 31,
      Year Ended
    December 31,
        2024       2023       2024       2023  
    Revenues              
    Revenue from receivable portfolios $ 336,666     $ 304,892     $ 1,302,567     $ 1,204,437  
    Changes in recoveries   (95,760 )     (52,476 )     (89,740 )     (82,530 )
    Total debt purchasing revenue   240,906       252,416       1,212,827       1,121,907  
    Servicing revenue   20,525       19,650       84,783       83,136  
    Other revenues   4,188       5,321       18,751       17,637  
    Total revenues   265,619       277,387       1,316,361       1,222,680  
    Operating expenses              
    Salaries and employee benefits   104,616       96,760       422,910       391,532  
    Cost of legal collections   68,989       56,727       259,298       224,252  
    General and administrative expenses   52,019       36,809       163,847       144,862  
    Other operating expenses   37,786       29,315       130,802       111,179  
    Collection agency commissions   8,288       9,074       30,596       35,657  
    Depreciation and amortization   8,967       8,969       32,434       41,737  
    Goodwill impairment   100,600       238,200       100,600       238,200  
    Impairment of assets   18,544       18,726       18,544       18,726  
    Total operating expenses   399,809       494,580       1,159,031       1,206,145  
    (Loss) income from operations   (134,190 )     (217,193 )     157,330       16,535  
    Other expense              
    Interest expense   (68,498 )     (54,501 )     (252,545 )     (201,877 )
    Loss on extinguishment of debt   (7,832 )           (7,832 )      
    Other income (expense)   541       (2 )     6,832       5,078  
    Total other expense   (75,789 )     (54,503 )     (253,545 )     (196,799 )
    (Loss) income before income taxes   (209,979 )     (271,696 )     (96,215 )     (180,264 )
    (Provision) benefit for income taxes   (15,328 )     934       (43,029 )     (26,228 )
    Net loss $ (225,307 )   $ (270,762 )   $ (139,244 )   $ (206,492 )
                   
    Loss per share:              
    Basic $ (9.42 )   $ (11.40 )   $ (5.83 )   $ (8.72 )
    Diluted $ (9.42 )   $ (11.40 )   $ (5.83 )   $ (8.72 )
                   
    Weighted average shares outstanding:              
    Basic   23,916       23,741       23,873       23,670  
    Diluted   23,916       23,741       23,873       23,670  
                                   
                                   
       
    ENCORE CAPITAL GROUP, INC.
    Consolidated Statements of Cash Flows
    (In Thousands)
       
      Year Ended December 31,
        2024       2023       2022  
    Operating activities:          
    Net (loss) income $ (139,244 )   $ (206,492 )   $ 194,564  
    Adjustments to reconcile net (loss) income to net cash provided by operating activities:          
    Depreciation and amortization   32,434       41,737       46,419  
    Other non-cash interest expense, net   16,325       17,160       15,875  
    Stock-based compensation expense   14,012       13,854       15,402  
    Deferred income taxes   (22,280 )     (55,916 )     46,410  
    Goodwill impairment   100,600       238,200        
    Impairment of assets   18,544       18,726       4,075  
    Changes in recoveries   89,740       82,530       (93,145 )
    Other, net   17,880       (2,259 )     18,798  
    Changes in operating assets and liabilities          
    Other assets   (28,245 )     15,894       (6,722 )
    Accounts payable, accrued liabilities and other liabilities   56,402       (10,443 )     (30,995 )
    Net cash provided by operating activities   156,168       152,991       210,681  
    Investing activities:          
    Purchases of receivable portfolios, net of put-backs   (1,336,442 )     (1,060,206 )     (790,569 )
    Collections applied to investment in receivable portfolios, net   859,911       658,130       709,176  
    Purchases of real estate owned   (212 )     (26,901 )     (39,340 )
    Purchases of property and equipment   (29,007 )     (24,807 )     (37,224 )
    Proceeds from sale of real estate owned   56,396       52,636       27,722  
    Other, net   8,924       (793 )      
    Net cash used in investing activities   (440,430 )     (401,941 )     (130,235 )
    Financing activities:          
    Payment of loan and debt refinancing costs   (21,418 )     (13,707 )     (1,659 )
    Proceeds from credit facilities   2,031,470       1,196,046       779,513  
    Repayment of credit facilities   (1,868,111 )     (989,627 )     (515,703 )
    Proceeds from senior secured notes   1,000,000       104,188        
    Repayment of senior secured notes   (789,106 )     (39,080 )     (39,080 )
    Proceeds from issuance of convertible senior notes         230,000        
    Repayment of convertible senior notes         (212,480 )     (221,153 )
    Payments to settle derivative instruments   (40,038 )            
    Repurchase and retirement of common stock               (87,006 )
    Other, net   4,977       (7,040 )     (22,357 )
    Net cash provided by (used in) financing activities   317,774       268,300       (107,445 )
    Net increase (decrease) in cash and cash equivalents   33,512       19,350       (26,999 )
    Effect of exchange rate changes on cash and cash equivalents   7,989       (4,898 )     (18,734 )
    Cash and cash equivalents, beginning of period   158,364       143,912       189,645  
    Cash and cash equivalents, end of period $ 199,865     $ 158,364     $ 143,912  
               
    Supplemental disclosures of cash flow information:          
    Cash paid for interest $ 210,580     $ 163,815     $ 131,391  
    Cash paid for income taxes, net of refunds   67,091       68,522       71,276  
    Supplemental schedule of non-cash investing and financing activities:          
    Investment in receivable portfolios transferred to real estate owned $ 5,966     $ 7,957     $ 1,903  
                           
                           
           
    ENCORE CAPITAL GROUP, INC.
    Supplemental Financial Information
    Reconciliation of Non-GAAP Metrics
           
    Adjusted EBITDA    
           
    (in thousands, unaudited) Three Months Ended
    December 31,
      Year Ended
    December 31,
      2024       2023       2024       2023  
    GAAP net loss, as reported $ (225,307 )   $ (270,762 )   $ (139,244 )   $ (206,492 )
    Adjustments:              
    Interest expense   68,498       54,501       252,545       201,877  
    Loss on extinguishment of debt   7,832             7,832        
    Interest income   (1,971 )     (1,364 )     (7,008 )     (4,746 )
    Provision (benefit) for income taxes   15,328       (934 )     43,029       26,228  
    Depreciation and amortization   8,967       8,969       32,434       41,737  
    Net loss (gain) on derivative instruments(1)         342       (267 )     (3,170 )
    Stock-based compensation expense   2,281       2,837       14,012       13,854  
    Acquisition, integration and restructuring related expenses(2)   6,087       827       10,451       7,401  
    Goodwill Impairment(3)   100,600       238,200       100,600       238,200  
    Impairment of assets(3)   18,544       18,726       18,544       18,726  
    Adjusted EBITDA $ 859     $ 51,342     $ 332,928     $ 333,615  
    Collections applied to principal balance(4) $ 337,464     $ 213,769     $ 1,004,230     $ 776,280  

    ________________________

    (1) Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations.
    (2) Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.
    (3) During the years ended December 31, 2024, and 2023, we recorded a non-cash goodwill impairment charge of $100.6 million and $238.2 million, respectively. We recorded a non-cash impairment of long-lived assets of $18.5 million and a non-cash impairment of intangible assets of $18.7 million during the years ended December 31, 2024, and 2023, respectively. We believe these non-cash impairment charges are not indicative of ongoing operations, therefore adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results. Refer to “Note 15: Goodwill and Identifiable Intangible Assets” and “Note 5: Composition of Certain Financial Statement Items” to our consolidated financial statements for further details.
    (4) Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and exit activities. A reconciliation of “collections applied to investment in receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-K for the period ending December 31, 2024.

    The MIL Network

  • MIL-OSI Australia: Why Productivity Matters

    Source: Reserve Bank of Australia

    Introduction

    Thank you for the opportunity to speak here today at the Australian Business Economists’ Annual Forecasting Conference. There has been lots of discussion about productivity in recent years. In some economies this discussion has been about subdued growth in overall productivity, including in Australia since just before the pandemic. There has also been discussion about the outlook for productivity. For example, the extent to which artificial intelligence, quantum computing and other technologies will support future productivity growth. These are important issues that I expect will come up in discussions today.

    In my remarks I’m going to focus on a different question: why does productivity matter? At the central bank we’re not experts in how to improve productivity. But trends in productivity are very important for the macroeconomy. In the context of the Australian economy, I will discuss how stronger productivity growth can support growth in aggregate supply, incomes and aggregate demand. I will then spend some time discussing recent productivity outcomes in Australia and how we’ve been thinking about those in our assessment of economic conditions.

    But first, what is productivity? When we talk about productivity, we’re talking about how much output we get relative to what we put in. At an individual level, I increase my own productivity by making a shopping list before I buy groceries, so I don’t forget anything and avoid multiple trips to the supermarket. At the firm level, productivity might be improved by implementing customer relationship management software to streamline communication with clients and automate routine tasks. At the economy-wide level – which is what matters for the central bank and our dual mandate of full employment and low and stable inflation – productivity reflects a multitude of decisions like these. Ultimately it’s about how efficiently capital and labour are employed across the economy to produce goods and services.

    How do we measure productivity? Economists typically focus on two measures: labour productivity, which measures how much output is produced for every hour worked; and multifactor productivity (MFP), which reflects how efficiently all inputs to production – such as labour, capital, energy and raw materials – are combined to produce output.

    In a simple production function framework where a firm produces output using two inputs – labour and capital – labour productivity depends on two things. The first is how much capital each person has to work with. Providing workers with more or better capital – like machines or faster computers – can increase the amount of output each worker produces. This is referred to as ‘capital deepening’. The second is MFP. Improving MFP involves finding new ways to combine labour and capital to produce more output. For example, by reorganising a production line or using GPS technology to precisely guide machinery for planting, fertilising and harvesting. In this respect, labour productivity is not just about labour efficiency; it depends on firms’ decisions about how much capital to employ and how efficiently labour and capital work together to produce output.

    In thinking about the relationship between productivity and aggregate supply, incomes and demand, I will focus mainly on labour productivity. This is because labour productivity most closely aligns with measures of economic living standards. It’s also easier to measure than MFP.

    As you might sense, productivity is not about working harder, but working smarter. Many of the biggest productivity improvements have come from things that have made our lives easier, like computers, robots, the internet and smartphones – though personally I’m still questioning whether smartphones are productivity enhancing or a productivity sapping distraction.

    Economists talk about productivity a lot. So I’ll now turn to the question of why productivity matters.

    Productivity and supply

    If productivity increases, the economy can produce more goods and services from all the available economic inputs. As such, productivity is a key driver of growth in the supply capacity of the economy, or potential output.

    Productivity in Australia has been volatile in recent years but, looking through the volatility, is around the same level as in the few years before the pandemic. Productivity growth has also been consistently below the RBA’s projections for some time now (Graph 1). This has generated internal discussions about what trend labour productivity growth might look like in the period ahead, and what that means for estimates of potential output growth over the forecast period. The current assumption is that annual labour productivity growth will pick up to around one per cent in the medium term, which is close to its longer run average. This could be consistent with, for example, the rapid adoption of technology across many industries leading to higher productivity outcomes. However, the projected pick-up in productivity growth has not materialised in recent years and staff are currently assessing whether weak productivity outcomes are likely to persist.

    Weak productivity growth in recent years has contributed to slower growth in the supply capacity, or potential output, of the economy than otherwise. Graph 2 shows one of our estimates of potential output, which is based on actual productivity outcomes observed in the data. The graph also shows a counterfactual path where productivity growth in recent years was higher, at its average rate in the two decades prior to the pandemic. This suggests that the size of the economy is a lot smaller than it would have been, had productivity growth been more like in the past (all else equal).

    It’s important to keep in mind that, in this counterfactual world where supply capacity was much higher, incomes and demand would also have been higher too. Let me turn to that now.

    Productivity, incomes and wages

    While productivity growth contributes to growth in the supply capacity of the economy, it also contributes to growth in incomes and demand.

    At times, labour productivity (output per hour worked) and real income per hour track one another closely (Graph 3). Looking through the volatility, both are currently around similar levels as in the period prior to the pandemic.

    Other factors besides productivity can affect growth in incomes per hour. For example, higher prices for Australian exports can generate higher incomes domestically. So the terms of trade – the prices we receive for our exports relative to the prices we pay for our imports – can also be an important driver of incomes in the domestic economy. We can see this in the decade from the early 2000s: despite the slowing in productivity growth, real incomes per hour continued to increase, partly owing to substantial increases in the prices received for Australian exports like iron ore and coal. The surge in demand for our exports, particularly from China, supported profits in the mining industry and related parts of the Australian economy, as well as demand for labour and wages growth.

    Over the longer run, labour productivity and real wages – as measured by average earnings from the national accounts – also tend to move together (Graph 4). Over the inflation targeting period, labour productivity has grown at an average annual rate of 1.1 per cent and real labour earnings have grown at 0.9 per cent. So, higher productivity not only benefits firms, it also benefits workers by increasing their purchasing power. The Productivity Commission has previously pointed to the productivity of bakers as a reason we can consume more bread or spend that extra money elsewhere – in 1901 it took 18 minutes of the average worker’s time to afford a loaf of bread, while today it’s just 4 minutes. There must be a joke in there somewhere about how we spend our dough.

    In the short run, however, growth in real wages and labour productivity can and do diverge as the economy adjusts to economic shocks. For example, and as noted previously, increases in the prices received for Australian exports can have an impact on domestic profits and wages (and without an increase in labour productivity). Ultimately, however, it is very hard for an economy to support real wages growth in the longer run without productivity growth.

    Productivity and consumption

    Productivity growth also tends to support consumption growth. When productivity and incomes are growing more strongly, people are able to spend more and consumption grows more quickly. Weak growth in consumption per capita over recent years has coincided with weak growth in productivity, real incomes and real wages (Graph 5).

    Similar patterns have been evident in other economies, where subdued productivity growth has been associated with slower growth in household incomes and consumption (Graph 6). The exception is the United States, where growth in both productivity and consumption has been relatively strong.

    Recent trends in productivity

    So far I’ve focused on the importance of productivity growth for aggregate supply, incomes and demand over the longer run. I’ll now turn to recent trends in productivity growth in Australia and some potential implications for the near-term economic outlook.

    Discerning recent trends in productivity is difficult because of volatility in the data associated with the pandemic and other supply disruptions. Looking through the volatility, labour productivity growth has been low, averaging 0.2 per cent per year between 2017/18 and 2023/24 (Graph 7).

    Reverting to the simple production function framework that I noted earlier, the slow growth in labour productivity over recent years has reflected slow growth in both MFP and the amount of capital available to each worker.

    MFP growth averaged 0.2 per cent per year between 2017/18 and 2023/24, which was well below its historical average. Some have argued that slower MFP growth could reflect temporary factors. For example, tight labour market conditions over recent years have been associated with large numbers of individuals entering the workforce or changing jobs; this may have weighed on productivity as some individuals were trained or retrained and some firms adapted production processes to accommodate strong employment growth. If this was the case, MFP growth could pick up as the economy adjusts. However, work by some RBA staff finds that temporary factors like these have not been the primary cause of slow MFP growth, suggesting that structural factors could be weighing on productivity growth.

    Slow growth in the amount of capital available for each worker in the Australian economy – or a lack of ‘capital deepening’ – has also contributed to slow growth in labour productivity (Graph 8). Capital per worker was broadly unchanged for around five years leading up to the pandemic and – looking through the volatility in the data during the pandemic – is currently a bit below those levels. In other words, overall investment has not kept pace with the strong growth in employment recently.

    To help understand the recent slow growth in productivity, I’ll look at productivity outcomes in various parts of the economy.

    I’ll start with the non-market sector – which includes the health care, education and public administration industries – where employment growth has been very strong over recent years. The level of measured productivity in some parts of the non-market sector is low relative to the aggregate economy. So, as the non-market sector has become a larger share of the economy in recent years, this has weighed on overall productivity growth in the economy. Our estimates suggest that the rising share of non-market employment lowered the economy-wide measure of labour productivity growth by around 0.3 percentage points per year on average from 2017/18 to 2023/24, as shown by the yellow bars in Graph 9. This compares with around 0.15 percentage points per year over the previous decade, and so the recent effects have been a bit larger than in the past.

    But there is more to the story about productivity and the non-market sector. I have emphasised measured productivity because it is very difficult to measure output – and therefore productivity – in parts of the non-market sector. The central measurement problem is a lack of meaningful prices for some non-market output, such as public hospital services provided to public patients. This makes it very difficult to accurately identify quantities of output, which are needed to measure productivity. For example, research by the Productivity Commission suggests that productivity in the health care industry is higher than official estimates. As such, the drag on productivity from the non-market sector may be overstated.

    Noting the challenges of measuring productivity in the non-market sector, what’s been going on in the rest of the economy? Labour productivity growth in the market sector averaged around 0.6 per cent per year from 2017/18 to 2023/24 – below its average of 1.6 per cent over the previous two decades – though it picked up in 2023/24.

    Table 1: Growth in Labour Productivity

    Average annual growth rates (per cent)(a)

    Sector 1998/99 to 2017/18 2017/18 to 2023/24
    All industries 1.3 0.2
    Non-farm 1.1 0.1
    Market sector 1.6 0.6
    Market sector ex mining 1.4 1.0

    (a) Average growth rates calculated between financial years.

    Sources: ABS; RBA.

    While the level of productivity in the mining industry in Australia is higher than in other industries, productivity growth in that industry has declined over recent years. Excluding mining, productivity growth in the market sector since 2017/18 has averaged 1 per cent per year, though this is still lower than its average over the preceding two decades and well below the rates recorded during the high productivity growth period in the 1990s.

    More generally, a range of explanations have been provided for the slowing in productivity growth globally since the 1990s. A well-documented one for Australia is declining ‘economic dynamism’ – it now takes longer for inputs to production to move to higher productivity firms, and it also takes longer for firms to catch up to the global frontier of performance and technology. Evidence suggests that at least part of the decline in economic dynamism relates to declining competition in the economy. Regulatory barriers also appear to have played a role in Australia, notably in the construction industry. Other explanations include slowing human capital accumulation, declining trade integration, and mismeasurement.

    What does the recent subdued growth in productivity mean for our assessment of economic conditions? While productivity growth is associated with growth in incomes and wages over the longer run, in the short run there can be material divergences between these variables. Over the past year or so, real average hourly earnings in the economy have grown faster than labour productivity. This exerts upward pressure on firms’ unit labour costs and is consistent with our assessment that labour market conditions are still tight, notwithstanding some easing in those conditions over the past couple of years.

    What will happen from here? Our latest forecasts in the Statement on Monetary Policy incorporate a pick-up in productivity growth over the next couple of years, which would add to the economy’s supply capacity and help alleviate cost pressures. But there is considerable uncertainty around this projection. If productivity growth remains weak, the near-term outlook will depend critically on how the economy adjusts. If growth in demand is also weaker and wages adjust quickly to this slower growth in the supply capacity of the economy, there might not be a material impact on cost pressures. But if demand picks up as expected or wages adjust slowly to continued weak productivity outcomes, cost pressures could be higher than we expect. We will continue to monitor these developments carefully, alongside the full range of indicators we use to assess current economic conditions.

    Concluding remarks

    To conclude, productivity matters because it is a key driver of economic living standards. Over the longer run, higher productivity growth expands the supply capacity of the economy and supports growth in incomes, wages and aggregate demand. In the short run, however, there can be meaningful divergences in the growth rates of these important macroeconomic variables. Recent weak growth in productivity has constrained growth in aggregate supply. Whether productivity growth improves from here and how the economy adjusts are important questions for the economic outlook.

    Thank you for your time today. I look forward to your questions.

    MIL OSI News

  • MIL-OSI: AlphaSavings Unveils Hands-Free Investing with Fully Managed Wealth Solutions

    Source: GlobeNewswire (MIL-OSI)

    London, UK, Feb. 26, 2025 (GLOBE NEWSWIRE) — AlphaSavings, a leading provider of innovative financial solutions, has launched its fully managed wealth solutions, offering investors a hands-free approach to stock and bond investing. With an advanced portfolio management system that integrates professional expertise and real-time market analytics, AlphaSavings is transforming how individuals and institutions manage their investments.

    As financial markets become increasingly complex, many investors struggle to allocate their assets effectively while keeping up with market shifts. AlphaSavings’ hands-free investment solutions provide a seamless experience, allowing clients to enjoy professionally managed stock and bond portfolios without the need for constant monitoring or decision-making.

    A New Era of Hands-Free Investing

    AlphaSavings’ fully managed wealth solutions are designed for individuals who seek stable, long-term financial growth without the complexity of active trading. By leveraging expert portfolio management, real-time market adjustments, and data-driven investment strategies, AlphaSavings enables investors to maximize returns while minimizing risk exposure.

    How Hands-Free Investing Works at AlphaSavings:

    • Personalized Portfolio Construction – Investments are tailored to individual financial goals, risk tolerance, and market conditions.
    • Automated Asset Allocation – Portfolios maintain an optimal mix of stocks and bonds, adjusting dynamically based on economic trends.
    • Real-Time Market Monitoring – AI-enhanced analytics track stock and bond markets 24/7, ensuring timely investment decisions.
    • Risk-Managed Growth – Strategies are designed to minimize volatility while maximizing long-term wealth accumulation.
    • No Manual Trading Required – Investors no longer need to analyze markets, pick stocks, or make buy/sell decisions—the system does it all.

    What Sets AlphaSavings Apart from Traditional Investing?

    Traditional investment methods often require active involvement, whether through stock trading, bond selection, or frequent portfolio rebalancing. AlphaSavings removes these challenges by offering a fully automated, expert-managed investment experience.

    Key Benefits of Hands-Free Investing with AlphaSavings:

    • Stress-Free Wealth Growth – No need for clients to spend time researching or managing investments.
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    Bringing Institutional-Grade Investment Management to Everyday Investors

    Historically, fully managed investment services were reserved for high-net-worth individuals and institutional investors. AlphaSavings is democratizing access to these expert-guided wealth solutions, ensuring that everyday investors can benefit from hands-free, data-driven portfolio management.

    By integrating advanced financial modeling, AI-driven risk assessments, and human expertise, AlphaSavings provides the same level of sophisticated asset management that top hedge funds and wealth managers use.

    How AlphaSavings’ Fully Managed Wealth Solutions Work

    Step 1: Tailored Investment Strategy Development

    Clients answer a few questions about their financial goals, investment horizon, and risk tolerance. AlphaSavings then designs a personalized, diversified portfolio suited to their individual needs.

    Step 2: Smart Asset Allocation & Investment Execution

    AlphaSavings selects a mix of high-growth stocks and stable bonds to ensure both capital appreciation and risk mitigation. Investments are automatically adjusted in response to market trends.

    Step 3: Continuous Market Monitoring & Risk Management

    Unlike traditional investment firms that rebalance portfolios quarterly or annually, AlphaSavings monitors investments in real-time, making instant adjustments when necessary to protect investor capital.

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    Clients can track their investment performance through AlphaSavings’ intuitive platform, receiving updates on returns, portfolio adjustments, and market insights.

    Who Can Benefit from Hands-Free Investing?

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    A Smarter, Safer Approach to Stock & Bond Investing

    Stock and bond markets are often unpredictable, with interest rate changes, inflation concerns, and geopolitical factors influencing market performance. AlphaSavings’ hands-free investment system ensures clients stay ahead of market shifts while protecting their capital from excessive volatility.

    By combining expert-driven financial strategies with automated portfolio adjustments, AlphaSavings reduces risks associated with emotional decision-making, market timing, and investment mismanagement.

    How AlphaSavings Mitigates Market Volatility:

    • Adaptive Portfolio Strategies – The investment team dynamically adjusts asset allocations to reduce risk exposure.
    • Diversification Across Asset Classes – Stocks, bonds, and fixed-income securities are balanced to ensure stability.
    • AI-Powered Predictive Analytics – Market trends are analyzed in real-time to anticipate potential downturns before they occur.
    • Automatic Stop-Loss & Risk Controls – The system prevents excessive losses by reallocating assets in response to market turbulence.

    Regulatory Compliance & Transparency

    AlphaSavings adheres to industry best practices, regulatory guidelines, and fiduciary responsibilities to provide investors with a secure, trustworthy investment experience. Clients receive:

    • Regular financial reports detailing portfolio growth and market performance.
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    • Transparent pricing with no hidden fees or commissions.

    The Future of Wealth Management: Hands-Free, Data-Driven Investing

    As financial technology evolves, hands-free investing is becoming the future of wealth management. Investors are shifting away from traditional, manual stock and bond selection processes toward AI-driven portfolio management and automated financial strategies.

    AlphaSavings is at the forefront of this transformation, providing a scalable, intelligent investment solution that eliminates the stress of daily portfolio management while delivering superior long-term results.

    Get Started with Hands-Free Investing Today

    For those looking to grow their wealth with minimal effort, AlphaSavings offers the perfect solution. Clients can access fully managed stock and bond portfolios, backed by expert analysis, automated market insights, and risk-optimized investment strategies.

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    About AlphaSavings

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  • MIL-Evening Report: Australia could make it easier for consumers to fight back against anti-competitive behaviour. Here’s how

    Source: The Conversation (Au and NZ) – By Mel Marquis, Deputy Associate Dean and Senior Lecturer in Law, Monash University

    From the supermarket to the petrol pump, many Australians are concerned about the power of large corporations. Are consumers getting a fair deal? Do they have enough choice?

    This week, the Australian Competition and Consumer Commission (ACCC) is due to hand the government the final report from its inquiry into Australia’s supermarket sector. They have already said the sector is highly concentrated, with just a few sellers controlling prices and exploiting small suppliers.

    This advocacy highlights a key source of pressure on wallets. The ACCC is also pursuing consumer law claims against the big supermarkets for creating the “illusion” of discounted prices.

    But across the economy, it is unlikely consumer interests are being protected as much as they could be. Further reforms in competition law would help.

    In some countries, consumers can band together to sue private companies and demand compensation if they’ve been harmed by anti-competitive behaviour.

    Australian consumers can sue companies too – but it can be burdensome, expensive and complicated. In fact, consumer suits seeking damages for such conduct are rare. Australia could make it easier to fight back.

    The problem

    Treasury will wrap up a major review of competition law in August.

    Two areas of reform have rightly been given particular attention: a merger law for the whole economy, and special rules for large digital platforms.

    The ACCC is Australia’s competition regulator and consumer law advocate.
    Jarretera/Shutterstock

    The merger reform has led to amendments to help the ACCC protect markets and a consultation on regulating platforms which has recently concluded.

    Treasury is considering other reforms as well. However, putting consumers in a better position to claim damages for anti-competitive conduct is not on the agenda.

    That is unfortunate. Consumers should feel more secure using competition law to demand compensation for anti-competitive harm. As the ACCC has said, the annual damage caused by cartels could amount to hundreds of millions of dollars, a staggering figure.

    Even when the ACCC and the Commonwealth Director of Public Prosecutions succeed in bringing cartellists to court to obtain penalties or even criminal sentences, it is a way to punish and deter. It does not make victims whole.

    Overseas solutions

    Australia lags behind its global counterparts.

    In 2005, the European Union launched a debate on this subject. Laws were passed to ensure victims of anti-competitive conduct have a right to full compensation.

    The European Union has seen a growth in private competition law actions.
    MDart10/Shutterstock

    Since then, it appears to have become easier for consumers there to seek damages. From 2014 to 2019, one study showed a fivefold increase in the number of cases lodged in the EU, from 50 up to 239 private claims seeking compensation.

    In the United States, private antitrust enforcement thrives due to large class actions, where consumers with a similar grievance come together to take action against corporate defendants.

    US antitrust law allows treble damages, which means consumers can in theory receive three times the value of any harm suffered plus the costs of the lawsuit. In reality they recover less than that, but with large classes of claimants, the incentives to pursue claims through litigation and settlements are strong.

    The Australian situation

    On paper, private enforcement of competition law already exists in Australia. However, incentives appear weaker here.

    In the EU and US, class actions are designed to encourage claimants to seek compensation for anti-competitive harm, but the rarity of such claims in Australia suggests the settings aren’t quite right.

    Google is currently subject to antitrust action in Australia.
    JHVEPhoto/Shutterstock

    A class action against major banks for allegedly rigging exchange rates, and a recently lodged class action against Google relating to its AdTech operations, are the exceptions, not the rule.

    A 2012 article in the UNSW Law Journal said it was “time for an Australian debate”, but little has happened since.

    What now? Here are some possible reforms

    Various reforms and initiatives could bolster private enforcement in Australia, including:

    1. Reviewing evidence rules to allow judges to order the disclosure of documents collected during investigations, provided the public interest is not compromised. If evidence is too hard to access, victims of cartels have no chance of proving their case.

    2. Making it easier for a willing defendant to settle out of court. Sometimes, one defendant in a cartel case may be open to settling out of court but the other defendants are not. In such a case, to make it easier for the willing defendant to settle, it could be clarified that the non-settling defendants – if eventually ordered to pay the claimants – cannot then reclaim part of those damages as a “contribution” from the defendant that did settle.

    Without this assurance, individual defendants that would otherwise be ready to settle may hesitate for fear of paying more than their share.

    3. The ACCC could also more aggressively seek redress for consumers, which would reduce the need for damages actions. So far, the ACCC and the Commonwealth Director of Public Prosecutions have not made enough use of their ability to seek orders granting such compensation in cartel cases.

    Competition law is not just about promoting dynamism and productivity growth, and fairer prices and potential wage growth, though these are clearly desirable.

    Competition law should also be about securing relief for victims to make them whole, and to boost their trust in markets. Facilitating private rights of action for consumers can help to elevate justice in this area of the law.

    Mel Marquis has in the past received research grants funded by the Commonwealth of Australia and administered by the ACCC. He is a member of the Competition and Consumer Committee of the Law Institute of Victoria. The views expressed are personal to the author.

    ref. Australia could make it easier for consumers to fight back against anti-competitive behaviour. Here’s how – https://theconversation.com/australia-could-make-it-easier-for-consumers-to-fight-back-against-anti-competitive-behaviour-heres-how-250505

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: There’s a new ‘rapid review’ into school bullying. Research shows we need to involve the whole school to stop it

    Source: The Conversation (Au and NZ) – By Fiona MacDonald, Principal Research Fellow, Institute for Sustainable Industries and Liveable Cities, Victoria University

    shutterstock LBeddoe/Shutterstock

    About one in four students report being regularly bullied in Australian schools.

    Children who are bullied can feel anxious and excluded, stop sleeping and eating well, and lose interest in school. There are serious potential long-term effects, which include anxiety and depression. Being bullied is also a risk factor for suicidal thoughts and behaviours.

    Following the 2024 death of Sydney Year 7 student Charlotte O’Brien, the federal government wants to develop a national standard to address bullying in schools.

    It has just announced a “rapid review” of bullying in schools, to be done in six months (though not before the federal election). This will look at what schools currently do to address bullying and what they should be doing.

    What does the research tell us works when it comes to addressing bullying in schools?

    What is bullying?

    Bullying is behaviour that is aggressive, intentional, repetitive and unprovoked.

    It also involves a power imbalance in favour of the perpetrator.

    As well as physical abuse, these behaviours can involve verbal teasing, harassment, damaging property, and antisocial behaviours such as spreading gossip or excluding someone. It can happen in person or online.

    Bullying can mean a child stops wanting to go to school.
    Doria Nippot/Shutterstock



    Read more:
    5 questions your child’s school should be able to answer about bullying


    Initial responses to bullying

    Much of the early research response to incidents on school bullying focused on the perpetrator and victim, and what the school should do in response to the bullying incident.

    This involved senior teachers such as the principal and school counsellor meeting with the perpetrator and victim and their parents/guardians. Here they would work out strategies to try and make amends and prevent future incidents.

    For example, a perpetrator may have had to apologise to the victim and take on additional responsibilities in the school. They may also be warned about suspension or exclusion.

    But these responses do not address the complexity of bullying. This includes the reasons why a child might bully another as well as its broader impact. Often other students are also inadvertently involved in or affected by bullying. Seeing someone else being bullied can be upsetting, students may feel angry, sad or concerned they may also be bullied.

    The shift to prevention

    So more recent research has emphasised the importance of prevention to reduce rates of school bullying. This could include anti-bullying policies, classroom rules and discussions about bullying as well as information for parents.

    This relies on what researchers call a “whole school approach”. Instead of bullying being seen as the responsibility of the principal or other senior teachers to deal with a few “at risk” kids, it is the responsibility of all staff, students and parents – and even the broader community.

    This means students are educated to understand what is and is not bullying and what to do if they witness it. It also means teachers have clear policies to follow and a clear understanding of “gateway behaviours,” which can escalate into bullying. Parents likewise know what to do if their child is being bullied or the kinds of behaviours that can lead up to it – such as namecalling or eyerolling.

    Other measures could include a dedicated staff member to champion anti-bullying measures in the school and partnerships with community members and organisations. This could be junior sporting clubs or even the school crossing guard (who can provide information about antisocial behaviours they observe).

    The aim is to create a school culture which is safe and supportive for students, where harmful behaviour is clearly understood and dealt with early if it happens.

    A whole school approach sees students invovled in prevention bullying at their school.
    Monkey Business Images/ Shutterstock



    Read more:
    Why do kids bully? And what can parents do about it?


    The importance of data

    Current research also emphasises the importance of schools regularly collecting, analysing and acting on data about bullying and the school environment. This enables schools to identify changes within the school environment before they escalate to bullying.

    Schools already collect data about their students and behaviours, including attendance, playground incidents and their attitudes to school. But many don’t have the time or expertise to analyse it.

    Listening to students

    Research also shows anti-bullying efforts are more effective when students are involved.

    This helps build trust between students, families and school staff, gives students a sense of ownership about solutions. Importantly it also enables young people to share their perspectives about what will work in their lives and classrooms.

    This could include schools regularly asking students about bullying and other issues they are having at schools and genuinely considering their suggestions about how to improve both prevention and responses.

    Fiona MacDonald received funding from Alannah & Madeline Foundation for this research.

    Nina Van Dyke received funding from the Alannah & Madeline Foundation for this research.

    ref. There’s a new ‘rapid review’ into school bullying. Research shows we need to involve the whole school to stop it – https://theconversation.com/theres-a-new-rapid-review-into-school-bullying-research-shows-we-need-to-involve-the-whole-school-to-stop-it-250519

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Europe: REPORT on human rights and democracy in the world and the European Union’s policy on the matter – annual report 2024 – A10-0012/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on human rights and democracy in the world and the European Union’s policy on the matter – annual report 2024

    (2024/2081(INI))

    The European Parliament,

     having regard to the Charter of Fundamental Rights of the European Union,

     having regard to the European Convention on Human Rights,

     having regard to Articles 2, 3, 8, 21 and 23 of the Treaty on European Union (TEU),

     having regard to Articles 17 and 207 of the Treaty on the Functioning of the European Union (TFEU),

     having regard to the Universal Declaration of Human Rights and other United Nations human rights treaties and instruments,

     having regard to the International Covenant on Civil and Political Rights,

     having regard to the International Covenant on Economic, Social and Cultural Rights,

     having regard to the Geneva Convention relative to the Treatment of Prisoners of War,

     having regard to the United Nations 1951 Refugee Convention and the 1967 Protocol thereto,

     having regard to the United Nations Convention on the Prevention and Punishment of the Crime of Genocide of 1948 and United Nations Human Rights Council Resolution 43/29 of 22 June 2020 on the prevention of genocide,

     having regard to the United Nations Convention on the Elimination of All Forms of Discrimination against Women of 18 December 1979,

     having regard to the United Nations Convention against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment  of 10 December 1984 and the Optional Protocol thereto, adopted on 18 December 2002,

     having regard to the United Nations Convention on the Rights of Persons with Disabilities  of 12 December 2006 and the Optional Protocol thereto, adopted on 13 December 2006,

     having regard to the International Convention on the Suppression and Punishment of the Crime of Apartheid of 1976,

     having regard to the Declaration on the Elimination of All Forms of Intolerance and of Discrimination Based on Religion or Belief, proclaimed by United Nations General Assembly Resolution 36/55 of 25 November 1981,

     having regard to the United Nations Declaration on the Rights of Persons Belonging to National or Ethnic, Religious and Linguistic Minorities of 18 December 1992,

     having regard to the United Nations Declaration on Human Rights Defenders, adopted by consensus by the United Nations General Assembly Resolution 53/144 on 9 December 1998,

     having regard to the United Nations Declaration on the Rights of Indigenous Peoples of 13 September 2007,

     having regard to the United Nations Declaration on the Rights of Peasants and Other People Working in Rural Areas of 28 September 2018,

     having regard to the Programme of Action of the Cairo International Conference of Population and Development in 1994 and its review conferences,

     having regard to the United Nations Convention on the Rights of the Child of 20 November 1989 and the two Optional Protocols thereto, adopted on 25 May 2000,

     having regard to the United Nations Arms Trade Treaty, which entered into force on 24 December 2014, and the EU Code of Conduct on Arms Exports of 5 June 1998,

     having regard to the United Nations Beijing Declaration and Platform for Action of September 1995 and its review conferences,

     having regard to the United Nations 2030 Agenda for Sustainable Development adopted on 25 September 2015, in particular goals 1, 3, 4, 5, 8, 10 and 16 thereof,

     having regard to the United Nations Global Compact for Safe, Orderly and Regular Migration adopted on 19 December 2018 and the United Nations Global Compact on Refugees adopted on 17 December 2018,

     having regard to the Rome Statute of the International Criminal Court adopted on 17 July 1998, which entered into force on 1 July 2002,

     having regard to the Agreement between the European Union and the International Criminal Court on cooperation and assistance of 10 April 2006[1],

     having regard to the Council of Europe Conventions of 4 April 1997 for the Protection of Human Rights and Dignity of the Human Being with regard to the Application of Biology and Medicine, and the Additional Protocols thereto, of 16 May 2005 on Action against Trafficking in Human Beings, and of 25 October 2007 on the Protection of Children against Sexual Exploitation and Sexual Abuse,

     having regard to the Council of Europe Convention of 11 May 2011 on preventing and combating violence against women and domestic violence (the Istanbul Convention), which not all Member States have ratified but which entered into force for the EU on 1 October 2023,

     having regard to Protocols Nos 6 and 13 to the Council of Europe Convention of 28 April 1983 for the Protection of Human Rights and Fundamental Freedoms concerning the Abolition of the Death Penalty,

     having regard to Council Regulation (EU) 2020/1998 of 7 December 2020 concerning restrictive measures against serious human rights violations and abuses[2],

     having regard to Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe[3],

     having regard to the Council conclusions of 22 January 2024 on EU Priorities in UN Human Rights Fora in 2024,

     having regard to the EU Action Plan on Human Rights and Democracy 2020-2024, adopted by the Council on 17 November 2020 and its Mid-term Review adopted on 9 June 2023,

     having regard to the Council conclusions of 27 May 2024 on the alignment of the EU Action Plan on Human Rights and Democracy 2020-2024 with the Multiannual Financial Framework 2021-2027,

     having regard to the EU Gender Action Plan (GAP) III – an ambitious agenda for gender equality and women’s empowerment in external action (JOIN(2020)0017),

     having regard to the EU Gender Equality Strategy 2020-2025 (COM(2020)0152),

     having regard to the EU LGBTIQ Equality Strategy 2020-2025 (COM(2020)0698),

     having regard to the EU strategy on the rights of the child (COM(2021)0142),

     having regard to the EU Strategy for the Rights of Persons with Disabilities 2021-2030 (COM(2021)0101),

     having regard to the EU anti-racism action plan 2020-2025 (COM(2020)0565),

     having regard to the EU Roma strategic framework for equality, inclusion and participation (COM(2020)0620),

     having regard to the EU Guidelines on human rights defenders, adopted by the Council on 14 June 2004 and revised in 2008, and the second guidance note on the Guidelines’ implementation, endorsed in 2020,

     having regard to the EU Guidelines on violence against women and girls and combating all forms of discrimination against them, adopted by the Council on 8 December 2008,

     having regard to the EU Guidelines on promoting compliance with international humanitarian law (IHL) of 2005, as updated in 2009,

     having regard to the EU Guidelines on the death penalty, as updated by the Council on 12 April 2013,

     having regard to the EU Guidelines to promote and protect the enjoyment of all human rights by LGBTI persons, adopted on 24 June 2013,

     having regard to the EU Guidelines on the promotion and protection of freedom of religion or belief, adopted by the Council on 24 June 2013,

     having regard to the EU Guidelines on freedom of expression online and offline, adopted by the Council on 12 May 2014,

     having regard to the EU Guidelines on non-discrimination in external action, adopted by the Council on 18 March 2019,

     having regard to the EU Guidelines on safe drinking water and sanitation, adopted by the Council on 17 June 2019,

     having regard to the revised EU Guidelines on EU policy towards third countries on torture and other cruel, inhuman or degrading treatment or punishment, adopted by the Council on 16 September 2019,

     having regard to the revised EU Guidelines on human rights dialogues with partner/third countries, approved by the Council on 22 February 2021,

     having regard to the revised EU Guidelines on children and armed conflict, approved by the Council on 24 June 2024,

     having regard to the Commission communication of 12 September 2012 entitled ‘The roots of democracy and sustainable development: Europe’s engagement with Civil Society in external relations’ (COM(2012)0492),

     having regard to the Council conclusions of 10 March 2023 on the role of the civic space in protecting and promoting fundamental rights in the EU,

     having regard to Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859[4],

     having regard to the Commission proposal of 14 September 2022 for a regulation of the European Parliament and the Council on prohibiting products made with forced labour on the Union market (COM(2022)0453),

     having regard to the joint proposal from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 3 May 2023 for a Council regulation on restrictive measures against serious acts of corruption (JOIN(2023)0013),

     having regard to the 2023 EU Annual Report on Human Rights and Democracy in the World,

     having regard to its Sakharov Prize for Freedom of Thought, which in 2024 was awarded to María Corina Machado, as the leader of the democratic forces in Venezuela, and President-elect Edmundo González Urrutia, representing all Venezuelans inside and outside the country fighting for the reinstitution of freedom and democracy,

     having regard to its resolution of 15 January 2019 on EU Guidelines and the mandate of the EU Special Envoy on the promotion of freedom of religion or belief outside the EU[5],

     having regard to its resolution of 23 October 2020 on Gender Equality in EU’s foreign and security policy[6],

     having regard to its resolution of 19 May 2021 on human rights protection and the EU external migration policy[7],

     having regard to its resolution of 8 July 2021 on the EU Global Human Rights Sanctions Regime (EU Magnitsky Act)[8],

     having regard to its resolution of 28 February 2024 on human rights and democracy in the world and the European Union’s policy on the matter – annual report 2023[9], and to its previous resolutions on earlier annual reports,

     having regard to its resolutions on breaches of human rights, democracy and the rule of law (known as urgency resolutions), adopted in accordance with Rule 150 of its Rules of Procedure, in particular those adopted in 2023 and 2024,

     having regard to Rule 55 of its Rules of Procedure,

     having regard to the opinion of the Committee on Women’s Rights and Gender Equality,

     having regard to the report of the Committee on Foreign Affairs (A10-0012/2025),

    A. whereas the EU is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, as set out in Articles 2 and 21 TEU; whereas the EU’s action worldwide must be guided by the universality and indivisibility of human rights and by the fact that the effective protection and defence of human rights and democracy is at the core of the EU’s external action;

    B. whereas consistency and coherence across the EU’s internal and external policies are key for achieving an effective and credible EU human rights policy, and in defending and supporting freedom and democracy;

    C. whereas democratic systems are the most suitable to guarantee that every person has the ability to enjoy their human rights and fundamental freedoms; whereas effective rules-based multilateralism is the best organisational system to defend democracies;

    D. whereas the EU strongly believes in and fully supports multilateralism, a rules-based global order and the set of universal values, principles and norms that guide the UN member states and that the UN member states have pledged to uphold, in accordance with the UN Charter; whereas a world of democracies, understood as a world of political systems that defend and protect human rights worldwide, is a safer world, as democracies have significant checks and balances in place to prevent the unpredictability of autocracies;

    E. whereas the rise in authoritarianism, totalitarianism and populism threatens the global rules-based order, the protection and promotion of freedom and human rights in the world, as well as the values and principles on which the EU is founded;

    F. whereas in December 2023, the Universal Declaration of Human Rights celebrated its 75th anniversary; whereas today, more than ever since the UN’s foundation, totalitarian regimes challenge the UN Charter’s basic principles, seek to rewrite international norms, undermine multilateral institutions and threaten peace and security globally;

    G. whereas in November 2024, the United Nations Convention on the Rights of the Child celebrated its 35th anniversary;

    H. whereas the United Nations Beijing Declaration and Platform for Action is regarded as a turning point for the global agenda on gender equality and will celebrate its 30th anniversary in 2025;

    I. whereas the legitimacy and functioning of the international rules-based order are dependent on compliance with the orders of, and respect for, international bodies, such as United Nations General Assembly and Security Council resolutions and orders and decisions of the International Court of Justice and the International Criminal Court (ICC); whereas multilateralism is being challenged by increasing global threats, such as terrorism and extremism, which threaten compliance with such orders and decisions, as well as, generally, with provisions of international law, human rights law and international humanitarian law in emerging and ongoing conflict situations; whereas international institutions, their officials, and those cooperating with them, are the subject of attacks and threats; whereas the international community, including the EU, has a responsibility to uphold the international rules-based order by enforcing universal compliance, including by its partners;

    J. whereas the Rome Statute of the International Criminal Court establishes a framework of accountability for genocide, crimes against humanity and war crimes; whereas the independence of the ICC is vital to ensure that justice is delivered impartially and without political interference;

    K. whereas the 2023 Mid-term Review of the EU Action Plan on Human Rights and Democracy 2020-2024, now extended to 2027, has shown that, despite the progress achieved so far, more needs to be done, in cooperation with like-minded democratic partners, especially in the context of the unprecedented challenges the world has experienced since its adoption;

    L. whereas human rights defenders (HRDs) and civil society organisations (CSOs) are crucial partners in the EU’s efforts to safeguard and advance human rights, democracy and the rule of law, as well as to prevent conflicts globally; whereas state and non-state actors around the world are increasingly censoring, silencing and harassing, among others, HRDs, CSOs, journalists, religious communities, opposition leaders and other vulnerable groups in their work, shrinking the civil space ever further; whereas this behaviour includes measures encompassing strategic lawsuits against public participation (SLAPPs), restrictive government policies, transnational repression, defamation campaigns, discrimination, intimidation and violence, including extrajudicial and extraterritorial killings, abductions, and arbitrary arrests and detention; whereas attacks on HRDs are increasingly extending to their families and communities, including those living in exile;

    M. whereas gender equality is a core EU value, and the human rights of women and girls, including their sexual and reproductive rights, continue to be violated across the world; whereas women experience unique and disproportionate impacts from conflicts, climate change and migration, including increased risks of gender-based violence, economic marginalisation and barriers to accessing resources; whereas women HRDs and CSOs continue to experience shrinking space for their critical work, as well as threats of violence, harassment and intimidation;

    N. whereas the past year has been marked by a further proliferation of laws on ‘foreign agents’ or foreign influence, including in countries with EU candidate status, targeting CSOs and media outlets and attempting to prevent them from receiving financial support from abroad, including from the EU and its Member States, fostering a climate of fear and self-censorship;

    O. whereas in 2024, more than half the world’s population went to the polls, and many of these elections were marked by manipulation, disinformation and attempts at interference from inside or outside the country;

    P. whereas the 2024 World Press Freedom Index by Reporters Without Borders (RSF) warns of a decline in the intent of states and other political forces to protect press freedom; whereas, according to RSF, 47 journalists and media workers have been killed, most of them in conflict zones, and 573 have been imprisoned since 1 January 2024;

    Q. whereas 251 million children and young people are deprived of their fundamental right to education and remain out of school, according to the UNESCO Global Education Monitoring Report 2024; whereas girls and women are affected not only by poverty but also by cultural norms, gender bias, child marriage and violence through official, discriminatory policies that prevent them from accessing education and the labour market and attempt to erase them from public life;

    R. whereas at least one million people are unjustly imprisoned for political reasons, among them several laureates and finalists of Parliament’s Sakharov Prize for Freedom of Thought;

    S. whereas environmental harm and the impacts of climate change are intensifying precariousness, marginalisation and inequality, and increasingly displacing people from their homes or trapping them in unsafe conditions, thereby heightening their vulnerability and jeopardising their human rights;

    Global challenges to democracy and human rights

    1. Reasserts the universality, interdependence, interrelatedness and indivisibility of human rights and the inherent dignity of every human being; reaffirms the duty of the EU and its Member States to promote and protect democracy and the universality of human rights around the world; calls for the EU and its Member States to lead by example, in line with its values, to promote and strictly uphold human rights and international justice;

    2. Insists that respect, protection and fulfilment of human rights and fundamental freedoms must be the cornerstone of the EU’s external policy, in line with its founding principles; strongly encourages the EU and its Member States, to that end, to strive for a continued ambitious commitment to make freedom, democracy and human rights and their protection a central part of all EU policies in a streamlined manner and to enhance the consistency between the EU’s internal and external policies in this field, including through all of its international agreements;

    3. Stresses that the EU must be fully prepared to counter the rise of authoritarianism, totalitarianism and populism, as well as the increasing violations of the principles of universality of human rights, democracy and international humanitarian law;

    4. Condemns the increasing trend of violations and abuses of human rights and democratic principles and values across the world, such as, among others, threats of backsliding on human rights, notably women’s rights, as well as executions, extrajudicial killings, arbitrary arrests and detentions, torture and ill treatment, gender-based violence, clampdowns on civil society, political opponents, marginalised and vulnerable groups including children and elderly people, migrants, refugees and asylum seekers, and  ethnic and religious minorities; condemns, equally, slavery and forced labour, excessive use of violence by public authorities, including violent crackdowns on peaceful protests and other assemblies, systematic and structural discrimination, instrumentalisation of the judiciary, censorship and threats to independent media, including threats in the digital sphere such as online surveillance and internet shutdowns, political attacks against international institutions and the rules-based international order, and increasing use of unlawful methods of war in grave breach of international humanitarian law and human rights law; deplores the weakening of the protection of democratic institutions and processes, and the shrinking space for civil societies around the world; denounces the transnational repression, by illiberal regimes, of citizens and activists who have sought refuge abroad, including on EU soil;

    5. Notes with deep concern the ongoing international crisis of accountability and the challenge to the pursuit of ending impunity for violations of core norms of international human rights and humanitarian law in conflicts around the world; reaffirms the neutrality and importance of humanitarian aid in all conflicts and crises; underlines the serious consequences of discrediting and attacking the organisations of multilateral forums, such as the UN, which can foster a culture of impunity and undermine the trust in and functioning of the UN system; calls for the EU to uphold the international legal system and take effective measures to enforce compliance;

    6. Notes with satisfaction that there are also ‘human rights bright spots’ within this context of major challenges to human rights worldwide; highlights, in particular, the work of CSOs and HRDs; underlines the need for a more strategic communication on human rights and democracy by spreading news about positive results, policies and best practices; supports the Good Human Rights Stories initiative[10] as a way of promoting positive stories about human rights and recommends that it be updated; underlines the role of the EU’s public and cultural diplomacy, as well as international cultural relations, in the promotion of human rights, and calls for the Strategic Communication and Foresight division of the European External Action Service (EEAS) to increase its efforts in this regard;

    Strengthening the EU’s toolbox for the promotion and protection of human rights and democracy around the world

    7. Notes with concern the increasing divide worldwide; stresses the shared responsibility of the EU to continue defending democratic values and principles and human rights, international justice, peace and dignity around the world, which are even more important to defend in the current volatile state of global politics; calls upon the EU to keep communication channels open with different stakeholders and to continue to develop a comprehensive toolbox to strengthen human rights and democracy globally;

    EU action plan on human rights and democracy

    8. Observes that the EU and its Member States have made substantial progress in implementing the EU action plan on human rights and democracy, although they have not reached all of its goals, in part also due to the unprecedented challenges the world has experienced since its adoption; welcomes, in this sense, the extension of the action plan until 2027, with a view to maximising the synergies and complementarity between human rights and democracy at local, national and global levels;

    EU Special Representative (EUSR) for Human Rights

    9. Fully supports the work of the EUSR for Human Rights in contributing to the visibility and coherence of the EU’s human rights actions in its external relations; upholds the EUSR’s central role in the EU’s promotion and protection of human rights by engaging with non-EU countries and like-minded partners; underlines the need for close cooperation between the EUSR for Human Rights and other EUSRs and Special Envoys in order to further improve this coherence, and calls for greater visibility for the role of the EUSR for Human Rights; calls for the EUSR to be supported in his work with increased resources and better coordination with EU delegations around the world; regrets, despite continuous calls, Parliament’s exclusion from the process of selecting the EUSR; insists on the need for the EUSR to report back to Parliament regularly;

    Neighbourhood, Development and International Cooperation Instrument – Global Europe and the human rights and democracy thematic programme

    10. Recalls the fundamental role of the Neighbourhood, Development and International Cooperation Instrument (NDICI) – Global Europe, including its thematic programme on human rights and democracy, as a flagship EU instrument in promoting and protecting human rights and democracy around the world; highlights the need to engage with civil society in all the EU’s relevant external activities, including the Global Gateway Strategy which is financed through the NDICI-Global Europe; reiterates the importance of streamlining a human-rights based approach in the EU’s external action instruments; underlines Parliament’s role in the instrument’s programming process and calls on the Commission and the EEAS to share all relevant information in a timely manner in order to enable Parliament to play its role accordingly, in particular during high-level geopolitical dialogues with the Commission and in the mid-term review process as well as in its resolutions; calls on the EEAS and the Commission to ensure that a response is provided to the recommendation letters following each geopolitical dialogue and each resolution; urges the Commission to develop and launch a comprehensive, centralised website dedicated to the NDICI-Global Europe, including information on all the multiannual indicative programmes, detailing their respective budgets, associated actions and the financial allocations they are backing, organised both by country and by theme; notes that the NDICI-Global Europe and all future instruments must focus on the fundamental drivers of ongoing challenges, including the need to strengthen the resilience of local communities and democracy support activities by supporting economic development;

    11. Calls for independent, ex ante assessments to determine the possible implications and risks of projects with regard to human rights, in line with Article 25(5) of  Regulation (EU) 2021/947; calls for independent human rights monitoring throughout the implementation of projects in third countries, especially in relation to projects entailing a high risk of violations; calls for a suspension of projects that (in)directly contribute to human rights violations in non-EU countries; reiterates the prohibition on allocating EU funds to activities that are contrary to EU fundamental values, such as terrorism or extremism; calls on the Commission to share all human rights-related assessments with Parliament in a proactive manner;

    EU trade and international agreements

    12. Reiterates its call to integrate human rights assessments and include robust clauses on human rights in agreements between the EU and non-EU countries, supported by a clear set of benchmarks and procedures to be followed in the event of violations; calls on the Commission and the EEAS to ensure that the human rights clauses in current international agreements are actively monitored and effectively enforced and to improve their communication with Parliament concerning considerations and decisions regarding this enforcement; reiterates that in the face of persistent breaches of human rights clauses by its partner countries, including those related to the Generalised Scheme of Preferences Plus programme, the EU should react swiftly and decisively, including by suspending the agreements in question if other options prove ineffective; calls for the EU Ombudsman’s recommendation concerning the creation of a complaint-handling portal to be implemented, within the framework of EU trade and financial instruments, or for the Commission’s Single Entry Point to be adapted to allow complaints regarding failure to comply with human rights clauses to be submitted; calls on the EU institutions to engage regularly with the business community and civil society in order to strengthen the links between international trade, human rights and economic security; calls for the EU to ensure human rights promotion and protection through its Global Gateway investments and projects, by ensuring that they do no harm;

    EU human rights dialogues

    13. Stresses the important role of human rights dialogues within the EU’s human rights toolbox and as a key vehicle for the implementation of the EU action plan on human rights and democracy; highlights that these dialogues must address the overall situation of human rights and democracy with the relevant countries; notes that human rights dialogues should be seen as a key element of sustained EU engagement and not as a free-standing instrument, and that the persistent failure of non-EU countries to genuinely engage in dialogues and to implement key deliverables should lead to the use of other appropriate foreign policy tools; recalls that these dialogues need to be used in conjunction and synergy with other instruments, using a more-for-more and a less-for-less approach; reiterates the need to raise individual cases, in particular those of Sakharov Prize laureates and those highlighted by Parliament in its resolutions, and ensure adequate follow-up; calls on the EEAS and EU delegations to increase the visibility of these dialogues and their outcomes, ensuring that they are results-oriented and based on a clear set of benchmarks that can be included in a published joint press statement, and to conduct suitable follow-up action on it; calls for the enhanced and meaningful involvement of civil society in the dialogues; stresses that genuine CSOs must not be impeded from participating in human rights dialogues and that any dialogue must include all genuine CSOs without any limitations;

    EU Global Human Rights Sanctions Regime (GHRSR – EU Magnitsky Act)

    14. Welcomes the increasing use of the EU GHRSR as a key political tool in the EU’s defence of human rights and democracy across the world; regrets, however, that its use has continued to be limited, especially in the current geopolitical landscape; notes, however, the challenges that the requirement of unanimity poses in the adoption of sanctions and reiterates its call on the Council to introduce qualified majority voting for decisions on the GHRSR; recalls, in this regard, the formal request submitted by Parliament to the Council in 2023, on calling an EU reform convention, with the aim, among others, of increasing the number of decisions taken by qualified majority; calls for a stronger use of the GHRSR and other ad hoc sanctions regimes on those responsible for serious violations of human rights and international humanitarian law, including high-level officials; fully supports the possibility of imposing targeted anti-corruption sanctions within the EU framework in this regard, which has been a long-standing priority of Parliament, whether through its inclusion in the GHRSR or under a different regime; highlights the need for the complete enforcement of sanctions and calls for circumventions to be tackled;

    Democracy support activities

    15. Reiterates its concern regarding the increasing attacks by authoritarian and illiberal regimes on democratic principles, values and pluralism; stresses that the defence and support of democracy around the world is increasingly becoming of geopolitical and strategic interest; emphasises the importance of Parliament’s efforts in capacity-building for partner parliaments, promoting mediation and encouraging a culture of dialogue and compromise, especially among young political leaders, and empowering women parliamentarians, HRDs and representatives from civil society and independent media; reiterates its call on the Commission to continue and expand its activities in these areas by increasing funding and support for EU bodies, agencies and other grant-based organisations; stresses the critical importance of directly supporting civil society and persons expressing dissenting views, particularly in the current climate of growing global tensions and repression in increasing numbers of countries; reiterates the importance of EU election observation missions and Parliament’s contribution to developing and enhancing their methodology; calls for the development of an EU toolbox to be used in cases of disputed or non-transparent election results in order to prevent political and military crises in the post-election environment; calls for enhanced EU action to counter manipulative and false messages against the EU in election campaigns, in particular in countries that receive significant EU humanitarian and development assistance and in countries that are candidates for EU membership; calls for enhanced collaboration between Parliament’s Democracy Support and Election Coordination Group, the relevant Commission directorates-general and the EEAS;

    EU support for human rights defenders

    16. Is extremely concerned by the continuing restriction of civil society space and rising threats to the work of HRDs and members of CSOs, as well as their families, communities and lawyers, and finds particularly concerning the increasingly sophisticated means used to persecute them; strongly condemns their arbitrary detentions and killings; deplores the harassment of CSOs through legislative provisions such as foreign agents laws and similar, and other restrictions they face; deplores the fact that women HRDs continue to face relentless and ever more sophisticated violations against them, including targeted killings, physical attacks, disappearances, smear campaigns, arrests, judicial harassment and intimidation; notes with concern that these attacks seem designed to systematically silence women HRDs and erase their voices from the public sphere; supports wholeheartedly the work of HRDs and EU action to ensure their protection worldwide; underscores the pressing need for a comprehensive and timely revision of the EU Guidelines on HRDs, with a view to addressing the emerging challenges and threats, and to ensuring their applicability and effectiveness in the protection of HRDs globally, while integrating gender-sensitive and intersectional approaches in the updated Guidelines, reflecting the diverse backgrounds and experiences of HRDs, and taking into account the specific vulnerabilities they may face; calls for the complete and consistent application of the EU Guidelines on HRDs by the EU and its Member States; calls for efforts to enhance communication strategies to increase the visibility of EU actions and channels for the protection of and the support mechanisms for HRDs;

    17. Raises serious concerns over the increasing phenomenon of transnational repression against HRDs, journalists and civil society; calls for the formulation of an EU strategy harmonising national responses to transnational repression;

    18. Expresses deep concern regarding the increasingly precarious financial landscape faced by HRDs and communities advocating for rights, particularly within a global context characterised by intensifying repression; notes that, as a result of the current geopolitical context, HRDs’ need for support has increased; calls, therefore, for the EU and its Member States to make full use of their financial support for HRDs, ensuring the establishment of flexible, accessible and sustained funding mechanisms that enable these defenders to continue their vital work in the face of mounting challenges;

    19. Insists that the EEAS, the Commission and the EU delegations pay particular attention to the situation of the Sakharov Prize laureates and finalists at risk and take resolute action, in coordination with the Member States and Parliament, to ensure their well-being, safety or liberation;

    20. Welcomes the update of the EU Visa Code Handbook in relation to HRDs and calls for its full and consistent application by the Member States; reiterates its call for the Commission to take a proactive role in the establishment of a coordinated approach among the Member States for HRDs at risk, for instance streamlining visa procedures and promoting harmonisation in the EU’s visa application process;

    Combating impunity and corruption

    21. Underlines that both impunity and corruption enable and aggravate human rights violations and abuses and the erosion of democratic principles; welcomes the anti-corruption actions in EU external policies in the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 3 May 2023 on the fight against corruption (JOIN(2023)0012); supports the anti-corruption provisions included in the EU trade agreements with non-EU countries; stresses the important role of civil society and journalists in non-EU countries in the oversight of the fight against impunity and corruption; calls for the EU and its Member States to increase their efforts in justice reforms, the fight against impunity, and the improvement of transparency and of anti-corruption institutions in non-EU countries; encourages the EU and its Member States to coordinate more closely with allies and partners wherever possible in order to counter systemic corruption that enables autocrats to maintain power, deprives societies of key resources and undermines democracy, human rights and the rule of law;

    22. Insists on the need for the EU to take clear steps to recognise the close link between corruption and human rights violations in order to target economic and financial enablers of human rights abusers;

    EU actions at multilateral level

    23. Reaffirms that promoting the respect, protection and fulfilment of human rights around the world requires strong international cooperation at a multilateral level; underlines the particularly important role of the UN and its bodies as the main forum which must be able to effectively advance efforts for peace and security, sustainable development and respect for human rights and international law; calls for the EU and its Member States to continue supporting the work of the UN, its agencies and special procedures, both politically and financially, to ensure that it is fit for purpose, and to push back against the influence of authoritarian and totalitarian regimes; stresses that the current multilateral order needs to fully incorporate into its architecture the new global actors, especially those focusing on democracy and human rights; reiterates the need for the EU and its Member States to speak with one voice at the UN and in other multilateral forums in order to effectively tackle global challenges to human rights and democracy in multilateral forums and to support the strongest possible language in line with international human rights standards; calls, to this end, for progress in ensuring that the EU has a seat in international organisations, including the UN Security Council, in addition to the existing Member States’ seats; calls for EU delegations to play a stronger role in multilateral forums, for which they should have appropriate resources available;

    24. Is deeply concerned by growing attacks against the rules-based global order by authoritarian and totalitarian regimes, including through unprovoked and unjustified aggression against peaceful neighbours and through the undermining of the functioning of UN bodies, namely the abuse of veto power at the UN Security Council; underlines that the diminished effectiveness of these bodies brings with it real costs in terms of conflicts, lives lost and human suffering, and seriously weakens the general ability of countries to deal with global challenges; calls on the Member States and like minded partners to develop a robust strategy and to intensify their efforts to reverse this trend and to send a united and strong message of support to those organisations when they are attacked or threatened; believes that the UN, its bodies, and other multilateral organisations are in need of reform, in order to address these growing challenges and threats;

    25. Reiterates the strong support of the EU for the International Court of Justice and the ICC as essential, independent and impartial jurisdictional institutions amid a particularly challenging time for international justice; recalls that a well-funded ICC is essential for the effective prosecution of serious international crimes; welcomes the political and financial support the EU has given to the ICC, including the Office of the Prosecutor (OTP) of the ICC, and the launch of the ‘Global initiative to fight against impunity for international crimes’ offering financial support to CSOs dedicated to fostering justice and accountability for international crimes and serious human rights violations, including by facilitating survivors’ participation in legal proceedings; calls for the EU and its Member States to continue and intensify their support to the ICC – including to the ICC Trust Fund for Victims – with the necessary means, including resources and political backing, and to use all instruments at their disposal to combat impunity worldwide and enable the ICC to fulfil its mandate effectively; calls on all the Member States to respect and implement the actions and decisions of the International Court of Justice and all organs of the ICC, including the OTP and the Chambers, to urge other countries to join and cooperate with the court, including to enforce ICC arrest warrants, and to support their work as an independent and impartial international justice institution everywhere in the world; regrets the failure of some ICC member states to execute ICC arrest warrants, thereby undermining the court’s work; calls for the EU to urge non-EU countries, including its major partners, to recognise the ICC and become a state party to the Rome Statute;

    26. Stresses the importance of not politicising the ICC, as trust in the court is eroded if its mandate is misused; condemns, in particular and in the most critical terms, the political attacks, sanctions and other coercive measures introduced or envisaged against the ICC itself and against its staff; calls on the Member States and the EU institutions to cooperate to work on solutions in order to protect the institution of the ICC and its staff from any future sanctions that would threaten the functioning of the court;

    27. Recognises universal jurisdiction as an important tool of the international criminal justice system to prevent and combat impunity and promote international accountability; calls on the Member States to apply universal jurisdiction in the fight against impunity;

    28. Calls for the EU and its Member States to lead the global fight against all forms of extremism and welcomes the adoption of an EU strategy to this end; demands that the fight against terrorism be at the top of the EU’s domestic and foreign affairs agenda;

    Upholding international humanitarian law

    29. Notes with concern the increasing disregard for international humanitarian law and international human rights law, particularly in the form of ongoing conflicts around the world; strongly condemns the increase in deliberate, indiscriminate and disproportionate attacks on civilians and civilian objects in multiple conflict settings; underlines that it is of the utmost importance that all UN and humanitarian aid agencies are able to provide full, timely and unhindered assistance to all people in vulnerable situations and calls on all parties to armed conflicts to fully respect the work of these agencies and ensure they can meet the basic needs of civilians without interference; denounces attempts to undermine UN agencies delivering humanitarian aid; urges all parties to armed conflicts to protect civilian populations, humanitarian and medical workers, and journalists and media workers; calls on all parties to armed conflicts to respect the legitimacy and inviolability of UN peacekeeping missions; calls on all states to unconditionally and fully conform with international humanitarian law; calls on the international community, and the Member States in particular, to promote accountability and the fight against impunity for grave breaches of international humanitarian law; calls for the systematic creation of humanitarian corridors in regions at war and in combat situations, whenever necessary, in order to allow civilians at risk to escape conflicts, and strongly condemns any attacks on them; demands unhindered access for humanitarian organisations monitoring and assisting prisoners of war, as provided for in the Geneva Convention on Prisoners of War; expects international organisations to abide by international law regarding the treatment of prisoners of war; calls for international cooperation and assistance in the return of forcibly deported persons, in particular children and hostages;

    30. Reiterates its call on the Member States to help contain armed conflicts and serious violations of human rights or international humanitarian law by strictly abiding by the provisions of Article 7 of the UN Arms Trade Treaty of 2 April 2013 on Export and Export Assessment and Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment;

    31. Given the gendered impacts of armed conflicts, deplores the insufficient priority and focus given to sexual and gender-based violence and to sexual and reproductive health and rights (SRHR) across the EU’s humanitarian and refugee response; reiterates that humanitarian crises intensify SRHR- and gender-related challenges and recalls that in crisis zones, particularly among vulnerable groups such as refugees and migrants, women and girls are particularly exposed to sexual violence, sexually transmitted diseases, sexual exploitation, rape as a weapon of war and unwanted pregnancies; calls on the Commission and the Member States to give high priority to gender equality and SRHR in their humanitarian aid and refugee response, as well as accountability and access to justice and redress for sexual and reproductive rights violations and gender-based violence, including in terms of training for humanitarian actors, and existing and future funding;

    Team Europe approach

    32. Recognises the potential for stronger alignment in approaches to human rights protection and promotion between EU institutions, Member States’ embassies and EU delegations in non-EU countries, particularly in encouraging those countries to comply with their international obligations and to refrain from harassment and persecution of critical voices; emphasises the opportunity for Member States’ embassies to take an increasingly active role in advancing and safeguarding human rights, while also supporting civil society in these countries; calls for the EU and its Member States to use all possible means to urge countries to release political prisoners; highlights the importance of shared responsibility between Member States and EU delegations in these efforts; calls for the EU and its Member States to intensify their collective efforts to promote the respect, protection and fulfilment of human rights and to support democracy worldwide; encourages careful monitoring and assessment of the capacity of EU delegations to ensure that each one has a designated point of contact for cases of human rights violations, and that this mandate is allocated sufficient resources to respond in an effective and timely manner; reiterates, in this context, the importance, for the EU delegations, of existing EU guidelines related to specific areas of human rights;

    Responding to universal human rights and democracy challenges

    Right to freedom from torture and other cruel, inhuman or degrading treatment or punishment

    33. Condemns any action or attempt to legalise, instigate, authorise, consent or acquiesce to torture and other cruel, inhuman or degrading treatment or punishment methods under any circumstances; condemns the increasing reports of the use of torture by state actors in many different contexts, including in custodial and extra-custodial settings – of political prisoners, among others – and in conflict situations around the world, notably in violation of the Geneva Convention on Prisoners of War, as well as the killing of prisoners of war, which amounts to a war crime, and reiterates the non-derogable nature of the right to be free from torture or other forms of inhuman or degrading treatment; reiterates the EU’s zero-tolerance policy to torture and other ill-treatment and calls on the relevant institutions, including the European Court of Human Rights, to take a thorough stance on any such case;

    34. Reiterates its calls for universal ratification of the UN Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment and its Optional Protocol thereto, and for the need for states to bring their national provisions in this respect in line with international standards; reiterates, in accordance with the revised Guidelines on the EU’s policy towards third countries on torture and other cruel, inhuman or degrading treatment or punishment, adopted by the Council on 16 September 2019, the importance of engaging with relevant stakeholders in the fight to eradicate torture, and to monitor places of detention;

    Right to freedom of peaceful assembly and association

    35. Reiterates the need to protect the EU democratic space and the exercise of fundamental freedoms therein, particularly freedoms of assembly and association; highlights the growing violent repression of protest and peaceful assemblies within the EU civic space, with cases of torture and ill-treatment resulting in deaths and other serious violations; underscores the need to strengthen this fundamental right in conjunction with the absolute prohibition of torture and ill-treatment;

    Right to food, water and sanitation

    36. Recalls that the right to food, including having physical and economic access to adequate food or the means to its procurement, is a human right; is extremely concerned about the challenges to the right to food worldwide, especially in situations of war and conflicts; condemns the increasing reports of the weaponisation of food in situations of armed conflict; calls for the EU and its Member States to promote mandatory guidelines on the right to food without discrimination within the UN system; urges the EU and the Member States to fully support, politically and financially, organisations and agencies working to secure the right to food in conflict zones; recalls the importance of the UN Declaration on the Rights of Peasants and Other People Working in Rural Areas in view of attaining food security; commends the work of the UN World Food Programme, in this regard;

    37. Reaffirms the rights to safe drinking water and to sanitation as human rights, both rights being complementary; underlines that access to clean drinking water is indispensable to a healthy and dignified life and is essential for the maintenance of human dignity; highlights the fact that the right to water is a fundamental precondition for the enjoyment of other rights, and as such must be guided by a logic grounded in the public interest, and in common public and global goods; underscores the importance of the EU Guidelines on safe drinking water and sanitation, and urges the EU institutions and the Member States to implement and promote their application in non-EU countries and in multilateral forums;

    Climate change and the environment

    38. Highlights that climate change and its impact on the environment has direct effects on the effective enjoyment of all human rights; recognises the important work of CSOs, indigenous peoples and local communities, land and environmental HRDs and indigenous activists for the protection of a clean, healthy and sustainable environment, including access to land and water sources; deplores the risks that environmental HRDs and indigenous activists face and calls for their effective protection to be guaranteed; notes that communities contributing the least to climate change are the ones more likely to be affected by climate risks and natural disasters and calls, in this regard, for increasing support to the most vulnerable groups; recalls that indigenous peoples and local communities play an important role in the sustainable management of natural resources and the conservation of biodiversity; recalls that the transition to clean energy must be fair and respect everyone’s fundamental rights; reiterates the importance of the achievement of the UN sustainable development goals (SDGs) for the protection of the human rights of present and future generations;

    39. Notes with deep concern the increasing threats to a clean, healthy and sustainable environment posed by the deployment of weapons of mass destruction and other forms of warfare that adversely and disproportionately affect the environment; stresses the need to effectively address the displacement of people caused by environmental destruction and climate change, which increases the risk of human rights violations and heightens vulnerabilities to different forms of exploitation; recognises that children face more acute risks from climate-related disasters and are also one of the largest groups to be affected; calls for the EU to focus on addressing the impacts of climate change on the enjoyment of the rights of the child;

    Rights of the child

    40. Calls for a systematic and consistent approach to promoting and defending children’s rights, including for those most marginalised and those in the most vulnerable situations, through all of the EU’s external policies; calls for more concerted efforts to promote the respect, protection and fulfilment of children’s rights in crisis or emergency situations; condemns the decline in respect for the rights of the child and the increasing violations and abuses of these rights, including through violence, early and forced marriage, sexual abuse including genital mutilation, trafficking, child labour, honour killings, recruitment of child soldiers, lack of access to education and healthcare, malnutrition and extreme poverty; further condemns the increase in deaths of children in situations of armed conflict and stresses the need for effective protection of children’s rights in active warfare; calls for new EU initiatives to promote and protect children’s rights, with a view to rehabilitating and reintegrating conflict-affected children, ensuring that they have a protected, family- and community-based environment as a natural context for their lives, in which assistance and education are fundamental elements; reiterates its call for a systematic and consistent approach to promoting and defending children’s rights through all EU external policies; calls on all countries to ratify the UN Convention on the Rights of the Child as a matter of urgency, in order to allow for the universal ratification of this foundational instrument;

    41. Stresses the importance of closing the financing gap that would enable countries to meet their SDG 4 targets on quality education and ensure access to education for all children and young people; reiterates its calls to address cultural norms and gender biases that prevent girls and women from receiving an education and urges the creation of gender-responsive education systems worldwide;

    42. Stresses that education represents the starting point for cultivating principles and values that contribute to the personal development of children, as well as to social cohesion and democracy, and the rule of law around the world; to that end calls for the EU to promote its values through supporting access to education and learning for women and girls;

    Rights of women and gender equality

    43. Stresses that women’s rights and gender equality are indispensable and indivisible human rights, as well as a basis for the rule of law and inclusive resilient democracies; deplores the fact that millions of women and girls continue to experience discrimination and violence, especially in the context of conflicts, post-conflict situations and displacements, and are denied their dignity, autonomy and even life; condemns the impunity with which perpetrators commit violations against women HRDs; is appalled by the use of rape and sexual violence as a weapon of war and stresses the need to shed light on these instances, and for better international cooperation on fighting impunity for these crimes; calls for the EU, its Member States and like-minded partners to step up their efforts to ensure the full enjoyment and protection of women’s and girls’ human rights, and to incorporate a gender mainstreaming approach across all policies, taking into account the differentiated impacts of global challenges such as climate change or conflicts; condemns in the strongest terms the increasing attacks on SRHR around the world, as well as gender-based violence; strongly deplores cases of female genital mutilation, honour killings, child marriages and forced marriages; welcomes the accession of the EU to the Istanbul Convention and strongly encourages the remaining EU Member States to ratify the Istanbul Convention without further delay; calls for the EU and its international partners to strengthen their efforts to ensure that women fully enjoy human rights and are treated equally to men; emphasises the importance of safeguarding the rights of women, ensuring that their health, safety and dignity are protected, particularly in the context of healthcare access and workplace protections; underlines the need to keep opposing and condemning, in the strongest terms, anti-abortion laws that punish women and girls with decades-long jail sentences, even in cases of rape, incest or when the life of the pregnant woman is at risk; stresses the need to pursue efforts to fully eradicate the practice of female genital mutilation; fully supports the role of the EU Ambassador for Gender and Diversity;

    44. Recognises that gender apartheid constitutes a systematic and institutionalised form of oppression, depriving women and girls of fundamental rights solely on the basis of their gender; notes with deep concern the entrenchment of gender apartheid in certain regions, where women face extensive restrictions on education, employment, healthcare and freedom of movement, often underpinned by legal and cultural frameworks that reinforce gender-based discrimination; urges the EU and the Member States to proactively address gender apartheid through strengthened diplomatic efforts, targeted economic measures and accountability mechanisms that support civil society organisations advocating for gender equality; calls for the formal recognition of gender apartheid as a distinct human rights violation and for support for international initiatives for its classification as a crime against humanity, thus contributing to the establishment of a global accountability standard;

    Rights of refugees and asylum seekers

    45. Denounces the erosion of the human rights and the safety of refugees, asylum seekers and forcibly displaced persons; reaffirms their inalienable human rights and fundamental right to seek asylum; recalls the obligation of states to protect them in accordance with international law; underlines the importance of identification and registration of individuals, including children, as a key tool for protecting refugees and ensuring the integrity of refugee protection systems, preventing human trafficking and the recruitment of children into armed militias; calls for the EU and its Member States to effectively uphold their rights in the EU’s asylum and migration policy and in the EU’s cooperation with partner countries in this regard; deplores the increasing xenophobia, racism and discrimination towards migrants, as well as the different forms of violence they face, including during their displacement, and the many barriers they face, including in access to healthcare; condemns the instrumentalisation of migration at EU borders by foreign actors, which constitutes hybrid attacks against the Member States as well as a dehumanisation of migrants; stresses that the EU should step up its efforts to acknowledge and develop ways to address the root causes of irregular migration and forced displacement, building the resilience of migrants’ communities of origin and helping them offer their members the possibility to enjoy a decent life in their home country; calls for the EU and its Member States to continue and, where possible, step up their support for countries hosting the most refugees, as well as for transit countries; reiterates that close cooperation and engagement with non-EU countries, with full respect for fundamental rights, remain key to preventing migrant smuggling; stresses, in this regard, that the dissemination of information and awareness-raising campaigns on the risks of smuggling are crucial, as well as of the migration laws of the destination countries, in order to prevent the undertaking of unnecessarily risky journeys by those who do not have grounds for asylum; calls for EU-funded humanitarian operations to take into consideration the specific needs and vulnerabilities of children and to ensure their protection while they are displaced; underlines the importance of developing an effective framework of safe and legal pathways to the EU and welcomes, in this regard, the Commission communication on attracting skills and talent to the EU[11], including the development of talent partnerships with partner countries; calls for respect for the principle of non-refoulement to countries where the life and liberty of people would be threatened; calls for the EU and its Member States to discuss the phenomenon of instrumentalised migration orchestrated by authoritarian regimes and organised crime groups, and emphasises the need to conduct a comprehensive analysis of this phenomenon, develop effective countermeasures, and consider its implications for the human rights framework;

    46. Reaffirms that no agreement with a non-EU country designated as a transit country should be concluded without Parliament’s scrutiny, and calls on the Commission and the Member States to include robust human rights clauses, monitoring mechanisms and impact assessments therein; reiterates its call on the Commission to integrate ex ante human rights impact assessments into such agreements;

    Rights of LGBTIQ+ persons

    47. Deplores the human rights violations, including discrimination, persecution, violence and killings, against lesbian, gay, bisexual, trans, non-binary, intersex and queer (LGBTIQ+) persons around the world; is extremely concerned by the spreading of hatred and anti-LGBTIQ+ narratives and legislation that target LGBTIQ+ persons and HRDs; calls for the adoption of policies that protect LGBTIQ+ people and give them the tools to safely report a violation of their rights, in line with the EU Guidelines to Promote and Protect the Enjoyment of all Human Rights by LGBTI Persons; expresses special concern over LGBTIQ+ people living under non-democratic regimes or in conflict situations, and calls for rapid response mechanisms to protect them as well as their defenders; reiterates its calls for the full implementation of the LGBTIQ Equality Strategy 2020-2025 as the EU’s tool for improving the situation of LGBTIQ+ people around the world; calls for  the use of the death penalty to be rejected under all circumstances, including any legislation that would impose the death penalty for homosexuality; calls for the EU and its Member States to further engage the countries with such legislation in reconsidering their position on the death penalty; notes further that the imposition of the death penalty on the basis of such legislation is arbitrary killing per se, and a breach of Article 6 of the International Covenant on Civil and Political Rights;

    Rights of persons with disabilities

    48. Is concerned by the challenges to the full enjoyment of the rights of persons with disabilities; reiterates its calls for the EU to assist partner countries in the development of policies in support of carers of persons with disabilities; calls for the raising of social awareness and the combating of discriminatory behaviours against persons with disabilities; points to the additional complications faced by persons with disabilities in conflict situations and natural disasters, as they are more vulnerable to violence and often do not receive adequate support; urges all parties to conflict situations worldwide to take adequate measures to mitigate the risks to them as much as possible; emphasises the need to safeguard children with disabilities from any form of exploitation; calls for the EU, in its external policy, to make use of the strategy for the rights of persons with disabilities 2021-2030 as a tool to improve the situation of persons with disabilities, particularly concerning poverty and discrimination, but also problems with access to education, healthcare and employment, and participation in political life; encourages the EU to support partner countries in developing inclusive economic policies that promote accessible vocational training and employment opportunities for persons with disabilities, fostering their full and active economic participation;

    Rights of elderly people

    49. Reiterates its call for the EU and its Member States to develop new avenues to strengthen the rights of elderly people, taking into account the multiple challenges they face, such as age-based discrimination, poverty, violence and a lack of social protection, healthcare and other essential services, as well as barriers to employment; calls for the implementation of specific measures to combat the risk of poverty for older women through increased social support; underlines the work of the UN Open-ended Working Group on Ageing on a legally binding instrument to strengthen the protection of the human rights of older people and calls for the EU and its Member States to consider actively supporting that work; stresses the need for a cross-cutting intergenerational approach in EU policies, in order to build and encourage solidarity between young people and elderly people;

    Right to equality and non-discrimination

    50. Reiterates its condemnation of all forms of racism, intolerance, antisemitism, Islamophobia, persecution of Christians, xenophobia and discrimination on the basis of race, ethnicity, nationality, social class, disability, caste, religion, belief, age, sexual orientation or gender identity; condemns the growing international threat of hate speech and speech that incites violence, including online; reiterates the crucial role of education and dialogue in promoting tolerance, understanding and diversity; calls for the adoption or the strengthening of mechanisms for reporting discriminatory behaviours as well as access to effective legal remedies, to help end the impunity of those who engage in this behaviour;

    Right to life: towards the universal abolition of the death penalty

    51. Reiterates its principled opposition to the death penalty, which is irreversible and incompatible with the right to life and with the prohibition of torture, and a cruel, inhuman and degrading punishment; stresses that the EU must be relentless in its pursuit of the universal abolition of the death penalty as a major objective of its human rights foreign policy; notes that despite the trend in some non-EU countries to take steps towards abolishing the death penalty, significant challenges in this regard still exist; deplores the fact that in other non-EU countries the number of death sentences that have been carried out has reached its highest level in the last five years; reiterates its call for all countries to completely abolish the death penalty or establish an immediate moratorium on the use of the death penalty (sentences and executions) as a first step towards its abolition; urges, in this regard, the EU to intensify diplomatic engagement with countries that continue to practise the death penalty, encouraging dialogue and cooperation on human rights issues and providing support for the development of judicial reforms that could lead towards its abolition;

    Right to freedom of thought, conscience, religion and belief

    52. Reiterates its concern regarding violations of the right to freedom of thought, conscience, religion and belief; is concerned about the worldwide increase in intolerance towards different religious communities; deplores the instrumentalisation of religious or belief identities for political purposes and the exclusion of persons belonging to religious and belief minorities and religious communities, including from political participation, as well as the destruction and vandalism of sites and works of art of cultural and historical value, in certain non-EU countries; stresses that the freedom to choose one’s religion, to believe or not to believe is a human right that cannot be punished; condemns, therefore, the existence and implementation of so-called apostasy laws and blasphemy laws that lead to harsh penalties, degrading treatment and, in some cases, even to death sentences; calls for the abolition of apostasy laws and blasphemy laws; stresses that the Special Envoy for the promotion and protection of freedom of religion or belief outside the EU should be granted more resources so that he can efficiently carry out his mandate; highlights the need for the Special Envoy to continue to work closely and in a complementary manner with the EUSR for Human Rights and the Council Working Party on Human Rights; calls for the EU and its Member States to step up their efforts to protect the right to freedom of thought, conscience, religion or belief, to raise these issues at UN human rights forums and to continue working with the relevant UN mechanisms and committees; calls for the EU to request and consolidate reports by EU delegations on the state of freedom of thought, conscience, religion and belief;

    53. Recalls that most of the drivers of violent conflicts worldwide involve minority grievances of exclusion, discrimination and inequalities linked to violations of the human rights of minorities, as observed by the UN Special Rapporteur on minority issues; stresses the need to mainstream the protection of the rights of minorities and for the development of protection mechanisms at the level of the UN; recalls the obligations of states to protect the rights of their national, ethnic, cultural, religious or linguistic minorities within their respective territories; calls on the Commission to support the protection of the rights of persons belonging to minorities worldwide, including this as a priority under the human rights and democracy thematic programme of the EU’s NDICI-Global Europe;

    Right to freedom of expression, academic freedom, media freedom and the right to information

    54. Emphasises the critical significance of freedom of expression and access to trustworthy and diverse sources of information for sustaining democracy and a thriving civic space; recalls that democracies can only function when citizens have access to independent and reliable information, making journalists key players in the safeguarding of democracy; is therefore seriously concerned about the increasing restrictions on freedom of expression in numerous countries worldwide, particularly for journalists, through censorship, enforced self-censorship, so-called foreign agents laws and the misuse of counter-terrorism or anti-corruption laws to suppress journalists and civil society groups; is concerned by the use of hate speech against journalists, both online and offline, leading to a deterrent effect; raises concerns, additionally, about the physical security of journalists and media workers and their being targeted in conflict zones; notes the number of journalists killed in conflict situations in 2023, according to the Committee to Protect Journalists, has increased alarmingly – by 85 % – since 2022;

    55. Calls urgently for the EU to back trustworthy media and information outlets that promote the accountability of authorities and support democratic transitions, while stressing the need to preserve the principles of pluralism, transparency and independence; highlights the role played by fact checkers in the media landscape, ensuring that the public can trust the information they receive; is concerned that they are therefore major targets for attacks by illiberal regimes that originate and disseminate disinformation, propaganda and fake news; condemns the extensive use of SLAPPs to silence journalists, activists, trade unionists and HRDs globally; welcomes, in this context, the directive designed to shield journalists and HRDs from abusive legal actions and SLAPPs; encourages lawmakers in non-EU countries to develop legislation with the same goal, as part of broader efforts to promote and protect media freedom and pluralism; requests that attacks on media freedom, as well as the persistent and systematic erosion of the right to information, be taken into account in the EU’s monitoring of the compliance of international agreements;

    56. Welcomes the Commission’s plan to finance initiatives that support journalists on legal and practical matters, including beyond the EU, through the European Democracy Action Plan; calls for the EU to strengthen its efforts to aid targeted journalists globally, recalling that independent journalists are on the frontline of the fight against disinformation, which undermines democracies; acknowledges the contribution to achieving this goal of programmes such as the now-defunct Media4Democracy and other EU-funded activities, including those of the European Endowment for Democracy; urges the EU to help make reliable news sources available to more people living in countries that restrict press freedom;

    57. Remains deeply concerned by the deteriorating state of press freedom around the world; condemns the censorship of journalists, HRDs and CSOs through the application of so-called foreign agents laws, as well as other legislative and non-legislative measures adopted by authoritarian and illiberal regimes;

    58. Reaffirms its commitment to protecting and promoting academic freedom as a key component of open and democratic societies; underlines the attacks to academic freedom not only by authoritarian and totalitarian regimes, but also by extreme and populist forces worldwide; calls for the development of benchmarks for academic freedom into institutional quality assurance within academic rankings, procedures and criteria;

    59. Notes with concern that more than half of the world’s population lives within environments of completely or severely restricted levels of academic freedom, which has severe consequences for the right to education, the enjoyment of the benefits of scientific progress and the freedom of opinion and expression; urges the EU and its Member States to step up their efforts to halt censorship, threats or attacks on academic freedom, and especially the imprisonment of scholars worldwide; welcomes the inclusion of academics at risk in the EU Human Rights Defenders Mechanism; calls on the Commission to ensure continued high-level support for the Global Campus of Human Rights, which has provided a safe space for students and scholars who had to flee their countries for defending democracy and human rights;

    Rights of indigenous peoples

    60. Notes with regret that indigenous peoples continue to face widespread and systematic discrimination and persecution worldwide, including forced displacements; condemns arbitrary arrests and the killing of human rights and land defenders who stand up for the rights of indigenous peoples; stresses that the promotion of the rights of indigenous peoples and their traditional practices are key to achieving sustainable development, combating climate change and conserving biodiversity; urges governments to pursue development and environmental policies that respect economic, social and cultural rights, and that are inclusive of indigenous peoples and local populations, in line with the UN SDGs; reiterates its call for the EU, its Member States and their partners in the international community to adopt all necessary measures for the recognition, protection and promotion of the rights of indigenous people, including as regards their languages, lands, territories and resources, as set out in the UN Declaration on the Rights of Indigenous Peoples, including the principle of free, prior and informed consent; calls on all states to ensure that indigenous peoples and local communities are included in the deliberations and decision-making processes of international climate diplomacy; encourages the Commission to continue to promote dialogue and collaboration between indigenous peoples and the EU;

    Right to public participation

    61. Deplores that the right to participate in free and fair elections is not respected in authoritarian, illiberal, and totalitarian regimes; highlights that these regimes conduct fake elections with the aim of entrenching their power, as they lack real political contestation and pluralism; is alarmed by current trends in electoral processes, such as the increasing decline in electoral participation and democratic performance or the growing disputes concerning the credibility of elections; highlights with deep concern the growing interference by some states in other countries’ elections through hybrid tactics; reaffirms the necessity of increasing political representation of women, young people and vulnerable groups and to guarantee the public participation of minorities; underlines that distrust in the electoral process can be exacerbated not only by irregularities but also by public statements, including from participants; emphasises that public perception of electoral process is as crucial as the process itself, as its manipulation can lead to polarisation or targeted attacks; calls on non-EU countries to reinforce their efforts to clearly communicate all the steps of their respective electoral processes and systems, as well as the existing accountability mechanisms in case of irregularities; calls on the EEAS and the Commission to analyse and report to Parliament their initiatives to tackle the challenges posed by articifical intelligence (AI) in electoral processes;

    Human rights, business and trade

    62. Stresses the role of trade as a major instrument to promote and improve the human rights situation in the EU’s partner countries; urges the Commission to improve coordination between the EU’s trade, investment and development policies and prioritise and promote the development of human rights through EU trade policies, including the Generalised Scheme of Preferences Plus; notes, however, that there has been little to no improvement in some of the countries concerned; stresses the responsibilities of states and other actors, such as corporations, to mitigate the effects of climate change, prevent their negative impact on human rights and promote appropriate policies in compliance with human rights obligations; deplores the detrimental effects of some excessive and exploitative business activities on human rights and democracy; welcomes the harmonisation resulting from the adoption of the Directive on corporate sustainability due diligence with binding EU rules on responsible corporate behaviour with regard to human, labour and environmental rights; further welcomes the Regulation on prohibiting products made with forced labour on the Union market[12] and calls for its swift implementation at Member State level; calls for the implementation of the EU Ombudsman’s recommendation concerning the creation of a complaint-handling portal, within the framework of EU trade and financial instruments, and for the adaptation of the Commission’s Single Entry Point to allow for the submission of complaints regarding failures to comply with human rights clauses, which should be accessible, citizen-friendly and transparent; calls for the EU to continue its efforts to eliminate child labour, and forced and bonded labour; stresses the importance of remediation and access to justice measures that are in line with the UN Guiding Principles on Business and Human Rights, including financial and non-financial measures in consultation with the victims; calls on the Council to adopt an ambitious mandate for the EU to engage in the ongoing negotiations on the UN legally binding instrument on business and human rights as soon as possible;

    63. Highlights that in many regions of the world, micro-, small and medium-sized enterprises (MSMEs) are often the driving force of local economies with an increasing number of women running them; underlines that MSMEs account for 90 % of businesses, 60 to 70 % of employment and 50 % of gross domestic product worldwide; highlights the importance of MSMEs in their contribution to the 2030 Agenda and the achievement of the SDGs, namely those on the eradication of poverty and decent working conditions for all;

    Human rights and digital technologies

    64. Is concerned by the threat that AI can pose to democracy and human rights, especially if it is not duly regulated; highlights the need for oversight, robust transparency and appropriate safeguards for new and emergent technologies, as well as a human-rights based approach; welcomes the Council conclusions on Digital Diplomacy of 26 June 2023 to strengthen the EU’s role and leadership in global digital governance, in particular its position as a shaper of the global digital rulebook based on democratic principles; welcomes, in this regard, the adoption of the EU Artificial Intelligence Act which aims to harmonise the rules on AI for protecting human rights, and the advantages that AI can bring to human wellbeing; is deeply concerned about the harmful consequences of the misuse of AI and deepfakes, particularly for women and children; notes with concern the adverse effects of the ‘fake content industry’ on the right to information and press freedom, including the rapid development of AI and the subsequent empowerment of the disinformation industry[13]; condemns the use of new and emerging technologies, such as facial recognition technology and digital surveillance, as coercive instruments and their use in the increasing harassment, intimidation and persecution of HRDs, activists, journalists and lawyers; calls on the Council for the listing under the EUGHRSR of state and non-state actors that are engaging in these practices; notes with concern the rapid development of AI in military applications, as well as the potential development and deployment of autonomous systems that could make life-or-death decisions without human input;

    65. Recalls that the international trade in spyware to non-EU countries where such tools are used against human rights activists, journalists and government critics, is a violation of the fundamental rights enshrined in the Charter;

    66. Welcomes the adoption in May 2024 of the first Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law, aimed at ensuring that activities within the entire life cycle of AI systems are fully consistent with human rights, democracy and the rule of law; reiterates the need for greater legislative attention to be paid to the profound changes arising from activities within the life cycle of AI systems, which have the potential to promote human prosperity, individual and social well-being, sustainable development, gender equality, and the empowerment of all women and girls, but also pose the risk of creating or exacerbating inequalities and incentivising cyber and physical violence, including violence experienced by women and individuals in vulnerable situations;

    67. Stresses that the internet should be a place where freedom of expression prevails; considers, nevertheless, that the rights of individuals need to be respected; is of the opinion that, where applicable, what is considered to be illegal offline, should be considered illegal online; expresses concern for the growing number of internet shutdowns; highlights that internet shutdowns are often used by authoritarian regimes, among others, to silence political dissidence and curb political freedom; calls urgently for the EU to combat this alarming phenomenon, including considering allowing EU-based providers to offer safe communication tools to people who have been thereby deprived of online access; urges the EU to take a firm stance against any attempts by tech giants to circumvent or undermine national legal systems and independent court decisions, and to protect democratic principles and implement measures to maintain the integrity of elections, as well as to protect the right to information, especially during electoral periods;

    °

    ° °

    68. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the European Union Special Representative for Human Rights, the governments and parliaments of the Member States, the United Nations Security Council, the United Nations Secretary-General, the President of the 79th session of the United Nations General Assembly, the President of the United Nations Human Rights Council, the United Nations High Commissioner for Human Rights and the European Union Heads of Delegation.

    EXPLANATORY STATEMENT

    Each year, the European Parliament adopts three annual reports on the EU’s foreign, security and defence, and human rights policies.

     

    The three reports are on:

     

     the implementation of the Common Foreign and Security Policy – annual report 2024 (based on the report of the High Representative of the Union for Foreign Policy to the European Parliament on the Common Foreign and Security Policy) – competence of the AFET Committee,

     Human Rights and Democracy in the world and the European Union’s policy on the matter – annual report 2024 (based on the EU Annual report on Human Rights and Democracy in the World) – competence of the DROI Subcommittee, and

     the implementation of the Common Security and Defence Policy – annual report 2024 (based on the report of the High Representative of the Union for Foreign Policy to the European Parliament on the Common Foreign and Security Policy) – competence of the SEDE Subcommittee.

     

    These reports monitor and assess the implementation of the Common Foreign and Security Policy, including the EU policy on Human Rights and the Common Security and Defence Policy. They are a key component of the European Parliament’s contribution to EU foreign policy making, most notably in regard to the strengthened right of scrutiny conferred to the European Parliament by the Treaty of Lisbon. It is essential that the European Parliament responds to the annual reports issued by other institutions as soon as they are published.

    ANNEX I: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

    Entity and/or person

    European Partnership for Democracy/International Dalit Solidarity Network

    Clean Clothes Campaign

    Protection International

    Race & Equality

    FIDH – International Federation for Human Rights

    International Partnership for Human Rights

    Cairo Institute for Human Rights Studies

    Front Line Defenders

    Save the Children

    Avocats Sans Frontières

    Center for Reproductive Rights

    Reporters without Borders

    End FGM European Network

     

    The list above is drawn up under the exclusive responsibility of the rapporteur.

     

    Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do ), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

     

    ANNEX II: INDIVIDUAL CASES RAISED BY THE EUROPEAN PARLIAMENT FROM DECEMBER 2023 TO JANUARY 2025

     

    COUNTRY

     

    Individual

    BACKGROUND

    ACTION TAKEN BY THE PARLIAMENT

    AFGHANISTAN

     

    Manizha Seddiqi Ahmad Fahim Azimi

    Sediqullah Afghan, Fardin Fedayee  Ezatullah Zwab

    Manizha Seddiqi, Ahmad Fahim Azimi, Sediqullah Afghan, Fardin Fedayee and Ezatullah Zwab are human rights defenders who have been detained in Afghanistan.

    In its resolution of 14 March 2024, the European Parliament:

     

    – Condemns the arbitrary detention of human rights defenders, including Manizha Seddiqi, Ahmad Fahim Azimi, Sediqullah Afghan, Fardin Fedayee and Ezatullah Zwab;

     

    – Calls for victims of violence against women and girls to be released from prison, where they are being held in inhumane conditions to the detriment of their mental and physical health.

     

    ALGERIA

     

    Boualem Sansal

    French-Algerian writer Boualem Sansal was detained on 16 November 2024 by the Algerian authorities, his whereabouts remained unknown for over a week, during which time he was denied access to his family and legal counsel; he was subsequently charged with national security-related offences under Article 87bis of the Algerian Penal Code, and he is awaiting trial.

    In its resolution of 23 January 2025, the European Parliament:

     

    – Condemns the arrest and detention of Boualem Sansal and calls for his immediate and unconditional release;

     

    – Equally condemns the arrests of all other activists, political prisoners, journalists, human rights defenders and others detained or sentenced for exercising their right to freedom of opinion and expression, including journalist Abdelwakil Blamm and writer Tadjadit Mohamed, and calls for their release;

     

    – Reiterates, as enshrined in the EU-Algeria Partnership Priorities, the importance of the rule of law in order to consolidate freedom of expression; stresses that renewing this agreement must be based upon continued and substantial progress in the aforementioned domains and underscores that all future disbursements of EU funds should consider the progress made in this regard.

     

    AZERBAIJAN

     

    Dr Gubad Ibadoghlu

    Ilhamiz Guliyev

    Ulvi Hasanli Sevinj Vagifgizi

    Nargiz Absalamova

    Hafiz Babali,

    Elnara Gasimova Aziz Orujov

    Rufat Muradli

    Avaz Zeynalli

    Elnur Shukurov

    Alasgar Mammadli

    Farid Ismayilov

     

    Gubad Ibadoghlu, a political economist and opposition figure, was arrested by Azerbaijani authorities in July 2023 and remained in detention until 22 April 2024, when he was transferred to house arrest; his health has deteriorated significantly since his arrest, as a result of torture, inhumane detention conditions and refusal of adequate medical care, thus endangering his life.

     

    Ilhamiz Guliyev, a human rights defender, was arbitrarily arrested on 4 December 2023 on dubious accusations of drug trafficking after he testified as whistleblower about the police tampering with evidence against government critics; he is facing up to 12 years in prison.

     

    Tofig Yagublu, Akif Gurbanov, Bakhtiyar Hajiyev are political prisoners, and Ulvi Hasanli, Sevinj Vagifgizi, Nargiz Absalamova, Hafiz Babali, Elnara Gasimova, Aziz Orujov, Rufat Muradli, Avaz Zeynalli, Elnur Shukurov, Alasgar Mammadli, Farid Ismayilov are human rights defenders and journalists.

    In its resolution of 25 April 2024, the European Parliament:

     

    – Urges Azerbaijan to immediately and unconditionally release Ilhamiz Guliyev; notes that Gubad Ibadoghlu has been released and placed under house arrest and calls on the authorities to lift the travel ban and drop all charges against him; calls on Azerbaijan to urgently ensure that he receives an independent medical examination by a doctor of his own choosing and to allow him to receive treatment abroad;

     

    – Urges Azerbaijan to immediately and unconditionally release all other political prisoners, including Tofig Yagublu, Akif Gurbanov, Bakhtiyar Hajiyev, human rights defenders and journalists Ulvi Hasanli, Sevinj Vagifgizi, Nargiz Absalamova, Hafiz Babali, Elnara Gasimova, Aziz Orujov, Rufat Muradli, Avaz Zeynalli, Elnur Shukurov, Alasgar Mammadli, Farid Ismayilov, as well as EU and other nationals.

     

    AZERBAIJAN

     

    Dr Gubad Ibadoghlu, Anar Mammadli, Kamran Mammadli, Rufat Safarov and Meydan TV

    Political prisoner and 2024 Sakharov Prize finalist Gubad Ibadoghlu remains under house arrest; the European Court of Human Rights ruled that his health condition is critical, requiring hospitalisation and urgent heart surgery.

     

    Civil society leader Anar Mammadli has been in pre-trial detention since April 2024 on bogus charges, with his health deteriorating due to denied healthcare.

     

    In early December 2024, the Azerbaijani authorities arrested MeydanTV journalists Aynur Ganbarova, Aytaj Ahmadova, Khayala Agayeva, Natig Javadli and Aysel Umudova, and journalists Ramin Jabrayilzade and Ahmad Mukhtar; they also arrested Baku Journalism School deputy director Ulvi Tahirov, political leader Azer Gasimli and human rights defender Rufat Safarov; all face unfounded, politically motivated charges.

     

    In its resolution of 19 December 2024, the European Parliament:

     

    – Urges the Azerbaijani authorities to immediately end the crackdown on all dissident groups and unconditionally release and drop all charges against human rights defenders, journalists and political and other activists prosecuted under fabricated, politically motivated charges;

     

    – Demands that the authorities immediately lift the travel ban on Ibadoghlu, unconditionally drop all charges against him and allow him to receive urgent treatment abroad; deplores the fact that Ibadoghlu was not allowed to attend the Sakharov Prize ceremony or connect remotely;

     

    – Calls on Azerbaijan to lift undue restrictions on independent media by aligning its laws on the registration and funding of non-governmental groups and media with Venice Commission recommendations; demands that the authorities end the repression of MeydanTV, ToplumTV, Abaz Media and Kanal13;

     

    – Calls for EU sanctions under its global human rights sanctions regime to be imposed on Azerbaijani officials responsible for serious human rights violations, including Fuad Alasgarov, Vilayat Eyvazov and Ali Naghiyev.

     

    BELARUS

     

    Marina Adamovich, Mikalai Statkevich  Tatsiana Seviarynets, Pavel Seviarynets Daria Losik

    Ihar Losik

    Mikalai Kazlou

    Ryhor Kastusiou Mikalai Statkevich Pavel Seviarynets

    Marina Adamovich, wife of Mikalai Statkevich (political prisoner), Tatsiana Seviarynets, mother of Pavel Seviarynets (political prisoner), and earlier-arrested Daria Losik, wife of Ihar Losik (political prisoner), have suffered interrogations and detentions by the KGB. 

     

    Mikalai Kazlou, Ryhor Kastusiou, Mikalai Statkevich and Pavel Seviarynets, all political prisoners, face isolation, torture, denial of medical care and forced labour.

    In its resolution of 14 December 2023, the European Parliament:

     

    – Strongly condemns the recent wave of mass arrests in Belarus and urges the illegitimate Lukashenka regime to cease repression, especially any gender-based persecution, and reminds the regime of its international obligations;

     

    – Calls for the immediate unconditional release and compensation of all more than 1 400 political prisoners, as well as their families and arbitrarily detained persons, while restoring their full rights.

     

    BELARUS

     

    Mikola Statkevich

    Ales Bialiatski

    Maria Kalesnikava Siarhei Tsikhanouski Viktar Babaryka Maksim Znak

    Pavel Sevyarynets Palina Sharenda-Panasiuk

    Andrzej Poczobut  Ihar Losik

    Former presidential candidate and 2020 Sakharov Prize laureate Mikola Statkevich has been imprisoned on politically motivated charges for 14 years; he is kept in solitary confinement under maximum security; his health is deteriorating and his lawyers and family have been denied information and contact for over 300 days.

     

    Prominent Belarusian political prisoners, including Ales Bialiatski, Maria Kalesnikava, Siarhei Tsikhanouski, Viktar Babaryka, Maksim Znak, Pavel Sevyarynets, Palina Sharenda-Panasiuk, Andrzej Poczobut and Ihar Losik, have been subjected to similar isolation.

    In its resolution of 8 February 2024, the European Parliament:

     

    – Demands the immediate, unconditional release of Mikola Statkevich and all 1 500 political prisoners; calls for the withdrawal of all charges against them, their full rehabilitation and financial compensation for the damage suffered as a result of being deprived of liberty;

     

    – Insists that the prisoners must receive proper medical assistance and access to lawyers, family, diplomats and international organisations, which can assess their condition and provide aid; regrets the inaction of the International Committee of the Red Cross (ICRC) in Belarus;

     

    – Strongly condemns the unjustified, politically motivated sentences and continued repression of Belarusian democratic forces, civil society, human rights defenders, trade unionists, journalists, clergy, political activists and their family members.

     

    CHINA

     

    Ding Yuande

    Ma Ruimei

     

    On 12 May 2023 Falun Gong practitioners Mr Ding Yuande and his wife Ms Ma Ruimei were arrested without a warrant; Ms Ma was released on bail, but was then intimidated by police because of a rescue campaign launched by their son abroad.

     

    Mr Ding was detained with no family visits for eight months; on 15 December 2023 he was sentenced to three years in prison with a CNY 15 000 fine.

    In its resolution of 18 January 2024, the European Parliament:

     

    – Strongly urges the PRC to immediately end the persecution of Falun Gong practitioners and other minorities, including Uyghurs and Tibetans; demands the immediate and unconditional release of Mr Ding and all Falun Gong practitioners in China;

     

    – Calls for the PRC to end domestic and transnational surveillance and control and the suppression of religious freedom; urges the PRC to abide by its obligations under international law and its own constitution to respect and protect human rights.

     

    CHINA

     

    Ilham Tohti

    Gulshan Abbas

    In 2014 Ilham Tohti was convicted of politically motivated charges of ‘separatism’ and sentenced to life imprisonment; he worked to foster dialogue between Uyghurs and Han Chinese; he was awarded the 2019 Sakharov Prize. Gulshan Abbas has been serving a 20-year sentence on fallacious terrorism-related charges relating to activities of her sister, a defender of the human rights of persecuted Uyghurs in the PRC.

     

     

    Gulshan Abbas, is a Uyghur retired doctor, who was forcibly disappeared in retaliation of her sisters public criticism of the treatment of Uyghurs. She has received a 20-year sentence in 2020, for participating in a terrorist organisation.

     

    In its resolution of 10 October 2024, the European Parliament:

     

    – Strongly condemns the PRC’s violations of the human rights of Uyghurs and people in Tibet, Hong Kong, Macau and mainland China;

     

    – Urges the PRC to immediately and unconditionally release Ilham Tohti and Gulshan Abbas, as well as those arbitrarily detained in China and those mentioned by the EU during the 57th session of the UN Human Rights Council, guarantee their access to medical care and lawyers, provide information on their whereabouts and ensure family visiting rights; calls for the EU and the Member States to apply pressure in this respect at every high-level contact;

     

    – Demands that the PRC authorities halt their repression and targeting of Uyghurs with abusive policies, including intense surveillance, forced labour, sterilisation, birth prevention measures and the destruction of Uyghur identity, which amount to crimes against humanity and a serious risk of genocide; calls for the closure of all internment camps;

     

    – Strongly condemns the PRC for not implementing the recommendations of the Office of the High Commissioner for Human Rights (OHCHR); calls on the PRC to allow the OHCHR independent access to XUAR and invites the OHCHR to issue a comprehensive situational update and an action plan for holding the PRC accountable;

     

    – Welcomes the EU’s forced labour regulation and insists on its full implementation; calls on businesses operating in the PRC, particularly in XUAR, to comply with their HR due diligence obligations.

     

    CUBA

     

    José Daniel Ferrer Garcia

     

    Human rights defender and opposition leader José Daniel Ferrer García was detained on 11 July 2021 in the context of widespread protests in Cuba, and has been held in isolation since 14 August 2021; the Cuban regime has imprisoned, harassed and intimidated him for over a decade for his peaceful political activism; since March 2023, he has been held incommunicado and his family have received no information about his health and have been denied the right to visit him.

    In its resolution of 19 September 2024, the European Parliament:

     

    – The Cuban regime holds political prisoners in the most appalling conditions; whereas reports indicate that José Daniel Ferrer is in a critical condition and has been held without access to medical treatment, with inadequate food and in unsanitary conditions, which constitute forms of torture, inhuman or degrading treatment;

     

    – The human rights situation in Cuba is alarming, particularly for dissidents, who are subjected to worrying levels of surveillance and arbitrary detention; whereas the number of political prisoners is unknown but reliable sources state that the regime holds over a thousand prisoners, including minors; whereas among the many political prisoners are Luis Manuel Otero Alcántara and Lizandra Gongora, whose health condition is critical;

     

    – Urges the Cuban regime to immediately and unconditionally release José Daniel Ferrer and all persons politically and arbitrarily detained for exercising their rights to freedom of expression and peaceful assembly;

     

    – Condemns the torture and inhuman, degrading and ill-treatment perpetrated by the Cuban authorities against José Daniel Ferrer and the other political prisoners; calls for the families of victims of the regime’s persecution to be granted immediate access to them, pending their release, and for the victims to be given medical care.

     

    CRIMEA

    Iryna Danylovych, Tofik Abdulhaziiev and Amet Suleymanov

    Crimean journalist and human rights defender Iryna Danylovych was abducted in 2022, accused of possessing explosives and sentenced to 6 years and 11 months of imprisonment; NGO activist Tofik Abdulhaziiev was arrested in 2019 and sentenced to 12 years in a maximum security prison on trumped-up charges, and since 2023 is being held in a prison some 2 700 km away from Crimea; citizen journalist Amet Suleymanov was sentenced to 12 years of prison in 2021.

     

    In its resolution of 19 December 2024, the European Parliament:

     

    – Condemns Russia’s continuous targeting of ethnic Ukrainians and systematic persecution of indigenous Crimean Tatars, which aims to erase their identity, heritage and culture, echoing, for the Crimean Tatars, the genocidal deportations of 1944; considers that Crimea’s future is tied to its recognition as the Crimean Tatars’ historic homeland;

     

    – Condemns the persecution of journalists, civil society activists and human rights defenders and the deportation of civilians including political prisoners from Crimea to penitentiary institutions across Russia, contrary to international law;

     

    – Demands the immediate and unconditional release of Iryna Danylovych, Tofik Abdulhaziiev and Amet Suleymanov and other political prisoners; calls for immediate medical care to be provided; denounces the upholding of verdicts against seriously ill individuals, which constitutes a blatant violation of international human rights standards; calls on the International Committee of the Red Cross and the UN to establish the whereabouts of civilian detainees from Crimea.

     

    DEMOCRATIC REPUBLIC OF THE CONGO

     

    Jean-Jacques Wondo

    Jean-Jacques Wondo, a Belgian-Congolese security, military and political expert, was arrested following a failed coup on 19 May 2024, for which he was accused of being the ‘intellectual perpetrator’, on 13 September 2024, Wondo and 36 others were sentenced to death by a military court.

     

    In its resolution of 23 January 2025, the European Parliament:

     

    – Strongly condemns the sentencing to death of Wondo and others and the grave violations of their right to a fair trial;

     

    – Urges the DRC Government to immediately overturn the death sentences, reinstate a moratorium on executions and take steps towards the full abolition of the death penalty;

     

    –  Expresses deep concern about Wondo’s deteriorating health, calls for him to be given immediate access to medical treatment and insists on his immediate release;

     

    – Calls for systemic reforms to be implemented in the DRC to rebuild the judiciary into an independent, fair and efficient institution that guarantees due process and the protection of fundamental rights.

     

    GREECE

     

    George Karaivaz

    George Karaivaz was a journalist who have been murdered on 9 April 2021.

    In its resolution of 7 February 2024, the European Parliament:

     

    – Is deeply concerned by the failure of law enforcement and the judicial authorities in Greece to make progress in the investigation into the murder of the Greek journalist George Karaivaz on 9 April 2021; notes that two suspects were arrested in April 2023, but otherwise there has not been any discernible activity in the police investigation; strongly urges the authorities to take all the necessary steps towards conducting a thorough and effective investigation, and to bring those involved in the murder, at any level, to justice; urges the authorities to request assistance from Europol.

     

    HONG KONG

     

    Andy Li

    Joseph John

    Andy Li, a pro-democracy activist and key witness in Jimmy Lai’s trial, allegedly confessed, under torture, to conspiracy and collusion with foreign entities.

     

    Joseph John, a HK-Portuguese dual national, is the first extraterritorial application of the NSL to an EU citizen; John was arrested for allegedly posting anti-China social media content and committing, from Europe, incitement to ‘secession’, and was sentenced on 11 April 2024 to five years’ imprisonment.

    In its resolution of 25 April 2024, the European Parliament:

     

    – Urges the HK Government to immediately and unconditionally release Li, John, Lai, Kok Tsz-lun and all other pro-democracy representatives and activists detained for exercising their freedoms and democratic rights, and to drop all charges against them;

     

    – Highlights the SNSO’s undermining of press freedoms; calls on the authorities to stop harassing and prosecuting journalists.

     

    HONG KONG/ CHINA

     

    Jimmy Lai

    Jimmy Lai has been detained since 2020 on trumped-up charges; his trial started in 2023 after various delays; he denied these charges and faces life imprisonment; his British lawyer has been refused permission to represent him. Jimmy Lai a British national since 1996, is a Hong Kong media tycoon, and a known pro- democracy supporter.  Political prisoners in HK endure difficult conditions, often affecting their health, throughout lengthy pre-trial detentions, as with 76-year-old Lai, who has diabetes and has been denied Communion in prison.

     

    45 pro-democracy politicians, activists and journalists were sentenced for subversion, in the ‘Hong Kong 47’ case, for organising unofficial election primaries; their trials were the largest national security trials to date;

     

    In its resolution of 28 November 2024, the European Parliament:

     

    – Condemns the sentencing of pro-democracy activists on national security charges, in violation of international law; calls for the repeal of the NSL and the SNSO; denounces the degradation of basic freedoms in HK;

     

    – Urges the HK Government to immediately and unconditionally release all pro-democracy activists, including Lai and Chung, and to drop all charges against them;

     

    – Calls on the EEAS and the Member States to warn China that its actions in HK will have consequences for EU-China relations; calls on the Council to review its 2020 conclusions on HK and to impose targeted sanctions on John Lee and other HK and Chinese officials responsible for human rights violations, to revoke HK’s favourable customs treatment and review the status of the HK Economic Trade Office in Brussels; urges the Member States to file an ICJ case against China’s decision to impose the NSL on HK and Macau.

     

    IRAN

     

    Pakhshan Azizi and Wrisha Moradi

    Kurdish activists, social worker Pakhshan Azizi and advocate for women’s rights Verisheh (Wrisha) Moradi were sentenced to death for ‘armed rebellion against the state’.

    In its resolution of 23 January 2025, the European Parliament:

     

    – Denounces the Iranian regime’s unrestrained repression of human rights, in particular the targeting of women activists; strongly condemns the death sentence against Pakhshan Azizi and Wrisha Moradi; demands that Iran immediately and unconditionally release all unjustly imprisoned human rights defenders and political prisoners, including Pakhshan Azizi, Wrisha Moradi and at least 56 other political prisoners on death row;

     

    – Calls for the EU and its Member States to increase support for Iranian human rights defenders and expresses its full support and solidarity with Iranians united in the ‘Woman, Life, Freedom’ movement;

     

    – Urges the Iranian authorities to immediately release, safely repatriate and drop all charges against EU nationals, including Olivier Grondeau, Cécile Kohler, Jacques Paris and Ahmadreza Djalali; strongly condemns Iran’s use of hostage diplomacy; calls for the EU and its Member States to undertake joint diplomatic efforts and work collectively towards their release;

     

    – Strongly condemns the murder of Jamshid Sharmahd; urges the Islamic regime in Iran to provide details of the circumstances of his death and for his remains to be immediately returned to his family;

     

    – Reiterates its call on the Council to designate the Islamic Revolutionary Guard Corps a terrorist organisation and to extend EU sanctions to all those responsible for human rights violations, including Supreme Leader Ali Khamenei, President Masoud Pezeshkian, Judiciary Chief Gholam-Hossein Mohseni-Eje’i, Prosecutor-General Mohammad Movahedi-Azad and Judge Iman Afshari;

     

    – Urges the Iranian authorities to provide the UN Special Rapporteur on the human rights situation in Iran and the UN fact-finding mission with full, unimpeded access to enact their mandates.

     

    KYRGYZSTAN

     

    Temirlan Sultanbekov

    Temirlan Sultanbekov is the leader of the Kyrgyzstan Social Democrats party (SDK), he and other party officials have been arrested for vote-buying allegations, with an audiotape of unknown origin serving as the primary evidence, for which the judicial authorisation is unclear and its connection with the detainees unknown.

    In its resolution of 19 December 2024, the European Parliament:

     

    – Urges the Kyrgyz authorities to immediately release Mr Sultanbekov and other party officials and adopt alternative measures to detention, while respecting their right to due process in line with the civil and political rights guaranteed under the Kyrgyz constitution and international obligations; calls on the authorities to ensure his safety and well-being;

     

    – Urges the Kyrgyz government to halt its campaign of intimidation and legal persecution against opposition parties, independent media outlets and journalists; is concerned by the adoption of the Russian-style ‘foreign agents’ law; urges the Kyrgyz authorities to drop all charges against human rights defenders, including Makhabat Tazhibek Kyzy, Azamat Ishenbekov, Aktilek Kaparov and Ayke Beishekeeva, journalists from the Temirov Live and Ait Ait Dese channels.

     

    RUSSIA

     

    Alexei Navalny

    Vladimir Kara-Murza

    Yuri Dmitriev

    Ilya Yashin

    Alexei Gorinov

    Lilia Chanysheva Ksenia Fadeeva, Vadim Ostanin

    Daniel Kholodny Vadim Kobzev

    Igor Sergunin

    Alexei Liptser Viktoria Petrova Maria Ponomarenko Alexandra Skochilenko

    Svetlana Petriychuk Evgenia Berkovich Dmitry Ivanov

    Ioann Kurmoyarov Igor Baryshnikov Dmitry Talantov Alexei Moskalev

    Oleg Orlov

    Boris Kagarlitsky

    Ivan Safronov

     

    Alexei Navalny, a prominent Russian political figure and the 2021 laureate of the Sakharov Prize for Freedom of Thought, perished in a Siberian penal colony north of the Arctic Circle while serving a unfounded, politically motivated prison sentence. He had been in detention since 17 January 2021, the date on which he returned to Russia following medical rehabilitation after an attempted state-sponsored assassination using the internationally banned nerve agent Novichok; he had previously been detained and arrested many times and had been sentenced, on fabricated and politically motivated grounds, to long prison terms in evident attempts to stop his political activities and anti-corruption campaigns.

     

    Vladimir Kara-Murza, Yuri Dmitriev, Ilya Yashin, Alexei Gorinov, Lilia Chanysheva, Ksenia Fadeeva, Vadim Ostanin, Daniel Kholodny, Vadim Kobzev, Igor Sergunin, Alexei Liptser, Viktoria Petrova, Maria Ponomarenko, Alexandra Skochilenko, Svetlana Petriychuk, Evgenia Berkovich, Dmitry Ivanov, Ioann Kurmoyarov, Igor Baryshnikov, Dmitry Talantov, Alexei Moskalev, Oleg Orlov, Boris Kagarlitsky and Ivan Safronov are political prisoners.

     

    In its resolution of 29 February 2024, the European Parliament:

     

    – Strongly condemns the murder of Alexei Navalny; expresses its wholehearted condolences to his family, associates and colleagues, and to his countless supporters across Russia; expresses its full support to Yulia Navalnaya in her determination to continue the work started by Alexei Navalny with her support, and to the Anti-Corruption Foundation founded by Navalny, which is continuing its work under the new circumstances;

     

    – Calls on the Russian authorities to drop all arbitrary charges and to immediately and unconditionally release all political prisoners and arbitrarily detained persons.

    TAJIKISTAN

     

    Abdullo Ghurbati Daler Imomali Zavqibek Saidamini Abdusattor Pirmuhammadzoda Ulfatkhonim Mamadshoeva Khushruz Jumayev Khurshed Fozilov

    Manuchehr Kholiknazarov Buzurgmehr Yorov

     

    Abdullo Ghurbati, Daler Imomali, Zavqibek Saidamini, Abdusattor Pirmuhammadzoda, Ulfatkhonim Mamadshoeva, Khushruz Jumayev and Khurshed Fozilov are journalists who have been sentenced to between seven and over 20 years in prison in retaliation for their coverage of social issues and human rights abuses, including in GBAO.

     

    Manuchehr Kholiknazarov and Buzurgmehr Yorov  are human rights lawyers who have been detained.

    In its resolution of 18 January 2024, the European Parliament:

     

    – Strongly condemns the ongoing crackdown, including anti-extremism legislation, against independent media, government critics, human rights activists and independent lawyers; condemns the closure of independent media and websites, including the online media outlets Pamir Daily News, New Tajikistan 2 and Akhbor.com;

     

    – Condemns all politically motivated trials and the lack of fair and public hearings by independent courts; urges the authorities to stop persecuting journalists, immediately and unconditionally release those who have been arbitrarily detained and drop all charges against them, stop the persecution of lawyers defending government critics and release human rights lawyers Manuchehr Kholiknazarov and Buzurgmehr Yorov;

     

    – Urges the government to ensure that detainees have access to adequate healthcare; calls for a thorough investigation into allegations of mistreatment in custody and forced confessions, and those responsible to be brought to justice.

     

    TÜRKIYE

     

    Bülent Mumay

    Bülent Mumay is a Turkish journalist and coordinator of the Istanbul bureau of Deutsche Welle’s Turkish editorial office, was sentenced to 20 months in prison for social media posts about a pro-government company’s seizure of Istanbul Municipality’s subway funds during the AKP administration; his appeal was rejected, and his tweets removed.

    In its resolution of 10 October 2024, the European Parliament:

     

    – Condemns the sentence against Bülent Mumay, which follows a broader pattern of silencing critical journalism; calls on the Turkish authorities to drop the charges against Bülent Mumay, and all arbitrarily detained media workers and journalists, as well as political opponents, human rights defenders, civil servants and academics;

     

      Is deeply concerned about the ongoing deterioration of democratic standards in Türkiye, relentless crackdown on any critical voices and targeting of independent journalists, activists and opposition members amid frequent reports of legal intimidation, censorship and financial coercion as ways to suppress criticism and investigative journalism.

     

    VENEZUELA

     

    Rocío San Miguel

    General Hernández Da Costa 

    Ronald Ojeda

    María Corina Machado

    Juan Freites

    Luis Camacaro Guillermo Lopez Emil Brandt

     

    Rocío San Miguel is a lawyer and human rights activist with Spanish nationality, who got kidnapped by the Venezuelan regime on 9 February 2024, and sentenced on politically motivated grounds of suspected conspiracy against Nicolás Maduro and his regime; she is currently being detained in El Helicoide prison, which is known for human rights abuses, including torture.

     

    Hernández Da Costa has been a political prisoner since August 2018; on 19 February 2024, he was forcibly transferred to El Rodeo 1 prison, designed to detain political prisoners; an unknown number of prisoners, including some EU citizens, were also transferred; the general suffers from medical ailments that require constant treatment, which he is being denied.

     

    Ronald Ojeda was a former political prisoner who escaped the Maduro regime, and got murdered in Chile.

     

    Juan Freites, Luis Camacaro, Guillermo Lopez and Emil Brandt are four campaign coordinators working for the opposition to the regime’s presidential candidate, and have been detained on political grounds.

     

    In its resolution of 14 March 2024, the European Parliament:

     

    – Demands the immediate unconditional release of all political prisoners and arbitrarily detained persons, and the full restoration of their rights; exhorts the regime to cease its policy of repression and attacks on civil society and the opposition;

     

    – Strongly condemns the Maduro regime for imprisoning hundreds of political prisoners;

     

    – Calls on the international community to support a return to democracy in Venezuela, particularly in the light of the upcoming elections, in which the leader of the opposition to the regime, María Corina Machado, must be allowed to fully participate.

    VENEZUELA

     

    Maria Corina Machado

    Juan Freites

    Luis Camacaro Guillermo López

    Maria Corina Machado was selected as the presidential candidate of the democratic opposition to the regime, winning with 92,35 % of the votes in the primary elections. She got a disqualification of 15 years.

     

    For several months, members of María Corina Machado’s campaign team – including Juan Freites, Luis Camacaro and Guillermo López, who were unlawfully detained and have since been reported missing.

    In its resolution of 8 February 2024, the European Parliament:

     

    – Calls for the immediate and unconditional release of all the arbitrarily arrested political and social leaders, including three campaign staffers of the presidential candidate of the opposition to the regime María Corina Machado, namely Juan Freites, Luis Camacaro and Guillermo Lopez;

     

    – Strongly condemns the attempts to disqualify the presidential candidate of the democratic opposition to the regime, María Corina Machado, and others, such as Henrique Capriles, from holding public office;

     

    – Urges the Venezuelan regime to immediately stop the persecution of the primary winner and thus fully legitimate candidate of the opposition to the regime, María Corina Machado, and other opposition politicians.

     

     

     

     

    ANNEX III: LIST OF SAKHAROV PRIZE LAUREATES AND FINALISTS IMPRISONED AND DEPRIVED OF LIBERTY

     

    Year of Sakharov Prize award

    Name and surname

    Laureate / Finalist

    Country

    Situation (Detention / house arrest / temporarily released)

    Length of prison sentence

    Start date of detention

    2024

    Gubad Ibadoghlu

    Finalist

    Azerbaijan

    Under travel ban

     

    A court rejected Ibadoglu’s appeal against the travel ban on 3/12/2024

    2021

    Alexei Navalny

    Laureate

     

    Russia

    Deceased in prison on 16/2/2024

     

    3,5 + 9 + 19 years

    Last detained 17/2/21, last sentenced 4/8/23

    2020

    Siarhei Tsikhanouski

     

    Maryia Kalesnikava

     

    Mikola Statkevich

     

     

    Ales Bialiatski

    Laureate

     

    Laureate

     

    Laureate

     

     

    Laureate

    Belarus

     

    Detention

     

    Detention

     

    Detention

     

     

    Detention

    18 years

     

    11 years

     

    14 years

     

     

    10 years

     

    Detained 29/5/20, sentenced 14/12/21

    Detained 07/9/20, sentenced 06/9/21

    Last detained 31/5/20, last sentenced 14/12/21

    Last detained 15/7/21, last sentenced 03/03/23

    2020

    Porfirio Sorto Cedillo, José Avelino Cedillo, Orbin Naún Hernández, Kevin Alejandro Romero, Arnold Javier Aleman, Ever Alexander Cedillo, Daniel Marquez and Jeremías Martínez Díaz

    Finalists

    Honduras

    Detention

    Unknown

    1/9/2019, released on 24/2/2022, after a ruling by the Supreme Court of Honduras

    2019

    Ilham Tohti

    Laureate

    China

    Detention

    Unknown

    23/9/2014

    2018

    Nasser Zefzafi

     

    Finalist

    Morocco

    Detention

    20 years

    5/4/2019

    2017

    Dawit Isaak

    Finalist

    Eritrea

    Incommunicado detention

    Unknown

    23/9/2001

    2015

    Raif Badawi

    Laureate

    Saudi Arabia

    Released on 11/3/2022, since then under a 10-year travel ban

     

    10 years

    First sentenced on 17/12/2012, but announced on 30/3/2013

    2012

    Nasrin Sotoudeh

     

     

     

     

     

     

    Jafar Panahi

    Laureate

     

     

     

     

     

     

    Laureate

    Iran

     

     

     

     

     

     

    Iran

    Detention, on temporary medical furlough since July 2021, arrested again 29/10/2023 and released 15/11/2023

     

    Detained in 2022,

    released on 3/2/2023 after hunger strike

    38 years

     

     

     

     

     

     

    6 years

    6/3/2019 (most recent)

     

     

     

     

     

    compelled in July 2022 to serve a 10-years old prison sentence

    2011

    Razan Zaitouneh

    Laureate

    Syria

    Kidnapped in 2013. Presumptions of detention and death.

     

    9/12/2013

    2009

    Memorial – Oleg Orlov

    Laureate

     

     

    Russia

    Released on 1/8/2024 as part of a prisoner exchange with the US and Germany

    2.5 years

    Latest sentence in February 2024. Memorial as legal entity liquidated in January 2022.

     

     

    ANNEX IV: LIST OF RESOLUTIONS

    List of resolutions adopted by the European Parliament from December 2023 to January 2025 and related directly or indirectly to human rights violations in the world

     

     

    Country/Region

    Date of adoption in plenary

     

    Title

    Africa

     

     

    Algeria

    23.01.2025

    The case of Boualem Sansal in Algeria

    Democratic Republic of the Congo

    23.01.2025

    The case of Jean-Jacques Wondo

     

    Gambia

     

    25.04.2024

    On the proposed repeal of the law banning female genital mutilation in The Gambia

    Nigeria

    08.02.2024

    On the recent attacks on Christmas Eve in Plateau State in Nigeria

    Sudan

    18.01.2024

    On the threat of famine following the spread of the conflict in Sudan

    Tanzania

    14.12.2023

    On the Maasai Communities in Tanzania

    Americas

     

     

    Cuba

    29.02.2024

    On the critical situation in Cuba

    Cuba

    19.09.2024

    The case of José Daniel Ferrer García in Cuba

    Guatemala

    14.12.2023

    On the attempt at a coup d’état in Guatemala

    Venezuela

    08.02.2024

    On further repression against the democratic forces in Venezuela: attacks on presidential candidate María Corina Machado

     

    Venezuela

     

    14.03.2024

    On the case of Rocío San Miguel and General Hernández Da Costa, among other political prisoners in Venezuela

    Venezuela

    19.09.2024

    Situation on Venezuela

    Venezuela

    23.01.2025

    Situation in Venezuela following the usurpation of the presidency on 10 January 2025

    Asia

     

     

     

    Afghanistan

     

     

    14.03.2024

    On the repressive environment in Afghanistan, including public executions and violence against women

    Afghanistan

    19.09.2024

    The deteriorating situation of women in Afghanistan due to the recent adoption of the law on the “Promotion of Virtue and Prevention of Vice”

     

    Azerbaijan

     

    25.04.2024

    On Azerbaijan, notably the repression of civil society and the cases of Dr Gubad Ibadoghlu and Ilhamiz Guliyev

    Azerbaijan

    19.12.2024

    Continued repression of civil society and independent media in Azerbaijan and the cases of Dr Gubad Ibadoghlu, Anar Mammadli, Kamran Mammadli, Rufat Safarov and Meydan TV

    Cambodia

    28.11.2024

    The shrinking space for civil society in Cambodia, in particular the case of the labour rights organisation CENTRAL

     

    China

     

    18.01.2024

    On the ongoing persecution of Falun Gong in China, notably the case of Mr Ding Yuande

    China

     

    10.10.2024

    The cases of unjustly imprisoned Uyghurs in China, notably Ilham Tohti and Gulshan Abbas

    China/ Taiwan

    24.10.2024

    Misinterpretation of UN resolution 2758 by the People’s Republic of China and its continuous military provocations around Taiwan

     

    Hong Kong

     

    25.04.2024

    On the new security law in Hong Kong and the cases of Andy Li and Joseph John

    Hong Kong/ China

     

    28.11.2024

    Hong Kong, notably the cases of Jimmy Lai and the 45 activists recently convicted under the national security law

    Kyrgyzstan

    19.12.2024

    Human rights situation in Kyrgyzstan, in particular the case of Temirlan Sultanbekov

    Tajikistan

    18.01.2024

    On Tajikistan: state repression against the independent media

     

    Tibet

     

    14.12.2023

    On the abduction of Tibetan children and forced assimilation practices through Chinese boarding schools in Tibet

    Middle East

     

     

     

    Iran/Israel

     

    25.04.2024

    On Iran’s unprecedented attack against Israel, the need for de-escalation and an EU response

     

    Iran

     

    08.02.2024

    On the increased number of executions in Iran, in particular the case of Mohammad Ghobadlou

    Iran

    28.11.2024

    The increasing and systematic repression of women in Iran

    Iran

    23.01.2025

    Systematic repression of human rights in Iran

    Iraq

    10.10.2024

    Iraq, notably the situation of women’s rights and the recent proposal to amend the Personal Status Law

     

    Palestine

     

    18.01.2024

    On the humanitarian situation in Gaza, the need to reach a ceasefire and the risks of regional escalation

     

    Palestine

     

    14.03.2024

    On the immediate risk of mass starvation in Gaza and the attacks on humanitarian aid deliveries

    Europe and Eastern Partnership countries

     

     

     

    Azerbaijan/Armenia

     

    13.03.2024

    On closer ties between the EU and Armenia and the need for a peace agreement between Azerbaijan and Armenia

    Azerbaijan/ Armenia

    24.10.2024

    Situation in Azerbaijan, violation of human rights and international law and relations with Armenia

     

    Belarus

     

    14.12.2023

    On the unknown status of Mikola Statkevich and the recent attacks on Belarusian politicians’ and activists’ family members

     

    Belarus

     

    08.02.2024

    on the new wave of mass arrests in Belarus of opposition activists and their family members

    Belarus

    19.09.2024

    The severe situation of political prisoners in Belarus

    Belarus

    22.01.2025

    Actions to address the continued oppression and fake elections in Belarus

    Crimea

    19.12.2024

    11th year of the occupation of the Autonomous Republic of Crimea and the city of Sevastopol by the Russian Federation and the deteriorating human rights situation in occupied Crimea, notably the cases of Iryna Danylovych, Tofik Abdulhaziiev and Amet Suleymanov

     

    Georgia

     

    25.04.2024

    On attempts to reintroduce a foreign agent law in Georgia and its restrictions on civil society

    Georgia

    09.10.2024

    The democratic backsliding and threats to political pluralism in Georgia

    Georgia

    28.11.2024

    Georgia’s worsening democratic crisis following the recent parliamentary elections and alleged electoral fraud

    Greece

    07.02.2024

    On the rule of law and media freedom in Greece

     

    Hungary

     

    24.04.2024

    On ongoing hearings under Article 7(1) TEU regarding Hungary to strengthen the rule of law and its budgetary implications

    Hungary

    18.01.2024

    On the situation in Hungary and frozen EU funds

    Moldova

    09.10.2024

    Strengthening Moldova’s resilience against Russian interference ahead of the upcoming presidential elections and a constitutional referendum on EU integration

     

    Russia

     

    29.02.2024

    On the murder of Alexei Navalny and the need for EU action in support of political prisoners and oppressed civil society in Russia

     

    Russia

     

    08.02.2024

    On Russiagate: allegations of Russian interference in the democratic processes of the European Union

     

     

    Russia

     

     

    25.04.2024

    On new allegations of Russian interference in the European Parliament, in the upcoming EU elections and the impact on the European Union

     

    Russia

     

    25.04.2024

    On Russia’s undemocratic presidential elections and their illegitimate extension to the occupied territories

    Russia

     

    14.11.2024

    EU actions against the Russian shadow fleets and ensuring a full enforcement of sanctions against Russia

    Russia

     

    23.01.2025

    Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine

    Russia/ North Korea

    28.11.2024

    Reinforcing EU’s unwavering support to Ukraine against Russia’s war of aggression and the increasing military cooperation between North Korea and Russia

    Serbia

    08.02.2024

    On the situation in Serbia following the elections

     

    Slovakia

     

    17.01.2024

    On the planned dissolution of key anti-corruption structures in Slovakia and its implications for the rule of law

    Türkiye

    10.10.2024

    European Parliament resolution of 10 October 2024 on the case of Bülent Mumay in Türkiye

    Cross-cutting issues

     

     

    Children liberty

    13.12.2023

    On the situation of children deprived of liberty in the world

     

    LGBTIQ rights

     

    08.02.2024

    On the implementation of the EU LGBTIQ Equality Strategy 2020-2025

     

     

    Protection of journalists

     

     

    27.02.2024

    On the proposal for a directive of the European Parliament and of the Council on protecting persons who engage in public participation from manifestly unfounded or abusive court proceedings

     

    Human rights and democracy

     

    28.02.2024

    Human rights and democracy in the world and the European Union’s policy on the matter – annual report 2023

    Foreign and security policy

    28.02.2024

    Implementation of the common foreign and security policy – annual report 2023

     

     

    Media freedom

     

     

    13.03.2024

    On the proposal for a regulation of the European Parliament and of the Council establishing a common framework for media services in the internal market

     

     

    Forced labour

     

     

    23.04.2024

    On the proposal for a regulation of the European Parliament and of the Council on prohibiting products made with forced labour on the Union market

    Right of abortion

    11.04.2024

    On including the right to abortion in the EU Fundamental Rights Charter

     

     

    Due diligence

     

     

    24.04.2024

    On the proposal for a directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive

     

    Fundamental rights

     

    18.01.2024

    On the situation of fundamental rights in the European Union – annual report 2022 and 2023

    Hate speech

    18.01.2024

    On extending the list of EU crimes to hate speech and hate crime

     

     

    Business and human rights

     

     

    18.01.2024

    On shaping the EU’s position on the UN binding instrument on business and human rights, in particular on access to remedy and the protection of victims

    Freedom of scientific research

    17.01.2024

    On promotion of the freedom of scientific research in the EU

    Citizens, equality, rights and values

    16.01.2024

    On the implementation of the Citizens, Equality, Rights and Values programme 2021-2027

     

     

    Violence against women

     

     

    24.04.2024

    On the proposal for a directive of the European Parliament and of the Council on combating violence against women and domestic violence

     

    Human beings traffic

     

    23.04.2024

    On preventing and combating trafficking in human beings and protecting its victims

     

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Export credit agencies / development finance institutions and their role in lithium mining projects in Argentina – E-003069/2024(ASW)

    Source: European Parliament

    The Commission is supporting the sustainable development of critical raw material value chains, aligned with its commitment to achieving the Sustainable Development Goals.

    The EU-Argentina memorandum of understanding[1] and roadmap of activities aim to advance sustainable critical raw materials (CRM) value chains by emphasising environmental, social and governance standards.

    Additionally, the Commission promotes civil society engagement and transparency through initiatives such as the Responsible Business Conduct[2] in Latin America and the Caribbean programme.

    The Commission has also launched a project[3] that will utilise Copernicus data to monitor environmental implications of lithium operations in salt flats.

    A working group on CRM has been established, bringing together companies, financial institutions, and Member States. A pipeline of projects with EU interest is being developed.

    The selection criteria for such projects include sustainability. Environmental and socially adverse impacts need to be minimised and prevented, and human and indigenous people’s rights need to be respected. No funding agreements have been signed yet.

    The Commission is finalising a study aimed at gathering first-hand information on civil society’s needs in Argentina’s lithium-mining regions.

    This assessment will guide further EU engagement and support EU investments in Argentina’s critical raw materials sector, ensuring they respect ecosystems, local rights, and the well-being of local communities and indigenous people.

    Finally, financing institutions funding projects are subject to due diligence in line with international and EU standards.

    • [1] https://single-market-economy.ec.europa.eu/publications/memorandum-understanding-eu-argentina-sustainable-raw-materials_en
    • [2] https://www.ohchr.org/en/special-procedures/wg-business/joint-project-responsible-business-conduct-latin-america-and-caribbean
    • [3] https://www.copernicuslac-chile.eu/en/noticia/chile-european-union-launch-monitoring-system-andean-salt-flats-south-america/

    MIL OSI Europe News

  • MIL-OSI Europe: Highlights – Ongoing Investigations into E-Commerce Platforms – Committee on the Internal Market and Consumer Protection

    Source: European Parliament

    On 18 February, Members probed the European Commission about its ongoing investigations on e-commerce platforms’ compliance with EU laws. The Commission highlighted the role of the Consumer Protection Cooperation (CPC) Network’s in tackling infringements, highlighting cases against Temu and Shein as key tests of EU enforcement. Concerns with Temu include dark patterns, gamification, and fake reviews, with voluntary commitments expected by year-end. The Shein investigation is at an earlier stage.

    The Commission representative also outlined Digital Services Act investigations into Aliexpress and Temu, focusing on hidden links and manipulative design, while Shein received a Request for Information. The European Board for Digital Services and national authorities support these efforts.

    The Commission designated nine online marketplaces as Very Large Online Platforms (VLOPs), subject to VLOPs’ obligations, including risk mitigation, transparency of recommender systems, and Know Your Business Customer (KYBC) requirements.

    Members stressed the need for more timely enforcement and called for investigations to yield tangible outcomes. The European Parliament will strive for more scrutiny of decisions, requesting more action and results.

    MIL OSI Europe News

  • MIL-OSI USA: Central Admixture Pharmacy Services (CAPS) Issues Nationwide Recall of Phenylephrine 40 mg Added to 0.9% Sodium Chloride 250 mL in 250 mL Excel Bags Due to Visible Black Particulate Matter in a Single-Sealed Vial

    Source: US Department of Health and Human Services – 3

    Summary

    Company Announcement Date:
    February 24, 2025
    FDA Publish Date:
    February 25, 2025
    Product Type:
    Drugs
    Reason for Announcement:

    Recall Reason Description
    Due to visible black particulate matter

    Company Name:
    CAPS
    Brand Name:

    Brand Name(s)
    CAPS

    Product Description:

    Product Description
    Phenylephrine 40 mg added to 0.9% Sodium Chloride 250 mL in 250 mL Excel Bag

    Company Announcement
    FOR IMMEDIATE RELEASE – February 24, 2025 – Bethlehem, PA. Central Admixture Pharmacy is recalling three lots of Phenylephrine 40 mg added to 0.9% Sodium Chloride 250 mL in 250 mL Excel Bags (NDC: 71285-6092-1) to the hospital level. The product is being recalled because CAPS was notified by their raw material supplier of the detection of visible black particulate matter in a single sealed vial of Phenylephrine Hydrochloride.
    Risk Statement: Administration of an injectable product containing particulate matter may cause local irritation or swelling as a response to the foreign material. If the particulate matter enters the blood vessels, it can travel to various organs and potentially blocking blood vessels in the heart, lungs or brain, leading to serious complications such as stroke or even death. To date, CAPS has not received any reports of adverse events or injuries associated with this recall.
    Affected Product:

    NDC 

    Product Description 

    Lot # 

    Expiration Date 

    Distribution Dates 

    Region Distributed 

    71285-6092-1

    Phenylephrine 40 mg added to 0.9% Sodium Chloride 250 mL in 250 mL Excel Bag

    37-928390

    03MAR2025

    17 Dec 2024

    United States

    71285-6092-1

    Phenylephrine 40 mg added to 0.9% Sodium Chloride 250 mL in 250 mL Excel Bag

    37-928796

    09MAR2025

    26 Dec 2024

    United States

    71285-6092-1

    Phenylephrine 40 mg added to 0.9% Sodium Chloride 250 mL in 250 mL Excel Bag

    37-928839

    10MAR2025

    03 Jan 2025 – 08 Jan 2025

    United States

    CAPS drug product is packaged in 0.9% Sodium Chloride 250 mL in 250 mL Excel Bag. The product can be identified by the sample label below, the NDC format for products compounded at Lehigh Valley is “71285-XXXX-X.” The lot number format is “37-XXXXXX.”
    CAPS is notifying its distributors and customers by USPS certified mail and is arranging for return. By completing a “Urgent Pharmaceutical Recall Response Form” and either faxing the form to (610) 849-1197 or e-mail to recalls@bbraunusa.com within two (2) weeks of receipt, even if the total inventory in the customer’s possession is zero (0).
    Consumers with questions regarding this recall can contact CAPS by calling 1-844-903-6417. Consumers should contact their physician or healthcare provider if they have experienced any problems that may be related to taking or using this drug product.
    Adverse reactions or quality problems experienced with the use of this product may be reported to the FDA’s MedWatch Adverse Event Reporting program either online, by regular mail or by fax.

    This recall is being conducted with the knowledge of the U.S. Food and Drug Administration.

    Company Contact Information

    Consumers:
    CAPS
    1-844-903-6417

    Media:
    Allison Longenhagen
    484-523-6801

    Product Photos

    Content current as of:
    02/25/2025

    Regulated Product(s)

    Follow FDA

    MIL OSI USA News

  • MIL-OSI New Zealand: Creating a level playing field in the energy sector

    Source: New Zealand Government

    A proposal by the Electricity Authority for mandatory non-discrimination obligations for electricity gentailers sends a strong signal that any advantage being provided to their own retailers will not be tolerated, Energy Minister Simon Watts and Associate Energy Minister Shane Jones say.

    “This recommendation from the Energy Competition Task Force has been accepted by the Electricity Authority (EA) which launched consultation today on the measures to create a more level playing field for the energy sector,” Mr Watts says.

    The EA is proposing a progressive approach to non-discrimination obligations supported by increased monitoring of gentailers’ responses and consumer outcomes. If the first step proves insufficient, the EA could escalate to more prescriptive ways of levelling the playing field to ensure all New Zealanders can benefit from critical flexible generation.

    The proposed steps are:

    • Step 1: Principles-based non-discrimination requirements.
    • Step 2: Non-discrimination requirements set out in detail.
    • Step 3: All gentailer-supplied hedge contracts must be traded through a regulated market, on equal terms for all buyers.

    “The proposed measures send a strong signal that gentailers creating an advantage for their own retailers at the expense of the affordability and security of New Zealand’s energy supply will no longer be tolerated,” Mr Watts says.

    “A reliable and secure energy supply goes hand in hand with more affordable prices for Kiwis, and that is a key priority for the Coalition Government. This work could help promote much-needed investment in new generation and retail competition, flowing through to more choices and more affordable electricity for consumers.”

    “If these proposals go ahead, we will see much-needed rules put in place for how gentailers engage with independent and smaller players in the market, and what kind of terms they have to offer them,” Mr Jones says.

    “This means gentailers would be required to treat independent retailers and generators the same as they do to their own retail arms, shifting the dial on market competition by ensuring smaller and independent players in the market are on a level playing field with the big four gentailers.”

    The task force was established by the Electricity Authority and Commerce Commission, with MBIE as an observer in August last year in response to the power crisis in winter.

    The task force is focused on enabling new generators and independent retailers to enter, and fairly compete, in the market as well as providing more options for users.

    Mr Watts met the gentailers two weeks ago and warned them the Government would not accept a repeat of last winter.

    “All gentailers have a critical role in keeping the lights on at affordable prices and it’s important they keep taking action. This consultation will give a better picture of what else is needed to shore up reliable electricity supply, including in response to the current independent review of our electricity markets,” Mr Watts says.

    MIL OSI New Zealand News

  • MIL-OSI Global: ‘Buying Canadian’ is an opportunity to reflect on the ethics of consumerism

    Source: The Conversation – Canada – By Michael Walschots, Postdoctoral Fellow, Johannes Gutenberg University of Mainz

    Ever since Donald Trump threatened to impose a 25 per cent tariff on all imports from Canada, everyday citizens have retaliated by pledging to “Buy Canadian.” Even though the tariffs were later postponed, the damage was already done.

    The Buy Canadian movement is broad: people are not only buying more Canadian goods, they are also altering their travels plans and attempting to watch more Canadian-made films and TV.

    Local businesses have reported an increase in traffic, Air Canada has said it will decrease the number of flights to U.S. destinations and there are now apps and a website to help citizens find Canadian products.

    This new movement offers us the opportunity to reflect on the ethics of our consumption practices more generally, especially when consumers co-ordinate their purchasing on a national scale. As consumers, we all have a responsibility to use our buying power in an ethically conscious way.

    A CBC News report on how consumers are using apps to help them buy Canadian products.

    Boycotts and buycotts

    Most of us as consumers decide what to buy based on the price and quality of goods. But our values play a role in our decision-making: what we buy and where we buy it is influenced by our beliefs. Last year, for instance, many Canadians boycotted Loblaws on the grounds that it was price gouging amid inflation.

    A boycott is just one way of altering our habits based on our values. Another way is a “buycott”; that is, intentionally buying products from companies we feel align with our values. The Buy Canadian movement itself is best described as a buycott, but for many, it’s also a boycott of American-made goods.

    The reasons behind consumers choices are essential here. For example, we might avoid buying certain cosmetics because we are opposed to animal testing. Or we might vote with our forks and eat at farm-to-table restaurants to combat climate change.

    Our choices are often complex and motivated by many concerns: I might buy eggs from my local farmers market not only because I want to support local businesses, but also to encourage the fair treatment of animals and express my frustration with high prices at chain stores.

    Social change and co-ordinated consuming

    One of the most important reasons behind many of our consuming practices is social change: we want to change the way others, and we as a society, behave. Consuming for social change is particularly effective when it is done by a co-ordinated group that shares certain values.

    Consider the practice of buying fair trade coffee: by means of proper certification and product labelling, consumers give coffee companies an economic incentive to treat farmers more equitably.

    This is a huge power that consumers have. But with great power comes great responsibility, so when we make co-ordinated consuming efforts, we need to think about how to do so responsibly.

    Not all co-ordinated consuming efforts are ethically permissible. Consider a reprehensible but particularly relevant example: in the 1930s, initiatives developed to encourage consumers not to buy Jewish products in Germany, other European countries and the U.S. Such a practice was wrong not only because it was motivated by hatred, but also because it deprived a group of citizens of their freedom of religion.

    Another more recent example concerns the Christian American Family Association which boycotted Walt Disney, Ford and other businesses because of their support of same-sex couples. This boycott was wrong not only because it was motivated by discriminatory beliefs, but also because it did not representative how many other people feel.

    The moral here is that social change should not only be influenced by well-co-ordinated groups, because the loudest voices are not the only ones, nor are they necessarily the right ones.

    Ethical boycotting

    How do we make sure that our co-ordinated consuming efforts are ethical? Philosophy professor Waheed Hussain argued that when we act as a co-ordinated group seeking to achieve social change, we should treat our consuming choices as “proto-legislative” — that is, as if they could become legislation.

    This is because our efforts in this context are no longer aimed at merely satisfying our self-interest, but the common good, and so the standards should be higher. We should act in ways that are appropriately representative and that do not deprive our fellow citizens of their freedoms. Furthermore, Hussain argued that the reasons behind our consumption practices should be public and subject to scrutiny by our fellow citizens.

    When we seek to effect social change across national boundaries, it has been argued that we should not impose our ideals of social change on foreign citizens. In this case our choices are subject to additional constraints. We should respect the values of the target country, for instance, and use our purchasing power in ways that help local workers and communities there.

    What this all means for the Buy Canadian movement is a complex question. For instance, it might mean that a boycott of American products should not include some states like Kentucky, whose governor has openly opposed the tariffs. But at the very least, it’s an opportunity for us to reflect on the immense power we have as consumers, as well as the responsibilities that go along with it.

    Michael Walschots receives funding from the German Research Foundation. In the past he has received funding from the Social Sciences and Humanities Research Council of Canada, the Alexander von Humboldt Foundation and the German Academic Exchange Service

    ref. ‘Buying Canadian’ is an opportunity to reflect on the ethics of consumerism – https://theconversation.com/buying-canadian-is-an-opportunity-to-reflect-on-the-ethics-of-consumerism-249830

    MIL OSI – Global Reports

  • MIL-OSI USA: SBA Offers Relief to Kentucky Businesses, Nonprofits and Residents Affected by February Storms

    Source: United States Small Business Administration

    WASHINGTON – In response to a Presidential disaster declaration issued Feb. 24, 2025, the U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans for Kentucky businesses, nonprofits, and residents affected by the severe storms, straight-line winds, flooding, landslides and mudslides occurring Feb. 14.  

    Under this declaration, the primary counties of Breathitt, Clay, Floyd, Harlan, Knott, Lee, Letcher, Martin, Owsley, Perry and Pike are eligible for both Physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Small businesses and most private nonprofit (PNP) organizations in the following adjacent counties are eligible to apply only for SBA EIDLs: Bell, Estill, Jackson, Johnson, Knox, Laurel, Lawrence, Leslie, Magoffin, Powell and Wolfe, as well as Buchanan, Dickenson, Lee and Wise in Virginia; and Mingo and Wayne in West Virginia.

    Businesses and nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.    

    Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.    

    Applicants may also be eligible for a loan increase of up to 20% of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.    

    SBA’s EIDL program is available to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs that suffered financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

    EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.

    Interest rates are as low as 4% for small businesses, 3.625% for PNPs, and 2.563% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant’s financial condition.

    Beginning Thursday, Feb. 27, SBA customer service representatives will be on hand at the Business Recovery Center (BRC) in Perry County to answer questions about SBA’s disaster loan program, explain the application process and help individuals complete their application. Walk-ins are accepted, but you can schedule an in-person appointment in advance at appointment.sba.gov. The BRC hours of operation are listed below:

    Business Recovery Center (BRC) 
    Perry County

    Hazard Community and Technical College Jolly Classroom Center

    1 Community College Drive

    Hazard, Kentucky 41701

    Opening:  Thursday, Feb. 27, 8 a.m. to 6 p.m.

    Hours: Monday – Friday – 8 a.m. to 6 p.m.

    Saturday, 9 a.m. to 3 p.m.

    Closed: Sunday

    Disaster survivors should not wait to settle with their insurance company before applying for a disaster loan. If a survivor does not know how much of their loss will be covered by insurance or other sources, SBA can make a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan.

    With the changes to FEMA’s Sequence of Delivery, survivors are now encouraged to simultaneously apply for FEMA grants and the SBA low-interest disaster loan assistance to fully recover.  FEMA grants are intended to cover necessary expenses and serious needs not paid by insurance or other sources. The SBA disaster loan program is designed for your long-term recovery, to make you whole and get you back to your pre-disaster condition.  

    To apply online, visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.  

    The filing deadline to return applications for physical property damage is April 25, 2025. The deadline to return economic injury applications is Nov. 24, 2025.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov. 

    MIL OSI USA News

  • MIL-OSI: WENDEL: 2024 Full-Year Results: a very active year, a dual model in place, strong value creation & a growing return to shareholders

    Source: GlobeNewswire (MIL-OSI)

          

    2024 Full-Year Results: a very active year, a dual model in place, strong value creation & a growing return to shareholders

    Fully diluted1 Net Asset Value per share of €185.7,
    representing a +16.9% year-over-year value creation, adjusted for the dividend paid

    Dividend boosted at €4.7 per share, up +17.5% year-over-year

    Strong portfolio rotation: more than €2 billion of capital reallocation

    Significant expansion of the Asset Management platform in Europe and US, and development of our dual business model towards more recurring cash flows and growth

    Fully diluted Net Asset Value2as of December 31, 2024: €185.7 per share, up +14.4%

    • Value creation of +16.9%3 over 2024, adjusted for the €4 dividend paid in May 2024 reflecting:
      • The increase in Bureau Veritas’ share price (+28.3% YoY) on the back of the quality of its LEAP | 28 strategic plan
      • The changes in the valuation of unlisted assets, on a like-for-like basis, in line with their respective operating performances and multiples, and active management of private principal investments to create long term value through repositioning and accretive bolt-ons (Stahl, Scalian, and CPI).
      • The strong growth of IK Partners’ FRE to €69.9 million, above estimates (€60 million). IK Partners’ AuM up +24% in 2024, totaling €13.8 billion, with €3.4 billion raised.

    Delivering strong and recurring returns to shareholders, in line with the strategic roadmap published in 2023

    • Ordinary dividend of €4.70 per share for 2024, up +17.5% compared to 2023, to be proposed at the Annual Shareholders’ Meeting on May 15, 2025, representing slightly above 2.5%4 of NAV and a 4.8%5 yield vs share price as of February 21, 2025. This dividend level takes into account the first partial integration of Asset management activities into Wendel in 2024, which will be mechanically higher in 2025.
    • €100 million share buyback launched in October 2023 completed in July 2024. €92.5 million share bought back in 2024.

    Very active investment activity & capital allocation

    • Principal Investments:
      • €2.3 billion proceeds and value crystallization
      • €0.7 billion invested including €0.6 billion in Globeducate
    • Asset Management:
      • €0.4 billion invested for the acquisition of 51% of IK Partners
      • $1.13 billion will be invested in equity to acquire 75% of Monroe Capital, as announced on October 22, 2024 (closing expected in the first quarter of 2025)

    Strong financial structure and committed to remain Investment Grade

    • Debt maturity of 3.6 years with an average cost of 2.4%
    • LTV ratio at 7.2%6 as of December 31, 2024, and 22.9%7 on a pro forma basis taking into account future investment commitments in IK Partners funds and the acquisition of Monroe Capital.
    • Pro forma total liquidity of €1.28 billion as of December 31, 2024, including €0.4 billion in cash and €875 million in committed credit facility (fully undrawn)

    Reappointment of Wendel’s Executive Board

    • On February 26, 2025, Wendel’s Supervisory Board decided to reappoint the members of the Executive Board.   Laurent Mignon has been reappointed Chairman of the Executive Board and David Darmon, Member of the Executive Board, Deputy CEO, for a period of four years ending to April 6, 2029

    Net income, Group share at €293.9 million, showing a strong increase

    • The net income from operations rose from €711 million to €753.7 million, up 6%.
    • Net income, group share, at €293.9 million in 2024, compared with €142.4 in 2023, due to the disposal of Constantia Flexibles in 2024.
    Laurent Mignon, Wendel Group CEO, commented:

    “2024 was a very active year for Wendel and its portfolio companies. Fully diluted net asset value growth, adjusted for the €4 dividend paid in 2024, was 16.9%, driven in particular by the good share price and operational performance of Bureau Veritas and the strong growth of our new third-party asset management business.

    We continued to execute our strategic plan, as detailed in 2023, with determination, rigour and financial discipline.

    In 2024, we further improved our cash flow generation and value creation profile, notably with the announced acquisition of Monroe Capital, which will give us critical mass to develop our third-party asset management platform. We also focused on premium assets in our principal investments activites, highlighted by the acquisition of Globeducate in October 2024.

    These value-creating and recurring cash flow generating transformations now enable us to propose a dividend that is 17.5% higher than last year, reaching 4.70 euros for the financial year 2024.Our transition to a dual model is now well grounded, with top partners in asset management such as IK Partners in private equity and Monroe Capital in private credit, bringing third-party assets under management to more than 33 billion euros.The priorities of Wendel’s teams are to create value on existing assets, to successfully build the private asset management platform around IK Partners and Monroe Capital, and to maintain a solid financial structure.

    I would like to thank the members of the Supervisory Board for their renewed full support, as well as the Wendel teams who are skillfully accompanying our value-creating transformation.

    In 2025, Wendel’s teams will pursue the roadmap defined two years ago, supporting our principal investments companies in their value creation process, building the third-party asset management platform through the successful integration of Monroe Capital, the continued development of IK Partners as well as the implementation of commercial synergies between the two entities, and continuing to have an agile management of our balance sheet to seize the right opportunities, while maintaining a solid financial structure. We are confident that the development of this dual model will continue to create more value and more recurring returns for our shareholders.”

    Wendel’s net asset value as of December 31, 2024: €185.7 per share on a fully diluted basis

    Wendel’s Net Asset Value (NAV) as of December 31, 2024, was prepared by Wendel to the best of its knowledge and on the basis of market data available at this date and in compliance with its methodology.

    Fully diluted Net Asset Value was €185.7 per share as of December 31, 2024 (see detail in the table below), as compared to €162.3 on December 31, 2023, representing an increase of +14.4% since the start of the year and + 16.9% restated from the dividend paid in 2024. Compared to the last 20-day average share price as of December 31, the discount to the December 31, 2024, fully diluted NAV per share was -49.6%.

    Bureau Veritas contributed very positively to Net Asset Value, as end of December 2024, its 20-day average share price was up strongly YTD (+32.5%). IHS Towers (-28.0%) and Tarkett (+15.4%) share price impacts were negligible given the weight of Bureau Veritas in NAV. Total value creation per share of listed assets was therefore +€25.9 on a fully diluted basis over the course of 2024.

    Unlisted asset contribution to NAV was negative over the course of the year with a total change per share of -€4.9 reflecting selective assets’ operational performances offsetting the good performance from CPI.

    Asset management activities were consolidated and accounted in the NAV for the first time at the end of June following the acquisition of IK Partners. There is no sponsor money included in the NAV yet, as no capital has been called. IK Partners’ valuation is up by €6.0 per share, driven by strong performance and positive market multiples evolution.

    Cash operating costs, Net Financing Results and Other items impacted NAV by -€1.0, as Wendel benefits from a positive carry. The impact of year-to-date share buyback activity would be +€1.4 per share as of December 31, 2024.

    Total Net Asset Value creation per share amounted to €27.4 in 2024.

    Fully diluted NAV per share of €185.7 as of December 31, 2024

    (in millions of euros)     12/31/2024 12/31/2023
    Listed investments Number of shares Share price (1) 3,793 3,867
    Bureau Veritas 120.3m/160.8m €29.5/€22.2 3,544 3,575
    IHS 63.0m/63.0m $3.2/$4.4 192 251
    Tarkett   €10.5/€9.1 57 40
    Investment in unlisted assets (2) 3,612 4,360
    Asset Management Activities (3) 616
    Other assets and liabilities of Wendel and holding companies (4) 174 6
    Net cash position & financial assets (5) 2,407 1,286
    Gross asset value     10,603 9,518
    Wendel bond debt     -2,401 -2,401
    IK Partners transaction deferred payment -131
    Net Asset Value     8,071 7,118
    Of which net debt     -124 -1,115
    Number of shares     44,461,997 44,430,554
    Net Asset Value per share 181.5 €160.2
    Wendel’s 20 days share price average   €93.5 €79.9
    Premium (discount) on NAV -48.5% -50.1%
    Number of shares – fully diluted 42,466,569 43,302,016
    Fully diluted Net Asset Value, per share 185.7 €162.3
    Premium (discount) on fully diluted NAV -49.6% -50.7%

    (1)   Last 20 trading days average as of December 31, 2024, and December 31, 2023.
    (2)   Investments in unlisted companies (Globeducate, Stahl, Crisis Prevention Institute, ACAMS, Scalian and Wendel Growth as of December 31, 2024. As of Dec 31,2023 also included Constantia Flexibles and excluded Globeducate). Aggregates retained for the calculation exclude the impact of IFRS16.
    (3)   IK Partners’ activity, no sponsor money at this stage.
    (4)   Of which 1,995,428 treasury shares as of December 31, 2024, and 1,128,538 treasury shares as of December 31, 2023
    (5)   Cash position and financial assets of Wendel & holdings.

    Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.
    If co-investment and managements LTIP conditions are realized, subsequent dilutive effects on Wendel’s economic ownership are accounted for in NAV calculations. See page 246 of the 2023 Registration Document.

    Wendel’s Principal Investments’ portfolio rotation

    In 2024, Wendel has realized a total of €2.3 billion in disposals for its own account and has invested c.€0.7 billion, reflecting the acceleration of the diversification of its investment portfolio, in line with the strategy announced a few months ago:

    • Wendel announced on January 4, 2024, that it had completed the sale of Constantia Flexibles, generating total net proceeds9 for Wendel of €1,121 million for its shares, i.e. a valuation over 10% higher than the latest NAV on record before the announcement of the transaction (as at March 31, 2023).
    • Wendel announced on April 5, 2024, that it had successfully completed the sale of 40.5 million shares in Bureau Veritas, representing c.9% of the Company’s share capital, for total proceeds of approximately €1.1 billion. The transaction was carried out at a price of €27.127, or a discount of 3% from the previous day’s share price.
    • Wendel Growth realized its investment in Preligens, a leader in artificial intelligence (AI) for aerospace and defence, generating net proceeds to Wendel of c.€14.6 million, translating into a gross IRR of 28%10. In addition, Wendel Growth announced on June 11, 2024, the acquisition of a minority stake in YesWeHack through an equity investment of €14.5 million.
    • Wendel reinvested €43.7m in Scalian upon the acquisition of Mannarino on June 21, 2024. This Canadian company is a leading engineering services specialist for advanced technology R&D for the aviation sector, primarily in North America, with recognized expertise in safety-critical embedded software and systems.
    • On October 16, 2024, Wendel completed the acquisition of c.50% of Globeducate, one of the world’s leading bilingual K-12 education groups, from Providence Equity Partners. Wendel invested €607 million of equity, at an Enterprise Value of c.€2 billion11, to join Providence, and both firms will now own c.50% of the group.

    Wendel’s Asset Management platform evolution

    Acquisition of Monroe Capital dramatically expands Wendel’s Asset Management platform and rebalances its business model towards more recurring cash flows and growth

    Wendel announced on October 22, 2024 that it had entered into a definitive partnership agreement including the acquisition of 75% of Monroe Capital LLC (“Monroe Capital” or “the Company”) for $1.13 billion, and a sponsoring program of $800 million to accelerate Monroe Capital’s growth, and will invest in GP commitment for up to $200 million.

    For Wendel, the acquisition of a controlling stake in Monroe Capital, a private credit market leader focused on the U.S. lower middle market that has established an outstanding track record, would represent a significant and transformational advancement of the strategy it announced in March 2023 to develop its third-party asset management platform to complement its longstanding Principal Investment business.

    With IK Partners and Monroe Capital, Wendel’s third party asset management platform will reach more than €33 billion in AUM12, and should generate, on a full year basis, c.€ 455 million revenues, c.€160 million pre-tax FRE (c.€100 million in pre-tax FRE (Wendel share) in 2025. Wendel’s objective is to reach €150 million (Wendel share) in pre-tax FRE in 2027.

    Third Party Asset Management value creation and performance

    2024 performance

    Over 2024, IK Partners had particularly strong activity, generating a total of €163.3 million in revenue, up 31% YoY, and a strong growth of FRE to €69.9 million. Total Assets under Management (€13.8 billion, of which €3 billion of Dry Powder13) grew by 24% since the beginning of the year, and FPAuM14 (€10.1 billion) by 33%. Over the period, €3.4 billion of new funds were raised (IK X, IK PF III, IK SC IV and IK CV I) and 11 exits have been announced, for over €1.6 billion.

    Sponsor money invested by Wendel

    Wendel committed €500 million in IK Partners funds, of which €300 million in IK X. These commitments have not yet been called as of December 31, 2024.

    Principal Investment companies’ value creation and performance

    Figures post IFRS 16 unless otherwise specified.

    Listed Assets: 36% of Gross Asset Value

    Bureau Veritas’ LEAP | 28 strategy delivers outstanding results in 2024; Confident 2025 outlook

    (full consolidation)

    Revenue in 2024 amounted to €6,240.9 million, a 6.4% increase year-on-year. The organic increase was 10.2% (including 9.6% in the fourth quarter) benefiting from robust underlying trends across businesses and geographies.

    Adjusted operating profit increased by 7.1% to €996.2 million. This represents an adjusted operating margin of 16.0% up 11bps on a reported basis and up 38 bps at constant currency.

    Bureau Veritas posted a record free cash flow of €843.3 million (+27.9% year-on year). As of December 31, 2024, adjusted net financial debt was €1,226.3 million, i.e. 1.06x EBITDA, compared with 0.92x at December 31, 2023.

    In line with LEAP I 28 plan focused portfolio strategy and through active portfolio management, in 2024 Bureau Veritas completed: i) the acquisition of 10 bolt-on companies for a total annualized revenue of c. €180 million; ii) the divestment of its Food testing business and of a technical supervision business on construction projects in China (c. € 165 million in annualized combined revenue). Bureau Veritas ended the year with its inclusion in the CAC 40, the benchmark index of the Paris stock exchange. This achievement underscores the Group’s consistent operational success and marks a significant milestone in Bureau Veritas’ remarkable journey.

    2025 outlook

    Building on a strong 2024 momentum, a robust opportunities pipeline, a solid backlog, and a strong underlying market growth, and in line with LEAP | 28 financial ambitions, Bureau Veritas expects to deliver for the full year 2025:

    • Mid-to-high single-digit organic revenue growth;
    • Improvement in adjusted operating margin at constant exchange rates;
    • Strong cash flow, with a cash conversion15 above 90%.

    For further details: group.bureauveritas.com

    IHS Towers – IHS Towers will report its FY 2024 results in March 2025

    Tarkett reported its annual results on February 20, 2025

    For more information: https://www.tarkett-group.com/en/investors/

    Unlisted Assets: 34% of Gross Asset Value

    (in millions) Sales EBITDA Net debt
      2023 2024 2023 including IFRS 16 2024     including IFRS 16 Δ End of December including IFRS 16
    Stahl €913.5 €930.2 €204.0 €206.9 +1.4% €383.8
    CPI $138.4 $150.1 $68.6 $74.0 +7.8% $378.2
    ACAMS $102.9 $102.1 $24.6 $25.1 +2.0% $165.0
    Scalian €539.9 €533.4 €63.9 €59.8 -6,3% €345.6
    Globeducate(1) na €352.2 na €84.2 na na

    (1)   Globeducate acquisition was completed on October 16th, 2024. Globeducate fiscal year ends in August, and figures shown are last twelve months at the end of August 2024. Indian operations are deconsolidated and accounted for by the equity method due to the absence of audited figures for the year ending in August-24.

    Stahl – Total sales up +1.8% in 2024 despite market challenges in the automotive and luxury goods end-markets. Strong EBITDA margin of 22.2%. In 2024, Stahl completed its transformation into a pure-play specialty coatings formulator for flexible materials.

    (Full consolidation) 

    Stahl, the world leader in specialty coatings for flexible materials, posted total sales of €930.2 million in the full year of 2024, representing a total increase of +1.8% versus 2023.

    Organically, sales were slightly down -1.1%, in a context of tougher markets in automotive and luxury goods, while FX contributed -1.5%. Acquisitions contributed positively (+4.4%) to total sales variation.

    Full Year 2024 EBITDA16 amounted to €206.9 million (+1.4% vs. 2023), translating into a strong EBITDA margin of 22.2%, thanks to a disciplined margin and fixed costs management, as well as a good diversification across geographies and segments.

    Net debt as of December 31st, 2024, was €383.8 million17, versus €329 million at the end of 2023 and leverage stood at 1.7x18.

    On November 18, 2024, Stahl announced the sale of its Wet-end leather chemicals division, that marks an important step in the Group’s strategic journey. The proposed sale completes Stahl’s transformation into a pure-play specialty coatings formulator for flexible materials. The transaction is subject to customary closing conditions and is expected to close in H1 2025.

    Pro forma for the sale of the Wet-end leather chemicals business and the acquisition of Weilburger Graphics GmbH, 2024 sales would amount to c.€ 759 million, EBITDA to c.€180 million (i.e., a 23.7% margin) and leverage would stand at an estimated 1.6x. These transactions strengthen Stahl’s growth profile, with the company now better positioned for faster growth, and have an accretive impact on its EBITDA margin.

    Crisis Prevention Institute reports +8.5% revenue and +7.8% EBITDA growth

    (Full consolidation)

    CPI recorded 2024 revenues of $150.1 million, up +8.5% compared to 2023, or +8.4% organically (FX impact was +0.1%), resulting from strong growth in the consumption of training materials, signifying active training of broader staff throughout the Company’s primary customers in educational, healthcare and human services settings. In addition, the Company benefitted from continued growth in its Enterprise segment, a core strategic focus targeting large health systems.

    Full Year 2024 EBITDA was $74.0 million19, reflecting a margin of 49.3%. EBITDA was up +7.8% vs. last year while margins are stable (49.6% in 2023), despite investments to scale in International markets.

    As of December 31, 2024, net debt totaled $378.2 million20, or 4.6x EBITDA as defined in CPI’s credit agreement, following the c. $100 million dividend payment to Wendel in April of 2024. Given current leverage, CPI repriced its Term Loan and received a 50bps interest rate stepdown, or a c. $1.4 million annual savings.

    On January 21st, 2025, CPI announced the acquisition of Verge, a Norwegian leader in behaviour intervention and training. This acquisition extends CPI’s presence in the Nordics, and enhances CPI’s ability to support professionals worldwide, leveraging Verge’s innovative techniques to address challenging behaviours, aggression and violence.

    ACAMS – Total sales stable and improved 24.6% margin amid strong transformation momentum

    (full consolidation)

    ACAMS, the global leader in training and certifications for anti-money laundering and financial crime prevention professionals, generated 2024 revenue of $102.1 million, down 0.8% vs. 2023. The results for 2024 reflected continued growth and market expansion in North America and Europe, largely offset by soft sales in the Asia-Pacific region and from exhibition spend at certain conferences early in the year, slower sales to non-banking customers at consultancies and governments.

    EBITDA21 in 2024 was $25.1 million, up 2% vs. 2023, and reflecting a margin of 24.6%, up 70 bps year-over -year.

    As of December 31, 2024, net debt totaled $165.0 million22, slightly up from $155.8 million at the end of 2023, which represents 6.7x EBITDA leverage as defined in ACAMS’ credit agreement, with ample room relative to the 9.5x covenant level.

    This past year has been pivotal in the Company’s transformation, with the addition of CEO Neil Sternthal who joined from Thomson Reuters in early 2024 and subsequently made several additions to the senior leadership team, and shifted focus to core growth with large enterprise customers, product and market expansion including the introduction of its Certified Anti-Fraud Specialist certification (CAFS), and key investments in the technology platform. These critical investments are all geared toward advancing the impact of the Company’s mission of combating financial crime, accelerating its strategy and further developing its position as a technology-enabled provider of trusted information, data and analytics for the anti-financial crime (AFC) community.

    Management expects the significant changes will, over time, create a more robust platform for the global AFC community and a more scalable, consistent business model with accelerated growth for ACAMS.

    ACAMS anticipates modest growth in 2025 as the recent changes take hold with improved growth toward the end of the year and into 2026.

    Scalian – Slight decrease of total sales of -1.2% in 2024, in the context of continued market growth slowdown. EBITDA margin rate at 11.2%, down c. 60 bps, mainly due to lower utilization rate and the marked slowdown in certain sectors (automotive in Germany and civil aeronautics). Acquisition of Dulin in January 2024 and Mannarino in June 2024.

    (Full consolidation since July 2023.)  

    Scalian, a European leader in digital transformation, project management and operational performance consulting, reported total sales of €533.4 million as of December 31, 2024, a -1.2% decrease vs. 2023. The slowdown is spread across several sectors, particularly automotive in Europe and Aeronautics (supply chain disruptions). Sales are down -4.0% organically and benefited from a positive scope effect of +2.8%.

    Scalian generated an EBITDA23 of €59.8 million in 2024. The EBITDA margin rate stood at 11.2%, down c. 60 bps vs. 2023, mainly explained by lower utilization rate, partially offset by strict SG&A control.

    As of December 31, 2024, net debt24 stood at €345.6 million (leverage of 6.46x25 EBITDA).

    In 2024, Scalian announced the acquisition of Dulin Technology in January, a Spanish-based consulting firm specializing in cybersecurity for the financial sector, and Manarinno in June, a Canadian-based company that is a leading engineering services specialist with a unique know-how in advanced technology R&D for the aviation sector.

    Globeducate – Total sales up +10%26over LTM as of August 2024 Year-end. Strong EBITDA margin at 23.9%27in line with expectations.

    (Accounted for by the equity method. Globeducate acquisition was completed on October 16th, 2024. Globeducate fiscal year ends in August, and figures shown below are last twelve months at the end of August 2024 and first 3 months of the Globeducate year (September – November). Indian operations are deconsolidated and accounted for by the equity method due to the absence of audited figures for the year ending in August-24).

    Globeducate, one of the world’s leading bilingual K-12 education groups, posted total sales of €352.2 million1 for the full year ending in August 2024, representing a total increase of +10% year on year.

    EBITDA2 for the year ending in August amounted to €84.2 million, translating into a strong EBITDA margin of 23.9%, in line with expectations. This solid financial performance was fueled by a combination of organic and external growth.

    Over the first quarter of Globeducate’s fiscal year (September – November), Globeducate completed 3 acquisitions: Olympion School in Cyprus, and Ecole des Petits and Battersea in the UK.

    Net debt as of November 30th, 2024, was €490 million28 and leverage3 stood at 6.2x.

    Consolidated Accounts

    On February 26, 2025, Wendel’s Supervisory Board met under the chairmanship of Nicolas ver Hulst and reviewed Wendel’s consolidated financial statements, as approved by the Executive Board on February 21, 2025. The audit procedures by the statutory auditors on the consolidated financial statements are underway. The audit report would be released mid-March 2025. 

    Wendel Group’s consolidated net sales29 totaled €8,063.5 million, up +13.1% overall and up +8.4% organically. FX contribution is -3.9% and scope effect is +8.6%.

    The overall contribution of Group portfolio companies to net income from operations, Group share amounted to €274.1 million, down -24.3% year on year impacted by the disposal of Constantia and the sale of 25% of the stake in Bureau Veritas. Net income from operation, Group share, was €232.7 million, down -5.8%.

    Financial expenses, operating expenses and taxes at Wendel SE level totaled €63.0 million (of which €22.4 million non-cash), down -45.4% from the €115.3 million (of which €25.3 million non-cash) reported in 2023. Operating expenses are slightly down and financial expenses are positive with a positive carry of cash generating €35.6 million. 2024 is impacted by a goodwill depreciation of €188.2 million, mainly related to Scalian and the Stahl’s wet-end division, which is in the process of being sold.

    Net income Group share €293.9 million strongly up vs.€142.4 million in 2023, reflecting a €418.6 million capital gain group share from the disposal of Constantia Flexibles in H1 2024.  

    ESG achievements

    Non-financial ratings: Wendel improves its CSA rating from S&P, confirms its inclusion in the DJSI World and Europe.

    For the sixth year in a row, Wendel has been included in the Dow Jones Best-in-Class (previously Dow Jones Sustainability Indices) World and Europe indices, making it one of the top 10% of companies in terms of sustainability in the Diversified Financials category. With a score of 76/100 in its category, Wendel is well above the average for its sector (26/100). This rating places Wendel in the top 1% of its sector “FBN Diversified Financial Services and Capital Markets”

    Through the review of the Corporate Sustainability Assessment questionnaire, S&P Global assesses the ESG (Environment, Social, Governance) performance of listed companies in different industries since 1999. The top 10% of companies with the best performance in terms of sustainability, according to criteria defined for each industry, are included in the Dow Jones Best-in-Class Indices (previously Dow Jones Sustainability Indices).

    New ESG roadmap 2024-2027

    In 2024, Wendel defined a new ESG roadmap, approved by the Supervisory Board and the Executive Board, notably to take into account the Group’s recent strategic developments, including the new third-party asset management activity (IK Partners and Monroe Capital acquisitions).
    This roadmap includes five priorities: Governance & Business Ethics, Reliability of extra-financial information, Health & Safety, Climate change & adaptation, Parity.

    These five priorities will apply to all Wendel’ investment activities, encompassing both principal investment and third-party asset management. The detailed policies and action plans of the roadmap will be presented in the sustainability report included in the Group’s 2024 Universal Registration Document.

    Renewal of the Executive Board of Wendel

    On 26 February 2025, the Supervisory Board of Wendel decided to renew the appointments of Laurent Mignon and David Darmon as Chairman of the Executive Board of Wendel and Member of the Executive Board and Group Deputy CEO of Wendel, respectively, for a period of four years until 6 April 2029, with effect from 7 April 2025.

    Renewal of the appointments of members of the Supervisory Board

    At the General Meeting of 15 May 2025, it will be proposed to the shareholders that Nicolas ver Hulst, Priscilla de Moustier, Bénédicte Coste and François de Mitry be reappointed as members of the Supervisory Board for a further four-year term. If the renewal of their mandate is approved, Nicolas Ver Hulst will remain chairman of the Supervisory Board, Priscilla de Moustier and Bénédicte Coste will continue their roles on the Governance and Sustainable Development Committee, and François de Mitry will continue his role on the Audit, Risk and Compliance Committee.

    Agenda

    Thursday, April 24, 2025

    Q1 2025 Trading update – Publication of NAV as of March 31, 2025 (post-market release)

    Thursday, May 15, 2025

    Annual General Meeting

    Wednesday, July 30, 2025

    H1 2025 results – Publication of NAV as of June 30, 2025, and condensed Half-Year consolidated financial statements (post-market release)

    Thursday, October 23, 2025

    Q3 2025 Trading update – Publication of NAV as of September 30, 2025 (post-market release)

    Wednesday, December 10, 2025

    2025 Investor Day.

    About Wendel

    Wendel is one of Europe’s leading listed investment firms. Regarding its principal investment strategy, the Group invests in companies which are leaders in their field, such as ACAMS, Bureau Veritas, Crisis Prevention Institute, Globeducate, IHS Towers, Scalian, Stahl and Tarkett. In 2023, Wendel initiated a strategic shift into third-party asset management of private assets, alongside its historical principal investment activities. In May 2024, Wendel completed the acquisition of a 51% stake in IK Partners, a major step in the deployment of its strategic expansion in third-party private asset management and also announced in October 2024 the acquisition of 75% of Monroe Capital. Pro forma of Monroe Capital, Wendel manages more than 33 billion euros on behalf of third-party investors, and c.7.4 billion euros invested in its principal investments activity.

    Wendel is listed on Eurolist by Euronext Paris.

    Standard & Poor’s ratings: Long-term: BBB, stable outlook – Short-term: A-2 since January 25, 2019

    Wendel is the Founding Sponsor of Centre Pompidou-Metz. In recognition of its long-term patronage of the arts, Wendel received the distinction of “Grand Mécène de la Culture” in 2012.

    For more information: wendelgroup.com

    Follow us on LinkedIn @Wendel 

    Appendix 1: 2024 Consolidated sales and results

    2024 consolidated net sales

    (in millions of euros) 2023 2024 Δ Organic Δ
    Bureau Veritas 5,867.8 6,240.9 +6.4% +10.2%
    Stahl(1) 913.5 930.2 +1.8% -1.1%
    Scalian(2) 126.8 533.4 n.a. n.a.
    CPI 128.0 138.8 +8.4% +8.4%
    ACAMS(3) 91.6 93.7 +2.4% -0.6%
    IK Partners(4) n.a. 126.5 n.a. n.a.
    Consolidated sales 7,127.6 8,063.5 +13.1% +8.4%

    (1) Acquisition of ICP Industrial Solutions Group (ISG) since March 2023 (sales’ contribution of €89.7M vs €89.1M in 2023) and acquisition of Weilburger since September 2024 (sales’ contribution of €18.2M).                                                                        

    (2) Scalian, which had a different reporting date to Wendel (refer to 2023 consolidated financial statements – Note 2 – 1.” Changes in scope of consolidation in 2023″), realigns its closing date with Wendel group. Consequently, 2024 sale’s contribution correponds to 12 months’ sales between January 1st 2024 and December 31st 2024. Last year’s contribution corresponds to 3 months’ sales between July 1st 2023 and September 30 2023.

    (3) The sales include a PPA restatement for an impact of -€0.6M (vs -€3.4M as of 12M 2023). Excluding this restatement,the sales amount to €94.2M vs. €95.2M as of 12M 2023. The total growth of +2.4% include a PPA effect of +3,3%.                                         

    (4) Contribution of eight months of sales        

    2024 net sales of equity-accounted companies

    (in millions of euros) 2023 2024 Δ Organic Δ
    Tarkett (5) 3,363.1 3,331.9 -0.9% -0.4%
    Sales (Equity method) (6) 3,363.1 3,331.9 -0.9% -0.4%

    (5)Selling price adjustments in the CIS countries are historically intended to offset currency movements and are therefore excluded from the 
    “organic growth” indicator

    (6) Due to the recent acquisition date of the Globeducate group, its contribution is not yet included in Group sales.

    2024 consolidated results

    (in millions of euros) 2023 2024
    Contribution from asset management 42.3
    Consolidated subsidiaries 826.3 774.4
    Financing, operating expenses and taxes -115.3 -63.0
    Net income from operations(1) 711.0 753.7
    Net income from operations, Group share 246.9 232.7
    Non-recurring income/loss -60.4 532.3
    Impact of goodwill allocation -120.4 -107.9
    Impairment 0.7 -188.2
    Total net income(2) 530.9 989.9
    Net income, Group share 142.4 293.9

    (1) Net income before goodwill allocation entries and non-recurring items.

    (2) -€85.2M of change in fair value for IHS recognized through OCI and €784M of capital gain on the Bureau Veritas bloc accounted for through equity.

    2024 net income from operations

    (in millions of euros) 2023 2024 Change
    Total contribution from asset management: IK Partners n/a 42.3 n/a
    Bureau Veritas 594.0 643.3 +8.3%
    Stahl 90.3 100.2 +11.0%
    Constantia Flexibles 115.2 n/a
    CPI 20.7 22.2 +7.2%
    ACAMS 0.0 -0.7 n/a
    Scalian -2,8 -6.2 n/a
    Tarkett (equity accounted) 8.8 15.6 +76.2%
    Total contribution from Group companies 826.3 774.4 -6.3%
    of which Group share 362.1 274.1 -24.3%
    Operating expenses net of management fees -72.5 -72.2 -0.4%
    Taxes -1.5 -4.0 +169.8%
    Financial expenses -15,9 35.6 n/a
    Non-cash operating expenses -25.3 -22.4 -11.4%
    Net income from operations 711.0 753.7 +6.0%
    of which Group share 246.9 232.7 -5.8%

    Appendix 2: Fully diluted Net Asset Value bridge over 2024

    Appendix 3: Conversion from accounting presentation to economic presentation

    Please refer to table 7.1 of the consolidated statements.

    Appendix 4: Glossary

    • AUM (Assets under Management): Corresponding – for a given fund – to total investors’ commitment (during the fund’s investment period) or total invested amount (post investment period)
    • FRE (Fee-Related Earnings) : Earnings generated by recurring fee revenues (mainly management fees). It excludes earnings generated by more volatile performance-related revenues.
    • GP (General Partner): Entity in charge of the overall management, administration and investment of the funds. The GP is paid by management fees charged on assets under management (AuM)

    1 Fully-diluted NAV per share assumes all treasury shares are cancelled and a complementary liability is booked to account for all LTIP related securities in the money as of the valuation date.

    2 Fully diluted of share buybacks and treasury shares.

    3 Including the €4.0 per share dividend paid in 2024.

    4 Dividend payout calculated on the basis of fully-diluted NAV at the end of December 2024.

    5 Based on Wendel’s share price of €97.15 as of February 21, 2025.

    6 Including sponsor money commitment in IK (€-500m).

    7 Including sponsor money commitment in IK (€500m) and proforma of IK Partners transaction deferred payment (€-131m), Monroe Capital 100% acquisition (including estimated earnout and put on 25% of residual capital, i.e €-1.6bn) and GP commitments in Monroe Capital ($-200m for 2025).

    8 €2.4bn of cash as of December 31, 2024, restated from sponsor money commitment in IK (€-500m), IK Partners transaction deferred payment (€-131m), Monroe Capital 100% acquisition (including estimated earnout and put on 25% of residual capital, i.e €1.6bn) and GP commitments in Monroe Capital’s new strategies (c. $-200m for 2025).

    9 Net proceeds after ticking fees, financial debt, dilution to the benefit of the Company’s minority investors, transaction costs and other debt-like adjustments.
    10 Gross IRR of 28%. Net IRR of 26%.
    11 EV including IFRS 16 impacts. Excluding IFRS 16, EV stands at c.€1.86 billion.
    12 As of end of December 2024

    13 Commitments not yet invested

    14 Fee Paying AuM

    15 (Net cash generated from operating activities – lease payments + corporate tax)/adjusted operating profit

    16 EBITDA including IFRS 16 impacts, EBITDA excluding IFRS 16 stands at €201.0m.

    17 Including IFRS 16 impacts. Net debt excluding the impact of IFRS 16 was €364.4m.

    18 Leverage as per credit documentation definition.

    19 Recurring EBITDA post IFRS 16. Recurring EBITDA pre IFRS 16 was $72.8m

    20 Post IFRS 16 impact. Net debt pre IFRS 16 impact was $375.2m.

    21 EBITDA including IFRS 16. EBITDA excluding IFRS16 stands at $24.0m

    22 Including IFRS 16 impacts. Net debt excluding the impact of IFRS 16 was $164.2m.

    23 EBITDA including IFRS 16 impact. Excluding IFRS 16, EBITDA stands at €50.9 m. Mannarino taken into account for 6 months.

    24 Net debt including IFRS 16 impact. Excluding IFRS 16, net debt stands at €314.9 m.

    25 As per credit documentation (pre IFRS 16)

    26 Excluding Indian activities. Indian estimated revenue stands at €25 m.

    27 EBITDA including IFRS 16 impacts and excluding Indian activities. Indian estimated EBITDA stands at €9.8 m.

    28 As per credit documentation definition.

    29 Consolidated sales will be published only for Full Year and Interim results. For Q1 & Q3, sales by companies/activities will continue to be commented on an individual basis

    Attachment

    The MIL Network

  • MIL-OSI Global: The world needs a circular economy. But workers in developing countries shouldn’t pay the price

    Source: The Conversation – UK – By Sukyung Park, Assistant Professor in International Business, Strategy, and Innovation, Loughborough University

    hanohiki/Shutterstock

    The circular economy offers a fresh approach to how we produce and consume, focusing on reducing, reusing, recycling and recovering. It moves us away from the traditional “make, use, discard” model, creating a more sustainable system to balance the needs of the economy, society and nature. Living within the planet’s limits is vital if we are to fight climate change, biodiversity loss and the twin crises of waste and pollution.

    But that’s not all the circular economy is important for. In promoting resource efficiency and reducing dependency on finite materials, it can also encourage innovation and job creation.

    Advances in biomaterials, for instance, are providing durable and recyclable alternatives to plastic packaging. And innovative approaches to textiles are enabling manufacturers to make fibres from agricultural waste.

    But all this comes at a cost – and raises the question of who should pay. While the circular economy offers promising solutions to environmental and economic challenges, the transition raises critical questions about equity. It’s vital to include the workers and communities from developing countries at every stage of the transition.

    Despite the potential of a circular economy to bring long-term benefits to both society and the environment, access to resources is uneven. There are also economic disparities. A lack of funding, insufficient investment and skills gaps make the shift towards a circular economy challenging for some developing countries.

    And power dynamics are shifting across industries and regions. The circular transition can hit utility companies (electricity, gas and water) as demand from other firms falls. At the same time, in some countries it can bring significant gains to sectors such as construction – possibly driven by manufacturing firms investing in new buildings after saving money on material and energy costs.

    In a recent review of 167 studies of the circular economy, we found that there was limited focus on democratic planning. Communities were not involved enough in decision-making about the transition to a circular economy – especially in low-income countries. Local workers and communities being shut out of decision-making and excluded from opportunities, such as green jobs in renewable energy or sustainable design, could worsen inequalities. This is particularly the case in low-income areas with limited resources and economic resilience.

    In developing countries, persistent problems including low wages and poor working conditions can continue even as circular practices gain momentum, unless these concerns are integrated into the model. In the fashion industry, for example, workers face the same precarious working conditions regardless of whether they are working with virgin or recycled materials.

    And new tensions are emerging over who benefits and loses in the transition to a circular economy. For example, a textile factory owner in the Tamil Nadu region of India voiced concerns that slower fashion cycles – promoted by circular initiatives in wealthier countries – could threaten jobs and livelihoods, making the case (in the words of one interviewee) for “much faster fashion”.

    Without careful planning, textile workers in developing countries could lose their livelihoods in the transition to a circular economy.
    Ruma Dey Acharya/Shutterstock

    Among textile manufacturers, secondhand clothing was seen in a negative light as it might decrease the need for new products. The recycling industry on the other hand was booming in the same area and was seen as a positive thing. This was reflected in the words of a textile factory manager: “It’s my message (to not) reuse, we can recycle so that we get some work in the future.”

    Nevertheless, even recycling was not considered to be a purely positive thing. Many cotton farmers dependent on traditional production face disruption to their livelihoods as recycled textiles gain popularity.

    This is in stark contrast to the narrative in the developed economies, where circular strategies advocating “buy nothing” or slow fashion cycles are championed for their environmental benefits.

    A path forward

    To ensure the circular economy benefits everyone, it is crucial to address its social dimensions. Policies and strategies often overlook marginalised voices, particularly in developing countries. Inclusive circular economy models must be rooted in local contexts, reflecting the unique socio-economic realities of these regions.

    Grassroots entrepreneurs in places where resources are scarce are well positioned to create innovative, locally tailored solutions. Supporting their efforts can lead to practices that address the challenges of their communities while contributing to broader circular goals. Recognising and nurturing this local capacity is essential for a sustainable and fair transition.

    International organisations, national governments, and businesses play a pivotal role in driving inclusivity. Initiatives should be judged not only on environmental and economic outcomes but also for their impact on jobs, livelihoods, education, equity and justice. Businesses must engage with local communities to share knowledge, resources, costs and profits equitably between developing and developed nations.

    This could be funding local innovators, supporting small enterprises or promoting cross-border collaboration on circular practices. For example, circular economy finance and international partnerships can help develop affordable energy solutions for low-income communities and engage developing countries in circular value chains to collect and process e-waste components. International frameworks, such as the EU’s Just Transition Mechanism, must ensure that no one is left behind. And businesses should guarantee living wages in global circular supply chains.

    There’s a risk the circular economy could perpetuate inequalities. That’s why it is vital to reach people at even the far end of supply chains to ensure they are included in decisions and transitions. An equitable circular economy is not just an environmental or economic necessity – it’s also a moral imperative.

    Anna Kristiina Härri receives funding from the Strategic Research Council of Finland. She is affiliated with the Greens in Finland.

    Jarkko Levänen has received funding from the Research Council of Finland and Business Finland.

    Sukyung Park does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. The world needs a circular economy. But workers in developing countries shouldn’t pay the price – https://theconversation.com/the-world-needs-a-circular-economy-but-workers-in-developing-countries-shouldnt-pay-the-price-246453

    MIL OSI – Global Reports