Category: Economy

MIL-OSI Europe: Written question – Transparency and accountability over EU funds for Ukraine – E-000497/2025
Source: European Parliament
Question for written answer E-000497/2025
to the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy
Rule 144
Alexander Sell (ESN)

At a press conference in Ankara on 24 January 2025, Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy Kaja Kallas said: ‘The EU is Ukraine’s largest overall donor. We have contributed over EUR 134 billion’.

In an interview with The Associated Press on 1 February 2025, Ukrainian President Volodymyr Zelenskyy stated that he was unaware of where most of the US aid to Ukraine had gone. While US President Donald Trump states that his country has provided over USD 200 billion to Ukraine, President Zelenskyy claims that they have only received around USD 75 billion. To date, the EU has given EUR 134 billion to Ukraine, and it is estimated that EUR 500 billion will be needed for reconstruction.

1.Is the Commission able to confirm that all of the funding awarded to Ukraine has actually reached the intended beneficiaries and that it has been used for its intended purposes?

2.What control and monitoring mechanisms has the Commission put in place to track the allocation and use of EU funds in Ukraine?

3.If US President Trump follows through with his intentions to limit his country’s involvement in the reconstruction of Ukraine, what share of costs involved does the Commission expect the EU to finance?

Submitted: 4.2.2025
Last updated: 20 February 2025
MIL OSI Europe News –
February 21, 2025
MIL-OSI Europe: SEK 22 billion in EIB financing provided for Swedish firms and municipalities in 2024
Source: European Investment Bank
- The city of Stockholm, SKF, Ericsson, Tele2 and Chromafora were some of the actors in Sweden granted EU financing in 2024 through the EIB Group.
- This financing amounted to around SEK 22 billion (€1.9 billion) and more than 65% of this went to initiatives supporting the green transition.
- Just over 32 000 jobs are estimated to have been saved thanks to this financing.
Over the course of 2024, the European Investment Bank (EIB) and the European Investment Fund (EIF) continued to support Sweden’s economic development and climate initiatives through substantial investments.

The EIB Group’s financing during the year amounted to around SEK 22 billion, of which more than 60% went to climate measures and environmental sustainability. This money supported wind power, energy-efficient housing and industrial electrification, among other projects.

These investments are estimated to have kept 32 000 jobs in Sweden.

“Sweden has come a long way in the green transition, but the work is far from complete. As the EU climate bank, we are proud to be accelerating efforts within renewable energy, electrification and other climate-promoting initiatives, and we will continue to support investments that make a real difference for the climate and society as a whole. We are also proud to contribute to jobs and strong infrastructure, which creates long-term value for Swedish society,” said EIB Vice-President Thomas Östros.

Over the course of 2024, the EIB Group signed more than 20 agreements to provide financing in Sweden. Here are a few examples:

SKF: €430 million for research and innovation in fields such as renewable energy and electromobility.

Chromafora: €22.5 million to combat PFAS (“forever chemicals”).

Tele2: €140 million to expand the 5G network in order to reach 99% of the Swedish population.

City of Stockholm: €368 million to redevelop the Slussen area and reduce the risk of flooding.

City of Malmö: €225 million to build more than 1 500 energy-efficient apartments.

These investments reflect the EIB Group’s extensive involvement in Sweden’s green transition, digitalisation and social development.

The European Investment Fund (EIF) – which is part of the EIB – allocated €320 million to capital investments and guarantees in Sweden in 2024. This in turn is expected to mobilise around SEK 3.8 billion in investment for the Swedish economy, with more than 5 300 companies expected to benefit from this financing in different ways.

Several of the initiatives are supported by the European Commission’s InvestEU programme.

In addition to investing in funds such as Course Corrected and the Swedish Impact Lending Fund, the EIF also issued guarantees for businesses such as the corporate lender Froda.

Please note: The figures provided in this press release are approximate and subject to exchange rates.

Background information

EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 billion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
MIL OSI Europe News –
February 21, 2025

MIL-OSI: TransAlta Reports Strong 2024 Results, Announces Dividend Increase and 2025 Annual Guidance

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the fourth quarter and year ended Dec. 31, 2024.

“Our business delivered solid results within the upper range of our guidance, driven by high availability across our generation portfolio, along with the enduring performance of our optimization and hedging strategies. During the year, we added 2.2 GW of generation to our fleet, with three contracted wind facilities achieving commercial operation in addition to the acquisition of Heartland Generation. We also returned $214 million, or $0.71 per share, of value to shareholders through dividends and share repurchases at an average price of $10.59 per share,” said John Kousinioris, President and Chief Executive Officer of TransAlta.

“Given our confidence in the future, we are pleased to announce that our Board of Directors has approved an eight per cent increase to our common share dividend, now equivalent to $0.26 per share on an annualized basis. This represents our sixth consecutive annual dividend increase, affirming our Company’s commitment to returning value to shareholders,” added Mr. Kousinioris.

“Our portfolio of generating facilities continues to perform well. In 2025, we expect to generate between $450 and $550 million of free cash flow. We maintain a balanced, prudent and disciplined approach to capital allocation and balance sheet strength. We remain focused on advancing development opportunities at our legacy thermal energy campuses, along with pursuing longer term growth options with a commitment to maximizing shareholder value. Looking to 2025 and beyond, I am optimistic about our Company’s momentum and opportunities.”

Fourth Quarter 2024 Financial Highlights

Adjusted EBITDA⁽¹⁾ of $285 million, compared to $289 million for the same period in 2023
Free Cash Flow (FCF)⁽¹⁾ of $48 million, or $0.16 per share, compared to $121 million, or $0.39 per share, for the same period in 2023
Cash flow from operating activities of $215 million, compared to $310 million from the same period in 2023
Net loss attributable to common shareholders of $65 million, or $0.22 per share, compared to $84 million, or $0.27 per share, for the same period in 2023

Full Year 2024 Financial Highlights

Achieved the upper range of both 2024 adjusted EBITDA and FCF guidance
Returned $143 million of capital to common shareholders through the buyback of 13.5 million common shares at an average price of $10.59 per share
Adjusted EBITDA of $1,253 million, compared to $1,632 million from the same period in 2023
FCF of $569 million, or $1.88 per share, compared to $890 million, or $3.22 per share, from the same period in 2023
Net earnings attributable to common shareholders of $177 million, or $0.59 per share, compared to $644 million, or $2.33 per share, from the same period in 2023
Exited 2024 with a strong financial position, with adjusted net debt to adjusted EBITDA of 3.6 times and available liquidity of $1.6 billion

Other Business Highlights and Updates

Announced an annual dividend increase of eight per cent, now equivalent to $0.26 per share on an annualized basis, which represents the sixth year of consecutive dividend growth
Provided 2025 guidance including adjusted EBITDA of $1.15 to $1.25 billion and FCF of $450 to $550 million, or $1.51 to $1.85 per share
Completed the acquisition of Heartland Generation at a purchase price of $542 million in December 2024, which added 1.7 GW to gross installed capacity
Achieved strong operational availability of 91.2 per cent in 2024, compared to 88.8 per cent in 2023
2024 Total Recordable Injury Frequency of 0.56 compared to 0.30 in 2023
Reduced scope 1 and 2 GHG emissions intensity in 2024 to 0.35 tCO₂e/MWh from 2023 levels of 0.41 tCO₂e/MWh
Achieved commercial operation at the White Rock West and East wind facilities in January and April 2024, respectively
Achieved commercial operation at the Horizon Hill facility in May 2024
Completed the Mount Keith 132kV expansion project during the first quarter of 2024

Key Business Developments

Declared Increase in Common Share Dividend
The Company’s Board of Directors has approved a $0.02 annualized increase to the common share dividend, or 8 per cent increase, and declared a dividend of $0.065 per common share to be payable on July 1, 2025 to shareholders of record at the close of business on June 1, 2025. The quarterly dividend of $0.065 per common share represents an annualized dividend of $0.26 per common share.

TransAlta Acquired Heartland Generation from Energy Capital Partners

On Dec. 4, 2024, the Company closed the acquisition of Heartland Generation Ltd. and certain affiliates (collectively, Heartland) for a purchase price of $542 million from an affiliate of Energy Capital Partners (ECP), the parent of Heartland (the Transaction). To meet the requirements of the federal Competition Bureau, the Company entered into a consent agreement with the Commissioner of Competition pursuant to which TransAlta agreed to divest Heartland’s Poplar Hill and Rainbow Lake assets (the Planned Divestitures) following closing of the Transaction. In consideration of the Planned Divestitures, TransAlta and ECP agreed to a reduction of $80 million from the original purchase price for the Transaction. ECP will be entitled to receive the proceeds from the sale of Poplar Hill and Rainbow Lake, net of certain adjustments following completion of the Planned Divestitures. TransAlta also received a further $95 million at closing of the Transaction to reflect the economic benefit of the Heartland business arising from Oct. 31, 2023 to the closing date of the Transaction, pursuant to the terms of the share purchase agreement. The net cash payment for the Transaction, before working capital adjustments, totalled $215 million, and was funded through a combination of cash on hand and draws on TransAlta’s credit facilities.

Excluding the Planned Divestitures, the Transaction adds 1.7 GW (net interest) of complementary capacity from nine facilities, including contracted cogeneration and peaking generation, legacy gas-fired thermal generation, and transmission capacity, all of which will be critical to support reliability in the Alberta electricity market.

Mothballing of Sundance Unit 6

On Nov. 4, 2024, the Company provided notice to the Alberta Electric System Operator (AESO) that Sundance Unit 6 will be mothballed on April 1, 2025, for a period of up to two years depending on market conditions. TransAlta maintains the flexibility to return the mothballed unit to service when market fundamentals improve or opportunities to contract are secured. The unit remains available and fully operational for the first quarter of 2025.

Production Tax Credit (PTC) Sale Agreements

On Feb. 22, 2024, the Company entered into 10-year transfer agreements with an AA- rated customer for the sale of approximately 80 per cent of the expected PTCs to be generated from the White Rock and the Horizon Hill wind facilities.

On June 21, 2024, the Company entered into an additional 10-year transfer agreement with an A+ rated customer for the sale of the remaining 20 per cent of the expected PTCs.

The expected average annual EBITDA⁽¹⁾ from the two agreements is approximately $78 million (US$57 million).

Normal Course Issuer Bid (NCIB)

TransAlta remains committed to enhancing shareholder returns through appropriate capital allocation such as share buybacks and its quarterly dividend. In the first quarter of 2024, the Company announced an enhanced common share repurchase program for 2024, allocating up to $150 million, and targeting up to 42 per cent of 2024 FCF guidance, to be returned to shareholders in the form of share repurchases and dividends.

On May 27, 2024, the Company announced that it had received approval from the Toronto Stock Exchange to purchase up to 14 million common shares pursuant to an NCIB during the 12-month period that commenced May 31, 2024, and terminates May 31, 2025. Any common shares purchased under the NCIB will be cancelled.

For the year ended Dec. 31, 2024, the Company purchased and cancelled a total of 13,467,400 common shares at an average price of $10.59 per common share, for a total cost of $143 million, including taxes.

Horizon Hill Wind Facility Achieves Commercial Operation

On May 21, 2024, the 202 MW Horizon Hill wind facility achieved commercial operation. The facility is located in Logan County, Oklahoma and is fully contracted to Meta Platforms Inc. for the offtake of 100 per cent of the generation.

White Rock Wind Facilities Achieve Commercial Operation

On Jan. 1, 2024, the 100 MW White Rock West wind facility achieved commercial operation. On April 22, 2024, the 202 MW White Rock East wind facility also completed commissioning. The facilities are located in Caddo County, Oklahoma and are contracted under two long-term power purchase agreements (PPAs) with Amazon Energy LLC for the offtake of 100 per cent of the generation.

Mount Keith 132kV Expansion Complete

The Mount Keith 132kV expansion project, located in Western Australia, was completed during the first quarter of 2024. The expansion was developed under the existing PPA with BHP Nickel West (BHP), which extends until Dec. 31, 2038. The expansion will facilitate the connection of additional generating capacity to the transmission network which supports BHP’s operations.

Year Ended and Fourth Quarter 2024 Highlights

$ millions, unless otherwise stated	Year Ended		Three Months Ended
$ millions, unless otherwise stated	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024		Dec. 31, 2023
Operational information
Availability (%)	91.2	88.8	87.8		86.9
Production (GWh)	22,811	22,029	6,199		5,783
Select financial information
Revenues	2,845	3,355	678		624
Adjusted EBITDA⁽¹⁾	1,253	1,632	285		289
Earnings (loss) before income taxes	319	880	(51	)	(35	)
Net earnings (loss) attributable to common shareholders	177	644	(65	)	(84	)
Cash flows
Cash flow from operating activities	796	1,464	215		310
Funds from operations⁽¹⁾	810	1,351	137		229
Free cash flow⁽¹⁾	569	890	48		121
Per share
Net earnings (loss) per share attributable to common shareholders, basic and diluted	0.59	2.33	(0.22	)	(0.27	)
Funds from operations per share^(1),(2)	2.68	4.89	0.46		0.74
FCF per share^(1),(2)	1.88	3.22	0.16		0.39
Dividends declared per common share	0.24	0.22	0.12		0.12
Weighted average number of common shares outstanding	302	276	298		308

Segmented Financial Performance

$ millions	Year Ended				Three Months Ended
$ millions	Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
Hydro	316		459		57		56
Wind and Solar	316		257		95		82
Gas	535		801		116		141
Energy Transition	91		122		28		26
Energy Marketing	131		109		27		14
Corporate	(136	)	(116	)	(38	)	(30	)
Adjusted EBITDA	1,253		1,632		285		289
Earnings (loss) before income taxes	319		880		(51	)	(35	)

Full Year 2024 Financial Results Summary

For the year ended Dec. 31, 2024, the Company demonstrated strong financial and operational performance. The results were within the upper range of management’s expectations due to active management of the Company’s merchant portfolio and hedging strategies. During 2024, the Company settled a higher volume of hedges at prices that were significantly above the spot market in Alberta and achieved commercial operation at the White Rock and Horizon Hill wind facilities. On Dec. 4, 2024, the Company completed the acquisition of Heartland Generation, which added 1.7 GW to gross installed capacity. Refer to the Significant and Subsequent Events section of our MD&A dated Dec. 31, 2024, for details on the Heartland acquisition and the Planned Divestitures.

Availability for the year ended Dec. 31, 2024, was 91.2 per cent, compared to 88.8 per cent in 2023, an increase of 2.4 percentage points, primarily due to:

The addition of the White Rock and Horizon Hill wind facilities; and
The return to service of the Kent Hills wind facilities.

Total production for the year ended Dec. 31, 2024, was 22,811 GWh, compared to 22,029 GWh for the same period in 2023, an increase of 782 GWh, or four per cent, primarily due to:

Production from new facilities, including the White Rock West and East wind facilities commissioned in January and April 2024, respectively, the Horizon Hill wind facility commissioned in May 2024, and the Northern Goldfields solar facilities commissioned in November 2023;
Production from the facilities acquired with Heartland;
Favourable market conditions in the Ontario wholesale power market that enabled higher dispatch at the Sarnia facility in the Gas segment that resulted in higher merchant production to the Ontario grid;
The return to service of the Kent Hills wind facilities in the first quarter of 2024; and
Full-year production from the Garden Plain wind facility; partially offset by
Increased economic dispatch at the Centralia facility due to lower market prices compared to the prior year in the Energy Transition segment; and
Higher dispatch optimization in Alberta.

Adjusted EBITDA for the year ended Dec. 31, 2024, was $1,253 million, compared to $1,632 million in 2023, a decrease of $379 million, or 23.2 per cent. The major factors impacting adjusted EBITDA include:

Gas adjusted EBITDA decreased by $266 million, or 33 per cent, compared to 2023, primarily due to lower power prices in the Alberta market and resulting increase in economic dispatch, an increase in the price of carbon, higher carbon costs and fuel usage related to production and lower capacity payments, partially offset by a higher volume of favourable hedging positions settled, the utilization of emission credits to settle a portion of our 2023 GHG obligation and lower natural gas prices;
Hydro adjusted EBITDA decreased by $143 million, or 31 per cent, compared to 2023, primarily due to lower spot power prices and ancillary services prices in the Alberta market, partially offset by realized premiums above the spot power prices, higher environmental and tax attributes revenues due to higher sales of emission credits to third parties and intercompany sales to the Gas segment and higher ancillary service volumes due to increased demand by the AESO;
Energy Transition adjusted EBITDA decreased by $31 million, or 25 per cent, compared to 2023, primarily due to increased economic dispatch driven by lower market prices which negatively impacted merchant production, partially offset by lower fuel and purchased power costs; and
Corporate adjusted EBITDA decreased by $20 million, or 17 per cent, compared to 2023, primarily due to higher spending to support strategic and growth initiatives; partially offset by
Wind and Solar adjusted EBITDA increasing by $59 million, or 23 per cent, compared to 2023, primarily due to new sales of production tax credits, the return to service of the Kent Hills wind facilities, the commercial operation of the White Rock and Horizon Hill wind facilities, partially offset by lower realized power pricing in the Alberta market and higher OM&A due to the addition of new wind facilities; and
Energy Marketing adjusted EBITDA increasing by $22 million, or 20 per cent, compared to 2023, primarily due to favourable market volatility and timing of realized settled trades during the current year in comparison to the prior year and lower OM&A.

Cash flow from operating activities totalled $796 million for the year ended Dec. 31, 2024, compared to $1,464 million in the same period in 2023, a decrease of $668 million, or 46 per cent, primarily due to:

Lower gross margin due to lower revenues, excluding the effect of unrealized losses from risk management activities, partially offset by lower fuel and purchased power;
Higher OM&A due to increased spending on planning and design of an ERP system upgrade, higher spending on strategic and growth initiatives, penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions and Heartland acquisition-related transaction and restructuring costs;
Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, which was partially offset by lower earnings before income tax in 2024;
Unfavourable change in non-cash operating working capital balances due to lower accounts payables and accrued liabilities, partially offset by lower collateral provided as a result of market price volatility;
Higher interest expense on debt primarily due to lower capitalized interest resulting from lower construction activity in 2024 compared to 2023; and
Lower interest income due to lower cash balances and lower interest rates.

FCF totalled $569 million for the year ended Dec. 31, 2024, compared to $890 million for the same period in 2023, a decrease of $321 million, or 36 per cent, primarily driven by:

The adjusted EBITDA items noted above;
Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, partially offset by lower earnings before income taxes in 2024; and
Higher net interest expense due to lower capitalized interest resulting from lower construction activity in 2024 compared to 2023, and lower interest income due to lower cash balances and interest rates in 2024 compared to prior year; partially offset by
Lower distributions paid to subsidiaries’ non-controlling interests relating to lower TA Cogen net earnings resulting from lower merchant pricing in the Alberta market and the cessation of distributions to TransAlta Renewables non-controlling interest;
Lower sustaining capital expenditures due to the receipt of a lease incentive related to the Company’s head office and lower planned major maintenance at our Alberta and Western Australian gas facilities, partially offset by higher major maintenance at our Alberta Hydro assets; and
Higher provisions accrued in the current year compared to the prior year resulting in higher FCF.

Earnings before income taxes totalled $319 million for the year ended Dec. 31, 2024, compared to $880 million in the same period in 2023, a decrease of $561 million, or 64 per cent.

Net earnings attributable to common shareholders totalled $177 million for the year ended Dec. 31, 2024, compared to $644 million in the same period in 2023, a decrease of $467 million, or 73 per cent, primarily due to:

The adjusted EBITDA items discussed above;
Higher asset impairment charges due to an increase in decommissioning and restoration provisions on retired assets, driven by a decrease in discount rates and revisions in estimated decommissioning costs and higher impairment charges related to development projects that are no longer proceeding;
Lower unrealized mark-to-market gains and lower realized gains on closed exchange positions in the Energy Marketing segment mainly driven by market volatility across North American power and natural gas markets;
Higher unrealized mark-to-market losses recorded in the Wind and Solar segment primarily related to the long-term wind energy sales at the Oklahoma facilities;
Higher interest expense due to lower capitalized interest during 2024 resulting from lower construction activity in 2024 compared to 2023;
Lower capacity payments in 2024 for Southern Cross Energy in Western Australia due to the scheduled conclusion on Dec. 31, 2023 of the demand capacity charge under the customer contract, partially offset by the commencement in March 2024 of capacity payments for the Mount Keith 132kV expansion;
Heartland acquisition-related transaction and restructuring costs;
Lower interest income due to lower cash balances and lower interest rates during 2024;
Higher spending in connection with planning and design work on a planned upgrade to the ERP system;
Lower income tax expense due to lower earnings; and
Penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions pertaining to Hydro ancillary services provided during 2021 and 2022; partially offset by
Lower depreciation and amortization compared to 2023 related to revisions of useful lives of certain facilities in prior and current periods, partially offset by the commercial operation of new facilities during the year and the return to service of the Kent Hills wind facilities;
Higher unrealized mark-to-market gains recorded in the Energy Transition segment primarily related to favourable changes in forward prices;
A recovery related to the reversal of previously derecognized Canadian deferred tax assets; and
Higher net other operating income mainly due to Sundance A decommissioning cost reimbursement.

Fourth Quarter Financial Results Summary

Fourth quarter 2024 results were in-line with management’s expectations due to active management of the Company’s merchant portfolio and hedging strategies, despite lower power prices in the Alberta and mid-Columbia markets. The Company settled a higher volume of hedges that were significantly above average spot prices during the period. The acquisition of Heartland on Dec. 4, 2024 positively contributed to production in the Gas segment and further diversifies TransAlta’s competitive portfolio in the highly dynamic and shifting electricity landscape in Alberta by adding 1.7 GW to gross installed capacity.

Availability for the three months ended Dec. 31, 2024, was 87.8 per cent, compared to 86.9 per cent for the same period in 2023, an increase of 0.9 percentage points, primarily due to:

The addition of the White Rock and Horizon Hill wind facilities which operated with high availability;
The return to service of the Kent Hills wind facilities;
Higher availability in the Hydro segment due to lower planned outages;
Higher availability in the Energy Transition segment due to lower unplanned outages; and
Positive contribution from the addition of the gas facilities acquired with Heartland; partially offset by
Lower availability for the Gas segment due to planned outages at Sarnia, Sheerness and Keephills.

Production for the three months ended Dec. 31, 2024, was 6,199 GWh, compared to 5,783 GWh for the same period in 2023. The increase of 416 GWh, or seven per cent, was primarily due to:

Higher production in the Wind and Solar segment due to the addition of the Horizon Hill and White Rock West and East wind facilities during 2024;
Higher production in the Hydro segment compared to the same period in 2023 due to water conservation in the fourth quarter of 2023 that resulted in lower production volumes compared to the current period; partially offset by
Lower production in the Energy Transition segment due to higher dispatch optimization, which negatively affected merchant production; and
Lower production in the Gas segment driven by lower availability at the Sarnia facility due to planned outages, higher economic dispatch in Alberta and lower production from Western Australia due to lower demand, partially offset by positive contribution from the Heartland gas facilities.

Adjusted EBITDA for the three months ended Dec. 31, 2024, was $285 million, compared to $289 million in the same period of 2023, a decrease of $4 million, or one per cent. The major factors impacting adjusted EBITDA are summarized below:

Gas adjusted EBITDA decreased by $25 million, or 18 per cent, due to lower realized power prices in Alberta, an increase in the carbon price in Canada and higher OM&A driven by higher maintenance costs at the South Hedland facility, partially offset by a higher volume of favourable hedging positions settled, positive contribution from the Heartland gas facilities and lower capacity payments;
Corporate adjusted EBITDA decreased by $8 million, or 27 per cent, due to higher spending to support strategic and growth initiatives; partially offset by
Wind and Solar adjusted EBITDA increasing by $13 million, or 16 per cent, due to environmental and tax attributes revenues from the sale of PTCs from the White Rock and Horizon Hill wind facilities to taxable US counterparties, higher revenues driven by increased production from the addition of the White Rock and Horizon Hill wind facilities and the return to service of the Kent Hills wind facilities, partially offset by unfavourable merchant power prices in Alberta;
Energy Marketing adjusted EBITDA increasing by $13 million, or 93 per cent, due to favourable market volatility and the timing of realized settled trades during 2024 in comparison to the same period in 2023;
Energy Transition adjusted EBITDA increasing by $2 million, or eight per cent, compared to 2023, primarily due to lower fuel and purchased power costs, partially offset by increased economic dispatch due to lower market prices; and
Hydro adjusted EBITDA increasing by $1 million, or two per cent, due to higher merchant revenues driven by higher volumes, partially offset by lower spot power prices and lower environmental and tax attributes revenues.

FCF totalled $48 million for the three months ended Dec. 31, 2024, compared to $121 million in the same period in 2023, a decrease of $73 million, or 60 per cent, primarily due to:

The adjusted EBITDA items noted above;
Higher realized foreign exchange losses compared to realized foreign exchange gains in the comparative period;
Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, partially offset by a higher loss before income taxes in the current period compared to the same period in 2023;
Higher net interest expense due to lower capitalized interest as a result of capital projects being completed in the first half of 2024 and lower interest income due to lower cash balances in 2024; and
Higher dividends paid on preferred shares; partially offset by
Lower distributions paid to subsidiaries’ non-controlling interests due to lower TA Cogen net earnings;
Lower sustaining capital due to lower planned maintenance at the Alberta gas facilities, partially offset by higher planned maintenance at the Sarnia cogeneration facility and Alberta hydro facilities; and
Higher provisions accrued in the current year compared to the prior year resulting in higher FCF.

Net loss attributable to common shareholders for the three months ended Dec. 31, 2024, was $65 million, compared to a net loss of $84 million in the same period of 2023, an improvement of $19 million, or 23 per cent, primarily due to:

The adjusted EBITDA items discussed above;
Higher interest expense due to lower capitalized interest in the fourth quarter of 2024 resulting from lower capital activity compared to the same period in 2023;
Heartland acquisition-related transaction and restructuring costs in the fourth quarter of 2024;
Higher ERP upgrade costs related to planning and design work;
Penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions pertaining to Hydro ancillary services provided during 2021 and 2022;
Higher depreciation and amortization due to the commercial operation of the White Rock and Horizon Hill wind facilities during 2024; and
Higher taxes other than income taxes, mainly consisting of property taxes due to the addition of new wind facilities during 2024; partially offset by
Higher realized and unrealized foreign exchange gains;
Lower realized gains on closed exchange positions in 2024 compared to the same period in 2023;
An income tax recovery relative to the prior period expense as a result of a higher loss before income taxes due to the above noted items; in addition to lower non-deductible expenses;
Lower net earnings attributable to non-controlling interest compared to the same period in 2023 due to lower merchant pricing in the Alberta market;
Higher net other operating income mainly due to Sundance A decommissioning cost reimbursement; and
Lower asset impairment charges related to the decommissioning and restoration provisions on retired assets driven by lower discount rates in the current period compared to the same period in 2023, partially offset by impairment charges related to development projects that are no longer proceeding.

Alberta Electricity Portfolio

For the three months and year ended Dec. 31, 2024, the Alberta electricity portfolio generated 3,150 GWh and 11,809 GWh, respectively, compared to 2,989 GWh and 11,759 GWh, respectively, in the same periods in 2023. The annual production increase of 50 GWh, or 0.4 per cent, was primarily due to:

Higher production in the Gas segment due to the addition of gas facilities from the acquisition of Heartland; and
A full-year of production from the addition of the Garden Plain wind facility, which was commissioned in August 2023; partially offset by
Higher dispatch optimization in the Gas segment; and
Lower production from the Alberta hydro facilities due to lower water resources compared to the prior year.

The fourth quarter production increase of 161 GWh, or five per cent, benefited from:

Higher production from the Gas segment due to the Heartland acquisition; and
Higher production from the Alberta hydro facilities due to significant water conservation during the fourth quarter of 2023; partially offset by
Higher economic dispatch for the Alberta gas facilities; and
Lower production in the Wind and Solar segment due to lower wind resource.

Gross margin for the Alberta portfolio for the three months and year ended Dec. 31, 2024, was $191 million and $856 million, respectively, a decrease of $24 million and $392 million, respectively, compared to the same periods in 2023. The annual decrease was primarily due to:

The impact of lower Alberta spot power prices and lower hydro ancillary services prices;
Increased dispatch optimization in the Gas segment driven by lower power prices; and
An increase in the carbon price per tonne from $65 in 2023 to $80 in 2024; partially offset by
Higher gains realized on financial hedges settled in the period;
Higher environmental and tax attributes revenues due to the increased sales of emission credits to third parties and intercompany sales from the Hydro segment to the Gas segment;
The utilization of emission credits in the Gas segment in 2024 to settle a portion of our 2023 GHG obligation;
Higher hydro ancillary services volumes due to increased demand by the AESO; and
Lower natural gas prices.

Gross margin for the three months ended Dec. 31, 2024 was impacted by:

Lower Alberta spot power prices;
Higher carbon compliance costs due to increase in the carbon price from $65 per tonne in 2023 to $80 per tonne in 2024; and
Higher purchased power due to the contractual requirement to fulfill physical power trades; partially offset by
Higher gains realized on financial hedges settled in the period.

Alberta power prices for 2024 were lower compared to 2023. The average spot power price per MWh for the three months and year ended Dec. 31, 2024, was $52 and $63, respectively, compared to $82 and $134, respectively, in the same periods in 2023. This was primarily due to:

Higher generation from the addition of increased supply of new renewables and combined-cycle gas facilities into the market compared to the prior period; and
Lower natural gas prices.

Hedged volumes for the three months and year ended Dec. 31, 2024, were 2,637 GWh and 9,080 GWh at an average price of $80 per MWh and $84 per MWh, respectively, compared to 1,824 GWh and 7,550 GWh at an average price of $90 per MWh and $110 per MWh, respectively, in 2023.

Liquidity and Financial Position

We maintain adequate available liquidity under our committed credit facilities. As at Dec. 31, 2024, we had access to $1.6 billion in liquidity, including $336 million in cash, which exceeds the funds required for committed growth, sustaining capital and productivity projects.

2025 Outlook and Financial Guidance

For 2025, management expects adjusted EBITDA to be in the range of $1.15 to $1.25 billion and FCF to be in the range of $450 to $550 million, based on the following, relative to 2024:

Higher contribution from the wind and solar portfolio due to a full-year impact of new asset additions of the White Rock and Horizon Hill wind facilities;
Contribution from assets acquired with Heartland;
Lower contributions from the legacy merchant hydro, wind and gas assets in Alberta which are expected to step down due to lower expected average power prices in Alberta given baseload gas and renewables supply additions in late 2024 and 2025;
Lower current income tax expense in 2025 compared to 2024 actual; and
Increased net interest expense in 2025 as a result of the Heartland acquisition and lower interest income earned on lower cash deposits and lower capitalized interest on growth projects.

The following table outlines our expectations regarding key financial targets and related assumptions for 2025 and should be read in conjunction with the narrative discussion that follows and the Governance and Risk Management section of the MD&A for additional information:

Measure	2025 Target	2024 Target	2024 Actual
Adjusted EBITDA	$1,150 to $1,250 million	$1,150 to $1,300 million	$1,253 million
FCF	$450 to $550 million	$450 to $600 million	$569 million
FCF per share	$1.51 to $1.85	$1.47 to $1.96	$1.88
Annual dividend per share	$0.26 annualized	$0.24 annualized	$0.24 annualized

The Company’s outlook for 2025 may be impacted by a number of factors as detailed further below.

Market	2025 Assumptions	2024 Assumptions	2024 Actual
Alberta spot ($/MWh)	$40 to $60	$75 to $95	$63
Mid-Columbia spot (US$/MWh)	US$50 to US$70	US$85 to US$95	US$76
AECO gas price ($/GJ)	$1.60 to $2.10	$2.50 to $3.00	$1.29

Alberta spot price sensitivity: a +/- $1 per MWh change in spot price is expected to have a +/-$3 million impact on adjusted EBITDA for 2025.

Other assumptions relevant to the 2025 outlook

	2025 Assumptions	2024 Assumptions	2024 Actual
Energy Marketing gross margin	$110 to $130 million	$110 to $130 million	$167 million
Sustaining capital	$145 to $165 million	$130 to $150 million	$142 million
Current income tax expense	$95 to $130 million	$95 to $130 million	$143 million
Net interest expense	$255 to $275 million	$240 to $260 million	$231 million

Hedging assumptions	Q1 2025	Q2 2025	Q3 2025	Q4 2025	2026
Hedged production (GWh)	2,117	1,758	1,942	1,845	4,713
Hedge price ($/MWh)	$72	$70	$70	$70	$75
Hedged gas volumes (GJ)	14 million	6 million	6 million	6 million	18 million
Hedge gas prices ($/GJ)	$2.98	$3.63	$3.77	$3.65	$3.67

Conference call

TransAlta will host a conference call and webcast at 9:00 a.m. MST (11:00 a.m. EST) today, Feb. 20, 2025, to discuss our fourth quarter and year end 2024 results. The call will begin with comments from John Kousinioris, President and Chief Executive Officer, and Joel Hunter, EVP Finance and Chief Financial Officer, followed by a question-and-answer period.

Fourth Quarter and Full Year 2024 Conference Call

Webcast link: https://edge.media-server.com/mmc/p/zd49obg6

To access the conference call via telephone, please register ahead of time using the call link here: https://register.vevent.com/register/BI5c12d9a2da0e4e06892f413e217f0350. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.

Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/presentations-and-events/. If you are unable to participate in the call, the replay will be accessible at https://edge.media-server.com/mmc/p/zd49obg6. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

Notes

(1)These items (adjusted EBITDA, FCF and annual average EBITDA) are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings (loss) trends more readily in comparison with prior periods’ results. Please refer to the Non-IFRS Measures section of this earnings release for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
(2)Funds from operations (FFO) per share and free cash flow (FCF) per share are calculated using the weighted average number of common shares outstanding during the period. Refer to the Additional IFRS Measures and Non-IFRS Measures section of the MD&A for the purpose of these non-‍IFRS ratios.

Non-IFRS financial measures and other specified financial measures

We use a number of financial measures to evaluate our performance and the performance of our business segments, including measures and ratios that are presented on a non-IFRS basis, as described below. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our consolidated financial statements prepared in accordance with IFRS. We believe that these non-IFRS amounts, measures and ratios, read together with our IFRS amounts, provide readers with a better understanding of how management assesses results.

Non-IFRS amounts, measures and ratios do not have standardized meanings under IFRS. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, as an alternative to, or more meaningful than, our IFRS results.

Adjusted EBITDA

Each business segment assumes responsibility for its operating results measured by adjusted EBITDA. Adjusted EBITDA is an important metric for management that represents our core operational results. Interest, taxes, depreciation and amortization are not included, as differences in accounting treatments may distort our core business results. In addition, certain reclassifications and adjustments are made to better assess results, excluding those items that may not be reflective of ongoing business performance. This presentation may facilitate the readers’ analysis of trends.

Average Annual EBITDA

Average annual EBITDA is a forward-looking non-IFRS financial measure that is used to show the average annual EBITDA that the project is expected to generate.

Funds From Operations (FFO)

FFO is an important metric as it provides a proxy for cash generated from operating activities before changes in working capital and provides the ability to evaluate cash flow trends in comparison with results from prior periods. FFO is a non-IFRS measure. The most directly comparable IFRS measure is Cash Flow from Operations.

Free Cash Flow (FCF)

FCF is an important metric as it represents the amount of cash that is available to invest in growth initiatives, make scheduled principal repayments on debt, repay maturing debt, pay common share dividends or repurchase common shares. Changes in working capital are excluded so FFO and FCF are not distorted by changes that we consider temporary in nature, reflecting, among other things, the impact of seasonal factors and timing of receipts and payments. FCF is a non-IFRS measure. The most directly comparable IFRS measure is Cash Flow from Operations.

Non-IFRS Ratios

FFO per share, FCF per share and adjusted net debt to adjusted EBITDA are non-IFRS ratios that are presented in the MD&A. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF and Key Non-IFRS Financial Ratios sections of the MD&A for additional information.

FFO per share and FCF per share

FFO per share and FCF per share are calculated using the weighted average number of common shares outstanding during the period. FFO per share and FCF per share are non-IFRS ratios.

Reconciliation of these non-IFRS financial measures to the most comparable IFRS measure are provided below.

Reconciliation of Non-IFRS Measures on a Consolidated Basis

The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the three months ended Dec. 31, 2024:

Three months ended Dec. 31, 2024 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition		Energy Marketing	Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	93		104		319		155		14	—		685		(7	)	—		678
Reclassifications and adjustments:
Unrealized mark-to-market (gain) loss	4		23		26		(8	)	19	—		64		—		(64	)	—
Realized gains (losses) on closed exchange positions	—		—		(1	)	2		1	—		2		—		(2	)	—
Decrease in finance lease receivable	—		1		5		—		—	—		6		—		(6	)	—
Finance lease income	—		2		3		—		—	—		5		—		(5	)	—
Revenues from Planned Divestitures	—		—		(1	)	—		—	—		(1	)	—		1		—
Brazeau penalties	(20	)	—		—		—		—	—		(20	)	—		20		—
Unrealized foreign exchange gain on commodity	—		—		(1	)	—		—	—		(1	)	—		1		—
Adjusted revenues	77		130		350		149		34	—		740		(7	)	(55	)	678
Fuel and purchased power	3		8		136		102		—	—		249		—		—		249
Reclassifications and adjustments:
Fuel and purchased power related to Planned Divestitures	—		—		(1	)	—		—	—		(1	)	—		1		—
Australian interest income	—		—		(1	)	—		—	—		(1	)	—		1		—
Adjusted fuel and purchased power	3		8		134		102		—	—		247		—		2		249
Carbon compliance	—		—		39		—		—	—		39		—		—		39
Gross margin	74		122		177		47		34	—		454		(7	)	(57	)	390
OM&A	47		27		67		19		7	68		235		(1	)	—		234
Reclassifications and adjustments:
Brazeau penalties	(31	)	—		—		—		—	—		(31	)	—		31		—
ERP integration costs	—		—		—		—		—	(14	)	(14	)	—		14		—
Acquisition-related transaction and restructuring costs	—		—		—		—		—	(16	)	(16	)	—		16		—
Adjusted OM&A	16		27		67		19		7	38		174		(1	)	61		234
Taxes, other than income taxes	1		3		4		—		—	—		8		1		—		9
Net other operating income	—		(3	)	(10	)	(9	)	—	—		(22	)	—		—		(22	)
Reclassifications and adjustments:
Sundance A decommissioning cost reimbursement	—		—		—		9		—	—		9		—		(9	)	—
Adjusted net other operating income	—		(3	)	(10	)	—		—	—		(13	)	—		(9	)	(22	)
Adjusted EBITDA⁽²⁾	57		95		116		28		27	(38	)	285
Equity income																		2
Finance lease income																		5
Depreciation and amortization																		(143	)
Asset impairment charges																		(20	)
Interest income																		11
Interest expense																		(92	)
Foreign exchange gain																		17
Loss before income taxes																		(51	)

(1) The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment.
(2) Adjusted EBITDA is not defined and has no standardized meaning under IFRS. Refer to the Non-IFRS financial measures and other specified financial measures section in this earnings release and may not be comparable to similar measures presented by other issuers.

The following table reflects adjusted EBITDA by segment and provides reconciliation to loss before income taxes for the three months ended Dec. 31, 2023:

Three months ended Dec. 31, 2023 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition	Energy Marketing		Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	77		94		246		175	39		—		631		(7	)	—		624
Reclassifications and adjustments:
Unrealized mark-to-market (gain) loss	(2	)	20		53		7	(19	)	—		59		—		(59	)	—
Realized gain on closed exchange positions	—		—		23		—	4		—		27		—		(27	)	—
Decrease in finance lease receivable	—		—		15		—	—		—		15		—		(15	)	—
Finance lease income	—		—		2		—	—		—		2		—		(2	)	—
Unrealized foreign exchange gain on commodity	—		—		1		—	—		—		1		—		(1	)	—
Adjusted revenues	75		114		340		182	24		—		735		(7	)	(104	)	624
Fuel and purchased power	5		8		127		138	—		—		278		—		—		278
Reclassifications and adjustments:
Australian interest income	—		—		(1	)	—	—		—		(1	)	—		1		—
Adjusted fuel and purchased power	5		8		126		138	—		—		277		—		1		278
Carbon compliance	—		—		27		—	—		—		27		—		—		27
Gross margin	70		106		187		44	24		—		431		(7	)	(105	)	319
OM&A	13		25		56		18	10		29		151		(1	)	—		150
Taxes, other than income taxes	1		1		—		—	—		1		3		—		—		3
Net other operating income	—		(3	)	(10	)	—	—		—		(13	)	—		—		(13	)
Adjusted net other operating income	—		(2	)	(10	)	—	—		—		(12	)	—		(1	)	(13	)
Adjusted EBITDA⁽²⁾	56		82		141		26	14		(30	)	289
Equity income																		3
Finance lease income																		2
Depreciation and amortization																		(132	)
Asset impairment charges																		(26	)
Interest income																		12
Interest expense																		(66	)
Foreign exchange loss																		(7	)
Loss before income taxes																		(35	)

The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the year ended Dec. 31, 2024:

Year ended Dec. 31, 2024 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition		Energy Marketing		Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	409		357		1,350		616		168		(34	)	2,866		(21	)	—		2,845
Reclassifications and adjustments:
Unrealized mark-to-market (gain) loss	1		84		(60	)	(36	)	14		—		3		—		(3	)	—
Realized gain (loss) on closed exchange positions	—		—		7		2		(15	)	—		(6	)	—		6		—
Decrease in finance lease receivable	—		2		19		—		—		—		21		—		(21	)	—
Finance lease income	—		6		8		—		—		—		14		—		(14	)	—
Revenues from Planned Divestitures	—		—		(1	)	—		—		—		(1	)	—		1		—
Brazeau penalty	(20	)	—		—		—		—		—		(20	)	—		20		—
Unrealized foreign exchange loss on commodity	—		—		(2	)	—		—		—		(2	)	—		2		—
Adjusted revenues	390		449		1,321		582		167		(34	)	2,875		(21	)	(9	)	2,845
Fuel and purchased power	16		30		475		418		—		—		939		—		—		939
Reclassifications and adjustments:
Fuel and purchased power related to Planned Divestitures	—		—		(1	)	—		—		—		(1	)	—		1		—
Australian interest income	—		—		(4	)	—		—		—		(4	)	—		4		—
Adjusted fuel and purchased power	16		30		470		418		—		—		934		—		5		939
Carbon compliance	—		—		145		1		—		(34	)	112		—		—		112
Gross margin	374		419		706		163		167		—		1,829		(21	)	(14	)	1,794
OM&A	86		97		198		69		36		173		659		(4	)	—		655
Reclassifications and adjustments:
Brazeau penalty	(31	)	—		—		—		—		—		(31	)	—		31		—
ERP implementation costs	—		—		—		—		—		(14	)	(14	)	—		14		—
Acquisition-related transaction and restructuring costs	—		—		—		—		—		(24	)	(24	)			24		—
Adjusted OM&A	55		97		198		69		36		135		590		(4	)	69		655
Taxes, other than income taxes	3		16		13		3		—		1		36		—		—		36
Net other operating income	—		(10	)	(40	)	(9	)	—		—		(59	)	—		—		(59	)
Reclassifications and adjustments:
Sundance A decommissioning cost reimbursement	—		—		—		9		—		—		9		—		(9	)	—
Adjusted net other operating income	—		(10	)	(40	)	—		—		—		(50	)	—		(9	)	(59	)
Adjusted EBITDA⁽²⁾	316		316		535		91		131		(136	)	1,253
Equity income																			5
Finance lease income																			14
Depreciation and amortization																			(531	)
Asset impairment charges																			(46	)
Interest income																			30
Interest expense																			(324	)
Foreign exchange gain																			5
Gain on sale of assets and other																			4
Earnings before income taxes																			319

The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the year ended Dec. 31, 2023:

Year ended Dec. 31, 2023 $ millions	Hydro		Wind & Solar⁽¹⁾		Gas		Energy Transition		Energy Marketing		Corporate		Total		Equity accounted investments⁽¹⁾		Reclass adjustments		IFRS financials
Revenues	533		357		1,514		751		220		1		3,376		(21	)	—		3,355
Reclassifications and adjustments:
Unrealized mark-to-market loss	(4	)	16		(67	)	(5	)	23		—		(37	)	—		37		—
Realized gain (loss) on closed exchange positions	—		—		10		—		(91	)	—		(81	)	—		81		—
Decrease in finance lease receivable	—		—		55		—		—		—		55		—		(55	)	—
Finance lease income	—		—		12		—		—		—		12		—		(12	)	—
Unrealized foreign exchange gain on commodity	—		—		1		—		—		—		1		—		(1	)	—
Adjusted revenues	529		373		1,525		746		152		1		3,326		(21	)	50		3,355
Fuel and purchased power	19		30		453		557		—		1		1,060		—		—		1,060
Reclassifications and adjustments:
Australian interest income	—		—		(4	)	—		—		—		(4	)	—		4		—
Adjusted fuel and purchased power	19		30		449		557		—		1		1,056		—		4		1,060
Carbon compliance	—		—		112		—		—		—		112		—		—		112
Gross margin	510		343		964		189		152		—		2,158		(21	)	46		2,183
OM&A	48		80		192		64		43		115		542		(3	)	—		539
Taxes, other than income taxes	3		12		11		3		—		1		30		(1	)	—		29
Net other operating income	—		(7	)	(40	)	—		—		—		(47	)			—		(47	)
Reclassifications and adjustments:
Insurance recovery	—		1		—		—		—		—		1		—		(1	)	—
Adjusted net other operating income	—		(6	)	(40	)	—		—		—		(46	)	—		(1	)	(47	)
Adjusted EBITDA⁽²⁾	459		257		801		122		109		(116	)	1,632
Equity income																			4
Finance lease income																			12
Depreciation and amortization																			(621	)
Asset impairment reversals																			48
Interest income																			59
Interest expense																			(281	)
Foreign exchange gain																			(7	)
Gain on sale of assets and other																			4
Earnings before income taxes																			880

Reconciliation of cash flow from operations to FFO and FCF

The table below reconciles our cash flow from operating activities to our FFO and FCF:

	Three Months Ended				Year Ended
$ millions, unless otherwise stated	Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
Cash flow from operating activities⁽¹⁾	215		310		796		1,464
Change in non-cash operating working capital balances	(97	)	(135	)	(38	)	(124	)
Cash flow from operations before changes in working capital	118		175		758		1,340
Adjustments
Share of adjusted FFO from joint venture⁽¹⁾	4		3		8		8
Decrease in finance lease receivable	6		15		21		55
Clean energy transition provisions and adjustments⁽²⁾	—		4		—		11
Sundance A decommissioning cost reimbursement	(9	)	—		(9	)	—
Realized gain (loss) on closed exchanged positions	2		27		(6	)	(81	)
Acquisition-related transaction and restructuring costs	11		—		19		—
Other⁽³⁾	5		5		19		18
FFO⁽⁴⁾	137		229		810		1,351
Deduct:
Sustaining capital⁽¹⁾	(67	)	(74	)	(142	)	(174	)
Productivity capital	(1	)	(1	)	(1	)	(3	)
Dividends paid on preferred shares	(13	)	(12	)	(52	)	(51	)
Distributions paid to subsidiaries’ non-controlling interests	(6	)	(19	)	(40	)	(223	)
Principal payments on lease liabilities	(3	)	(2	)	(6	)	(10	)
Other	1		—		—		—
FCF⁽⁴⁾	48		121		569		890
Weighted average number of common shares outstanding in the period	298		308		302		276
FFO per share⁽⁴⁾	0.46		0.74		2.68		4.89
FCF per share⁽⁴⁾	0.16		0.39		1.88		3.22

(1)  Includes our share of amounts for the Skookumchuck wind facility, an equity-accounted joint venture.
(2)  2023 includes amounts related to onerous contracts recognized in 2021 and a voluntary contribution to the US Defined Benefit Pension Plan for the Centralia thermal facility.
(3)  Other consists of production tax credits, which is a reduction to tax equity debt, less distributions from an equity-accounted joint venture.
(4)  These items are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Refer to the Non-IFRS Measures section in this earnings release .

The table below provides a reconciliation of our adjusted EBITDA to our FFO and FCF:

	Three Months Ended				Year Ended
$ millions, unless otherwise stated	Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2024		Dec. 31, 2023
Adjusted EBITDA⁽¹⁾⁽⁴⁾	285		289		1,253		1,632
Provisions	2		(1	)	10		(1	)
Net interest expense⁽²⁾	(64	)	(41	)	(231	)	(164	)
Current income tax recovery (expense)	(20	)	5		(143	)	(50	)
Realized foreign exchange gain (loss)	(20	)	9		(27	)	(4	)
Decommissioning and restoration costs settled	(12	)	(15	)	(41	)	(37	)
Other non-cash items	(34	)	(17	)	(11	)	(25	)
FFO⁽³⁾⁽⁴⁾	137		229		810		1,351
Deduct:
Sustaining capital⁽⁴⁾	(67	)	(74	)	(142	)	(174	)
Productivity capital	(1	)	(1	)	(1	)	(3	)
Dividends paid on preferred shares	(13	)	(12	)	(52	)	(51	)
Distributions paid to subsidiaries’ non-controlling interests	(6	)	(19	)	(40	)	(223	)
Principal payments on lease liabilities	(3	)	(2	)	(6	)	(10	)
Other	1		—		—		—
FCF⁽⁴⁾	48		121		569		890

(1)  Adjusted EBITDA is defined in the Additional IFRS Measures and Non-IFRS Measures of this earnings release and reconciled to earnings (loss) before income taxes above.
(2) Net interest expense includes interest expense less interest income and excludes non-cash items like financing amortization and accretion.
(3)  These items are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. FFO and FCF are defined in the Non-IFRS financial measures and other specified financial measures section of in this earnings release and reconciled to cash flow from operating activities above.
(4)  Includes our share of amounts for Skookumchuck wind facility, an equity-accounted joint venture.

TransAlta is in the process of filing its Annual Information Form, Audited Consolidated Financial Statements and accompanying notes, as well as the associated Management’s Discussion & Analysis (MD&A). These documents will be available today on the Investors section of TransAlta’s website at www.transalta.com or through SEDAR at www.sedarplus.ca.

TransAlta will also be filing its Form 40-F with the US Securities and Exchange Commission. The form will be available through their website at www.sec.gov. Paper copies of all documents are available to shareholders free of charge upon request.

About TransAlta Corporation:

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Western Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

For more information about TransAlta, visit our web site at transalta.com.

Cautionary Statement Regarding Forward-Looking Information

This news release includes “forward-looking information,” within the meaning of applicable Canadian securities laws, and “forward-looking statements,” within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking statements”). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as “may”, “will”, “can”, “could”, “would”, “shall”, “believe”, “expect”, “estimate”, “anticipate”, “intend”, “plan”, “forecast”, “foresee”, “potential”, “enable”, “continue” or other comparable terminology. These statements are not guarantees of our future performance, events or results and are subject to risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in or implied by the forward-looking statements. In particular, this news release contains forward-looking statements about the following, among other things: the strategic objectives of the Company and that the execution of the Company’s strategy will realize value for shareholders; our capital allocation and financing strategy; our sustainability goals and targets, including those in our 2024 Sustainability Report; our 2025 Outlook; our financial and operational performance, including our hedge position; optimizing and diversifying our existing assets; the increasingly contracted nature of our fleet; expectations about strategies for growth and expansion, including opportunities for Centralia redevelopment, and data centre opportunities; expected costs and schedules for planned projects; expected regulatory processes and outcomes, including in relation to the Alberta restructured energy market; the power generation industry and the supply and demand of electricity; the cyclicality of our business; expected outcomes with respect to legal proceedings; the expected impact of future tax and accounting changes; and expected industry, market and economic conditions.

The forward-looking statements contained in this news release are based on many assumptions including, but not limited to, the following: no significant changes to applicable laws and regulations; no unexpected delays in obtaining required regulatory approvals; no material adverse impacts to investment and credit markets; no significant changes to power price and hedging assumptions; no significant changes to gas commodity price assumptions and transport costs; no significant changes to interest rates; no significant changes to the demand and growth of renewables generation; no significant changes to the integrity and reliability of our facilities; no significant changes to the Company’s debt and credit ratings; no unforeseen changes to economic and market conditions; and no significant event occurring outside the ordinary course of business.

These assumptions are based on information currently available to TransAlta, including information obtained from third-party sources. Actual results may differ materially from those predicted. Factors that may adversely impact what is expressed or implied by forward-looking statements contained in this news release include, but are not limited to: fluctuations in power prices; changes in supply and demand for electricity; our ability to contract our electricity generation for prices that will provide expected returns; our ability to replace contracts as they expire; risks associated with development projects and acquisitions; any difficulty raising needed capital in the future on reasonable terms or at all; our ability to achieve our targets relating to ESG; long-term commitments on gas transportation capacity that may not be fully utilized over time; changes to the legislative, regulatory and political environments; environmental requirements and changes in, or liabilities under, these requirements; operational risks involving our facilities, including unplanned outages and equipment failure; disruptions in the transmission and distribution of electricity; reductions in production; impairments and/or writedowns of assets; adverse impacts on our information technology systems and our internal control systems, including increased cybersecurity threats; commodity risk management and energy trading risks; reduced labour availability and ability to continue to staff our operations and facilities; disruptions to our supply chains; climate-change related risks; reductions to our generating units’ relative efficiency or capacity factors; general economic risks, including deterioration of equity and debt markets, increasing interest rates or rising inflation; general domestic and international economic and political developments, including potential trade tariffs; industry risk and competition; counterparty credit risk; inadequacy or unavailability of insurance coverage; increases in the Company’s income taxes and any risk of reassessments; legal, regulatory and contractual disputes and proceedings involving the Company; reliance on key personnel; and labour relations matters.

The foregoing risk factors, among others, are described in further detail under the heading “Governance and Risk Management” in the MD&A, which section is incorporated by reference herein.

Readers are urged to consider these factors carefully when evaluating the forward-looking statements and are cautioned not to place undue reliance on them. The forward-looking statements included in this news release are made only as of the date hereof and we do not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by applicable laws. The purpose of the financial outlooks contained herein is to give the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes.

Note: All financial figures are in Canadian dollars unless otherwise indicated.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and US	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

The MIL Network –

February 21, 2025

MIL-OSI Europe: Statement by President von der Leyen at the joint press conference with Barbadian Prime Minister Mottley

Source: European Commission

European Commission Statement Bridgetown, 19 Feb 2025 Prime Minister, dear Mia,
Thank you for hosting me here in Barbados. It is indeed the first time that I am here, it is fantastic. It is a big pleasure to join you and our partners at this CARICOM Summit. I have crossed the Atlantic to share with you how much Europe values its partnership with the Caribbean. We live in an unpredictable world. In these times, it is more important than ever to stick together; to stand up for our values; and to deepen ties with friends.

Despite being an ocean apart, Europe and the Caribbean are very close at heart. We are strong and vibrant democracies; we are convinced that it is of big importance to defend multilateralism and the rule of law; we believe in freedom and the right of people to choose their own future. This is why you have been standing with Ukraine since the very beginning of the war. Ukraine is a future member of the European family. So supporting them means also supporting us. And it is important to also call for a just peace not only in Ukraine but also in the Middle East, in Sudan and Haiti, which is what you have always done.

While sharing our values, we also face some of the same challenges. When devastating hurricanes sweep through your islands, like hurricane Beryl last July, Europe wants to be by your side: We provide emergency support to those who have lost everything, we are rebuilding together. Actually, we are currently supporting Grenada to rebuild Carriacou and Petite Martinique with the goal of making the islands 100% powered by renewable energy. And we have just discussed how to strengthen our cooperation in resilience and preparedness, so to work closer together to have a foresight when these natural disasters and extreme weather events, which are often related to climate change, hit.

We know that the fight against climate change is truly existential. In the face of hardship, the Caribbean are showing incredible leadership. Especially you, my dear Mia. You have amplified the voice of small island nations on the global stage, for the benefit of all humanity. This was key, for example, to the launch of the Loss and Damage Fund together at COP29. It amounts to almost USD 750 million in pledge, half of it covered by Europe and its Member States. Because climate financing is another very important challenge. Europe is the leading provider. We contribute well beyond our fair share of the USD 100 billion annual target.

But we know that given the scale of the transition and its urgency, we need new and innovative financing tools – in addition – like green bonds and carbon and nature credits, for example, which is what we are working on. And we need to bring the private sector fully on board, with a smarter use of private and public funds. With your Bridgetown Initiative, dear Mia, you are leading the way to making green and development financing fairer, more accessible and more affordable so that the climate targets can be met.

Another initiative you mentioned is renewable energy. At COP28 we agreed on global targets for renewables and energy efficiency. We want to triple renewable energy and double energy efficiency by 2030. To implement these goals, we created the Global Energy Transition Forum, because only what gets measured gets done, and we really need that the goals on paper are achieved on the ground. And this year, Barbados joined the Global Energy Transition Forum, I am very glad about that, that is great. It will allow us to deliver concrete projects on the ground and unlock more investment for the transition. And I hope that many Caribbean nations will follow your example.

This brings me to our bilateral work. The starting point for us is our investment programme Global Gateway. That is the investment programme abroad for partners. It is already at work – here in Barbados and across the Caribbean. Together with Hydrogen de France we have just signed the first green hydrogen storage project in Barbados. What is important is that renewable energy is homegrown, and therefore it is cheaper: It gives you energy independence and it gives you energy security, and it is the energy of the future, because it is clean energy.

We are, as you said, also working on the health sector. I think both of us have learnt our bitter lessons during COVID-19 and how vulnerable we are. And therefore, we support your pharmaceutical sovereignty. It means vaccines and medication produced in the Caribbean, for the Caribbean, but also to be a hub for the rest of the world. We have just signed a biomedical partnership between BioMedX, a European biotech company, and Barbados. And tomorrow, we will launch ‘PharmaNext’, a project that really boosts innovation and investments across the Atlantic. Because it also aligns the regulatory environment that is so important to move forward.

We have other great projects in the Caribbean. One has really caught my attention: In Barbados and Grenada, we are turning the sargassum threat into an opportunity, and I think it is really smart. We are working to transform this harmful alga into fertiliser, biomass and even cosmetics.This project has, and this is phenomenal, the potential to leverage almost EUR 400 million in investments. And actually, we are bringing thus a harmful alga, fighting a harmful alga but turning it into an opportunity that brings revenue. So it could not be better. Finally, we are bringing the Caribbean closer together and closer to us – with digital connectivity. Tomorrow, we will commit with Spain to deliver high-speed internet via satellite to even the most remote communities here. So the last kilometre that is always so difficult, we are going to manage that now via satellite.

To me, the spirit of Global Gateway is needed more than ever. We are investing in value chains, skills and jobs. We are sharing knowledge and technology for the benefit of both sides. We are looking into a long-term and trusted partnership. And we are convinced that a win-win situation is the most beneficial for our people and our economy.

Thank you very much again for having me here.

MIL OSI Europe News –

February 21, 2025
MIL-OSI: SINTX Technologies Sells Technology Assesment and Transfer Subsidiary to Focus on Medical Device Market

Source: GlobeNewswire (MIL-OSI)

Strategic Transaction Enhances Financial Flexibility and Supports Growth in Healthcare Innovations

Salt Lake City, UT, Feb. 20, 2025 (GLOBE NEWSWIRE) — SINTX Technologies, Inc. (NASDAQ: SINT), a leader in advanced ceramics for medical applications, today announced the sale of its wholly-owned subsidiary, Technology Assessment and Transfer (TA&T), to Tethon Corporation DBA Tethon 3D (Tethon). This transaction marks a significant step in SINTX’s ongoing transformation, allowing the Company to sharpen its focus on high-growth opportunities in the medical device sector while improving its financial position and operational efficiency.

The divestment aligns with SINTX’s refined strategy to accelerate innovation in the healthcare space. With this sale, SINTX is streamlining its operations to concentrate on commercializing bioceramic technologies that have the potential to improve patient outcomes and enhance the performance of medical implants and devices. The sale of TA&T also reduces corporate liabilities by $750,000 and lowers annual operating expenses by more than $1.7 million.

“This sale represents an important milestone in our strategic realignment,” said Eric K. Olson, CEO of SINTX Technologies. “By divesting of these assets, we are fully committing our resources to the medical device market, where our expertise in advanced ceramics can have the greatest impact. This transaction not only enhances our financial flexibility but also supports our efforts to accelerate product development and commercialization efforts in healthcare.”

The Company remains dedicated to advancing its proprietary silicon nitride-based technologies, which have been used in human implants since 2008. This renewed emphasis on healthcare innovation underscores SINTX’s confidence in its core technologies and their ability to drive long-term value creation.

For more information, please visit www.sintx.com

About SINTX Technologies, Inc.

Located in Salt Lake City, Utah, SINTX Technologies is an advanced ceramics company that develops and commercializes materials, components, and technologies for medical applications. SINTX is a global leader in the research, development, and manufacturing of silicon nitride, and its products have been implanted in humans since 2008. Over the past several years, SINTX has utilized strategic acquisitions and alliances to enter into new markets. For more information on SINTX Technologies or its materials platform, visit www.sintx.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”) that are subject to a number of risks and uncertainties. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding operating efficiencies realized from the sale of TA&T, the benefits of our products for patients, our ability to successfully develop and commercialize new and existing products, our ability to generate long-term value, advancement of ceramic technologies and exploring new avenues for growth and innovation, and the potential to pursue growth opportunities and explore strategic opportunities.

Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management’s current estimates, projections, expectations and beliefs. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, difficulty in commercializing ceramic technologies and development of new product opportunities. A discussion of other risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements can be found in SINTX’s Risk Factors disclosure in its Annual Report on Form 10-K, filed with the SEC on March 27, 2024, and in SINTX’s other filings with the SEC. SINTX undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this report, except as required by law.

Business and Media Inquiries for SINTX:
SINTX Technologies
801.839.3502
IR@sintx.com

The MIL Network –

February 21, 2025
MIL-OSI: Pepe Punch: Proudly Unveil Our Groundbreaking Deflationary Token Model

Source: GlobeNewswire (MIL-OSI)

SINGAPORE, Feb. 20, 2025 (GLOBE NEWSWIRE) — In cryptocurrency, innovation is the key to success. Enter Pepe Punch, a meme coin poised to shake up the market with an innovative deflationary token model that celebrates community engagement and rewards participation like never before.

Unlocking the Magic of Deflationary Tokenomics

Pepe Punch ($PEPEP) isn’t just another meme coin; it represents a captivating fusion of fun and essential community engagement through its innovative Punch-to-Earn mechanics. This unique model empowers our dedicated community of crypto enthusiasts, allowing them to actively participate and punch their way to rewards. However, it’s crucial to note that only those who hold $PEPEP in their wallets and engage in the punching game will be eligible for a share of the 15% dedicated to community rewards. Each punch not only signifies involvement but also contributes to a deflationary cycle, enhancing the value of $PEPEP for all eligible holders.

Community-Centric Approach

At the heart of Pepe Punch is a mission to empower our community. We’ve set aside 15% of the total supply to community rewards, ensuring that those who hold or acquire $PEPEP can reap meaningful benefits from even modest investments. With the Pepe Punch community already making an impressive 200 million punches, the enthusiasm and active participation are evident. Remember, while playing is free, only holders of $PEPEP can tap into these rewards, creating a vibrant ecosystem that encourages both investment and engagement for sustainable growth.

The Pepe Punch Presale: Your Chance to Get In Early!

With Pepe Punch Presale now underway, early investors have an incredible opportunity to purchase $PEPEP tokens at just $0.0003541 during Phase 1. As the presale progresses, prices will increase by 15% in each subsequent phase, making this the perfect moment for savvy investors to secure their stake in the Pepe Punch phenomenon before the impending wave of mainstream hype.

After the presale concludes, Pepe Punch is excited to announce the plans to launch on both Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). This dual approach will maximize accessibility and ensure that investors can trade $PEPEP easily, enhancing liquidity and broadening our community reach.

Security and Trust Above All

To guarantee transparency and security, we’ve partnered with SolidProof for a comprehensive smart contract audit. Our commitment to maintaining the integrity of the Pepe Punch ecosystem ensures that investors can participate with confidence, knowing their assets are safeguarded.

Join the Pepe Punch Revolution!

Pepe Punch isn’t just a project; it’s a movement driven by a vibrant community and an unwavering commitment to innovation. Get ready to punch your way to potential profits and engage with a fun-loving, passionate community in the crypto space.

For more information, visit our official channels and engage with our growing community. Let’s punch above our weight!

Contact:
Ryo Paul
admin@pepepunch.io

Disclaimer: This content is provided by Pepe Punch. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities .Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/649e4587-7aa7-41ff-a057-eebdbb190a40

The MIL Network –

February 21, 2025
MIL-OSI: Gofaizen & Sherle Launches Full-Cycle CASP Licensing Service in Lithuania, Poland and Spain
Source: GlobeNewswire (MIL-OSI)

TALLINN, Estonia, Feb. 20, 2025 (GLOBE NEWSWIRE) — Gofaizen & Sherle, a leading fintech and crypto consultancy, has introduced a full-cycle service for obtaining a CASP license under MICA regulation in Lithuania, Poland and Spain. This new service is designed to simplify the licensing process, ensuring companies achieve compliance efficiently and on time.

Comprehensive Support for a Seamless Licensing Process

Gofaizen & Sherle provides a full range of services to ensure a smooth licensing process:
- Business analysis and strategy – Assessment of regulatory requirements in line with the company’s business model.
- Documentation management – Compilation, preparation, and verification of all required documents.
- Staffing support – Evaluation of personnel qualifications and assistance in recruiting necessary specialists.
- Regulatory communication – Coordination with the Bank of Lithuania to facilitate the application process.
“The process of obtaining a CASP license might take around 6 months in average, covering key stages such as document preparation, submission, potential hiring of required staff, and regulatory review. For example, in Lithuania, VASPs already operating in the country need to start the CASP license application as soon as possible. If they do not obtain the license by May 31, they may be required to suspend their activities from July 1st and until it is approved. However, if you are launching a new crypto project, you simply need to apply for a CASP license. Once it is approved, you can start operating in Lithuania’s crypto sector,” explained Maxim Gasanbekov, Head of Sales and Associated Partner at Gofaizen & Sherle.

About Gofaizen & Sherle
Gofaizen & Sherle is a leading fintech and crypto consultancy firm based in Tallinn, Estonia. The company specializes in regulatory compliance, licensing, and business structuring, supporting crypto-asset service providers (CASPs) in navigating the evolving European regulatory landscape.
For further information on CASP license in Lithuania, Poland and Spain, and expert consultation, please contact:
info@gofaizen-sherle.com

Media Contact:
Gofaizen & Sherle
pr@gofaizen-sherle.com
https://gofaizen-sherle.com/

Disclaimer: This content is provided by Gofaizen & Sherle. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce443d23-08f2-4b5e-b791-1193ebd18db7

The MIL Network –
February 21, 2025

MIL-OSI: Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):

Net premiums earned increased 4.6% to $236.6 million
Combined ratio of 92.9%, compared to 106.8%
Net income of $24.0 million, or 70 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share
Net investment gains (after tax) of $0.2 million, or 1 cent per diluted Class A share, compared to $1.8 million, or 5 cents per Class A share, are included in net income (loss)

Significant items for full year of 2024 (all comparisons to full year of 2023):

Net premiums earned increased 6.2% to $936.7 million
Combined ratio of 98.6%, compared to 104.4%
Net income of $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or 14 cents per diluted Class A share
Net investment gains (after tax) of $3.9 million, or 12 cents per diluted Class A share, compared to $2.5 million, or 8 cents per diluted Class A share, are included in net income
Book value per share of $15.36 at December 31, 2024, compared to $14.39 at year-end 2023

Financial Summary

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%
Investment income, net	12,050		10,710		12.5		44,918		40,853		10.0
Net investment gains	256		2,243		-88.6		4,981		3,173		57.0
Total revenues	249,954		239,468		4.4		989,605		927,338		6.7
Net income (loss)	24,003		(1,970)		NM²		50,862		4,426		NM
Non-GAAP operating income (loss)¹	23,801		(3,742)		NM		46,927		1,919		NM
Annualized return on average equity	18.1%		-1.7%		19.8 pts		9.9%		0.9%		9.0 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.70	$	(0.06)	NM		$	1.53	$	0.14	NM
Net income (loss) – Class B	0.64		(0.06)		NM		1.38		0.11		NM
Non-GAAP operating income (loss) – Class A (diluted)	0.69		(0.11)		NM		1.41		0.06		NM
Non-GAAP operating income (loss) – Class B	0.63		(0.11)		NM		1.27		0.04		NM
Book value	15.36		14.39		6.7	%	15.36		14.39		6.7	%

^¹_{The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).}^²_{Not meaningful.}

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.

“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.

“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”

Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,701	$	133,602	2.3	%	$	539,683	$	533,029	1.2	%
Personal lines	99,934		92,583		7.9		396,968		349,042		13.7
Total net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%

Net Premiums Written
Commercial lines:
Automobile	$	42,922	$	39,888	7.6	%	$	184,989	$	174,741	5.9	%
Workers’ compensation	20,934		22,283		-6.1		103,533		107,598		-3.8
Commercial multi-peril	50,431		48,010		5.0		213,959		195,632		9.4
Other	9,790		10,544		-7.2		45,439		50,458		-9.9
Total commercial lines	124,077		120,725		2.8		547,920		528,429		3.7
Personal lines:
Automobile	54,078		54,609		-1.0		243,036		215,957		12.5
Homeowners	30,958		34,653		-10.7		140,613		139,688		0.7
Other	2,329		2,706		-13.9		10,712		11,623		-7.8
Total personal lines	87,365		91,968		-5.0		394,361		367,268		7.4
Total net premiums written	$	211,442	$	212,693	-0.6%		$	942,281	$	895,697	5.2	%

Net Premiums Written

The 0.6% decrease in net premiums written¹ for the fourth quarter of 2024 compared to the fourth quarter of 2023, as shown in the table above, represents the combination of 2.8% growth in commercial lines net premiums written and a 5.0% decrease in personal lines net premiums written. The $1.3 million decrease in net premiums written for the fourth quarter of 2024 compared to the fourth quarter of 2023 included:

Commercial Lines: $3.3 million increase that we attribute primarily to solid premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in classes of business we have targeted for profit improvement.
Personal Lines: $4.6 million decrease that we attribute primarily to planned attrition due to non-renewal actions and lower new business writings, offset partially by a continuation of renewal premium rate increases and solid policy retention.

The $46.6 million increase in net premiums written for the full year of 2024 compared to the full year of 2023 included:

Commercial Lines: $19.5 million increase that we attribute primarily to strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states we exited or classes of business we have targeted for profit improvement.
Personal Lines: $27.1 million increase that we attribute primarily to a continuation of renewal premium rate increases and solid policy retention, offset partially by planned attrition due to non-renewal actions and lower new business writings.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three months and full years ended December 31, 2024 and 2023:

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses	52.3	%	61.8	%	54.0	%	57.5	%
Loss ratio – weather-related losses	3.3		5.9		7.2		8.3
Loss ratio – large fire losses	4.0		4.8		4.9		5.2
Loss ratio – net prior-year reserve development	-0.2		-0.4		-1.6		-1.9
Loss ratio	59.8		72.1		64.5		69.1
Expense ratio	32.8		34.1		33.7		34.7
Dividend ratio	0.3		0.6		0.4		0.6
Combined ratio	92.9	%	106.8	%	98.6	%	104.4	%

Statutory Combined Ratios
Commercial lines:
Automobile	115.7	%	104.8	%	102.6	%	97.3	%
Workers’ compensation	105.6		107.9		104.4		96.6
Commercial multi-peril	79.4		107.8		95.0		112.3
Other	84.7		95.0		80.0		85.5
Total commercial lines	97.3		105.8		98.2		101.6
Personal lines:
Automobile	96.5		119.7		97.4		109.7
Homeowners	76.2		101.3		99.6		108.6
Other	106.3		59.2		99.5		75.8
Total personal lines	89.5		111.1		98.3		108.2
Total lines	94.0	%	107.8	%	98.3	%	104.2	%

Loss Ratio – Fourth Quarter

For the fourth quarter of 2024, the loss ratio decreased to 59.8%, compared to 72.1% for the fourth quarter of 2023. The core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, was 52.3% for the fourth quarter of 2024, which improved significantly compared to 61.8% for the fourth quarter of 2023. For the commercial lines segment, the core loss ratio of 55.2% for the fourth quarter of 2024 improved from 59.6% for the fourth quarter of 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 48.4% for the fourth quarter of 2024 decreased significantly from 65.1% for the fourth quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses of $7.7 million, or 3.3 percentage points of the loss ratio, for the fourth quarter of 2024 decreased from $13.4 million, or 5.9 percentage points of the loss ratio, for the fourth quarter of 2023. Our insurance subsidiaries did not incur significant losses from any single weather event during the fourth quarters of 2024 or 2023. The impact of weather-related loss activity to the loss ratio for the fourth quarter of 2024 was lower than our previous five-year average of 5.2 percentage points for fourth quarter weather-related losses.

Large fire losses, which we define as individual fire losses in excess of $50,000, were $9.5 million, or 4.0 percentage points of the loss ratio, for the fourth quarter of 2024, compared to $10.8 million, or 4.8 percentage points of the loss ratio, for the fourth quarter of 2023. The modest decrease primarily reflected lower average severity in homeowner fire losses.

Net development of reserves for losses incurred in prior accident years had virtually no impact to the loss ratio for the fourth quarter of 2024 or 2023. For the fourth quarter of 2024, our insurance subsidiaries experienced unfavorable development primarily in personal automobile and commercial automobile losses that was offset by favorable development in commercial multi-peril losses and other lines of business. For the fourth quarter of 2023, our insurance subsidiaries experienced favorable development in personal automobile, workers’ compensation, homeowners and commercial automobile losses, offset partially by unfavorable development in commercial multi-peril and other commercial losses.

Loss Ratio – Full Year

For the full year of 2024, the loss ratio decreased to 64.5%, compared to 69.1% for the full year of 2023. The 2024 core loss ratio decreased by 3.5 percentage points to 54.0% from 57.5% for 2023. For the commercial lines segment, the core loss ratio of 54.4% for 2024 improved from 56.5% for 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 53.5% for 2024 decreased from 59.1% in 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses for the full year of 2024 were $67.7 million, or 7.2 percentage points of the loss ratio, compared to $72.9 million, or 8.3 percentage points of the loss ratio, for the full year of 2023. The loss ratio impact of weather-related losses for the full year of 2024 was in line with the previous five-year average of 7.0 percentage points of the loss ratio.

Large fire losses were $45.8 million, or 4.9 percentage points of the loss ratio, for the full year of 2024, relatively in line with $45.4 million, or 5.2 percentage points of the loss ratio, for the full year of 2023.

Net favorable development of reserves for losses incurred in prior accident years of $15.0 million reduced the loss ratio for the full year of 2024 by 1.6 percentage points. For the full year of 2024, our insurance subsidiaries experienced favorable development in losses primarily in the commercial multi-peril, personal automobile and homeowners lines of business, offset partially by unfavorable development in the workers’ compensation and commercial automobile lines of business. Net favorable development of reserves for losses incurred in prior accident years of $16.7 million reduced the loss ratio for the full year of 2023 by 1.9 percentage points. For the full year of 2023, our insurance subsidiaries experienced favorable development in losses primarily in the commercial automobile, personal automobile, workers’ compensation and homeowners lines of business.

Expense Ratio

The expense ratio was 32.8% for the fourth quarter of 2024, compared to 34.1% for the fourth quarter of 2023. The expense ratio was 33.7% for the full year of 2024, compared to 34.7% for the full year of 2023. The decrease in the expense ratios for the fourth quarter and full year of 2024 primarily reflected the impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. These impacts were offset partially by an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project peaked at approximately 1.3 percentage points of the expense ratio for the full year of 2024 and will subside gradually in 2025 and subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95.6% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at December 31, 2024.

	December 31, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies	$	170,423		12.3	%	$	176,991		13.3	%
Obligations of states and political subdivisions	409,560			29.5		415,280			31.3
Corporate securities	440,552			31.8		399,640			30.1
Mortgage-backed securities	304,459			22.0		278,260			21.0
Allowance for expected credit losses	(1,388		)	-0.1		(1,326		)	-0.1
Total fixed maturities	1,323,606			95.5		1,268,845			95.6
Equity securities, at fair value	36,808			2.7		25,903			2.0
Short-term investments, at cost	24,558			1.8		32,306			2.4
Total investments	$	1,384,972		100.0	%	$	1,327,054		100.0	%

Average investment yield	3.3%					3.1%
Average tax-equivalent investment yield	3.4%					3.2%
Average fixed-maturity duration (years)	5.2					4.3

Net investment income of $12.1 million for the fourth quarter of 2024 increased 12.5% compared to $10.7 million in net investment income for the fourth quarter of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior-year fourth quarter. Net investment income of $44.9 million for the full year of 2024 increased 10.0% compared to the full year of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior year.

Net investment gains were minimal for the fourth quarter of 2024, compared to $2.2 million for the fourth quarter of 2023. We attribute the gains to the quarterly increases in the market value of the equity securities held at the end of the respective periods.

Net investment gains were $5.0 million for the full year of 2024, compared to $3.2 million for the full year of 2023. We attribute the gains to the change in the market value of the equity securities held at the end of the respective periods.

Our book value per share was $15.36 at December 31, 2024, compared to $14.39 at December 31, 2023, as increases from net income and unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 were partially offset by the dividends we declared during the year.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024		2023		% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	236,635		$	226,185		4.6	%	$	936,651	$	882,071	6.2	%
Change in net unearned premiums	(25,193		)	(13,492		)	86.7		5,630		13,626		-58.7
Net premiums written	$	211,442		$	212,693		-0.6	%	$	942,281	$	895,697	5.2	%

The following table provides a reconciliation of net income (loss) to operating income (loss) for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024			2023			% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss)	$	24,003		$	(1,970	)	NM		$	50,862		$	4,426		NM
Investment gains (after tax)		(202	)		(1,772	)	-88.6	%		(3,935	)		(2,507	)	57.0	%
Non-GAAP operating income (loss)	$	23,801		$	(3,742	)	NM		$	46,927		$	1,919		NM

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss) – Class A (diluted)	$	0.70		$	(0.06	)	NM		$	1.53		$	0.14		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.12	)		(0.08	)	50.0	%
Non-GAAP operating income (loss) – Class A	$	0.69		$	(0.11	)	NM		$	1.41		$	0.06		NM

Net income (loss) – Class B	$	0.64		$	(0.06	)	NM		$	1.38		$	0.11		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.11	)		(0.07	)	57.1	%
Non-GAAP operating income (loss) – Class B	$	0.63		$	(0.11	)	NM		$	1.27		$	0.04		NM

The statutory combined ratio is a standard non-GAAP measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On December 19, 2024, we declared regular quarterly cash dividends of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which we paid on February 18, 2025 to stockholders of record as of the close of business on February 4, 2025.

Pre-Recorded Webcast

At approximately 8:30 am EDT on Thursday, February 20, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly and annual results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.
Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

	Quarter Ended December 31,
	2024		2023

Net premiums earned	$	236,635	$	226,185
Investment income, net of expenses	12,050		10,710
Net investment gains	256		2,243
Lease income	77		85
Installment payment fees	936		245
Total revenues	249,954		239,468

Net losses and loss expenses	141,435		163,154
Amortization of deferred acquisition costs	39,853		39,149
Other underwriting expenses	37,649		38,032
Policyholder dividends	826		1,225
Interest	269		156
Other expenses, net	255		233
Total expenses	220,287		241,949

Income (loss) before income tax expense (benefit)	29,667		(2,481		)
Income tax expense (benefit)	5,664		(511		)

Net income (loss)	$	24,003	$	(1,970	)

Net income (loss) per common share:
Class A – basic	$	0.71	$	(0.06	)
Class A – diluted	$	0.70	$	(0.24	)
Class B – basic and diluted	$	0.64	$	(0.06	)

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,979,432		27,702,646
Class A – diluted	29,224,696		27,726,318
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	211,442	$	212,693

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

	Year Ended December 31,
	2024		2023

Net premiums earned	$	936,651	$	882,071
Investment income, net of expenses	44,918		40,853
Net investment gains	4,981		3,173
Lease income	314		347
Installment payment fees	2,741		894
Total revenues	989,605		927,338

Net losses and loss expenses	604,118		609,178
Amortization of deferred acquisition costs	160,311		154,214
Other underwriting expenses	155,254		151,748
Policyholder dividends	4,073		5,313
Interest	946		620
Other expenses, net	2,564		1,201
Total expenses	927,266		922,274

Income before income tax expense	62,339		5,064
Income tax expense	11,477		638

Net income	$	50,862	$	4,426

Net income per common share:
Class A – basic and diluted	$	1.53	$	0.14
Class B – basic and diluted	$	1.38	$	0.11

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,155,276		27,469,250
Class A – diluted	28,245,356		27,562,785
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	942,281	$	895,697

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			December 31,		December 31,
			2024		2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	705,714	$	679,497
		Available for sale, at fair value	617,892		589,348
	Equity securities, at fair value		36,808		25,903
	Short-term investments, at cost		24,558		32,306
		Total investments	1,384,972		1,327,054
Cash			52,926		23,792
Premiums receivable			181,107		179,592
Reinsurance receivable			420,742		441,431
Deferred policy acquisition costs			73,347		75,043
Prepaid reinsurance premiums			176,162		168,724
Other assets			46,776		50,658
		Total assets	$	2,336,032	$	2,266,294

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Losses and loss expenses		$	1,120,985	$	1,126,157
	Unearned premiums		612,476		599,411
	Accrued expenses		2,917		3,947
	Borrowings under lines of credit		35,000		35,000
	Other liabilities		18,878		22,034
		Total liabilities	1,790,256		1,786,549
Stockholders’ equity:
	Class A common stock		329		308
	Class B common stock		56		56
	Additional paid-in capital		369,680		335,694
	Accumulated other comprehensive loss		(28,200)		(32,882)
	Retained earnings		245,137		217,795
	Treasury stock		(41,226)		(41,226)
		Total stockholders’ equity	545,776		479,745
		Total liabilities and stockholders’ equity	$	2,336,032	$	2,266,294

The MIL Network –

February 21, 2025

MIL-OSI: Collateralized Reinsurance Firm, Specialty Risk RE, Completes $50 Million Institutional Funding Round

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Feb. 20, 2025 (GLOBE NEWSWIRE) — Specialty Risk Re (“SRR”), a collateral reinsurance company founded in 2024, today announced the successful closing of its $50 million institutional funding round, led by private equity firm, NMS Capital Group. This initial investment strengthens SRR’s ability to address the growing shortfall in reinsurance capacity, providing a select group of program carriers and MGAs with a reliable, well-capitalized partner at a time when market demand for stable risk transfer solutions is rising.

With reinsurance markets facing capacity constraints and increasing volatility, SRR was established to serve as a strategic capital partner for MGAs and carriers. The firm specializes in quota share and excess-of-loss (XOL) reinsurance programs, working closely with a select group of program administrators to provide long-term, sustainable solutions for structured risk-sharing.

SRR President and CEO, Jonathan Collura stated “This funding marks a significant milestone in our vision to establish SRR as a trusted and well-capitalized partner in the reinsurance market. Our strategy is built on disciplined risk selection, allowing us to construct a well-diversified book of business without overexposure to any single class or region. By leveraging our strong capitalization and domestic presence, SRR is positioned to be the go-to reinsurance partner in today’s risk environment.”

As part of its underwriting strategy, SRR focuses on mid- to long-tail risks, leveraging a steady and systematic growth model to enhance long-term insurance and investment returns.

Investor interest in SRR has been exceptionally strong, reflecting confidence in its disciplined risk selection and capital management approach.

“The market response to our model has been highly positive,” Collura further commented. “Our investors have already committed access to additional capital as early as the end of Q1 2025, allowing us to scale in response to demand. This strategic flexibility ensures that SRR remains well-positioned to support our partners with stable, long-term capital solutions.”

About Specialty Risk RE
Founded in 2024, Specialty Risk RE (“SRR”) is a collateralized reinsurance firm and a dedicated capital partner, specializing in non-CAT Property and Casualty programs with established loss histories. By leveraging deep industry connections and lasting capital commitments, SRR provides customized, sustainable reinsurance solutions tailored to the needs of MGAs and carriers. With a disciplined underwriting approach and a focus on strategic partnerships, SRR delivers structured financial solutions that support long-term growth, risk diversification, and capital efficiency. For more information, visit www.specialtyriskre.com.

Media Contact
Jessica Starman
media@elev8newmedia.com

The MIL Network –

February 21, 2025

MIL-OSI: Targa Resources Corp. Reports Record Fourth Quarter and Full Year 2024 Financial Results, Provides Growth Outlook for 2025 and Announces Refinancing of Badlands Preferred Equity

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported fourth quarter and full year 2024 results.

Fourth quarter 2024 net income attributable to Targa Resources Corp. was $351.0 million compared to $299.6 million for the fourth quarter of 2023. For the full year 2024, net income attributable to Targa Resources Corp. was $1,312.0 million compared to $1,345.9 million for 2023. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)⁽¹⁾ of $1,122.2 million for the fourth quarter of 2024 compared to $959.9 million for the fourth quarter of 2023. For the full year 2024, the Company reported adjusted EBITDA of $4,142.3 million compared to $3,530.0 million for 2023.

Highlights

Record full year 2024 adjusted EBITDA of $4.1 billion, a 17% increase over 2023
Record full year 2024 Permian, NGL transportation, fractionation, and LPG export volumes
Record full year 2024 common share repurchases of $755 million
Record fourth quarter 2024 adjusted EBITDA of $1.1 billion
Record fourth quarter 2024 Permian, NGL transportation, fractionation, and LPG export volumes
Completed its new 275 million cubic feet per day (“MMcf/d”) Greenwood II plant in Permian Midland and its new 120 thousand barrels per day (“MBbl/d”) Train 10 fractionator in Mont Belvieu
Recently commenced operations of its new 275 MMcf/d Bull Moose plant and 800 MMcf/d front-end treater in Permian Delaware
Announced a new intra-Delaware Basin expansion of Targa’s Grand Prix NGL Pipeline (“Delaware Express”)
Announced a new 150 MBbl/d fractionator in Mont Belvieu (“Train 12”)
Announced a new expansion of LPG export capabilities at Targa’s Galena Park Marine Terminal (“GPMT LPG Export Expansion”) which will increase capacity to approximately 19 million barrels per month (“MMBbl/month”)
Estimates 2025 net growth capital expenditures of $2.6 billion to $2.8 billion
Announced the refinancing of preferred equity in Targa Badlands LLC for $1.8 billion
Estimates record full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion, a 15% increase over 2024⁽²⁾

On January 16, 2025, the Company declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the fourth quarter of 2024. Total cash dividends of approximately $164 million were paid on February 14, 2025 on all outstanding shares of common stock to holders of record as of the close of business on January 31, 2025. Targa intends to recommend an annual common dividend of $4.00 per share for 2025 beginning with the first quarter payment in May of 2025.

Targa repurchased 610,683 shares of its common stock during the fourth quarter of 2024 at a weighted average per share price of $176.86 for a total net cost of $108.0 million. For the year ended December 31, 2024, Targa repurchased 5,933,050 shares of its common stock at a weighted average price of $127.20 for a total net cost of $754.7 million. As of December 31, 2024, there was $1,015.4 million remaining under the Company’s Share Repurchase Programs.

Fourth Quarter 2024 – Sequential Quarter over Quarter Commentary

Targa reported fourth quarter adjusted EBITDA of $1,122.2 million, representing a 5 percent increase compared to the third quarter of 2024. The sequential increase in adjusted EBITDA was attributable to higher volumes across Targa’s Gathering and Processing (“G&P”) and Logistics and Transportation (“L&T”) systems. In the G&P segment, higher sequential adjusted operating margin was attributable to record Permian natural gas inlet volumes and higher fees, partially offset by the expiration of a lower margin high pressure gathering and processing agreement in the Delaware Basin. In the L&T segment, record NGL pipeline transportation, fractionation, and LPG export volumes drove the sequential increase in segment adjusted operating margin, partially offset by lower sequential marketing margin. Targa’s completion of its Daytona NGL Pipeline late in the third quarter and its 120 MBbl/d Train 10 fractionator in the fourth quarter supported higher sequential NGL pipeline transportation and fractionation volumes from increasing supply volumes from Targa’s Permian G&P systems. LPG export volumes benefited from improved market conditions. Lower sequential marketing margin was attributable to decreased optimization opportunities.

Capitalization and Liquidity

The Company’s total consolidated debt as of December 31, 2024 was $14,174.6 million, net of $89.0 million of debt issuance costs and $29.4 million of unamortized discount, with $12,534.4 million of outstanding senior unsecured notes, $1,130.5 million outstanding under the Commercial Paper Program, $330.0 million outstanding under the Securitization Facility, and $298.1 million of finance lease liabilities.

Total consolidated liquidity as of December 31, 2024 was approximately $2.0 billion, including $1.6 billion available under the Existing TRGP Revolver (as defined below), $270.0 million under the Securitization Facility and $157.3 million of cash.

Financing Update

In February 2025, Targa entered into a new five-year revolving facility (the “New TRGP Revolver”) with aggregate capacity of $3.5 billion. The New TRGP Revolver replaces Targa’s $2.75 billion credit facility (“Existing TRGP Revolver”), scheduled to mature in February 2027. The additional capacity aligns with the Company’s increased scale and continued growth opportunities. Pro forma for the New TRGP Revolver, Targa’s liquidity as of December 31, 2024, was approximately $2.8 billion.

Refinancing of Badlands Preferred Equity

Targa announced today a definitive agreement to repurchase all of the outstanding preferred equity in Targa Badlands LLC (“Targa Badlands”) from funds managed by Blackstone for approximately $1.8 billion in cash (the “Repurchase”). The Repurchase represents a refinancing of higher cost preferred equity with Targa’s lower cost of debt capital, resulting in meaningful cash savings. Targa expects to close in the first quarter of 2025 with an effective date of January 1, 2025, and estimates its year-end 2025 debt to adjusted EBITDA leverage ratio will remain near the mid-point of the Company’s long-term target range.

Growth Projects Update

In Targa’s G&P segment, construction continues on its 275 MMcf/d Pembrook II, East Pembrook, and East Driver plants in Permian Midland and its 275 MMcf/d Bull Moose II and Falcon II plants in Permian Delaware. In Targa’s L&T segment, construction continues on its 150 MBbl/d Train 11 fractionator in Mont Belvieu. The Company remains on-track to complete these expansions as previously disclosed.

In February 2025, in response to increasing production and to meet the infrastructure needs of its customers, Targa announced:

Delaware Express, a 100-mile, 30-inch diameter pipeline expansion of its Grand Prix NGL Pipeline in the Permian Delaware;
Train 12, a new 150 MBbl/d fractionator in Mont Belvieu, TX; and
GPMT LPG Export Expansion, an expansion of Targa’s LPG export capabilities at its Galena Park Marine Terminal to approximately 19 MMBbl per month.

Delaware Express is expected to commence operations in the third quarter of 2026, Train 12 is expected to commence operations in the first quarter of 2027, and Targa’s GPMT LPG Export Expansion is expected to commence operations in the third quarter of 2027.

2025 Outlook and Capital Return Expectations

For 2025, Targa estimates full year adjusted EBITDA to be between $4.65 billion and $4.85 billion, with the midpoint of the range representing a 15 percent increase over full year 2024 adjusted EBITDA. Targa expects to continue to benefit from meaningful growth across its Permian G&P footprint, which is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to the records set in 2024.

Targa’s 2025 operational and financial expectations assume Waha natural gas prices average $1.55 per million British Thermal Units (“MMbtu”), natural gas liquids (“NGL”) composite barrel prices average $0.65 per gallon, and crude oil prices average $70 per barrel.

Targa’s estimate for 2025 net growth capital expenditures is between $2.6 billion to $2.8 billion and includes capital spending for the recently announced Delaware Express, Train 12, and GPMT LPG Export Expansion. Net maintenance capital expenditures for 2025 are estimated to be approximately $250 million.

For the first quarter of 2025, Targa intends to recommend to its Board of Directors an increase to its quarterly common dividend to $1.00 per common share or $4.00 per common share annualized. The recommended 33 percent common dividend per share increase, if approved, would be effective for the first quarter of 2025 and payable in May 2025. Going forward, Targa expects to be in position to continue to meaningfully increase the capital returned to shareholders through increasing common dividends per share and opportunistic repurchases of its common stock.

An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events.

Conference Call

The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on February 20, 2025 to discuss its fourth quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/qgzvcwi7. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.

^{(1) Adjusted EBITDA is a non-GAAP financial measure and is discussed under “Non-GAAP Financial Measures.”
(2) Year over year increase based on midpoint of estimated 2025 adjusted EBITDA range of $4.65 billion to $4.85 billion.}

Targa Resources Corp. – Consolidated Financial Results of Operations

	Three Months Ended December 31,												Year Ended December 31,
	2024			2023			2024 vs. 2023						2024			2023			2024 vs. 2023
	(In millions)
Revenues:
Sales of commodities	$	3,765.5		$	3,647.9		$	117.6			3	%	$	13,891.8		$	13,962.1		$	(70.3	)		(1	%)
Fees from midstream services		639.7			591.6			48.1			8	%		2,489.7			2,098.2			391.5			19	%
Total revenues		4,405.2			4,239.5			165.7			4	%		16,381.5			16,060.3			321.2			2	%
Product purchases and fuel		2,922.6			2,898.5			24.1			1	%		10,703.0			10,676.4			26.6			—
Operating expenses		305.8			269.5			36.3			13	%		1,175.6			1,077.9			97.7			9	%
Depreciation and amortization expense		378.5			341.4			37.1			11	%		1,423.0			1,329.6			93.4			7	%
General and administrative expense		97.5			95.3			2.2			2	%		384.9			348.7			36.2			10	%
Other operating (income) expense		0.2			(0.5	)		0.7		NM				(0.4	)		1.5			(1.9	)	NM
Income (loss) from operations		700.6			635.3			65.3			10	%		2,695.4			2,626.2			69.2			3	%
Interest expense, net		(177.7	)		(178.0	)		0.3			—			(767.2	)		(687.8	)		(79.4	)		12	%
Equity earnings (loss)		1.5			2.8			(1.3	)		(46	%)		9.4			9.0			0.4			4	%
Gain (loss) from financing activities		—			(2.1	)		2.1			100	%		(0.8	)		(2.1	)		1.3			62	%
Other, net		0.1			2.1			(2.0	)	NM				1.2			(2.8	)		4.0		NM
Income tax (expense) benefit		(110.5	)		(102.5	)		(8.0	)		8	%		(384.5	)		(363.2	)		(21.3	)		6	%
Net income (loss)		414.0			357.6			56.4			16	%		1,553.5			1,579.3			(25.8	)		(2	%)
Less: Net income (loss) attributable to noncontrolling interests		63.0			58.0			5.0			9	%		241.5			233.4			8.1			3	%
Net income (loss) attributable to Targa Resources Corp.		351.0			299.6			51.4			17	%		1,312.0			1,345.9			(33.9	)		(3	%)
Premium on repurchase of noncontrolling interests, net of tax		32.9			19.4			13.5			70	%		32.9			510.1			(477.2	)		(94	%)
Net income (loss) attributable to common shareholders	$	318.1		$	280.2		$	37.9			14	%	$	1,279.1		$	835.8		$	443.3			53	%
Financial data:
Adjusted EBITDA (1)	$	1,122.2		$	959.9		$	162.3			17	%	$	4,142.3		$	3,530.0		$	612.3			17	%
Adjusted cash flow from operations (1)		940.9			780.1			160.8			21	%		3,372.4			2,840.6			531.8			19	%
Adjusted free cash flow (1)		56.2			73.7			(17.5	)		(24	%)		140.1			392.7			(252.6	)		(64	%)

⁽¹⁾	^{Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}
^NM	^{Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in commodity sales reflects higher NGL, natural gas and condensate volumes ($242.4) and higher NGL prices ($199.5 million), partially offset by lower natural gas and condensate prices ($197.0 million) and the unfavorable impact of hedges ($127.3 million).

The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

The increase in operating expenses is primarily due to higher maintenance and labor costs as a result of increased activity and system expansions, partially offset by lower taxes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base that have been placed in service during 2024.

The increase in income tax expense is primarily due to an increase in pre-tax book income and the release of state valuation allowance in 2023 partially offset by the impact of statutory rate changes.

The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Commodity sales are relatively flat reflecting lower natural gas and condensate prices ($1,242.8 million) and the unfavorable impact of hedges ($686.5 million), offset by higher NGL, natural gas and condensate volumes ($1,607.2 million), and higher NGL prices ($251.6 million).

The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

The increase in operating expenses is primarily due to higher labor, maintenance, rental and chemical costs as a result of increased activity and system expansions, partially offset by lower taxes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base, partially offset by the shortening of depreciable lives of certain assets that were idled in 2023.

The increase in general and administrative expense is primarily due to higher compensation and benefits and professional fees.

The increase in interest expense, net, is due to recognition of cumulative interest on a 2024 legal ruling associated with the Splitter Agreement and higher borrowings, partially offset by higher capitalized interest. Higher capitalized interest is due to system expansions and higher interest rates.

The increase in income tax expense is primarily due to the release of state valuation allowance in 2023.

The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024 and the Grand Prix Transaction in 2023.

Review of Segment Performance

The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation.

Gathering and Processing Segment

The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended December 31,									Year Ended December 31,
	2024		2023		2024 vs. 2023					2024		2023		2024 vs. 2023
		(In millions, except operating statistics and price amounts)
Operating margin	$	598.9	$	536.3	$	62.6		12	%	$	2,312.4	$	2,082.2	$	230.2		11	%
Operating expenses		217.5		185.7		31.8		17	%		814.6		746.6		68.0		9	%
Adjusted operating margin	$	816.4	$	722.0	$	94.4		13	%	$	3,127.0	$	2,828.8	$	298.2		11	%
Operating statistics (1):
Plant natural gas inlet, MMcf/d (2) (3)
Permian Midland (4)		3,072.8		2,716.5		356.3		13	%		2,933.1		2,535.2		397.9		16	%
Permian Delaware		2,992.4		2,564.3		428.1		17	%		2,837.3		2,526.5		310.8		12	%
Total Permian		6,065.2		5,280.8		784.4		15	%		5,770.4		5,061.7		708.7		14	%

SouthTX		329.4		347.9		(18.5	)	(5	%)		325.9		367.4		(41.5	)	(11	%)
North Texas		187.4		207.7		(20.3	)	(10	%)		186.9		205.9		(19.0	)	(9	%)
SouthOK (5)		339.7		366.5		(26.8	)	(7	%)		351.7		385.0		(33.3	)	(9	%)
WestOK		210.5		207.1		3.4		2	%		212.8		207.1		5.7		3	%
Total Central		1,067.0		1,129.2		(62.2	)	(6	%)		1,077.3		1,165.4		(88.1	)	(8	%)

Badlands (5) (6)		128.8		131.2		(2.4	)	(2	%)		136.3		130.0		6.3		5	%
Total Field		7,261.0		6,541.2		719.8		11	%		6,984.0		6,357.1		626.9		10	%

Coastal		405.7		567.0		(161.3	)	(28	%)		449.6		541.1		(91.5	)	(17	%)

Total		7,666.7		7,108.2		558.5		8	%		7,433.6		6,898.2		535.4		8	%
NGL production, MBbl/d (3)
Permian Midland (4)		445.7		398.3		47.4		12	%		428.4		367.7		60.7		17	%
Permian Delaware		390.2		310.6		79.6		26	%		359.9		321.6		38.3		12	%
Total Permian		835.9		708.9		127.0		18	%		788.3		689.3		99.0		14	%

SouthTX (5)		29.3		37.3		(8.0	)	(21	%)		32.8		40.9		(8.1	)	(20	%)
North Texas		22.9		24.5		(1.6	)	(7	%)		22.6		24.0		(1.4	)	(6	%)
SouthOK (5)		40.1		40.0		0.1		—			35.0		43.1		(8.1	)	(19	%)
WestOK		16.3		12.1		4.2		35	%		15.1		12.5		2.6		21	%
Total Central		108.6		113.9		(5.3	)	(5	%)		105.5		120.5		(15.0	)	(12	%)

Badlands (5)		15.3		15.7		(0.4	)	(3	%)		16.6		15.5		1.1		7	%
Total Field		959.8		838.5		121.3		14	%		910.4		825.3		85.1		10	%

Coastal		36.0		43.2		(7.2	)	(17	%)		35.8		39.2		(3.4	)	(9	%)

Total		995.8		881.7		114.1		13	%		946.2		864.5		81.7		9	%
Crude oil, Badlands, MBbl/d		110.1		105.2		4.9		5	%		106.6		105.5		1.1		1	%
Crude oil, Permian, MBbl/d		29.5		27.5		2.0		7	%		27.9		27.4		0.5		2	%
Natural gas sales, BBtu/d (3)		2,784.3		2,737.3		47.0		2	%		2,780.5		2,685.8		94.7		4	%
NGL sales, MBbl/d (3)		582.0		520.6		61.4		12	%		558.2		495.8		62.4		13	%
Condensate sales, MBbl/d		19.8		17.8		2.0		11	%		19.3		18.5		0.8		4	%
Average realized prices (7):
Natural gas, $/MMBtu		1.04		1.83		(0.79	)	(43	%)		0.67		1.94		(1.27	)	(65	%)
NGL, $/gal		0.49		0.43		0.06		14	%		0.46		0.46		—		—
Condensate, $/Bbl		66.83		74.79		(7.96	)	(11	%)		73.35		74.35		(1.00	)	(1	%)

⁽¹⁾	^{Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
⁽²⁾	^{Plant natural gas inlet represents the Company’s undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands.}
⁽³⁾	^{Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.}
⁽⁴⁾	^{Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company’s reported financials.}
⁽⁵⁾	^{Operations include facilities that are not wholly owned by the Company.}
⁽⁶⁾	^{Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.}
⁽⁷⁾	^{Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company’s equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.}

The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment:

	Three Months Ended December 31, 2024						Three Months Ended December 31, 2023
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)		Gain (Loss)		Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		8.1	$	1.84	$	14.9		13.2	$	1.15		$	15.2
NGL (MMgal)		101.0		0.01		0.9		165.3		0.09			15.5
Crude oil (MBbl)		0.7		5.00		3.5		0.6		(6.17	)		(3.7	)
					$	19.3						$	27.0

	Year Ended December 31, 2024								Year Ended December 31, 2023
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)			Gain (Loss)			Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		43.7	$	1.92		$	84.1			63.2	$	1.22		$	77.4
NGL (MMgal)		449.8		0.04			15.8			680.3		0.07			49.9
Crude oil (MBbl)		2.1		(2.05	)		(4.3	)		2.4		(6.92	)		(16.6	)
						$	95.6							$	110.7

⁽¹⁾	^{The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, and higher NGL Prices, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Wildcat II plant during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes in the Permian and multiple plant additions in the Permian, partially offset by lower taxes in the Central region.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes was attributable to the addition of the Legacy II plant during the first quarter of 2023, the Midway plant during the second quarter of 2023, the Greenwood I and Wildcat II plants during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.

Logistics and Transportation Segment

The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Grand Prix NGL Pipeline, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024		2023		2024 vs. 2023				2024		2023		2024 vs. 2023
	(In millions, except operating statistics)
Operating margin	$	656.2	$	554.2	$	102.0	18	%	$	2,355.1	$	1,948.7	$	406.4	21	%
Operating expenses		88.7		84.4		4.3	5	%		362.3		332.0		30.3	9	%
Adjusted operating margin	$	744.9	$	638.6	$	106.3	17	%	$	2,717.4	$	2,280.7	$	436.7	19	%
Operating statistics MBbl/d (1):
NGL pipeline transportation volumes (2)		871.5		722.0		149.5	21	%		800.8		635.5		165.3	26	%
Fractionation volumes		1,089.5		844.8		244.7	29	%		936.1		798.1		138.0	17	%
Export volumes (3)		457.1		434.5		22.6	5	%		423.6		365.2		58.4	16	%
NGL sales		1,227.5		1,125.8		101.7	9	%		1,159.1		1,019.8		139.3	14	%

⁽¹⁾	^{Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
⁽²⁾	^{Represents the total quantity of mixed NGLs that earn a transportation margin.}
⁽³⁾	^{Export volumes represent the quantity of NGL products delivered to third-party customers at the Company’s Galena Park Marine Terminal that are destined for international markets.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin and higher marketing margin. LPG export margin was relatively flat. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities.

The increase in operating expenses was due to higher system volumes, higher taxes, higher compensation and benefits the in-service of the Daytona NGL Pipeline expansion during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024, partially offset by lower repairs and maintenance.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin, higher marketing margin, and higher LPG export margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the addition of Train 9 during the second quarter of 2024, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities. LPG export margin increased due to higher volumes as Targa benefited from the completion of the export expansion project during the third quarter of 2023 and the Houston Ship Channel allowing night-time vessel transits, partially offset by maintenance and required inspections.

The increase in operating expenses was due to higher system volumes, higher compensation and benefits, higher taxes, higher repairs and maintenance and the addition of two trains during 2024.

Other

	Three Months Ended December 31,									Year Ended December 31,
	2024			2023			2024 vs. 2023			2024			2023		2024 vs. 2023
	(In millions)
Operating margin	$	(78.3	)	$	(18.8	)	$	(59.5	)	$	(164.6	)	$	275.5	$	(440.1	)
Adjusted operating margin	$	(78.3	)	$	(18.8	)	$	(59.5	)	$	(164.6	)	$	275.5	$	(440.1	)

Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment.

About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

Targa is a FORTUNE 500 company and is included in the S&P 500.

For more information, please visit the Company’s website at www.targaresources.com.

Non-GAAP Financial Measures

This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.

Adjusted Operating Margin

The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program.

Gathering and Processing adjusted operating margin consists primarily of:

service fees related to natural gas and crude oil gathering, treating and processing; and
revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements.

Logistics and Transportation adjusted operating margin consists primarily of:

service fees (including the pass-through of energy costs included in certain fee rates);
system product gains and losses; and
NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change.

The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other.

Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess:

the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;
the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and
the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities.

Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.”

Adjusted EBITDA

The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.

Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash taxes. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures (net of any reimbursements of project costs) and growth capital expenditures, net of contributions from noncontrolling interest and contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements.

The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated:

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(In millions)
Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow
Net income (loss) attributable to Targa Resources Corp.	$	351.0		$	299.6		$	1,312.0		$	1,345.9
Interest (income) expense, net		177.7			178.0			767.2			687.8
Income tax expense (benefit)		110.5			102.5			384.5			363.2
Depreciation and amortization expense		378.5			341.4			1,423.0			1,329.6
(Gain) loss on sale or disposition of assets		(0.4	)		(1.3	)		(3.1	)		(5.3	)
Write-down of assets		2.2			0.8			6.2			6.9
(Gain) loss from financing activities		—			2.1			0.8			2.1
Equity (earnings) loss		(1.5	)		(2.8	)		(9.4	)		(9.0	)
Distributions from unconsolidated affiliates		8.7			4.5			25.3			18.6
Compensation on equity grants		15.8			16.7			63.2			62.4
Risk management activities		78.2			18.8			164.6			(275.4	)
Noncontrolling interests adjustments (1)		1.5			(0.4	)		3.9			(3.7	)
Litigation expense (2)		—			—			4.1			6.9
Adjusted EBITDA	$	1,122.2		$	959.9		$	4,142.3		$	3,530.0
Interest expense on debt obligations (3)		(173.8	)		(174.9	)		(752.4	)		(675.8	)
Cash taxes		(7.5	)		(4.9	)		(17.5	)		(13.6	)
Adjusted Cash Flow from Operations	$	940.9		$	780.1		$	3,372.4		$	2,840.6
Maintenance capital expenditures, net (4)		(65.0	)		(70.4	)		(231.9	)		(223.4	)
Growth capital expenditures, net (4)		(819.7	)		(636.0	)		(3,000.4	)		(2,224.5	)
Adjusted Free Cash Flow	$	56.2		$	73.7		$	140.1		$	392.7

⁽¹⁾	^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.}
⁽²⁾	^{Litigation expense includes charges related to litigation resulting from the major winter storm in February 2021 that the Company considers outside the ordinary course of its business and/or not reflective of its ongoing core operations. The Company may incur such charges from time to time, and the Company believes it is useful to exclude such charges because it does not consider them reflective of its ongoing core operations and because of the generally singular nature of the claims underlying such litigation.}
⁽³⁾	^{Excludes amortization of interest expense. The year ended December 31, 2024 includes $55.8 million of interest expense associated with the Splitter Agreement ruling.}
⁽⁴⁾	^{Represents capital expenditures, net of contributions from noncontrolling interests and includes contributions to investments in unconsolidated affiliates.}

The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2025:

	2025E
	(In millions)
Reconciliation of Estimated Net Income Attributable to Targa Resources Corp. to
Estimated Adjusted EBITDA
Net income attributable to Targa Resources Corp.	$	1,765.0
Interest expense, net		875.0
Income tax expense		510.0
Depreciation and amortization expense		1,535.0
Equity earnings		(20.0	)
Distributions from unconsolidated affiliates		25.0
Compensation on equity grants		65.0
Noncontrolling interests adjustments (1)		(5.0	)
Estimated Adjusted EBITDA	$	4,750.0

⁽¹⁾	^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.}

Regulation FD Disclosures

The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Targa Investor Relations
InvestorRelations@targaresources.com
(713) 584-1133

The MIL Network –

February 21, 2025

MIL-OSI: Cenovus Announces Fourth-Quarter and Full-Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its fourth-quarter and full-year 2024 financial and operating results. In the quarter, the company generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow and $123 million of free funds flow. The Upstream business continued to deliver strong performance, with production of 816,000 barrels of oil equivalent per day (BOE/d)¹ in the quarter, including a new quarterly Oil Sands production record of 628,500 BOE/d. In the Downstream, total crude throughput increased by almost 24,000 barrels per day (bbls/d) from the previous quarter to 666,700 bbls/d, representing an aggregate utilization rate of 93%.

Highlights

Delivered quarterly Upstream production of 816,000 BOE/d, an increase of 6% relative to the previous quarter and 1% relative to the fourth quarter of 2023.
Highest-ever quarterly and annual Oil Sands production rates at 628,500 BOE/d and 610,700 BOE/d respectively, including record annual rates at both Foster Creek and the Lloydminster thermal assets.
Improving quarterly Downstream operating performance, with utilization of 97% in Canadian Refining and 92% in U.S. Refining. U.S. Refining operating expenses, excluding turnaround costs, of $10.89 per barrel were down 18% relative to the fourth quarter of 2023.
Achieved significant milestones on Cenovus’s major Upstream growth projects, including mechanical completion of the Narrows Lake pipeline, executing the SeaRose floating production, storage and offloading (FPSO) vessel life extension dry dock and reaching mechanical completion of both the concrete gravity structure (CGS) and topsides for the West White Rose project.
Returned $706 million to shareholders in the fourth quarter, including $108 million through share purchases, $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares on December 31, 2024.

“We delivered strong operating performance this quarter. Our industry leading Oil Sands assets set production records and our Downstream business continued to demonstrate improvements in reliability and unit costs,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “In 2025, we will build on this momentum, focusing on operational execution while advancing our key growth projects to deliver long-term value for shareholders.”

Financial summary

($ millions, except per share amounts)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Cash from (used in) operating activities	2,029	2,474	2,946	9,235	7,388
Adjusted funds flow²	1,601	1,960	2,062	8,164	8,803
Per share (diluted)²	0.87	1.05	1.08	4.38	4.54
Capital investment	1,478	1,346	1,170	5,015	4,298
Free funds flow²	123	614	892	3,149	4,505
Excess free funds flow²	(416)	146	471	1,297	2,466
Net earnings (loss)	146	820	743	3,142	4,109
Per share (diluted)	0.07	0.42	0.32	1.67	2.09
Long-term debt, including current portion	7,534	7,199	7,108	7,534	7,108
Net debt	4,614	4,196	5,060	4,614	5,060

Production and throughput

(before royalties, net to Cenovus)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Oil and NGLs (bbls/d)¹	670,600	630,500	662,600	653,800	640,000
Conventional natural gas (MMcf/d)	873.3	844.6	876.3	860.2	832.6
Total upstream production (BOE/d)¹	816,000	771,300	808,600	797,200	778,700
Total downstream throughput (bbls/d)	666,700	642,900	579,100	646,900	560,400

¹ See Advisory for production by product type.
² Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

Fourth-quarter results

Operating¹

Cenovus’s total revenues were $12.8 billion in the fourth quarter, down from $13.8 billion in the previous quarter, primarily due to lower commodity prices. Upstream revenues were $7.3 billion, flat from the third quarter, while Downstream revenues were $7.8 billion, down from $8.8 billion in the prior quarter.

Total operating margin³ was $2.3 billion, compared with $2.4 billion in the previous quarter. Upstream operating margin⁴ was $2.7 billion, consistent with the third quarter and benefiting from higher production volumes relative to the prior quarter, offset by lower benchmark oil prices and timing differences between production and sales. The company had a Downstream operating margin⁴ shortfall of $396 million in the fourth quarter due to weak refining crack spreads and a narrow heavy oil price differential, compared with a shortfall of $323 million in the previous quarter. Operating margin in the U.S. Refining segment included $45 million of first in, first out (FIFO) losses and $128 million of turnaround expenses incurred during the Lima Refinery turnaround.

Total Upstream production was 816,000 BOE/d in the fourth quarter, an increase of 44,700 BOE/d from the prior quarter, reflecting record quarterly production from the company’s Oil Sands segment of 628,500 BOE/d. Christina Lake production was 251,400 bbls/d, compared with 211,800 bbls/d in the third quarter, as a result of completing planned turnaround activity in September. Foster Creek production was 195,200 bbls/d compared with 198,000 bbls/d in the third quarter, while Sunrise production increased to 53,100 bbls/d from 50,400 bbls/d in the third quarter as production from new well pads continued to ramp up. Production from the Lloydminster thermal assets declined slightly to 108,900 bbls/d, while Lloydminster conventional heavy oil output increased to 18,000 bbls/d from 16,300 bbls/d in the prior quarter. Production in the Conventional segment was 117,800 BOE/d, a slight decrease from 118,100 BOE/d in the third quarter.

In the Offshore segment, production was 69,700 BOE/d compared with 65,500 BOE/d in the third quarter. In Asia Pacific, production volumes were 62,200 BOE/d, higher than the previous quarter partially due to increased production at the MAC field in Indonesia and planned maintenance at Liwan in the third quarter. In the Atlantic, production was 7,500 bbls/d, a decrease from 9,000 bbls/d in the prior quarter due to unplanned downtime at the non-operated Terra Nova field. The SeaRose FPSO is on station and reconnected to the White Rose field, with production expected to resume by the end of February.

Total refining throughput in the fourth quarter was 666,700 bbls/d, up from 642,900 bbls/d in the third quarter. Throughput in Canadian Refining was 104,400 bbls/d, representing a utilization rate of 97%, compared with 99,400 bbls/d in the previous quarter. The increase was primarily due to returning to full rates following completion of turnaround activity at the Lloydminster Upgrader early in the third quarter.

In U.S. Refining, crude throughput was 562,300 bbls/d, representing a utilization rate of 92%, compared with 543,500 bbls/d in the third quarter. Throughput increased primarily due to improved reliability, partially offset by economic run cuts as market crack spreads weakened through the quarter. U.S. Refining revenues were $6.6 billion relative to $7.2 billion in the prior quarter due to lower refined product pricing. Market capture⁵ in the U.S. improved to 45% relative to 35% in the previous quarter primarily due to reduced inventory timing impacts (FIFO). Market capture in the fourth quarter was negatively impacted by the Lima Refinery turnaround, narrower heavy crude oil differentials, and a quarterly FIFO loss of $45 million.

³ Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
⁴ Specified financial measure. See Advisory.
⁵ Contains a non-GAAP financial measure. See Advisory.

Financial

Cash from operating activities in the fourth quarter, which includes changes in non-cash working capital, was $2.0 billion, compared with $2.5 billion in the third quarter. Adjusted funds flow was $1.6 billion, compared with $2.0 billion in the prior quarter and there was a shortfall of excess free funds flow (EFFF) of $416 million, compared with $146 million in the prior quarter. Net earnings in the fourth quarter were $146 million, compared with $820 million in the previous quarter. Fourth-quarter financial results were impacted by lower benchmark prices relative to the third quarter including seasonally weak refining market crack spreads in the Chicago market.

Long-term debt, including the current portion, was $7.5 billion at December 31, 2024. Net debt increased from the prior quarter to $4.6 billion at December 31, 2024, primarily due to the shortfall in EFFF of $416 million and the redemption of $250 million of Cenovus Series 3 preferred shares on December 31, 2024, partially offset by a release of non-cash working capital. The company continues to steward toward net debt of $4.0 billion and returning 100% of EFFF to shareholders over time in accordance with its financial framework.

Growth projects and capital investments

In the Oil Sands segment, the Narrows Lake pipeline, which will connect the field to the Christina Lake processing facility, was mechanically completed in the fourth quarter. We plan to commence steam injection in the spring and the project remains on track for first oil mid-2025. At Sunrise, production continued to ramp up in the fourth quarter after the company brought two new well pads online in the third quarter. One additional well pad will be added in early 2025. The optimization project at Foster Creek is now 64% complete and remains on schedule for startup in 2026, with most modules and major pieces of equipment in place and pipe installation underway.

In the fourth quarter, the West White Rose project achieved mechanical completion of both the CGS and topsides, and work to prepare the seabed for installation of the CGS at the field location was also completed. The focus of the project in 2025 will be on the installation and commissioning of the platform. The West White Rose project is now approximately 88% complete and progressing on-schedule towards first oil in 2026.

Full-year results

In 2024, Cenovus’s total Upstream production averaged 797,200 BOE/d, compared with 778,700 BOE/d in 2023, including record annual volumes from the Oil Sands assets and a 5% increase in Offshore volumes. Oil Sands production was 610,700 BOE/d, including approximately 196,000 bbls/d at Foster Creek, a new annual high for the asset, and 234,200 bbls/d at Christina Lake, which successfully completed a turnaround in the third quarter. Full-year production from the Lloydminster thermal assets was also an annual record at 111,500 bbls/d, compared with 104,100 bbls/d in 2023, reflecting a successful redevelopment program and well optimization. Sunrise production was 49,600 bbls/d compared with 48,900 bbls/d in 2023 and Lloydminster conventional heavy oil production increased to 17,600 bbls/d from 16,700 bbls/d in the previous year. Conventional production was 119,900 BOE/d, in line with 2023. Offshore total production was approximately 66,600 BOE/d, compared with 63,400 BOE/d in the prior year, with 2023 impacted by a temporary disconnection of a subsea umbilical in Liwan by a third-party vessel.

Total Downstream throughput averaged 646,900 bbls/d in 2024, a 15% increase from 560,400 bbls/d in 2023. Canadian Refining crude oil throughput was 90,500 bbls/d, compared to 100,700 bbls/d in 2023, as the Lloydminster Upgrader completed the largest turnaround in the asset’s history early in the third quarter of 2024. U.S. Refining crude oil throughput increased to 556,400 bbls/d in 2024 compared with 459,700 bbls/d in 2023, reflecting the first full year of production from Superior and Toledo within the Cenovus portfolio.

Total revenues were $54.3 billion in 2024 and total operating margin was $10.8 billion compared with revenues of $52.2 billion and total operating margin of $11.0 billion in 2023. The year-over-year increase in total revenues was largely due to higher production and narrowing heavy Canadian crude differentials following the startup of the Trans Mountain pipeline expansion project. Operating margin was slightly reduced due to narrower downstream crack spreads, higher turnaround costs and increased transportation and blending costs.

Cash from operating activities was $9.2 billion for 2024 compared with $7.4 billion in 2023. Adjusted funds flow was $8.2 billion and free funds flow was $3.1 billion. Total capital investment for 2024 was $5.0 billion, primarily directed to sustaining production at the company’s Upstream assets, the construction of the major Upstream growth projects including West White Rose and refining reliability initiatives. Full-year net earnings for 2024 were $3.1 billion compared with $4.1 billion in 2023, primarily due to lower commodity prices, foreign exchange losses and higher depreciation, depletion, amortization and exploration expense.

Organizational updates

As part of Cenovus’s ongoing management succession plans, the company is announcing the following leadership changes effective March 1.

Andrew Dahlin, currently Executive Vice-President (EVP), Natural Gas & Technical Services, will assume the role of EVP & Chief Operating Officer. Andrew has more than 30 years of industry experience, including 13 years with Cenovus and its predecessor companies.

Eric Zimpfer, currently Senior Vice-President (SVP), U.S. Refining, will become Cenovus’s Head of Downstream, based in Dublin, Ohio and reporting directly to Jon McKenzie. Eric has more than 20 years of U.S. refining experience. He will play an integral role in continuing to improve the reliability and competitiveness of the Downstream business.

John Soini, currently SVP, Major & Capital Projects, will become EVP, Upstream – Thermal & Atlantic Offshore. John has more than 25 years of experience in the energy and power industries.

Susan Anderson, currently SVP, People Services, will become SVP, Legal, General Counsel & Corporate Secretary. Susan has more than 30 years of oil and gas industry experience, with 20 years at Husky Energy in various roles that included Vice-President, Legal.

Reserves

Cenovus’s proved and probable reserves are evaluated each year by independent qualified reserves evaluators. At the end of 2024, Cenovus’s total proved and total proved plus probable reserves were approximately 5.7 billion BOE and 8.5 billion BOE respectively, and total proved and total proved plus probable bitumen reserves were approximately 5.2 billion barrels and 7.7 billion barrels respectively. At year-end 2024, Cenovus had a proved reserves life index of approximately 19 years and a proved plus probable reserves life index of approximately 29 years.

More details about Cenovus’s reserves and other oil and gas information are available in the Advisory and the Management’s Discussion and Analysis (MD&A), Annual Information Form (AIF) and Annual Report on Form 40-F for the year ended December 31, 2024, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and Cenovus’s website at cenovus.com under Investors.

Cenovus year-end disclosure documents

Today, Cenovus is filing its interim and audited Consolidated Financial Statements, MD&A and AIF with Canadian securities regulatory authorities. The company is also filing its Annual Report on Form 40-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission. Copies of these documents will be available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and the company’s website at cenovus.com under Investors. They can also be requested free of charge by emailing investor.relations@cenovus.com.

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.180 per common share, payable on March 31, 2025 to shareholders of record as of March 14, 2025.

In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1, Series 2, Series 5 and Series 7 – payable on March 31, 2025 to shareholders of record as of March 14, 2025 as follows:

Preferred shares dividend summary

Share series	Rate (%)	Amount ($/share)
Series 1	2.577	0.16106
Series 2	5.211	0.32123
Series 5	4.591	0.28694
Series 7	3.935	0.24594

All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.

In the fourth quarter, the company returned $706 million to shareholders, composed of $108 million from its purchase of 4.6 million shares through its normal course issuer bid (NCIB), $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares. In 2024, Cenovus returned $3.2 billion to shareholders, including $1.4 billion of share purchases through its NCIB, $1.6 billion in common and preferred share dividends, and $250 million through the redemption of the Series 3 preferred shares.

2025 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets in 2025 and anticipated production or throughput impacts.

Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)

(MBOE/d or Mbbls/d)	Q1	Q2	Q3	Q4	Annualized impact
Upstream
Oil Sands	–	30 – 40	5 – 7	–	10 – 12
Offshore	–	–	4 – 6	–	1 – 2
Conventional	–	–	–	–	–
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	7 – 10	35 – 45	2 – 4	6 – 10	13 – 17

Potential turnaround expenses

($ millions)	Q1	Q2	Q3	Q4	Annualized impact
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	110 – 135	210 – 240	80 – 95	40 – 50	440 – 520

Conference call today

9 a.m. Mountain Time (11 a.m. Eastern Time)

Cenovus will host a conference call today, February 20, 2025, starting at 9 a.m. MT (11 a.m. ET).

To join the conference call, please dial 1-800-206-4400 (toll-free in North America) or 1-289-514-5005 to reach a live operator who will join you into the call. A live audio webcast will also be available and archived for approximately 30 days.

Advisory

Basis of Presentation

Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.

Barrels of Oil Equivalent

Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value.

Reserves Life Index

Reserves life index is calculated based on reserves for the applicable reserves category divided by annual production.

Product types

Product type by operating segment	Three months ended December 31, 2024	Full year ended December 31, 2024
Oil Sands
Bitumen (Mbbls/d)	608.6	591.3
Heavy crude oil (Mbbls/d)	18.0	17.6
Conventional natural gas (MMcf/d)	11.8	11.1
Total Oil Sands segment production (MBOE/d)	628.5	610.7
Conventional
Light crude oil (Mbbls/d)	4.8	4.9
Natural gas liquids (Mbbls/d)	19.7	21.0
Conventional natural gas (MMcf/d)	560.5	563.8
Total Conventional segment production (MBOE/d)	117.8	119.9
Offshore
Light crude oil (Mbbls/d)	7.5	8.0
Natural gas liquids (Mbbls/d)	12.0	11.0
Conventional natural gas (MMcf/d)	301.0	285.3
Total Offshore segment production (MBOE/d)	69.7	66.6
Total Upstream production (MBOE/d)	816.0	797.2

Forward‐looking Information

This news release contains certain forward‐looking statements and forward‐looking information (collectively referred to as “forward‐looking information”) within the meaning of applicable securities legislation about Cenovus’s current expectations, estimates and projections about the future of the company, based on certain assumptions made in light of the company’s experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward‐looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward‐looking information in this document is identified by words such as “anticipate”, “continue”, “deliver”, “focus”, “plan”, “progress”, “steward”, “target” and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: Net Debt; returning Excess Free Funds Flow to shareholders; growth plans and projects; delivering long-term shareholder value; production guidance; the optimization project at Foster Creek; steam injection and timing of production at Narrows Lake; production and timing of well pads at Sunrise; installation and commissioning of the Sea Rose FPSO and return of production at White Rose; the installation and commissioning of, and timing of first oil from, the West White Rose project; 2025 planned maintenance; and dividend payments.

Developing forward‐looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the allocation of free funds flow; commodity prices, inflation and supply chain constraints; Cenovus’s ability to produce on an unconstrained basis; Cenovus’s ability to access sufficient insurance coverage to pursue development plans; Cenovus’s ability to deliver safe and reliable operations and demonstrate strong governance; and the assumptions inherent in Cenovus’s 2025 corporate guidance available on c enovus.com.

The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: the accuracy of estimates regarding commodity production and operating expenses, inflation, taxes, royalties, capital costs and currency and interest rates; risks inherent in the operation of Cenovus’s business; and risks associated with climate change and Cenovus’s assumptions relating thereto and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 202 4.

Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the periods ended December 31, 202 4 , and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).

Specified Financial Measures

This news release contains references to certain specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to the Specified Financial Measures Advisory located in Cenovus’s MD&A for the period ended December 31, 2024 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus’s website at cenovus.com ) which is incorporated by reference into this news release.

Upstream Operating Margin and Downstream Operating Margin

Upstream Operating Margin and Downstream Operating Margin, and the individual components thereof, are included in Note 1 to the interim Consolidated Financial Statements.

Total Operating Margin

Total Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.

	Upstream ⁽⁶⁾			Downstream ⁽⁶⁾			Total
($ millions)	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023
Revenues
Gross Sales	8,240	8,259	7,797	7,837	8,798	8,404	16,077	17,057	16,201
Less: Royalties	(914)	(929)	(902)	—	—	—	(914)	(929)	(902)
	7,326	7,330	6,895	7,837	8,798	8,404	15,163	16,128	15,299
Expenses
Purchased Product	1,000	1,088	663	7,364	8,207	7,888	8,364	9,295	8,551
Transportation and Blending	2,816	2,661	2,894	—	—	—	2,816	2,661	2,894
Operating	842	860	864	866	918	826	1,708	1,778	1,690
Realized (Gain) Loss on Risk Management	(2)	(10)	19	3	(4)	(6)	1	(14)	13
Operating Margin	2,670	2,731	2,455	(396)	(323)	(304)	2,274	2,408	2,151

⁶Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. Revenues and purchased product for Q3 2024 Downstream operations were revised. See note 25 of our December 31, 2024, interim consolidated financial statements.

($ millions)	Upstream ⁽⁶⁾				Downstream ⁽⁶⁾			Total
Year ended December 31,	2024		2023		2024		2023	2024		2023
Revenues
Gross Sales	33,078		31,082		33,618		32,626	66,696		63,708
Less: Royalties	(3,449	)	(3,270	)	—		—	(3,449	)	(3,270	)
	29,629		27,812		33,618		32,626	63,247		60,438
Expenses
Purchased Product	3,674		3,152		30,252		28,273	33,926		31,425
Transportation and Blending	11,331		11,088		—		—	11,331		11,088
Operating	3,489		3,690		3,670		3,201	7,159		6,891
Realized (Gain) Loss on Risk Management	14		12		8		—	22		12
Operating Margin	11,121		9,870		(312	)	1,152	10,809		11,022

Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow

The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.

	Three Months Ended			Twelve Months Ended
($ millions)	December 31, 2024	September 30, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Cash From (Used in) Operating Activities ⁽⁷⁾	2,029	2,474	2,946	9,235	7,388
(Add) Deduct:
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Net Change in Non-Cash Working Capital	492	588	949	1,305	(1,193)
Adjusted Funds Flow	1,601	1,960	2,062	8,164	8,803
Capital Investment	1,478	1,346	1,170	5,015	4,298
Free Funds Flow	123	614	892	3,149	4,505
Add (Deduct):
Base Dividends Paid on Common Shares	(330)	(329)	(261)	(1,255)	(990)
Purchase of Common Shares under Employee Benefit Plan	(43)	—	—	(43)	—
Dividends Paid on Preferred Shares	(18)	(9)	(9)	(45)	(36)
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Principal Repayment of Leases	(80)	(74)	(72)	(299)	(288)
Acquisitions, Net of Cash Acquired	(3)	(4)	(14)	(22)	(515)
Proceeds From Divestitures	(1)	22	—	46	12
Excess Free Funds Flow	(416)	146	471	1,297	2,466

⁷ Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements.

Market Capture

Market Capture contains a non-GAAP financial measure and is used in the company’s U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. We define Market Capture as Refining Margin divided by the weighted average 3-2-1 market benchmark crack, net of RINs, expressed as a percentage. The weighted average crack spread, net of RINs, is calculated on Cenovus’s operable capacity-weighted average of the Chicago and Group 3 3-2-1 benchmark market crack spreads, net of RINs.

($ millions)	Three months ended December 31, 2024	Three months ended September 30, 2024
Revenues⁽⁸⁾	6,574	7,218
Purchased Product⁽⁸⁾	6,296	6,854
Gross Margin	278	364
Total Processed Inputs (Mbbls/d)	588.4	568.0
Refining Margin ($/bbl)	5.14	6.97
Operable Capacity (Mbbls/d)	612.3	612.3
Operable Capacity by Regional Benchmark (percent)
Chicago 3-2-1 Crack Spread Weighting	81	81
Group 3 3-2-1 Crack Spread Weighting	19	19
Benchmark Prices and Exchange Rate
Chicago 3-2-1 Crack Spread (US$/bbl)	12.12	18.62
Group 3 3-2-1 Crack Spread (US$/bbl)	12.66	18.95
RINs (US$/bbl)	4.02	3.89
US$ per C$1 – Average	0.715	0.733
Weighted Average Crack Spread, Net of RINs ($/bbl)	11.47	20.18
Market Capture (percent)	45	35

⁸ Found in Note 1 of the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. For the three months ended September 30, 2024, amounts reflect certain revisions. See Note 25 of our December 31, 2024, interim consolidated financial statements.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.

Cenovus contacts

Investors
Investor Relations general line
403-766-7711

Media
Media Relations general line
403-766-7751

The MIL Network –

February 21, 2025

MIL-OSI Economics: Burkhard Balz: Unlocking the potential of cross-border payments – challenges and opportunities

Source: Bank for International Settlements

Check against delivery

1 Introduction

Ladies and Gentlemen,

Thank you very much for the opportunity to speak to you today in a city that has a long history of being a hub for cross-border payments. Not far from here, in the arrondissement that still bears the name of their religious order, the Knights Templar had their headquarters. Founded as a knightly order, they increasingly focussed on their banking business in later years. This included offering services for cross-border payments: pilgrims could deposit their funds at the Templar commandery, receive a letter of credit, and could exchange that letter for cash at their destination. You could say that the Templars were the first European money transfer operator.¹

However, conducting banking business in the Middle Ages could be risky and could – amongst other factors – lead to an inglorious end. A short distance from here, the last Templars were burned at the stake on what is now the Île de la Cité.

2 Current challenges in cross-border payments

While money transfer operators today do not have to fear vengeful monarchs, they face their own challenges when they offer cross-border payments. Although unbelievably fast and cheap compared to medieval standards, today’s cross-border payments lag behind domestic payments when it comes to speed, cost, access and transparency. And when we look at the root causes, images of medieval transport routes come to mind.

The reasons for the discrepancy between domestic and cross-border payments are manifold: first of all, high barriers for market entry result in a lack of competition and long transaction chains. These market entry barriers include high liquidity costs, high regulatory standards as well as the need to build a sufficiently large network to achieve economies of scale. As a result, the long transaction chains with multiple parties involved negatively affect costs, speed and transparency. While the situation has been improving in the last few years, thanks to initiatives like SWIFT gpi, substantial obstacles still remain.

Second, the lack of harmonisation of regulatory standards hinders smooth payment flows across borders. As different countries have different regimes for sanction screening and fighting money laundering and financial crime, payments need to be checked multiple times along the payment chain. Often the chain is interrupted because the relevant information to fulfil regulatory compliance is missing. Sometimes even manual intervention is necessary, which in turn hinders automated end-to-end processing of payments. Of course, this problem is multiplying with longer transaction chains.

Third, there are technical impediments. Insufficiently harmonised standards for message formats, varying opening hours of payment systems and differing technical system specifications can further exacerbate the frictions in cross-border payments.

Last but not least, I would like to address one aspect which is a very specific concern for me. Increased geopolitical tensions could have the potential to hamper efforts to improve cross-border payments by eroding the basis for international coordination: mutual trust. Moving forward, we have to find ways to rebuild that trust again in order to negotiate on fair and equal terms.

3 Towards a multilateral world in payments?

So, bearing in mind that the current infrastructure for global payments is not the optimum: what would be the ideal solution? A truly global system for cross-border payments? This is, in my view, rather unrealistic because it would not only require fully eliminating all current barriers, but also solving emerging issues, such as finding an appropriate governance framework. In order to take a step forward, we might need to grab the opportunities right ahead of us. Regional initiatives and interlinked systems could be the first steps towards a more interconnected global payments ecosystem.

In the Eurosystem, we have already taken a step in this direction. The platforms T2, for wholesale, and TIPS, for real-time retail payments in Europe, enable not only payments in euro, but also in Swedish krona and will also soon support payments in Danish krona. Other examples of successful regional multi-currency solutions are Buna in the Arab region, and the Pan-African Payment and Settlement system (PAPPS).

Thus, while a global payment system may seem like an ideal solution, different regional systems have their advantages as well. They can cater for the specific needs of their region, and it is always easier to coordinate a smaller number of players than a global project.

However, in a payments landscape with a stronger regional focus, the risk of global fragmentation remains. This means there are two paths we have to embark on: on the one hand, we have to make sure that such a multilateral structure ensures the safety, resilience and integrity of the global payment system. On the other hand, different regional parts need to become interoperable with each other. Otherwise, there is the risk that fragmentation will exacerbate the current problems in cross-border payments, as previous harmonisation and standardisation efforts could become obsolete – not only in technical terms, but also with regard to market practices, regulations and strategies.

4 How can central banks address the challenges?

Now, the question that we have to ask ourselves as central bankers is: what can we do? And what better place to ask this question than at the Central Bank Payments Conference?

In 2020, the G20 developed a concrete roadmap to enhance cross-border payments. As part of this process, 19 building blocks with specific action points were developed and quantitative targets were set.

After almost five years, we can already see some improvements in the global payments landscape: together with the market, we have harmonised the ISO 20022 standard further, reducing frictions in the transmission of messages.

Furthermore, central banks around the world have expanded their operating hours, thus reducing delays when sending and settling payments across time zones. Whether that is the first step towards 24/7 operations for real-time gross settlement (RTGS) systems remains to be seen, as this would come with a number of additional challenges. However, I believe it is not a question of “if”, but more “how” because the world of payments has already moved towards 24/7 operations with regard to the new instant payment rails. This will also have an impact on liquidity management in central bank money, which is usually conducted via RTGS systems.

Additionally, there are ongoing initiatives to open up access to central bank payment systems, which could increase competition and thus enhance the efficiency of cross-border payments. Within the Eurosystem, we have already taken a key decision² in this regard and are currently exploring the detailed specifications under which such access can be granted.

Looking ahead, there are a couple of options for central banks to further enhance the efficiency of cross-border payments. For the last couple of years, instant payment systems have been built across the globe. When we interlink these systems, we could enable payment institutions worldwide to quickly expand their payment network. Assuming that we would also find more efficient ways for the currency conversion still needed in this context, we could also lower liquidity costs: this would address two of the main market entry barriers, thus increasing competition.

First trials in that direction have already been completed and interlinking with foreign payment infrastructures is one of the key components of the Eurosystem’s strategy for the coming years.³ If we interlink regional payment infrastructures, we can quickly tackle a number of the frictions we face in cross-border payments today.

In the future, central bank digital currencies (CBDCs) could offer another opportunity, but we have to make sure that they combat fragmentation, rather than increase it. To guarantee this, we have to ensure that they are interoperable with each other and with traditional payment systems. Regarding the digital euro, the ECB and the national central banks of the Eurosystem are in close contact with market players and other central banks outside the euro area. However, while CBDCs might also be a very promising candidate in the cross-border space, in particular given that they are expected to penetrate the relevant markets strongly, it will take time for them to become established. This is because we are still at a nascent phase globally and, very often, priority needs to be given to ensuring a market roll-out in domestic markets, as is our aim for the digital euro.

Instant payment systems may not be “traditional” in terms of age, but they are still an evolution of the “classic” payment rails. Nevertheless, and given the rather diverging global situation, they could be a prime candidate for interlinking with emerging retail CBDCs in other areas: first, both systems are able to operate around the clock in real-time. Second, instant payment systems give instant feedback on whether the payment was successful or not. Third, messages could be tokenised and used to settle smart contracts in more technically innovative infrastructures.

This idea is not only applicable in the retail space. It could also benefit the wholesale area, where innovative solutions could help to address foreign exchange liquidity management, thereby complementing the linkage of RTGS systems, for instance. We at the Bundesbank have trialled those interconnections in the wholesale payments world with our trigger solution, which was one of three interoperability solutions tested as part of the Eurosystem’s exploratory work. The trigger solution links distributed ledger technology (DLT) platforms operated by the market with the “traditional” Eurosystem payment system (TARGET), thus enabling the direct settlement of DLT-based wholesale transactions on participants’ existing RTGS accounts in central bank money.

When we look at past and current efforts, we see that much has been done to harmonise technical standards and to supply innovative solutions. However, in order to truly be successful in enhancing cross-border payments, we should not only look at what the market could do: we must also address the fragmented regulatory landscape as well. Harmonising regulatory standards across borders would remove one of the largest frictions in cross-border payments.

5 Outlook

When we take a look at what we have achieved already and what we still have to achieve by 2027, we could say that reaching the G20 targets will be a very ambitious climb. However, we should not downplay what we have achieved so far. We have made significant progress when it comes to global harmonisation of technical standards and updating payment infrastructures.

Momentum for the interlinking of payment systems has never been as great as it is today and new technologies like DLT, and maybe even AI, can help to further reduce the frictions affecting cross-border payments at present.

Despite the current geopolitical situation, central banks can help alleviate the challenges we face today by supplying policymakers and regulators with a range of options.

As you can see, improving cross-border payments is not as mysterious as a Dan Brown novel, and solving the problems that we face is not as hard as cracking the Da Vinci Code that Tom Hanks tries to crack in the films with the same name. And there are no longer Knights Templar defending the holy grail of efficient cross-border payments.

So, let us continue improving the global payments landscape.

Ladies and gentlemen, thank you for your attention.

MIL OSI Economics –

February 21, 2025
MIL-OSI Economics: Philip N Jefferson: How healthy are US households’ balance sheets?

Source: Bank for International Settlements

Figures accompanying the speech

Thank you, Professor Ho for that kind introduction and for the opportunity to talk to the Vassar community. I am happy to be back on campus. As a teenager in Washington, D.C., I had the very good fortune that a high school counselor pushed me to apply to Vassar College. I was accepted, and I earned my bachelor’s degree here. Attending Vassar opened a wider variety of opportunities to me than I would have otherwise had available. But I encountered one problem: Vassar did not offer any banking or business courses, which is what I wanted to study. So, I enrolled in an economics class, figuring it was the next best thing. I was hooked, and I have been studying economics ever since.

My time here as a student was transformative, and I was honored to have served on Vassar’s board from 2002 to 2022. Vassar is a vibrant intellectual community.

To motivate the topic of today’s speech, let me begin by sharing with you briefly my assessment of the current state of the U.S. economy. The performance of the U.S. economy has been quite strong overall. Last year, gross domestic product grew at a solid pace of 2.5 percent. I see the labor market as being in a solid position, with job creation steady and the unemployment rate at 4 percent in January. Inflation has come down a great deal over the past two and a half years but remains somewhat elevated relative to our 2 percent target. Based on recently released data, it is estimated that the 12-month change in the personal consumption expenditures price index was 2.4 percent in January. Progress toward our 2 percent objective has been slow in the past year. I expect the path of inflation to continue to be bumpy. While a cumulative cut in the policy rate by 100 basis points last year has brought the stance of monetary policy closer to a neutral setting, monetary policy continues to be restrictive. I believe that, with a strong economy and a solid labor market, we can take our time to assess the incoming data to make any further adjustments to our policy rate.

MIL OSI Economics –

February 21, 2025
MIL-OSI Economics: Hajime Takata: Economic activity, prices and monetary policy in Japan

Source: Bank for International Settlements

I. Economic Activity and Prices

I will begin by talking about developments in economic activity and prices. Overseas economies have grown moderately on the whole (Chart 1). Having faced concerns of an economic slowdown around summer 2024, the U.S. economy has since grown firmly, mainly led by private consumption. The projected growth in the U.S. economy for 2025 was revised upward to 2.7 percent in the January 2025 World Economic Outlook (WEO) Update released by the International Monetary Fund (IMF). Recent economic indicators suggest a solid U.S. economy, especially the possibility that the labor market, which triggered the concerns of an economic slowdown, has bottomed out. The Federal Reserve kept its policy interest rate unchanged at the January 2025 Federal Open Market Committee (FOMC) meeting, following three consecutive rate cuts at the previous meetings in the latter half of 2024 (Chart 2). The Summary of Economic Projections of the December 2024 FOMC meeting indicates future rate cuts. Some market participants, however, anticipate a pause in the reductions, partly because of firmness of the U.S. economy and speculation over the new administration. Based on the resilience of the economy, I believe it is more likely that the economy will accelerate again in the near future, making a “touch-and-go landing,” so to speak, rather than a soft landing, although attention continues to be warranted on uncertainties surrounding policy conduct under the new administration. What is more, the U.S. economy has continued to grow for four years at a pace close to 3 percent, a pace above its potential growth rate of around 2 percent, and a relatively high growth rate is also projected for 2025. In this situation, it is necessary to bear in mind the possibility that growth in employment and inflation in the country will accelerate further and to consider how such developments will affect global financial markets.

Japan’s economy has recovered moderately, although some weakness has been seen in part (Chart 3). With regard to the outlook, the economy is likely to keep growing at a pace above its potential growth rate, with overseas economies continuing to grow moderately and as a virtuous cycle from income to spending gradually intensifies against the background of factors such as accommodative financial conditions. Furthermore, I think that momentum for economic recovery could strengthen if overseas economies, particularly the U.S. economy, turn out better than expected.

MIL OSI Economics –

February 21, 2025
MIL-OSI Economics: Michael S Barr: Artificial intelligence – hypothetical scenarios for the future

Source: Bank for International Settlements

Advances in artificial intelligence (AI) have accelerated rapidly over the past few years. It is now commonplace to see autonomous vehicles navigating city streets, and generative AI tools are available on phones and other devices wherever we go. AI innovations make headlines and play a big role in financial markets, and generative AI has the potential to change how we think about productivity, labor markets and the macroeconomy. Today, I will address that question by outlining two hypothetical scenarios for AI’s impact and the implications for businesses, regulators, and society. I will focus my comments on Generative AI, or GenAI, a subset of AI that has seen significant growth and integration into economic activity in just a few short years.

GenAI and Its Adoption

Compared to earlier iterations of AI, GenAI is able to generate content, which allows it to significantly enhance productivity across a range of knowledge-based activities and be used by people without coding skills. GenAI will likely become a “general purpose technology,” with widespread adoption, continuous improvement, and productivity enhancements to a wide range of sectors across the economy. We are already seeing GenAI improve the productivity of its own R&D. There is widespread enthusiasm for GenAI, and survey evidence shows much faster rates of consumer adoption of GenAI already than were seen for the personal computer or the internet. While actual deployment of GenAI is limited to some business functions, and there have been pitfalls along the way, businesses in almost every sector are experimenting with or considering how to make use of the technology.

Firms are also exploring Agentic AI-Gen AI systems that not only produce new content, but are also able to proactively pursue goals by generating innovative solutions and acting upon them at speed and scale. Imagining Agentic AI’s ultimate application, some speculate that we could experience a “country of geniuses in a data center”-a collective intelligence that surpasses human capabilities in problem-solving and collaboration. Some believe Agentic AI has the potential to connect ideas in disparate domains, potentially transforming research and development and society more broadly.

MIL OSI Economics –

February 21, 2025
MIL-OSI Economics: Piero Cipollone: Striking the right balance – the European Central Bank’s balance sheet and its implications for monetary policy

Source: Bank for International Settlements

Slides accompanying the speech

Today I would like to discuss the ECB’s balance sheet and its implications for our monetary policy.

In recent years, the monetary policy debate has mainly focused on our interest rate decisions. This is for good reason. In response to the biggest inflation shock in a generation, we embarked on the fastest tightening of monetary policy in the ECB’s history through rate hikes.

During this tightening phase, we used policy rates as the primary tool for setting our monetary policy stance, while normalising our balance sheet in a measured and predictable way. We initiated the gradual unwinding of our asset purchase programmes and recalibrated our targeted longer-term refinancing operations (TLTROs). As a result, the size of our balance sheet has fallen by more than a quarter from its peak.

Policy rates remain our primary instrument and will therefore continue to attract the most attention. But we should not underestimate the important role that our balance sheet policies have played over time as a component of our overall monetary policy stance and in ensuring the smooth transmission of our monetary policy to the real economy. This still holds true today as we make our monetary policy less restrictive.

Inflation has now fallen substantially to levels close to 2%. Our latest projections foresee it converging towards our target over the medium term, and the risks to the inflation outlook – once sharply skewed to the upside – have now become more balanced.

At the same time, the euro area’s economic recovery remains weak – especially in the near term. The risks to the growth outlook are tilted to the downside and, if they materialise, may derail the recovery, with implications for the inflation outlook.

MIL OSI Economics –

February 21, 2025
MIL-OSI USA: Congressman Krishnamoorthi And Colleagues Demand Answers on Trump Administration’s Massive Cuts To National Institutes of Health Research
Source: United States House of Representatives – Congressman Raja Krishnamoorthi (8th District of Illinois)

WASHINGTON – Last week, Congressman joined a majority of his colleagues in the House Democratic Caucus in a letter to Acting Director of the National Institutes of Health (NIH) that expresses alarm at the illegal decision by President Trump to reduce the reimbursement rate for indirect research costs to 15 percent across the board.

“The dramatically lower indirect cost rate cap will have far-reaching consequences for institutions and researchers nationwide, reducing their capacity to conduct cutting-edge research,” said the lawmakers. “Slashing this funding means cutting financial support for the construction and maintenance of laboratories and high-tech facilities; energy and utility expenses; and the essential safety, security, and other support services researchers need to perform their work. Indirect costs make research possible. Without fair reimbursement for indirect costs, research institutions may be forced to close laboratories, lay off staff, stop clinical trials, and pause research programs. This will force Americans to go without lifesaving and life-extending treatments.”

Read the full letter HERE

BACKGROUND

On February 7, 2025, the Trump administration announced a new policy that would slash the NIH reimbursement rate for indirect research costs to 15 percent. This illegal move would have far-reaching consequences for institutions and researchers nationwide, cutting off financial support for the construction and maintenance of laboratories and high-tech facilities; energy and utility expenses; and the essential safety, security, and other support services researchers need to perform their work. Simply put, indirect costs make research possible.

Without fair reimbursement for indirect costs, research institutions may be forced to close laboratories, lay off staff, stop clinical trials, pause research programs, and redirect resources from critical areas like financial aid. This will force Americans to go without lifesaving and life-extending treatments.

On February 10, 2025, a federal judge in Boston issued a nationwide temporary restraining order on the effort in response to a federal lawsuit filed by hospitals and medicals schools affected by the substantial loss in potential research funds.

Funding for NIH research enjoys support from both sides of the aisle. On May 1, 2024, a bipartisan group of nearly 200 lawmakers called for $51.3 billion in fiscal year 2025 funding for NIH.

READ THE FULL TEXT OF THE LETTER

Dear Acting Director Memoli:

The United States is a global leader in biomedical research and innovation due to National Institutes of Health (NIH) funding. That is why we are alarmed by NIH’s illegal decision to slash the reimbursement rate for indirect research costs to 15 percent across the board.[1]
Because of the NIH, grantee institutions, and a vibrant life sciences sector, the United States has made significant strides in medicine, improving and saving lives with each breakthrough. From 1991 to 2022, the cancer mortality rate in the United States decreased by 34 percent.[2] Annual HIV infections fell by two-thirds from the height of the HIV epidemic, and 65 percent of individuals diagnosed with HIV in 2022 achieved viral suppression.[3] The life expectancy of someone born with cystic fibrosis today is multiple decades longer than it was 30 years ago.[4] Each of these achievements was driven by research conducted at or funded by NIH.
The dramatically lower indirect cost rate cap will have far-reaching consequences for institutions and researchers nationwide, reducing their capacity to conduct cutting-edge research. Slashing this funding means cutting financial support for the construction and maintenance of laboratories and high-tech facilities; energy and utility expenses; and the essential safety, security, and other support services researchers need to perform their work. Indirect costs make research possible. Without fair reimbursement for indirect costs, research institutions may be forced to close laboratories, lay off staff, stop clinical trials, and pause research programs. This will force Americans to go without lifesaving and life-extending treatments.
The supplemental guidance for this misguided and detrimental announcement states that the “United States should have the best medical research in the world.[5]” Cutting vital funding for indirect costs accomplishes the exact opposite. Instead of supporting efforts to cure disease, this policy will severely compromise the United States’ ability to conduct lifesaving research.
A recent Washington Post article described how a researcher who studies how cells communicate faced a setback when the lab’s “cold room” broke down. This cold room is essential for conducting experiments critical to advancing our understanding of colon cancer and developing potential cures. The expenses associated with maintaining cold rooms represent the kind of funding that would be slashed under NIH’s policy, compromising the infrastructure that allows researchers to carry out their vital work.
Research universities generate significant economic activity in communities throughout the country. In 2024, the NIH supported work at over 2,500 institutions in all 50 states, as well as in U.S. Territories and Commonwealths.[6] In Fiscal Year 2023, each dollar of NIH funding generated $2.46 in economic activity.[7] The economic pain caused by slashing NIH research funding will not be contained to university campuses. It will reverberate into communities throughout the country, hurting hardworking families already struggling to keep up with rising costs.
The Further Consolidated Appropriations Act, 2024 was passed by Congress on a bipartisan basis and contains a provision to prevent NIH from unilaterally making changes to how the agency pays for indirect costs. We are encouraged that a federal judge has issued a temporary order halting this controversial decision. However, the uncertainty and disruption caused by these irrational decisions highlight the need for the NIH to immediately rescind this guidance on indirect costs and refrain from taking unilateral action on payment for indirect costs in the future. With this in mind, we request answers to the following questions:
1. What measures has the NIH taken to thoroughly assess the impact of capping indirect cost payments?
2. Were alternative solutions considered that would allow for budgetary savings without compromising research institutions’ ability to conduct research?
3. How does the NIH plan to address concerns from research institutions about potential layoffs and halted studies caused by the new indirect cost rate?
4. How will significantly reducing funds available to maintain critical laboratory infrastructure impact the overall quality and progress of biomedical research and innovation in the United States?
Thank you for your prompt attention to this important matter. We ask that you provide responses to these questions no later than February 28, 2025.

The letter was also signed by Representatives Gabe Amo (RI-01), Diana DeGette (CO-01), Linda Sánchez (CA-38), Lizzie Fletcher (TX-07), Chrissy Houlahan (PA-06), Alma Adams (NC-12), Becca Balint (VT-AL), Nanette Diaz Barragán (CA-44), Joyce Beatty (OH-03), Wesley Bell (MO-01), Ami Bera (CA-06), Donald Beyer (VA-08), Sanford Bishop (GA-02), Suzanne Bonamici (OR-01), Brendan Boyle (PA-02), Julia Brownley (CA-26), Shontel Brown (OH-11), Nikki Budzinski (IL-13), Salud Carbajal (CA-24), André Carson (IN-07), Troy Carter (LA-05), Ed Case (HI-01), Sean Casten (IL-06), Kathy Castor (FL-14), Joaquin Castro (TX-20), Sheila Cherfilus-McCormick (FL-20), Judy Chu (CA-28), Yvette Clarke (NY-09), Emanuel Cleaver (MO-05), Steve Cohen (TN-09), Herbert Conaway (NJ-03), Lou Correa (CA-46), Angie Craig (MN-02), Jasmine Crockett (TX-30), Jason Crow (CO-06), Danny K. Davis (IL-07), Suzan DelBene (WA-01), Christopher Deluzio (PA-17), Mark DeSaulnier (CA-10), Maxine Dexter (OR-03), Debbie Dingell (MI-06), Lloyd Doggett (TX-37), Sarah Elfreth (MD-03), Veronica Escobar (TX-16), Adriano Espaillat (NY-13), Dwight Evans (PA-03), Shomari Figures (AL-02), Bill Foster (IL-11), Valerie Foushee (NC-04), Laura Friedman (CA-30), John Garamendi (CA-08), Jesús G. “Chuy” García (IL-04), Robert Garcia (CA-42), Jimmy Gomez (CA-34), Vicente Gonzalez (TX-23), Maggie Goodlander (NH-02), Josh Gottheimer (NJ-05), Al Green (TX-09), Raul Grijalva (AZ-07), Jahana Hayes (CT-05), Pablo Hernández (PR), James A. Himes (CT-04), Val Hoyle (OR-04), Glenn Ivey (MD-04) Jonathan Jackson (IL-01), Sara Jacobs (CA-51), Pramila Jayapal (WA-07), Henry C. “Hank” Johnson Jr. (GA-04), Sydney Kamlager-Dove (CA-37), Marcy Kaptur (OH-09),William R. Keating (MA-09), Robin L. Kelly (IL-02), Ro Khanna (CA-17), , Greg Landsman (OH-01), John Larson (CT-01), George Latimer (NY-16), Summer Lee (PA-12), Teresa Leger Fernandez (NM-03), Ted Lieu (CA-36), Stephen F. Lynch (MA-08), Seth Magaziner (RI-02), Lucy McBath (GA-06), Sarah McBride (DL-AL), Jennifer L. McClellan (VA-04), Betty McCollum (MN-04), Kristen McDonald Rivet (MI-08), Morgan McGarvey (KY-03), James McGovern (MA-02), LaMonica McIver (NJ-10), Gregory Meeks (NY-05), Robert Menendez (NJ-08), Grace Meng (NY-06), Kweisi Mfume (MD-07), Dave Min (CA-47), Gwen Moore (WI-04), Seth Moulton (MA-06), Frank Mrvan (IN-01), Kevin Mullin (CA-15), Jerrold Nadler (NY-12), Eleanor Holmes Norton (DC), Alexandria Ocasio-Cortez (NY-14), Johnny Olszewski (MD-02), Jimmy Panetta (CA-19), Chris Pappas (NH-01), Brittany Pettersen (CA-07), Chellie Pingree (ME-01), Mark Pocan (WI-02), Nellie Pou (NJ-09), Ayanna Pressley (MA-07), Mike Quigley (IL-05), Delia Ramirez (IL-03), Jamie Raskin (MD-08), Josh Riley (NY-19), Luz M. Rivas (CA-29), Deborah Ross (NC-02), Raul Ruiz (CA-25), Andrea Salinas (OR-06), Mary Gay Scanlon (PA-05), Janice D. Schakowsky (IL-IL-09), Bradley Schneider (IL-10), Hillary J. Scholten (MI-03), Kim Schrier (WA-08), David Scott (GA-13), Robert C. “Bobby” Scott (VA-03), Terri A, Sewell (AL-07), Brad Sherman (CA-32), Mikie Sherrill (NJ-11), Lateefah Simon (CA-12), Eric Sorensen (IL-17), Darren Soto (FL-09), Melanie A. Stansbury (NM-01), Greg Stanton (AZ-04), Haley Stevens (MI-11), Suhas Subramanyam (VA-10), Emilia Sykes (OH-13), Mark Takano (CA-39), Shri Thanedar (MI-13), Bennie Thompson (MS-02), Mike Thompson (CA-04), Dina Titus (NV-01), Jill N. Tokuda (HI-02), Paul Tonko (NY-20), Ritchie Torres (NY-15), Lori Trahan (MA-03), Sylvester Turner (TX-18), Lauren Underwood (IL-14), Gabe Vasquez (NM-02), Marc Veasey (TX-33), Nydia Velázquez (NY-07), Eugene Vindman (VA-07), Debbie Wasserman Schultz (FL-25), and Bonnie Watson Coleman (NJ-12).
MIL OSI USA News –
February 21, 2025
MIL-OSI USA: Reps. Lee, Amodei Introduce Bipartisan Legislation to Expand Health Care for NV Veterans’ Exposed to Radiation and Toxins

Source: United States House of Representatives – Congresswoman Susie Lee (NV-03)

WASHINGTON – Congresswoman Susie Lee (NV-03) and Republican Congressman Mark Amodei (NV-04) introduced bipartisan legislation expanding access to health care for Nevada veterans who have suffered from exposure to radiation and toxic materials as a result of nuclear testing in Nevada. The Presumption for Radiation or Toxin Exposure Coverage for Troops (PROTECT) Act would establish a presumption that certain veterans were exposed to radiation and other toxins at the Nevada Test and Training Range (NTTR).

In 2000, Congress passed the Energy Employee Occupational Illness Compensation Act (EEOICPA) which entitled nuclear weapons workers as well as some Department of Energy personnel to receive free medical treatment and fair financial compensation for specific illnesses they contracted as a result of nuclear weapons production and testing. However, it did not cover veterans not involved in DOE operations or that were otherwise omitted for national security reasons. This bipartisan legislation would expand similar VA benefits to veterans that were assigned to impacted areas of NTTR, offering them the potentially life-saving medical treatment and financial compensation they need and deserve.

“Our men and women in uniform make countless sacrifices to keep our nation safe, so it’s our duty to protect them from invisible enemies like toxic radiation exposure,” said Congresswoman Susie Lee. “I helped pass the bipartisan PACT Act to do just that, and I’m continuing that work to get these veterans the long overdue care they deserve. This legislation will help save lives and bring justice to thousands of veterans who proudly served our country.”

“Veterans, who made such selfless sacrifices for our nation, should not have to move mountains to prove they are suffering as a result of their service,” said Rep. Mark Amodei. “Yet, hundreds of veterans who were stationed at the NTTR during that time frame have been denied the benefits they rightfully earned because exposure to toxic chemicals is microscopic, often referred to as the invisible enemy. I will continue to amplify the indisputable access to care our veterans deserve throughout their post-service lives.”

The legislation is endorsed by The Invisible Enemy, a veterans-rights organization composed of veterans and downwinders fighting for the thousands of military personnel who suffered or died from exposure to toxic radiation and materials from decades of nuclear weapons testing at NTTR. You can read more about their work here.

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MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Casten Statement on Trump’s Power Grab Over FERC, SEC, Independent Agencies

Source: United States House of Representatives – Representative Sean Casten (IL-06)

February 19, 2025

Washington, D.C. — U.S. Congressman Sean Casten (IL-06) released the following statement regarding President Donald Trump’s executive order to strip federal agencies, such as the Federal Energy Regulatory Commission (FERC) and the Securities and Exchange Commission (SEC), of their independence:

“The president’s latest unlawful and unconstitutional executive order is a move straight out of the Project 2025 playbook that serves no other purpose than to bend independent agencies to his personal will, setting aside over a century of precedent that these agencies rise above politics and put the needs of the American people first.

“Stripping an agency like FERC of its independence is a gift to fossil fuel companies that know they cannot financially compete with clean energy on their merits. The president has made exceedingly clear that he prioritizes the wants of energy producers over the needs of energy consumers. His actions will directly lead to higher energy costs for the American people while simultaneously driving up profits for his puppeteers in the oil and gas industry.

“The SEC and other financial institutions have operated independently for decades, ensuring they are focused on safeguarding American investors, consumers, and our financial system. Forcing these agencies to gain approval from the White House before issuing rulemakings does nothing but protect the president’s personal interests while putting American’s hard-earned dollars at risk.”

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MIL OSI USA News –

February 21, 2025
MIL-OSI: Elite Capital & Co. Limited Reinforces Financial Integrity with International Standards

Source: GlobeNewswire (MIL-OSI)

LONDON, Feb. 20, 2025 (GLOBE NEWSWIRE) — Mr. George Matharu, President and CEO of Elite Capital & Co. Limited, announced today that Elite Capital & Co. continues its financial integrity and operational excellence, through adherence to a suite of internationally recognised certifications, including ISO 37001 (Anti-Bribery Management Systems), ISO 27001 (Information Security Management), ISO 9001 (Quality Management Systems), AML Certification (Anti-Money Laundering), and an LEI Number (Legal Entity Identifier). These certifications are not merely accolades but a testament to Elite Capital’s unwavering commitment to fostering transparency, security, and ethical practices in the financial sector.

“At Elite Capital, we understand that trust is the foundation of every successful financial partnership. By embracing these globally recognised standards, we are not only setting a new benchmark for excellence but also empowering governments and institutions to operate with unparalleled confidence and credibility,” Mr. George Matharu said.

The significance of these certifications extends far beyond Elite Capital’s operations. For governments and their affiliated bodies, both locally and internationally, these standards represent a transformative step towards enhancing financial integrity and combating corruption. By partnering with Elite Capital, governments gain access to a financial management partner that prioritises transparency, accountability, and ethical practices, ensuring that public funds are managed with the utmost care and precision.

Dr. Faisal Khazaal, Chairman of Elite Capital & Co. Limited and the Head of Government Future Financing 2030 Program, added, “In today’s interconnected world, financial integrity is not just a regulatory requirement—it is a cornerstone of sustainable development. Elite Capital’s commitment to these global standards reflects our vision of fostering trust and collaboration on both a local and international scale. We are proud to lead by example and support governments and institutions in building resilient financial systems that drive sustainable growth and public trust.”

Elite Capital & Co. Limited is a Financial Management company that provides project-related services, including Management, Consultancy, and Funding, particularly for large infrastructure and mega commercial projects.

Elite Capital & Co. Limited offers a wealth of experience in Banking and Financial transactions and has a range of specialised advisory services for private clients, medium and large corporations as well as governments. It is also the exclusive manager of the Government Future Financing 2030 Program®.

Dr. Faisal Khazaal concluded his statement by saying: “Our mission is to redefine the future of financial management by combining innovation with integrity. As we move forward, we remain committed to delivering exceptional value to our clients, fostering trust, and setting new standards of excellence in the global financial landscape.”

Key Highlights for Governments and Institutions:

1. Enhanced Transparency and Accountability:

Elite Capital’s certifications, particularly ISO 37001 and AML Certification, ensure that all financial operations are conducted with the highest levels of transparency. This is critical for governments seeking to build public trust and demonstrate accountability in managing public funds.

2. Strengthened Financial Systems:

By adhering to ISO 9001 and ISO 27001 standards, Elite Capital helps governments and institutions strengthen their financial systems, ensuring efficiency, security, and resilience against emerging threats.

3. Global Compliance and Collaboration:

The LEI Number and AML Certification facilitate seamless compliance with international regulations, enabling governments to engage in cross-border transactions with confidence and ease.

4. Combating Corruption:

Elite Capital’s Anti-Bribery Management System (ISO 37001) provides governments with a robust framework to combat corruption, ensuring that financial operations are free from unethical practices.

5. Building Public Trust:

By aligning with Elite Capital, governments can reinforce their commitment to ethical practices, fostering trust among citizens, investors, and international partners.

Mr. George Matharu concluded his statement by saying: “This announcement underscores Elite Capital & Co. Limited’s pivotal role in shaping a more transparent, secure, and ethical financial future for governments and institutions worldwide. By setting new standards of excellence, Elite Capital continues to lead the way in redefining global financial integrity.”

Contact Details –

Elite Capital & Co. Limited

33 St. James Square

London, SW1Y4JS

United Kingdom

Telephone: +44 (0) 203 709 5060

SWIFT Code: ELCTGB21

LEI Code: 254900NNN237BBHG7S26

Website: ec.uk.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce9aba72-2c21-4cb1-a4f9-f7303987e0a5

The MIL Network –

February 21, 2025
MIL-OSI: Bitget’s Liquidity Depth Analysis Highlights Competitive Edge in Crypto Trading

Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Feb. 20, 2025 (GLOBE NEWSWIRE) — Bitget, the leading cryptocurrency exchange and Web3 company, has collaborated with CryptoRank to conduct an in-depth comparative analysis of liquidity depth among the top five global centralized cryptocurrency exchanges (CEXs): Binance, Bitget, Bybit, MEXC, and OKX. The research offers valuable insights into each platform’s ability to handle large market orders with minimal price impact, a critical factor for traders seeking efficient trade execution.

Top key findings of the report highlight Spot and Futures market liquidity. Bitget secured a second position among the top five global exchanges, showing substantial liquidity depth in major trading pairs such as BTC/USDT and ETH/USDT. This positions Bitget as a competitive choice for traders seeking efficient trade execution in high-volume markets.

In the futures market, Bitget ranked fourth with strong liquidity across key pairs, reflecting its growing presence and capability in the derivatives trading sector.

The analysis evaluated liquidity depth at around 2% price range from the mid-market price, a critical metric for assessing an exchange’s ability to handle large market orders with minimal slippage. Bitget’s performance in this area highlights its dedication to maintaining a liquid and stable trading environment for its users.

The study reveals significant variations in liquidity depth across major centralized crypto exchanges in both spot and futures markets. Binance’s dominance in the spot market and MEXC’s leadership in the futures market highlight the diverse strengths of these platforms. Bitget’s strong performance in both markets aligns with the exchange’s market performance, which has made it the fastest-growing CEX in the top 10. These insights assist investors in selecting the most suitable exchange for their trading activities, considering factors such as liquidity depth and market focus.

Recently, Forbes listed Bitget as one of the top most trusted crypto exchanges worldwide. In 2024, Bitget expanded its user base by 400%, from 20M in January to 100M in December. Spot trading surged from $160B in Q1 to $600B in Q4; daily volumes doubled to $20B. The high-paced updates and top performance amongst CEXs has pushed Bitget to the top #3 exchanges in derivatives trading while strengthening its positioning amongst the top #5 on Spot. Keeping the momentum going, Bitget continues to expand its offerings and improve platform features, maintaining high liquidity to support seamless trading for its vast user base.

For more information, please find the Cryptorank report here.

About Bitget

Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 100 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, token swap, NFT Marketplace, DApp browser, and more.

Bitget is at the forefront of driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM markets, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.

For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet

For media inquiries, please contact: media@bitget.com

Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ad78461a-18f9-42bb-8720-fab1af7d2f47

The MIL Network –

February 21, 2025
MIL-OSI Global: Why the US return to tariffs and protectionism ‘reeks of hypocrisy’ – podcast

Source: The Conversation – UK – By Gemma Ware, Host, The Conversation Weekly Podcast, The Conversation

Amani A/Shutterstock

When Donald Trump imposed sweeping tariffs during his first term as US president, it sparked a trade war with China. As the Trump administration ratchets up its threat to tax imports from its allies and economic rivals alike, the world is bracing for another wave of costly economic disruption.

This protectionist shift is all the more remarkable given how the US championed trade liberalisation for decades.

So what does it actually take for a country to use protectionism to grow its economy? Some developing countries have successfully used tariffs to do so, while others have struggled. In this episode of The Conversation Weekly podcast, we talk to Jostein Hauge, a development economist at the University of Cambridge, about who wins and who loses from tariffs and protectionism.

The main argument against taxing imports through tariffs is that the higher costs of imported goods will be passed onto consumers. The main argument in favour is that tariffs can help to protect a country’s domestic economy, explains Hauge:

By using tariffs, you can, if they are used effectively, and if they’re successful, help domestic firms become better at producing what they’re producing and eventually become competitive in the world economy. Sometimes that’s successful, other times that’s not successful. It can also be an effective way of raising taxes, especially for countries that don’t have a lot of tax revenue, especially developing countries.

A number of developing countries successfully used tariffs and other forms of protectionism to grow their economies in the 1950s and 1960s, as Hauge explains:

South Korea gradually went from being a low-income, low-tech economy towards becoming extremely important players in global industries like electronics, automotive and steel.

The US has also used tariffs throughout its history, with varying degrees of success. It was the most protectionist country in the world in the 1800s, using tariffs to grow its economy. But the Smoot-Hawley Act in 1930, which introduced a range of taxes on imports to the US, actually contributed to worsening the Great Depression.

From the 1970s, however, the US aggressively pushed for trade liberalisation and backed the creation of the World Trade Organization in the 1990s. That’s why Hauge says the current return to US protectionism, which began during the first Trump administration and continued under Biden, “reeks of hypocrisy”.

When rich countries were ahead in the 1970s, 1980s and 1990s, it made sense for them to preach the virtues of free trade to the rest of the world. That is also why we’re seeing this protectionist turn right now, especially in the United States, but also to some degree in Europe, because now certain countries are starting to become competitive once again. In particular, China is now challenging the economic power of the United States, especially within a lot of manufactured goods, so the United States is now turning away from this doctrine of free trade, saying actually protectionism is useful.

Listen to the conversation with Jostein Hauge on The Conversation Weekly podcast, which also includes an introduction from Tracy Walsh, economy and business editor at The Conversation US.

This episode of The Conversation Weekly was written and produced by Mend Mariwany with assistance from Katie Flood and Gemma Ware, Sound design was by Michelle Macklem, and theme music by Neeta Sarl.

Clips in this episode from CN N, Bloomberg Television, BBC News, CBS News and NBC News.

Listen to The Conversation Weekly via any of the apps listed above, download it directly via our RSS feed or find out how else to listen here.

Jostein Hauge 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. Why the US return to tariffs and protectionism ‘reeks of hypocrisy’ – podcast – https://theconversation.com/why-the-us-return-to-tariffs-and-protectionism-reeks-of-hypocrisy-podcast-250329

MIL OSI – Global Reports –

February 21, 2025
MIL-OSI United Kingdom: Council welcomes jail term for payments cheat

Source: City of Coventry

A Coventry woman has been jailed after fraudulently claiming over £17,000 in financial support to care for her mother up to two years after she had died.

Agnieszka Macugowska, aged 45, was jailed for a total of 31 months when she appeared at the Crown Court sitting at Warwick.

The court heard that her mother had a care plan with Coventry City Council that started in 2015.

She received a cash payment to cover support for 15 hours and 45 minutes a week, which she managed with support from her daughter. The payment started at £184.28 per week which in April 2019 was raised to £191.36 per week.

In 2020, when the Council failed to receive information so it could continue to monitor payments, Agnieszka Macugowska told them her mother still lived in Coventry, but had changed doctors and travelled abroad for medical treatment.

She then provided information to the Council to support the use of the direct payment, including timesheets completed by her mother’s carer and her insurance certificate.

The Council then carried out a home visit in late 2020 where they met Agnieszka Macugowska, along with a woman introduced as her mother and a woman presented as her carer.

However, following further inquiries, the Council found the mother had, in fact, died in November 2018 whilst abroad.

In welcoming the sentence, Cllr Abdul Salam Khan, Deputy Leader of Coventry City Council, and Cabinet Member for Policing and Equalities, said:

“There are so many people in our city who are going through tough times caring for loved ones, and that brings an incredible emotional and financial strain.

“The Council works with relatives to give the support they need, but sadly there are some unscrupulous people who think they can exploit the system and secure financial gain for themselves. This does not just come at the expense of the Council, but also for others struggling to make ends meet.

“It is well known that Coventry, like all local authorities, is facing severe pressure on its budget, and a lot of that is because of the increasing costs in caring for adults and children and supporting the most vulnerable in our community.

“It is a responsibility we take very seriously and we work hard to help as many as we can, and we will not stand by and let the system be exploited. As in this case, we will investigate and ensure those who steal from others are prosecuted.

“We welcome the finding of this case and the sentence imposed. Hopefully it will serve to show others the severe consequences they face if they break the law.”

The falsely claimed sum of more than £17,000 has successfully been recovered by the Council.

MIL OSI United Kingdom –

February 21, 2025
MIL-OSI: MEXC Launches PAIN (PAIN) Airdrop+ with Spot and Futures Trading, Offering 270,000 USDT in Bonuses
Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Feb. 20, 2025 (GLOBE NEWSWIRE) — MEXC, the world’s leading cryptocurrency trading platform, announced the listing of the PAIN (PAIN) on both spot and futures markets, scheduled for February 20, 2025, at 01:05 (UTC). The launch on MEXC will be accompanied by Airdrop+ rewards of 270,000 USDT.

Unleashes the Power of PAIN: The Meme That Took Over the Internet Goes Crypto

Inspired by the legendary “Hide the Pain Harold” meme, which has entertained the internet for over 14 years, PAIN represents more than just a token—it embodies resilience, humor, and the idea that what doesn’t kill you makes you stronger. PAIN’s meme identity is rooted in the viral images of András István Arató, a retired Hungarian electrical engineer whose iconic awkward yet polite smile became a universal symbol of concealed struggle. Over the years, Arató has embraced his internet fame, securing brand deals with Coca-Cola, starring in TV shows, and even hosting Hungary’s annual sports awards. Now, PAIN makes its mark in the crypto world, connecting its long-standing internet legacy with the rapidly growing meme coin sector.

As a global leader in digital asset trading, MEXC’s listing of PAIN highlights the growing influence of meme culture in Web3 and the expanding role of community-driven tokens. By offering strong liquidity, broad market access, and dedicated trading support, MEXC provides the perfect environment for PAIN to thrive.

To celebrate the listing, MEXC is also launching a $270,000 reward pool across two major activities, allowing users to engage with PAIN, explore the meme-powered economy, and be part of one of the most entertaining narratives in the digital asset space.

Celebrate the PAIN Launch with a prize pool of 270,000 USDT

In a significant show of support for PAIN and its expansive ecosystem, MEXC is set to list the new PAIN token. This move not only underscores MEXC’s commitment to pioneering blockchain projects but also connects users with a dynamic network that fuels cutting-edge initiatives.

MEXC, known for quickly listing trending tokens, expands its offerings with PAIN (PAIN). The PAIN/USDT trading market officially launched in the Innovation Zone on February 20, 2025, at 01:05 (UTC), followed by the introduction of the PAIN USDT perpetual futures at 01:23 (UTC), offering adjustable leverage from 1x to 50x with both cross and isolated margin modes.

To celebrate the listing of PAIN (PAIN) on MEXC Spot and Futures on February 20, MEXC is launching a series of exclusive activities starting on February 20, 2025, at 07:00 (UTC). Participants will have the chance to win USDT bonuses, and other exciting rewards, with opportunities available for both new and experienced users.

These activities include:
- Event 1: Airdrop+
Benefit 1: Deposit and share 200,000 USDT in Futures bonus (New user exclusive).
Benefit 2: Futures Challenge — Trade to share 50,000 USDT in Futures bonus (Open all users).
Benefit 3: Invite new users and share 20,000 USDT in Futures bonus (Open to all users).
- Event 2: Spread the Word and Win 1,000 USDT in Bonus.
Your Easiest Way to Trending Tokens

MEXC aims to become the go-to platform offering the widest range of valuable crypto assets. The platform has grown its user base to 30 million by providing a diverse selection of tokens, high-frequency airdrops, and simple participation processes. In 2024, MEXC launched a total of 2,376 new tokens, including 1,716 initial listings and 605 memecoins, with total airdrop rewards exceeding $136 million.

About MEXC

Founded in 2018, MEXC is committed to being “Your Easiest Way to Crypto”. Serving over 30 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, frequent airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.
MEXC Official Website｜ X ｜ Telegram ｜How to Sign Up on MEXC

Contact:
Lucia Hu
PR Manager
lucia.hu@mexc.com

Disclaimer: This content is provided by MEXC. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a0aa8f2-bfba-4145-9b11-4629db3d330c

The MIL Network –
February 20, 2025
MIL-OSI United Kingdom: Pledge on waiting times exceeded
Source: Scottish Government

“Our plan is delivering” – Health Secretary.

The pledge to carry out 64,000 surgeries and procedures with additional funding by the end of March 2025 has been exceeded, new figures released to Parliament reveal.

More than 75,500 NHS surgeries and procedures were delivered between April 2024 the end of January 2025, around 11,500 more than pledged.

Funded through £30 million investment, the targeted activity has resulted in significant reductions in inpatient/daycase waiting lists across a number of health board areas and specialities. Between April 2024 and September 2024 there has been:
- a 44% decrease in Imaging waits at NHS Fife
- a 22% decrease in Urology waits at NHS Forth Valley.
- a 19% decrease in Ear, Nose and Throat waits at NHS Highland
- an almost 15% decrease in Ophthalmology waits at NHS Lanarkshire
- an almost 10% decrease in General Surgery waits at NHS Lothian.
The targeted funding has also helped reduce the total national waiting list size between April 2024 and September 2024 for imaging by 7.5% and for scopes by 7.3%.

In April 2024 the Scottish Government funded NHS boards to deliver 64,000 procedures (40,000 diagnostic procedures, 12,000 surgeries and 12,000 new outpatient appointments) by March 2025. By January 2025, 56,500 diagnostic procedures, almost 9,200 surgeries, and over 9,800 outpatient appointments took place.

The Scottish Government will continue to monitor the impact of the funding until the end of March 2025 with boards reporting they expect to see further progress.

Latest published data also shows a rise in planned care activity between April 2024 and September 2024 compared to the same period in 2023 – with an 8.3% increase in inpatient/daycase procedures and a 2.5% increase for new outpatient appointments.

Health Secretary Neil Gray said:

“I am pleased to see health boards are now reporting the tangible impacts of our investment to clear the longest waits. Our plan is delivering and we are seeing progress across a number of speciality areas. I thank staff for their outstanding effort in carrying out this additional activity which is having a positive impact on people’s lives.

“This is a good start, however, we know many people are still waiting too long. We are determined do more and our 2025-26 Budget, with cross-party support now agreed, will provide a record £21.7 billion for health – including £200 million to help clear waiting list backlogs, improve capacity and reduce delayed discharge.

“This record funding will help us ensure no one waits more than 12 months for a new outpatient appointment or inpatient/daycase treatment by March 2026. We will also deliver over 150,000 extra appointments and procedures in the coming year which will ensure people receive the care they need as quickly as possible.”

Background

In April 2024, the Scottish Government announced £30 million, allocated for Q1 of this financial year, to tackle waiting times. The Scottish Government pledged to deliver around; 12,000 additional procedures, 40,000 extra diagnostic procedures and 12,000 new outpatient appointments.

NHS Boards have provided regular management progress reports to Scottish Government on the activity delivered through the additional funding. These reports are the data source for the 75,500 figure.

Stage of treatment waiting times – Inpatients, day cases and new outpatients quarter ending 30 September 2024

Diagnostic waiting times – Waits for key diagnostic tests 26 November 2024

Written question and answer: S6W-35115 | Scottish Parliament Website
MIL OSI United Kingdom –
February 20, 2025

MIL-OSI: Bilibili Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SHANGHAI, China, Feb. 20, 2025 (GLOBE NEWSWIRE) — Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter and Fiscal Year 2024 Highlights:

Total net revenues were RMB7.73 billion (US$1,059.6 million) in the fourth quarter and RMB26.83 billion (US$3,675.9 million) in 2024, representing increases of 22% and 19% year over year, respectively.
- Advertising revenues were RMB2.39 billion (US$327.2 million) in the fourth quarter and RMB8.19 billion (US$1,121.9 million) in 2024, representing increases of 24% and 28% year over year, respectively.
- Mobile games revenues were RMB1.80 billion (US$246.3 million) in the fourth quarter and RMB5.61 billion (US$768.6 million) in 2024, representing increases of 79% and 40% year over year, respectively.
Gross profit was RMB2.79 billion (US$382.0 million) in the fourth quarter and RMB8.77 billion (US$1,202.0 million) in 2024, representing increases of 68% and 61% year over year, respectively. Gross profit margin reached 36.1% in the fourth quarter and 32.7% in 2024, improving from 26.1% in the fourth quarter of 2023 and 24.2% in the year of 2023, respectively.
Net profit was RMB88.9 million (US$12.2 million) for the fourth quarter, compared with net loss of RMB1.30 billion in the same period last year. For 2024, net loss was RMB1.36 billion (US$186.8 million), narrowing by 72% year over year.
Adjusted net profit¹ was RMB452.0 million (US$61.9 million) for the fourth quarter, compared with an adjusted net loss of RMB555.8 million in the same period last year. For 2024, adjusted net loss was RMB39.0 million (US$5.3 million), narrowing by 99% year over year.
Operating cash flow was RMB1.40 billion (US$191.9 million) for the fourth quarter and RMB6.01 billion (US$824.0 million) for 2024, compared with RMB640.4 million in the fourth quarter of 2023 and RMB266.6 million in the year of 2023, respectively.
Average daily active users (DAUs) were 103.0 million in the fourth quarter, compared with 100.1 million in the same period last year.

“We closed 2024 on a strong note, achieving our first quarter of GAAP profitability—a milestone reflecting the value of our community and our relentless effort to enhance our commercialization efficiency,” said Mr. Rui Chen, chairman and chief executive officer of Bilibili. “In the fourth quarter, our DAUs and MAUs reached 103 million and 340 million, respectively, with users spending an average of 99 minutes daily on our platform. Throughout the year, we advanced our commercialization strategy and improved our products to meet users’ evolving content and consumption needs. For 2024, our total net revenues grew 19% year-over-year to RMB26.83 billion, driven by strong advertising and mobile games businesses, which saw revenue increases of 28% and 40%, both on year-over-year basis, respectively. We are also very encouraged by the emergence of new open-source AI models, making AI solutions accessible and cost-effective. Leveraging our high-quality and exclusive data assets, we expect to benefit even more from this remarkable revolution, unleashing greater value from our unique community.”

Mr. Sam Fan, chief financial officer of Bilibili, said, “Strong growth in our high-margin advertising and mobile games businesses drove total net revenues up by 22% year over year in the fourth quarter. Gross profit surged by 68% year-over-year in the fourth quarter, leading to a 10 percentage-point increase in our gross profit margin to 36.1%. Meanwhile, we generated RMB6.01 billion in operating cash flow for the full year 2024. We also enhanced shareholder returns by repurchasing outstanding ADSs and convertible senior notes totaling US$864.8 million during the year. Looking ahead, we are determined to further unlock the value embedded within our community with more efficient commercialization products and services to drive sustainable profitability over the long run.”

Fourth Quarter 2024 Financial Results

Total net revenues. Total net revenues were RMB7.73 billion (US$1,059.6 million), representing an increase of 22% from the same period of 2023.

Advertising. Revenues from advertising were RMB2.39 billion (US$327.2 million), representing an increase of 24% from the same period of 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB1.80 billion (US$246.3 million), representing an increase of 79% from the same period of 2023, mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia launched in 2024.

Value-added services (VAS). Revenues from VAS were RMB3.08 billion (US$422.4 million), representing an increase of 8% from the same period of 2023, led by increases in revenues from other value-added services and premium membership.

IP derivatives and others. Revenues from IP derivatives and others were RMB464.9 million (US$63.7 million), representing a decrease of 16% from the same period of 2023.

Cost of revenues. Cost of revenues was RMB4.95 billion (US$677.6 million), representing an increase of 5% from the same period of 2023. The increase was mainly due to higher revenue-sharing costs and was partially offset by lower content costs. Revenue-sharing costs, a key component of cost of revenues, were RMB3.17 billion (US$434.2 million), representing an increase of 12% from the same period of 2023, mainly due to the increase of mobile games-related revenue-sharing costs.

Gross profit. Gross profit was RMB2.79 billion (US$382.0 million), representing an increase of 68% from the same period of 2023, mainly attributable to the growth in total net revenues and the decrease in costs related to platform operations, as the Company enhanced its monetization efficiency.

Total operating expenses. Total operating expenses were RMB2.66 billion (US$364.7 million), representing a decrease of 10% from the same period of 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB1.24 billion (US$169.4 million), representing a 10% increase from the same period of 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB505.9 million (US$69.3 million), remaining flat compared with the same period of 2023.

Research and development expenses. Research and development expenses were RMB919.3 million (US$125.9 million), representing a 31% decrease from the same period of 2023. The decrease was mainly attributable to the one-off termination expenses of certain game projects that occurred in the fourth quarter of 2023.

Profit/(loss) from operations. Profit from operations was RMB126.4 million (US$17.3 million), compared with a loss of RMB1.30 billion from the same period of 2023.

Adjusted profit/(loss) from operations¹. Adjusted profit from operations was RMB463.1 million (US$63.4 million), compared with an adjusted loss from operations of RMB635.1 million from the same period of 2023.

Total other (expenses)/income, net. Total other expenses were RMB61.0 million (US$8.4 million), compared with total other income of RMB13.1 million in the same period of 2023.

Income tax benefit/(expense). Income tax benefit was RMB23.5 million (US$3.2 million), compared with income tax expense of RMB5.1 million in the same period of 2023.

Net profit/(loss). Net profit was RMB88.9 million (US$12.2 million), compared with net loss of RMB1.30 billion from the same period of 2023.

Adjusted net profit/(loss)¹. Adjusted net profit was RMB452.0 million (US$61.9 million), compared with an adjusted net loss of RMB555.8 million in the same period of 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net profit per share were RMB0.22 (US$0.03) and RMB0.21 (US$0.03) each, compared with basic and diluted net loss per share of RMB3.13 each in the same period of 2023. Adjusted basic and diluted net profit per share were RMB1.08 (US$0.15) and RMB1.07 (US$0.15) each, compared with an adjusted basic and diluted net loss per share of RMB1.34 each in the same period of 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB1.40 billion (US$191.9 million), compared with net cash provided by operating activities of RMB640.4 million in the same period of 2023.

Fiscal Year 2024 Financial Results

Total net revenues. Total net revenues were RMB26.83 billion (US$3.68 billion), representing an increase of 19% from 2023.

Advertising. Revenues from advertising were RMB8.19 billion (US$1,121.9 million), representing an increase of 28% from 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB5.61 billion (US$768.6 million), representing an increase of 40% from 2023. The increase was mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia.

Value-added services (VAS). Revenues from VAS were RMB11.00 billion (US$1.51 billion), representing an increase of 11% from 2023, led by an increase in revenues from live broadcasting and other value-added services.

IP derivatives and others. Revenues from IP derivatives and others were RMB2.03 billion (US$278.5 million), representing a decrease of 7% from 2023.

Cost of revenues. Cost of revenues was RMB18.06 billion (US$2.47 billion), representing an increase of 6% from 2023. The increase was mainly due to increased revenue sharing costs and server and bandwidth costs. Revenue-sharing costs, a key component of cost of revenues, were RMB10.80 billion (US$1.48 billion), representing an increase of 14% from 2023.

Gross profit. Gross profit was RMB8.77 billion (US$1,202.0 million), representing an increase of 61% from 2023, primarily as a result of the growth in total net revenues and the decrease in costs related to platform operations, as the Company enhanced its monetization efficiency.

Total operating expenses. Total operating expenses were RMB10.12 billion (US$1.39 billion), representing a decrease of 4% from 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB4.40 billion (US$603.0 million), representing a 12% increase from 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB2.03 billion (US$278.3 million), representing a 4% decrease from 2023. The decrease was primarily attributable to a decrease in general and administrative personnel headcount in 2024.

Research and development expenses. Research and development expenses were RMB3.69 billion (US$504.9 million), representing an 18% decrease from 2023. The decrease was mainly attributable to a decrease in research and development personnel headcount in 2024 and the one-off termination expenses of certain game projects that occurred in the fourth quarter of 2023.

Loss from operations. Loss from operations was RMB1.34 billion (US$184.1 million), narrowing by 73% from 2023.

Adjusted loss from operations¹. Adjusted loss from operations was RMB60.8 million (US$8.3 million), narrowing by 98% from 2023.

Total other (expenses)/income, net. Total other expenses were RMB56.2 million (US$7.7 million), compared with total other income of RMB331.2 million in 2023. The change was primarily attributable to losses of RMB38.6 million from the repurchase of convertible senior notes in 2024, compared with gains of RMB292.2 million in 2023.

Income tax benefit/(expense). Income tax benefit was RMB36.5 million (US$5.0 million), compared with income tax expense of RMB78.7 million in 2023.

Net loss. Net loss was RMB1.36 billion (US$186.8 million), narrowing by 72% from 2023.

Adjusted net loss¹. Adjusted net loss was RMB39.0 million (US$5.3 million), narrowing by 99% from 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net loss per share were RMB3.23 (US$0.44) each, compared with RMB11.67 each in 2023. Adjusted basic and diluted net loss per share were RMB0.05 (US$0.01) each, compared with RMB8.29 each in 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB6.01 billion (US$824.0 million), compared with net cash provided by operating activities of RMB266.6 million for 2023.

Cash and cash equivalents, time deposits and short-term investments. As of December 31, 2024, the Company had cash and cash equivalents, time deposits and short-term investments of RMB16.54 billion (US$2.27 billion).

Share Repurchase Program

On November 14, 2024, the Company announced that its board of directors had approved a share repurchase program of up to US$200 million of its publicly traded securities over a 24-month period. As of December 31, 2024, the Company had repurchased a total of approximately 0.84 million ADSs under this authorized program for a total cost of US$16.4 million.

Repurchase of Convertible Senior Notes

In November 2024, the Company completed the repurchase right offer for its 0.50% Convertible Senior Notes due 2026 (the “December 2026 Notes”). An aggregate principal amount of US$419.1 million (RMB3.01 billion) of the December 2026 Notes was validly surrendered and repurchased with an aggregate cash consideration of US$419.1 million (RMB3.01 billion). After completion of this transaction, the aggregate outstanding principal amount of the April 2026 Notes, the 2027 Notes and the December 2026 Notes was US$13.4 million (RMB96.4 million).

_¹ _{Adjusted profit/(loss) from operations, adjusted net profit/(loss), and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”}

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on February 20, 2025 (8:00 PM Beijing/Hong Kong Time on February 20, 2025). Details for the conference call are as follows:

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.

Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com, and a replay of the webcast will be available following the session.

About Bilibili Inc.

Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.

For more information, please visit: http://ir.bilibili.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as adjusted profit/(loss) from operations, adjusted net profit/(loss), adjusted net profit/(loss) per share and per ADS, basic and diluted and adjusted net profit/(loss) attributable to the Bilibili Inc.’s shareholders in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisitions, gain/loss on fair value change in investments in publicly traded companies, gain/loss on repurchase of convertible senior notes, and termination expenses of certain game projects. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred to could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com

BILIBILI INC. Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data)

	For the Three Months Ended						For the Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2024		2024		2023		2024
	RMB		RMB		RMB		RMB		RMB

Net revenues:
Value-added services (VAS)	2,857,079		2,821,269		3,083,071		9,910,080		10,999,137
Advertising	1,929,164		2,094,427		2,388,673		6,412,040		8,189,175
Mobile games	1,006,858		1,822,609		1,797,537		4,021,137		5,610,323
IP derivatives and others	555,995		567,315		464,880		2,184,730		2,032,890
Total net revenues	6,349,096		7,305,620		7,734,161		22,527,987		26,831,525
Cost of revenues	(4,689,114	)	(4,758,434	)	(4,945,945	)	(17,086,122	)	(18,057,562	)
Gross profit	1,659,982		2,547,186		2,788,216		5,441,865		8,773,963

Operating expenses:
Sales and marketing expenses	(1,125,464	)	(1,202,407	)	(1,236,593	)	(3,916,150	)	(4,401,655	)
General and administrative expenses	(511,906	)	(505,386	)	(505,861	)	(2,122,432	)	(2,031,063	)
Research and development expenses	(1,327,282	)	(906,072	)	(919,321	)	(4,467,470	)	(3,685,214	)
Total operating expenses	(2,964,652	)	(2,613,865	)	(2,661,775	)	(10,506,052	)	(10,117,932	)
(Loss)/profit from operations	(1,304,670	)	(66,679	)	126,441		(5,064,187	)	(1,343,969	)

Other income/(expenses):
Investment loss, net (including impairments)	(199,004	)	(70,957	)	(283,191	)	(435,644	)	(470,081	)
Interest income	126,450		91,279		110,150		542,472		434,980
Interest expense	(29,181	)	(17,824	)	(19,986	)	(164,927	)	(89,193	)
Exchange gains/(losses)	4,848		(5,909	)	10,529		(35,575	)	(68,715	)
Debt extinguishment (loss)/gain	–		–		(17,649	)	292,213		(38,629	)
Others, net	110,007		(18,134	)	139,107		132,640		175,412
Total other income/(expenses), net	13,120		(21,545	)	(61,040	)	331,179		(56,226	)
(Loss)/profit before income tax	(1,291,550	)	(88,224	)	65,401		(4,733,008	)	(1,400,195	)
Income tax (expense)/benefit	(5,140	)	8,419		23,533		(78,705	)	36,544
Net (loss)/profit	(1,296,690	)	(79,805	)	88,934		(4,811,713	)	(1,363,651	)
Net loss/(profit) attributable to noncontrolling interests	206		290		1,026		(10,608	)	16,851
Net (loss)/profit attributable to the Bilibili Inc.’s shareholders	(1,296,484	)	(79,515	)	89,960		(4,822,321	)	(1,346,800	)
Net (loss)/profit per share, basic	(3.13	)	(0.19	)	0.22		(11.67	)	(3.23	)
Net (loss)/profit per ADS, basic	(3.13	)	(0.19	)	0.22		(11.67	)	(3.23	)
Net (loss)/profit per share, diluted	(3.13	)	(0.19	)	0.21		(11.67	)	(3.23	)
Net (loss)/profit per ADS, diluted	(3.13	)	(0.19	)	0.21		(11.67	)	(3.23	)
Weighted average number of ordinary shares, basic	414,793,013		417,849,446		417,829,038		413,210,271		416,470,256
Weighted average number of ADS, basic	414,793,013		417,849,446		417,829,038		413,210,271		416,470,256
Weighted average number of ordinary shares, diluted	414,793,013		417,849,446		424,208,294		413,210,271		416,470,256
Weighted average number of ADS, diluted	414,793,013		417,849,446		424,208,294		413,210,271		416,470,256

The accompanying notes are an integral part of this press release.

BILIBILI INC. Notes to Unaudited Condensed Financial Information (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Year Ended
	December 31,	September 30,	December 31,		December 31,	December 31,
	2023	2024	2024		2023	2024
	RMB	RMB	RMB		RMB	RMB


Share-based compensation expenses included in:
Cost of revenues	15,014	26,781	25,350		63,724	84,178
Sales and marketing expenses	13,960	16,015	18,524		56,649	60,460
General and administrative expenses	150,226	133,825	137,513		596,950	568,194
Research and development expenses	87,859	120,490	113,649		415,321	403,380
Total	267,059	297,111	295,036		1,132,644	1,116,212

BILIBILI INC. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per share data)
	December 31,	December 31,
	2023	2024
	RMB	RMB

Assets
Current assets:
Cash and cash equivalents	7,191,821	10,249,382
Time deposits	5,194,891	3,588,475
Restricted cash	50,000	50,000
Accounts receivable, net	1,573,900	1,226,875
Prepayments and other current assets	2,063,362	1,934,788
Short-term investments	2,653,065	2,706,535
Total current assets	18,727,039	19,756,055
Non-current assets:
Property and equipment, net	714,734	589,227
Production cost, net	2,066,066	1,851,207
Intangible assets, net	3,627,533	3,201,012
Goodwill	2,725,130	2,725,130
Long-term investments, net	4,366,632	3,911,592
Other long-term assets	931,933	664,277
Total non-current assets	14,432,028	12,942,445
Total assets	33,159,067	32,698,500
Liabilities
Current liabilities:
Accounts payable	4,333,730	4,801,416
Salary and welfare payables	1,219,355	1,599,482
Taxes payable	345,250	428,932
Short-term loan and current portion of long-term debt	7,455,753	1,571,836
Deferred revenue	2,954,088	3,802,307
Accrued liabilities and other payables	1,795,519	2,558,830
Total current liabilities	18,103,695	14,762,803
Non-current liabilities:
Long-term debt	646	3,264,153
Other long-term liabilities	650,459	567,631
Total non-current liabilities	651,105	3,831,784
Total liabilities	18,754,800	18,594,587

Total Bilibili Inc.’s shareholders’ equity	14,391,900	14,108,397
Noncontrolling interests	12,367	(4,484	)
Total shareholders’ equity	14,404,267	14,103,913

Total liabilities and shareholders’ equity	33,159,067	32,698,500

BILIBILI INC. Unaudited Selected Condensed Consolidated Cash Flows Data (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Year Ended
	December 31,	September 30,	December 31,	December 31,	December 31,
	2023	2024	2024	2023	2024
	RMB	RMB	RMB	RMB	RMB

Net cash provided by operating activities	640,396	2,225,629	1,400,988	266,622	6,014,854

BILIBILI INC. Unaudited Reconciliations of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data)

	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2023			2024			2024			2023			2024
	RMB			RMB			RMB			RMB			RMB

(Loss)/Profit from operations		(1,304,670	)		(66,679	)		126,441			(5,064,187	)		(1,343,969	)
Add:
Share-based compensation expenses		267,059			297,111			295,036			1,132,644			1,116,212
Amortization expense related to intangible assets acquired through business acquisitions		47,734			41,776			41,581			191,770			166,909
Termination expenses of certain game projects		354,811			–			–			354,811			–
Adjusted (loss)/profit from operations		(635,066	)		272,208			463,058			(3,384,962	)		(60,848	)

Net (loss)/profit		(1,296,690	)		(79,805	)		88,934			(4,811,713	)		(1,363,651	)
Add:
Share-based compensation expenses		267,059			297,111			295,036			1,132,644			1,116,212
Amortization expense related to intangible assets acquired through business acquisitions		47,734			41,776			41,581			191,770			166,909
Income tax related to intangible assets acquired through business acquisitions		(5,563	)		(5,406	)		(5,358	)		(22,376	)		(21,578	)
Loss/(Gain) on fair value change in investments in publicly traded companies		76,839			(17,778	)		14,177			32,964			24,524
Loss/(Gain) on repurchase of convertible senior notes		–			–			17,649			(292,213	)		38,629
Termination expenses of certain game projects		354,811			–			–			354,811			–
Adjusted net (loss)/profit		(555,810	)		235,898			452,019			(3,414,113	)		(38,955	)
Net loss/(profit) attributable to noncontrolling interests		206			290			1,026			(10,608	)		16,851
Adjusted net (loss)/profit attributable to the Bilibili Inc.’s shareholders		(555,604	)		236,188			453,045			(3,424,721	)		(22,104	)
Adjusted net (loss)/profit per share, basic		(1.34	)		0.57			1.08			(8.29	)		(0.05	)
Adjusted net (loss)/profit per ADS, basic		(1.34	)		0.57			1.08			(8.29	)		(0.05	)
Adjusted net (loss)/profit per share, diluted		(1.34	)		0.57			1.07			(8.29	)		(0.05	)
Adjusted net (loss)/profit per ADS, diluted		(1.34	)		0.57			1.07			(8.29	)		(0.05	)
Weighted average number of ordinary shares, basic		414,793,013			417,849,446			417,829,038			413,210,271			416,470,256
Weighted average number of ADS, basic		414,793,013			417,849,446			417,829,038			413,210,271			416,470,256
Weighted average number of ordinary shares, diluted		414,793,013			417,849,446			424,208,294			413,210,271			416,470,256
Weighted average number of ADS, diluted		414,793,013			417,849,446			424,208,294			413,210,271			416,470,256

The MIL Network –

February 20, 2025

MIL-OSI: Aurora Mobile Integrates DeepSeek into Adpub to Redefine App Monetization
Source: GlobeNewswire (MIL-OSI)

SHENZHEN, China, Feb. 20, 2025 (GLOBE NEWSWIRE) — Aurora Mobile Limited (NASDAQ: JG) (“Aurora Mobile” or the “Company”), a leading provider of customer engagement and marketing technology services in China, today announced that it has integrated DeepSeek, an advanced large language model (LLM), into its Adpub platform. This strategic enhancement aims to revolutionize app monetization by leveraging DeepSeek’s lightweight architecture and domain-specific optimizations, delivering unmatched efficiency, scalability, and precision.

Smarter Monetization Tools for Developers

Adpub, Aurora Mobile’s app monetization platform, has already established itself as a trusted solution for developers to maximize advertising revenue. By aggregating SDKs from over ten major advertising platforms, Adpub simplifies access to multiple networks through a single integration. Its advanced real-time bidding system ensures that the highest-paying ads are displayed, boosting overall revenue by an average of 20%.

The integration of DeepSeek elevates Adpub’s capabilities further. With its cutting-edge natural language processing and data analysis features, DeepSeek enables Adpub to better understand user behavior and preferences. This empowers the platform to deliver highly relevant ads to the right audiences, significantly improving click-through rates (CTR) and overall ad performance.

Transformative Benefits with DeepSeek

The addition of DeepSeek unlocks a range of new possibilities for Adpub users, including:
- Enhanced Ad Targeting: DeepSeek analyzes vast amounts of user data to deliver personalized ad experiences, ensuring “the right ads reach the right people.”
- Improved Efficiency: Its lightweight architecture reduces computational overhead, enabling faster and more efficient data processing.
- Scalable Monetization: DeepSeek’s domain-specific optimizations make it easier for developers to scale monetization across diverse app categories and user demographics.
Developer-Centric Experience

Adpub remains committed to developer convenience by offering a comprehensive suite of tools, including head bidding, waterfall ad layering, traffic segmentation, and A/B testing. With DeepSeek’s integration, these features are further enhanced through deeper insights and more precise analytics, all accessible via a unified dashboard.

Pioneering Innovation in App Monetization

“We are thrilled to integrate DeepSeek into Adpub, marking a pivotal step in empowering developers with smarter monetization tools,” said Chris Lo, CEO of Aurora Mobile. “This integration not only strengthens Adpub’s leadership in app monetization but also sets a new benchmark for innovation in the industry.”

By focusing on scalable, efficient, and user-centric solutions, Aurora Mobile continues to lead the app monetization and developer services space. The integration of DeepSeek underscores the company’s commitment to leveraging cutting-edge technology to create value for its users.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile (NASDAQ: JG) is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises’ digital transformation.

For more information, please visit https://ir.jiguang.cn/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

Aurora Mobile Limited
E-mail: ir@jiguang.cn

Christensen

In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

The MIL Network –
February 20, 2025
MIL-OSI: Šiaulių Bankas Invitation to Q4 and FY 2024 Investor Webinar

Source: GlobeNewswire (MIL-OSI)

AB Šiaulių Bankas invites shareholders, investors, analysts and other stakeholders to join the Investor Webinar on 27 February, 2025 at 8:30 am (EET). The webinar will cover Q4 and FY2024 earnings results and key business highlights. The presentation will be held online in English.

Vytautas Sinius (CEO), Tomas Varenbergas (Head of Investment Management Division), and Tautvydas Mėdžius (Strategy Partner) will host the event. They will present the financial results, discuss recent developments, and address participant questions.

Please feel free to submit your questions in advance to investors@sb.lt

How to join the webinar?

To join the webinar, please register via following link https://sb.zoomtv.lt. After successful registration You will be provided with the webinar link.

Additional information:
Tomas Varenbergas
Head of Investment Management & Treasury
tomas.varenbergas@sb.lt

The MIL Network –

February 20, 2025
MIL-OSI: JD.com to Report Fourth Quarter and Full Year 2024 Financial Results on March 6, 2025

Source: GlobeNewswire (MIL-OSI)

BEIJING, Feb. 20, 2025 (GLOBE NEWSWIRE) — JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced that it plans to release its unaudited fourth quarter and full year 2024 financial results on Thursday, March 6, 2025, before the U.S. market opens.

JD.com’s management will hold a conference call at 7:00 am, Eastern Time on March 6, 2025, (8:00 pm, Beijing/Hong Kong Time on March 6, 2025) to discuss the fourth quarter and full year 2024 financial results.

Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10044957-x2nu4z.html

CONFERENCE ID: 10044957

A telephone replay will be available for one week until March 13, 2025. The dial-in details are as follows:

US: +1-855-883-1031

International:
Hong Kong:
Mainland China:
Passcode: +61-7-3107-6325
800-930-639
400-120-9216
10044957

Additionally, a live and archived webcast of the conference call will also be available on JD.com’s investor relations website at http://ir.jd.com.

About JD.com, Inc.

JD.com is a leading supply chain-based technology and service provider. The Company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

For investor and media inquiries, please contact:

Investor Relations
Sean Zhang
+86 (10) 8912-6804
IR@JD.com

Media Relations
+86 (10) 8911-6155
Press@JD.com

The MIL Network –

February 20, 2025
MIL-OSI United Kingdom: Regional growth to be boosted by £67 million for culture projects
Source: United Kingdom – Government Statements

Growth in jobs, tourism and regional regeneration to be ushered in by funding for major cultural projects across the UK
Regional growth and regeneration will get a much-needed boost as 10 major culture projects across the UK will receive more than £67 million, the government confirmed this week.

Funding will be ‘critical’ in showcasing the UK as a world-leader in culture and bring in visitors from across the globe.  

Just as importantly this will help drive growth in all parts of the country – a key element of the government’s Plan for Change – by creating jobs and in some cases building new homes.  

 Projects receiving funding are:   

£15 million for the National Railway Museum in York, will go towards the construction of a new building, Central Hall, which will include a new entrance to the museum, a new gallery, retail, café, flexible event space and new visitor facilities. The museum is part of a wider mixed-use regeneration scheme in York to transform underused railway land into a new city quarter which could create more than 3,000 new homes, new office, retail and hospitality space, contributing to more than 6,000 new jobs and £1.6 billion in economic value to the region.  

£10 million to start the process of revamping ‘Temple Works’ in Leeds a derelict Grade 1 building, bringing it into public ownership; paving the way for it to house the British Library North in the future and unlock further regeneration of new housing and commercial development on surrounding sites. 

£10 million for the International Slavery Museum and the Maritime Museum in Liverpool, to expand and maintain the museums which play a crucial role in the wider reimagining of the Liverpool Waterfront.  

£5 million for the National Poetry Centre in Leeds that will renovate a redundant Grade 2 Listed building to create a national headquarters for poetry and bolster Leeds’ reputation as a regional centre for culture and creativity.   

£5 million for City Centre Cultural Gateway in Coventry, that will support the repurposing of the former IKEA building in Coventry city centre to become a new cultural and visitor attraction.   

£2.3 million to three cultural projects in Worcester, these three projects will deliver new cultural and public spaces around the Scala arts venue:  

A new Scala Co-Working Space will be created to provide an onsite office and studio space for artistic companies to create work.   

Two mezzanine floors of the Corn Exchange building will be brought back into use through the creation of Next Level Food which will provide a new space for more events and exhibitions and modern catering facilities will be   

A new welcoming social space for younger generations will be created through the Angel Place is Your Space hub  

£10 million for Venue Cymru in Conwy, Wales, will upgrade the largest Welsh arts centre outside Cardiff and deliver a step-change in the use of the building, including the relocation of the existing library and Tourist Information Centre to create a modern and innovative cultural hub.  

£5 million for Newport Transporter Bridge, Wales, that will fund vital repair and maintenance works to Newport Transporter Bridge, which plays a crucial role in the tourism economy as a visitor attraction in South Wales.  

£2.6 million for the Victoria and Albert Museum in Dundee, Scotland, that will expand and recurate the existing Scottish Design Galleries telling the story of Scottish design to create an improved destination and visitor experience.   

£2.2 million for Shore Road Skills Centre in Belfast, Northern Ireland, that will see the redevelopment of the South Stand at the Crusaders FC into a unique state of the art community education, event and skills centre 

Deputy Prime Minister Angela Rayner said:   

Every corner of the UK has something unique to offer, and our rich creative capital must not be underestimated.   

Our Plan for Change promises growth for every region and I’ve seen first-hand how these projects are igniting growth in their communities.  

Through investing in these critical cultural projects we can empower both local leaders and people to really tap into their potential and celebrate everything their home town has to offer. This means more tourism, more growth and more money in people’s pockets.”  

Alex Norris, Minster for Local Growth, said:   

The benefits of these fantastic projects go far beyond community and county borders, they are key to unlocking a regional and nationwide celebration of UK culture and creativity as well as driving growth and regeneration.   

This investment marks a huge step forward in our decade of national renewal as committed to in our Plan for Change – creating jobs and boosting tourism and regeneration in our regions is the type of long-term, sustainable growth the government is prioritising to ultimately put more money in people’s pockets.”  

Culture Secretary, Lisa Nandy said:  

Everyone across the country should be able to access arts and culture in the place they call home. This support will empower our cultural organisations to continue playing an essential role in developing skills, talent and high-quality careers in every corner of the UK.” 

These projects will celebrate and raise awareness of the unique social value and cultural history of the UK while also supporting crucial economic growth through creating local jobs and attracting tourism on a national scale.   

Projects that are most advanced and will see benefits spread beyond regional borders and attract investment have been prioritised to maximise public spending and deliver long-term growth.

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Published 20 February 2025
MIL OSI United Kingdom –
February 20, 2025

US:	+1-855-883-1031
International: Hong Kong: Mainland China: Passcode:	+61-7-3107-6325 800-930-639 400-120-9216 10044957

Category: Economy

1 Introduction

2 Current challenges in cross-border payments

3 Towards a multilateral world in payments?

4 How can central banks address the challenges?

5 Outlook

I. Economic Activity and Prices

GenAI and Its Adoption

Deputy Prime Minister Angela Rayner said:

Alex Norris, Minster for Local Growth, said:

Culture Secretary, Lisa Nandy said:

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Updates to this page

Deputy Prime Minister Angela Rayner said:   

Alex Norris, Minster for Local Growth, said:   

Culture Secretary, Lisa Nandy said:  