Category: Trade

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

    Source: GlobeNewswire (MIL-OSI)

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

    Fourth Quarter Highlights

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

    2025 Outlook

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

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

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

    Operations Update

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

    2025 Annual Synergy, Capital and Operating Outlook

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

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

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

    Shareholder Returns Update

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

    Conference Call Information

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

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

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

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

    Forward-Looking Statements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI: Ambarella, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) — Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced fourth quarter and full year fiscal 2025 financial results for the period ended January 31, 2025.

    • Revenue for the fourth quarter of fiscal 2025 was $84.0 million, up 62.8% from $51.6 million in the same period in fiscal 2024. For the fiscal year ended January 31, 2025, revenue was $284.9 million, up 25.8% from $226.5 million for the fiscal year ended January 31, 2024.
    • Gross margin under U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2025 was 60.0%, compared with 59.8% for the same period in fiscal 2024. For the fiscal year ended January 31, 2025, GAAP gross margin was 60.5%, compared with 60.4% for the fiscal year ended January 31, 2024.
    • GAAP net loss for the fourth quarter of fiscal 2025 was $20.2 million, or loss per diluted ordinary share of $0.48, compared with a GAAP net loss of $60.6 million, or loss per diluted ordinary share of $1.50, for the same period in fiscal 2024. GAAP net loss for the fiscal year ended January 31, 2025 was $117.1 million, or loss per diluted ordinary share of $2.84. This compares with GAAP net loss of $169.4 million, or loss per diluted ordinary share of $4.25, for the fiscal year ended January 31, 2024.

    Financial results on a non-GAAP basis for the fourth quarter and full year fiscal 2025 are as follows:

    • Gross margin on a non-GAAP basis for the fourth quarter of fiscal 2025 was 62.0%, compared with 62.5% for the same period in fiscal 2024. For the fiscal year ended January 31, 2025, non-GAAP gross margin was 62.7%, compared with 63.3% for the fiscal year ended January 31, 2024.
    • Non-GAAP net profit for the fourth quarter of fiscal 2025 was $4.8 million, or earnings per diluted ordinary share of $0.11. This compares with non-GAAP net loss of $9.8 million, or loss per diluted ordinary share of $0.24, for the same period in fiscal 2024. Non-GAAP net loss for the fiscal year ended January 31, 2025 was $6.8 million, or loss per diluted ordinary share of $0.16. This compares with non-GAAP net loss of $33.1 million, or loss per diluted ordinary share of $0.83, for the fiscal year ended January 31, 2024.

    Based on information available as of today, Ambarella is offering the following guidance for the first quarter of fiscal year 2026, ending April 30, 2025:

    • Revenue is expected to be between $81.0 million and $87.0 million
    • Gross margin on a non-GAAP basis is expected to be between 61.0% and 62.5%
    • Non-GAAP operating expenses are expected to be between $50.0 million and $53.0 million

    Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation, acquisition-related costs and restructuring expense adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. Non-GAAP financial information also excludes the impact of the recognition or release of a valuation allowance on certain deferred tax assets. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.

    Total cash, cash equivalents and marketable debt securities on hand at the end of the fourth quarter of fiscal 2025 was $250.3 million, compared with $226.5 million at the end of the prior quarter and $219.9 million at the end of the same quarter a year ago.

    “We finished fiscal 2025 with strong results and are starting the new year with positive momentum. We exited the year with more than 70% of our total revenue from edge AI, representing both a quarterly and annual record. Cumulatively, we have shipped about 30 million edge AI processors, with each SoC integrating our proprietary deep learning AI accelerator,” said Fermi Wang, President & CEO. “In fiscal 2026, we anticipate mid to high teens revenue growth, led by our 5nm products, including the ongoing ramp in the CV5 family and now the CV7 family, which generated production revenue for the first time in Q4. Together with a focus on efficient operations, we intend to continue to drive positive operating leverage.”

    Quarterly Conference Call

    Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the fourth quarter of fiscal year 2025 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call.

    About Ambarella

    Ambarella’s products are used in a wide variety of human vision and edge AI applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and robotics applications. Ambarella’s low-power systems-on-chip (SoCs) offer high-resolution video compression, advanced image and radar processing, and powerful deep neural network processing to enable intelligent perception, fusion and planning. For more information, please visit www.ambarella.com.

    “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995

    This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” “should,” or similar expressions, including the guidance for the first quarter of fiscal year 2026 ending April 30, 2025, and the comments of our CEO relating to our expectation of future revenue growth, customer demand and the growth potential for our edge AI inference products, including our CV5 and CV7 families of products, and our ability to generate positive operating leverage in future periods. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.

    The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our customers’ ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision, AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets, such as the OEM automotive and robotics markets; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.

    Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2024 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at www.ambarella.com or the SEC’s web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 could differ from the preliminary results announced in this press release.

    Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law.

    Non-GAAP Financial Measures

    The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (“GAAP”). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.

    With respect to its financial results for the fourth quarter of fiscal year 2025, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the first quarter of fiscal year 2026, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

    AMBARELLA, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data)
    (unaudited)
                     
        Three Months Ended January 31,   Twelve Months Ended January 31,
          2025       2024       2025       2024  
             
    Revenue   $ 84,015     $ 51,616     $ 284,865     $ 226,474  
                     
    Cost of revenue     33,634       20,763       112,535       89,657  
    Gross profit     50,381       30,853       172,330       136,817  
                     
    Operating expenses:                
    Research and development     56,823       51,992       226,109       215,052  
    Selling, general and administrative     18,911       20,575       72,816       76,325  
                     
    Total operating expenses     75,734       72,567       298,925       291,377  
                     
    Loss from operations     (25,353 )     (41,714 )     (126,595 )     (154,560 )
                     
    Other income, net     2,360       2,107       8,867       6,030  
                     
    Loss before income taxes     (22,993 )     (39,607 )     (117,728 )     (148,530 )
                     
    Provision (benefit) for income taxes     (2,759 )     21,000       (602 )     20,887  
                     
    Net loss   $ (20,234 )   $ (60,607 )   $ (117,126 )   $ (169,417 )
                     
    Net loss per share attributable to ordinary shareholders:              
    Basic   $ (0.48 )   $ (1.50 )   $ (2.84 )   $ (4.25 )
    Diluted   $ (0.48 )   $ (1.50 )   $ (2.84 )   $ (4.25 )
    Weighted-average shares used to compute net loss per share              
    attributable to ordinary shareholders:                
    Basic     41,828,944       40,384,743       41,303,287       39,878,872  
    Diluted     41,828,944       40,384,743       41,303,287       39,878,872  
                     

    The following tables present details of stock-based compensation, acquisition-related costs and restructuring expense included in each functional line item in the consolidated statements of operations above:

      Three Months Ended January 31,   Twelve Months Ended January 31,
        2025       2024       2025       2024  
      (unaudited, in thousands)
    Stock-based compensation:              
    Cost of revenue $ 931     $ 647     $ 3,270     $ 3,341  
    Research and development   18,372       17,950       73,025       72,759  
    Selling, general and administrative   8,245       9,923       31,748       35,216  
                   
    Total stock-based compensation $ 27,548     $ 28,520     $ 108,043     $ 111,316  
      Three Months Ended January 31,   Twelve Months Ended January 31,
        2025       2024       2025       2024  
      (unaudited, in thousands)
    Acquisition-related costs:              
    Cost of revenue $ 757     $ 757     $ 3,028     $ 3,028  
    Research and development                      
    Selling, general and administrative   456       520       2,016       2,080  
                   
    Total acquisition-related costs $ 1,213     $ 1,277     $ 5,044     $ 5,108  
      Three Months Ended January 31,   Twelve Months Ended January 31,
        2025       2024       2025       2024  
      (unaudited, in thousands)
    Restructuring expense:              
    Cost of revenue $     $     $     $ 66  
    Research and development         36             708  
    Selling, general and administrative         68             182  
                   
    Total restructuring expense $     $ 104     $     $ 956  
                   

    The difference between GAAP and non-GAAP gross margin was 2.0% and 2.7%, or $1.7 million and $1.4 million, for the three months ended January 31, 2025 and 2024, respectively. The difference between GAAP and non-GAAP gross margin was 2.2% and 2.9%, or $6.3 million and $6.4 million, for the fiscal years ended January 31, 2025 and 2024, respectively. The differences were due to the effect of stock-based compensation, amortization of acquisition-related costs and restructuring expense.

    AMBARELLA, INC.
    RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE
    (in thousands, except share and per share data)
                   
      Three Months Ended January 31,   Twelve Months Ended January 31,
        2025       2024       2025       2024  
      (unaudited)
    GAAP net loss $ (20,234 )   $ (60,607 )   $ (117,126 )   $ (169,417 )
                   
    Non-GAAP adjustments:              
    Stock-based compensation expense   27,548       28,520       108,043       111,316  
    Acquisition-related costs   1,213       1,277       5,044       5,108  
    Restructuring expense         104             956  
    Income tax effect   (3,760 )     20,881       (2,744 )     18,971  
    Non-GAAP net income (loss) $ 4,767     $ (9,825 )   $ (6,783 )   $ (33,066 )
                   
    GAAP – diluted weighted average shares   41,828,944       40,384,743       41,303,287       39,878,872  
    Non-GAAP – diluted weighted average shares   42,533,654       40,384,743       41,303,287       39,878,872  
                   
    GAAP – diluted net loss per share $ (0.48 )   $ (1.50 )   $ (2.84 )   $ (4.25 )
    Non-GAAP adjustments:              
    Stock-based compensation expense   0.66       0.71       2.62       2.79  
    Acquisition-related costs   0.03       0.03       0.12       0.13  
    Restructuring expense                     0.02  
    Income tax effect   (0.09 )     0.52       (0.06 )     0.48  
    Effect of Non-GAAP – diluted weighted average shares   (0.01 )                  
    Non-GAAP – diluted net income (loss) per share $ 0.11     $ (0.24 )   $ (0.16 )   $ (0.83 )
                   
    AMBARELLA, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands)
           
      January 31,   January 31,
        2025       2024  
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 144,622     $ 144,914  
    Marketable debt securities   105,643       75,013  
    Accounts receivable, net   29,767       24,950  
    Inventories   34,428       29,043  
    Restricted cash   7       7  
    Prepaid expenses and other current assets   6,084       6,230  
    Total current assets   320,551       280,157  
           
    Property and equipment, net   9,084       10,439  
    Intangible assets, net   47,279       55,136  
    Operating lease right-of-use assets, net   5,188       5,250  
    Goodwill   303,625       303,625  
    Other non-current assets   3,241       3,048  
           
    Total assets $ 688,968     $ 657,655  
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable   21,775       28,503  
    Accrued and other current liabilities   80,781       48,598  
    Operating lease liabilities, current   2,829       3,443  
    Income taxes payable   1,383       1,541  
    Deferred revenue, current   14,226       894  
    Total current liabilities   120,994       82,979  
           
    Operating lease liabilities, non-current   2,436       1,896  
    Other long-term liabilities   4,126       12,909  
           
    Total liabilities   127,556       97,784  
           
    Shareholders’ equity:      
    Preference shares          
    Ordinary shares   19       18  
    Additional paid-in capital   813,683       694,967  
    Accumulated other comprehensive loss   (233 )     (183 )
    Accumulated deficit   (252,057 )     (134,931 )
    Total shareholders’ equity   561,412       559,871  
           
    Total liabilities and shareholders’ equity $ 688,968     $ 657,655  

    Contact:

    Louis Gerhardy
    408.636.2310
    lgerhardy@ambarella.com

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Other Key Highlights

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

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

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

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

    Fourth Quarter and Full Year 2024 Segment Highlights

    Retail

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

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

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

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

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

    Wholesale

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

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

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

    Fleet Fueling

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

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

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

    Site Operating Expenses

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

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

    Liquidity and Capital Expenditures

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

    Quarterly Dividend and Share Repurchase Program

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

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

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

    Company-Operated Retail Store Count and Segment Update

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

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

    First Quarter and Full Year 2025 Guidance

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

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

    Conference Call and Webcast Details

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

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

    About ARKO Corp.

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

    Forward-Looking Statements

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

    Use of Non-GAAP Measures

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

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

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

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

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

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

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

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

    Supplemental Disclosure of Non-GAAP Financial Information

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

    Supplemental Disclosures of Segment Information

    Retail Segment

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

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

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

    Wholesale Segment

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

    Fleet Fueling Segment

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

    The MIL Network

  • MIL-OSI: Trisura Chief Executive Officer David Clare to Hold Virtual Fireside Chat With TD Securities

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 26, 2025 (GLOBE NEWSWIRE) — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU) Chief Executive Officer, David Clare, will join TD Securities Analyst, Mario Mendonca, in a virtual fireside chat to discuss the company’s 2024 results and outlook for 2025 on Thursday March 6, 2025 at 10:00 AM ET.

    To listen to the call via live audio webcast, please follow the link below:
    https://www.veracast.com/webcasts/tds/meetings/XL6A16.cfm

    A replay of the call will be available through the link above.

    About Trisura Group

    Trisura Group Ltd. is a specialty insurance provider operating in the Surety, Warranty, Corporate Insurance, Program and Fronting business lines of the market. Trisura has investments in wholly owned subsidiaries through which it conducts insurance operations. Those operations are primarily in Canada and the United States. Trisura Group Ltd. is listed on the Toronto Stock Exchange under the symbol “TSU”.

    Further information is available at https://www.trisura.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group Ltd. are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR+ profile at www.sedarplus.ca.

    For more information, please contact:
    Name: Bryan Sinclair
    Tel: 416 607 2135
    Email: bryan.sinclair@trisura.com

    The MIL Network

  • MIL-OSI: Nokia Corporation: Repurchase of own shares on 26.02.2025

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation
    Stock Exchange Release
    26 February 2025 at 22:30 EET

    Nokia Corporation: Repurchase of own shares on 26.02.2025

    Espoo, Finland – On 26 February 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

    Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*
    XHEL 1,400,000 4.74
    CEUX
    BATE
    AQEU
    TQEX
    Total 1,400,000 4.74

    * Rounded to two decimals

    On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 25 November 2024 and end by 31 December 2025 and target to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.

    Total cost of transactions executed on 26 February 2025 was EUR 6,629,280. After the disclosed transactions, Nokia Corporation holds 259,917,814 treasury shares.

    Details of transactions are included as an appendix to this announcement.

    On behalf of Nokia Corporation

    BofA Securities Europe SA

    About Nokia
    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs which is celebrating 100 years of innovation.

    With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia Investor Relations
    Phone: +358 931 580 507
    Email: investor.relations@nokia.com

    Attachment

    The MIL Network

  • MIL-OSI USA: Capito Votes to Confirm Jamieson Greer as U.S. Trade Representative

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.) issued the following statement after voting to confirm Jamieson Greer to serve as United States Trade Representative (USTR):
    “West Virginia workers and businesses count on the USTR to advocate for them and secure the best deal possible around the world. Our West Virginia economy, especially in the manufacturing sector, needs someone ready to help us compete at every level in every market. I believe that Jamieson Greer is that person and holds the knowledge and skills that this position demands. I look forward to partnering with him and the Trump administration to deliver on the president’s agenda and to put West Virginia’s needs front and center,” Senator Capito said.
    Senator Capito met with Greer earlier this month to discuss his nomination and learn more about his leadership vision as USTR.

    MIL OSI USA News

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    A New Era of Hands-Free Investing

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

    How Hands-Free Investing Works at AlphaSavings:

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

    What Sets AlphaSavings Apart from Traditional Investing?

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

    Key Benefits of Hands-Free Investing with AlphaSavings:

    • Stress-Free Wealth Growth – No need for clients to spend time researching or managing investments.
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    About AlphaSavings

    AlphaSavings is a leading provider of fully managed stock and bond investment solutions, offering hands-free investing for individuals and institutions. By combining expert-driven portfolio management with automated market insights, AlphaSavings delivers stress-free wealth growth with market-beating returns.

    The MIL Network

  • MIL-OSI Economics: Trade Facilitation Agreement: Eight years of cutting trade costs and boosting growth for all members

    Source: World Trade Organization

    The WTO Trade Facilitation Agreement (TFA) has been a game-changer for international trade. As the first major multilateral trade agreement added to the WTO rulebook since the Uruguay Round in 1995, it has already boosted trade by more US$ 230 billion across the globe. Since taking effect in 2017, the TFA has simplified customs procedures, cut through red tape and increased regulatory transparency — making cross-border trade faster, cheaper and more predictable for businesses of all sizes.

    The benefits of trade facilitation are broadly enjoyed across the full WTO membership, creating more opportunities for resilient, secure and efficient trade and supply chains for developed and developing members alike.

    Streamlining trade

    Trade inefficiencies are not just an inconvenience: they impose substantial economic costs. Delays in transit can account for up to 44 per cent of transport costs, resulting from storage charges, bottlenecks at weighbridges, police checks and border crossings. Every hold-up chips away at competitiveness and increases costs. This can cost businesses valuable contracts and revenue. 

    A single trade transaction on average involves as many as 36 original documents and 240 copies. This administrative burden not only increases costs but also discourages micro, small and medium-sized enterprises (MSMEs) from participating in global trade.

    • Since its entry into force, the TFA has expedited the movement, release and clearance of goods and enhanced the transparency of trade regulations and procedures. It has also reduced excessive paperwork, unnecessary delays and inefficiencies at borders, and has fostered cooperation between customs authorities and other stakeholders.
    • TFA implementation has cut trade costs worldwide by an average of 1 to 4 per cent, leading to an increase in trade of over US$ 230 billion, with the most significant gains observed in agriculture. Developing and least-developed country (LDC) members have gained the most, demonstrating the Agreement’s capacity to foster efficient trade systems worldwide and creating opportunities for more people to benefit. 

    Many WTO members have reported that TFA-driven targeted reforms have led to notable reductions in the time and costs involved in border crossings, demonstrating the tangible impact of trade facilitation measures.

    For example, Montenegro has increased express shipments released within one hour of arrival from 25 to 53 per cent, while Indonesia has reduced import licence processing time by an average of four days. Ecuador has cut processing times by 67 per cent annually, while Brazil has cut export costs by an ad valorem equivalent of 9 per cent and import costs by 7 per cent. Jordan has slashed processing time by as much as 75 per cent, saving US$ 15 per unit.

    Infrastructure improvements stimulated by the TFA have also played a crucial role in enhancing efficiency. One-stop border posts have significantly reduced waiting times at borders, cutting customs processing time and queuing delays by 62 per cent at the Kenya-Uganda border and by 87 per cent at the Kenya-Tanzania border, creating more incentives for intra-African trade as well as African trade with the rest of the world. These examples illustrate how targeted reforms, digitalization and improved border coordination are helping WTO members streamline trade processes and unlock economic benefits.

    TFA implementation is well underway but technical assistance is needed to ensure its full benefits

    When implementing the TFA, developing and LDC members can categorize their commitments, giving them flexibility in putting the Agreement’s provisions into practice. Category A commitments must be implemented immediately, whereas commitments under categories B and C can be implemented later. Category C allows members capacity-building support to undertake the commitment. To clarify their commitments, members underwent a notification process, which has concluded. The focus now is on-the-ground implementation.

    Figure 1: Number of Category B measures due to be implemented yearly

    Source: TFA Database

    Most Category B commitments have now been implemented, with only four still to be implemented by 2030 (see Figure 1). Meanwhile, 196 Category C measures are scheduled for implementation this year (see Figure 2). While Category C measures due for implementation will gradually decline from 2026 onwards, the timeline continues well into the 2040s. The magnitude of these commitments underscores the scale of technical assistance and capacity-building support required by many developing and LDC members to fully unlock the benefits of the TFA.

    Figure 2: Number of Category C measures due to be implemented yearly

    Source: TFA Database

    Figure 3 highlights the provisions registering the greatest number of Category C commitments over the next two years. These measures are often some of the most complex to implement as they require not only regulatory changes but also significant investment in infrastructure, technology and inter-agency coordination.

    Figure 3: Top five Category C measures due for implementation in 2025-26

    Source: TFA Database

    For instance, single window systems — a single platform to collect and process import, export, or transit information in an efficient and cost-effective manner — demand extensive digitalization efforts, requiring the integration of various agencies and the streamlining of data-sharing processes. Border agency cooperation to align procedures across multiple institutions can be challenging due to differences in mandates, resources and regulatory frameworks. In addition, risk management necessitates advanced data analytics and compliance verification mechanisms. These may be difficult to establish without sustained technical assistance and capacity-building support.

    As implementation progresses, sustained support will be essential to ensure that all members can fully reap the benefits of the TFA. Full implementation of the Agreement promises to deliver significant gains in trade efficiency and cost reduction, but only if there is ongoing investment in developing expertise, infrastructure and regulatory reforms. The 2025 peak in Category C commitments demonstrates the urgent need for targeted interventions to address persistent structural and financial barriers.

    The WTO’s Trade Facilitation Agreement Facility (TFAF) plays a key role in helping developing and LDC members mobilize the technical assistance and capacity-building support they need to implement the TFA. Since its establishment, the TFAF has been instrumental in supporting developing and LDC members through their ratification of the Agreement and their submission of more than 130 notifications within agreed deadlines.

    It has also assisted 46 developing members, including 18 LDCs, in securing assistance from development partners — either by sharing information or by providing project preparation grants. Thanks to TFAF support, ten developing members, including two LDCs, have successfully partnered with donors to meet their TFA capacity-building needs.

    With more than 500 commitments still due for implementation over the next five years, the TFAF remains a critical mechanism for channelling resources and ensuring that technical assistance aligns with members’ evolving needs.

    How improvements in trade facilitation efforts can be leveraged

    Digitalization offers ways to further enhance efficiency, transparency and coordination at borders. While approaches to using digital trade facilitation differ, members are discussing its role in shaping the future of trade procedures.

    In 2024, members decided to use the WTO Committee on Trade Facilitation to share experiences on the impact of digitalization on TFA implementation. Discussions have highlighted both successes and challenges, with some members showcasing innovative digital solutions, and others emphasizing the need for capacity-building to bridge the digital divide across economies with different levels of development. Digitalization will continue to be on the Committee’s agenda throughout 2025.

    At the domestic level, national trade facilitation committees (NTFCs) provide a critical institutional framework to drive effective implementation of the TFA. These committees coordinate efforts among government agencies, often in collaboration with private sector stakeholders, to ensure a holistic approach to trade facilitation reforms. NTFCs are key to identifying implementation bottlenecks, streamlining regulatory processes and aligning technical assistance with national priorities. As members navigate the complex reforms required for full TFA implementation, NTFCs will be instrumental in ensuring that trade facilitation improvements translate into tangible economic benefits.

    Value of full TFA implementation for all members

    Eight years after its entry into force, the TFA continues to reduce trade costs, improve customs efficiency and expand market opportunities for all members. As full implementation progresses, the benefits for businesses and economies will accelerate.

    While the benefits of trade facilitation are often highlighted in the context of developing and LDC members, the advantages extend across the entire WTO membership, including developed members. As more WTO members implement the TFA, businesses in developed members also benefit from smoother, more predictable trade flows, less red tape and fewer costly delays at borders.

    Lower trade costs and greater efficiency enhance global supply chain resilience, minimizing disruptions and ensuring more secure and reliable access to products. Ultimately, continued implementation of the TFA strengthens global trade networks, making trade more inclusive, efficient and resilient to external shocks.

    With sustained engagement from WTO members and development partners, trade facilitation will be a key driver of global trade efficiency and economic growth for years to come.

    MIL OSI Economics

  • MIL-OSI Economics: DDG Ellard: Accepting fish subsidies agreement can give boost to global trading system

    Source: WTO

    Headline: DDG Ellard: Accepting fish subsidies agreement can give boost to global trading system

    Thank you, Marion, distinguished ladies, and gentlemen.
    Thank you to the OECD Secretariat for inviting me to today’s launch of the 2025 edition of the OECD Review of Fisheries. As with previous editions, this year’s report brings together and analyses a broad range of valuable data on the health of our fish resources, fisheries management systems, and government support policies. The invaluable resource highlights some of the key threats and challenges facing the fisheries sector, and also identifies possible solutions and opportunities for improving its economic and environmental sustainability.
    As the report makes clear, fisheries management regimes and public support measures, when guided by informed decision-making, have the potential to work as two sides of the same coin, complementing each other to ensure that our oceans continue to serve the millions of fishers around the world whose livelihoods depend upon their health.
    By adopting the Agreement on Fisheries Subsidies in June 2022, WTO Members took one important step in this direction. As many of you are aware, the landmark Agreement on Fisheries Subsidies prohibits subsidies to fishing activities considered to be among the most harmful to the sustainability of our oceans, including subsidies to vessels involved in illegal, unreported, and unregulated (IUU) fishing, and fishing of overfished stocks. The 2025 Review of Fisheries recognizes that the provision of subsidies for such activities is among the major challenges facing sustainable fisheries practices. The Agreement on Fisheries Subsidies offers WTO Members a powerful tool to address this devastating and accelerating problem.
    However, the AFS will begin to deliver its benefits for sustainable fisheries only when it enters into force, which requires two-thirds of WTO Members (111) to deposit their instruments of acceptance.
    To date, 89 Members have done so, leaving us with only 22 ratifications left for the Agreement to enter into force.
    WTO Members have set the ambitious goal of achieving this objective as soon as possible. What a thrill it would be to celebrate the entry into force of the Agreement on Fisheries Subsidies with the international ocean community at the UN Ocean Conference in June – that’s our goal.
    Almost all OECD Members, and a good share of its accession candidate countries and key partners, have already ratified the Agreement. But not all of you have done so. So, I urge those that have not yet deposited their instruments of acceptance to accelerate as much as possible your domestic ratification processes and join your fellow Members and partners that have already ratified. And I urge those of you that have finished to serve as a helpful source of information and assistance to those who have not.
    Depositing your instruments of acceptance will not only demonstrate your commitment to the sustainability of our oceans, but it will also serve as an important boost to the multilateral trading system at an important and challenging time.
    Entry into force of the Agreement will also unlock access to technical assistance and capacity-building provided through the WTO Fish Fund for the developing country Members that have ratified the Agreement. Thanks to the significant financial support of our Members, the WTO Fish Fund is now ready to become fully operational upon entry into force. And I take this opportunity to sincerely thank OECD Members for their generous contributions to this Fund, which represent more than 90% of the near USD 15 million in donations and pledges received so far.
    But our work does not end with the entry into force of the Agreement on Fisheries Subsidies. As you know, WTO Members are engaging in a second wave of negotiations with a view to agreeing on a set of additional disciplines regulating subsidies that are generally considered to contribute to overcapacity and overfishing.
    The extraordinary work of OECD Members and its Secretariat in producing the 2025 and previous editions of the Review of Fisheries report, and especially the Fisheries Support Estimates, has been welcomed and is helping WTO Members to have more informed and factual discussions of the issues at stake.
    In this regard, I have observed that one of the encouraging findings of this year’s Review of Fisheries is that the balance of risks posed by government support measures has improved significantly since 2010, with a marked reduction in policies that pose the highest risk (e.g., fuel subsidies) in favour of policies where the risk posed is less direct (e.g., income support). In addition, the Review shows that OECD Members have increased their spending on fisheries management, monitoring, control, and surveillance – all measures that are essential to improving and maintaining the health of fish stocks.
    Despite these apparent advances in the sector, this year’s Review also finds that 65% of all support to fishing activities still presents a risk of encouraging unsustainable fishing in the absence of effective management. This is a particularly salient conclusion for WTO Members as they pursue the second wave of negotiations because the draft disciplines currently on the table tie the use of subsidies that may contribute to overcapacity and overfishing with effective management measures.
    Evidence-based findings and analyses of the kind contained in the 2025 Review of Fisheries are why I see the mission of the WTO and mission of the OECD to be complementary, and mutually reinforcing. In different but essential ways, the work of each of our organizations is contributing to fisheries subsidies reform, paving a path for the elimination of harmful subsidies, and ultimately the sustainability of our oceans.

    Thank you.

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  • MIL-OSI Economics: Trade Policy Review: Ukraine

    Source: World Trade Organization

    The following documents are available:

    Secretariat report

    A detailed report written independently by the WTO Secretariat.

    Government report

    A policy statement by the government of the member under review.

    From the meeting

    The Secretariat and Government reports are discussed by the WTO’s full membership in the Trade Policy Review Body (TPRB).

    Background

    Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member countries’ trade and related policies are examined and evaluated at regular intervals. Significant developments that may have an impact on the global trading system are also monitored. All WTO members are subject to review, with the frequency of review depending on the country’s size.

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  • MIL-OSI Economics: DG Okonjo-Iweala welcomes PM Suminwa Tuluka of Democratic Republic of the Congo to WTO

    Source: WTO

    Headline: DG Okonjo-Iweala welcomes PM Suminwa Tuluka of Democratic Republic of the Congo to WTO

    Director-General Ngozi Okonjo-Iweala met with the Prime Minister of the Democratic Republic of the Congo, Judith Suminwa Tuluka, on 25 February at the WTO. They discussed the importance of digitalization and regional cooperation for economic transformation and global trade, and the role that the WTO can play in support of these efforts.

    MIL OSI Economics

  • MIL-OSI Economics: New WTO publication “Trade for Peace: Pathways to Sustainable Trade and Peace” launched

    Source: WTO

    Headline: New WTO publication “Trade for Peace: Pathways to Sustainable Trade and Peace” launched

    The book launch highlighted how the Trade for Peace publication “Pathways to Sustainable Trade and Peace” supports the work of policymakers, academics and practitioners by providing an in-depth exploration of the complex relationship between trade and peace.
    The publication is composed of 16 chapters written by 31 authors, representing more than nine partner institutions, including the Institute for Economics and Peace (IEP), the International Labour Organization (ILO), the International Monetary Fund (IMF), the International Trade Centre (ITC), Interpeace, the Peterson Institute for International Economics (PIIE), the United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa and the World Economic Forum.
    “Trade is an indispensable part of building the secure, sustainable, and inclusive world we want and need,” notes WTO Director-General Ngozi Okonjo-Iweala in the publication’s foreword. “For trade to yield peace dividends, particularly in the difficult context of FCS, the trade community needs to work with other partners. It is my hope that this volume can help lay the groundwork for such collaboration to advance a 21st century vision of Trade for Peace,” she adds.
    WTO Deputy Director-General Xiangchen Zhang delivered the opening remarks, highlighting the importance of the publication in the current challenging times. “This book is a concrete output from the research pillar of the Trade for Peace Programme, which aims at deepening the understanding of the trade-peace nexus and addressing the gap in literature on the interlinkages between trade and peace in its various dimensions. It is the first WTO publication on the topic with the goal of providing insights on how trade and peace interact and how governments and other stakeholders can leverage trade to foster economic development and stability,” he said. His remarks are available here.
    Panellists included the co-editor of the publication Mustapha Sadni Jallab, Chief of the Knowledge Management Section at the WTO, and five authors — Alan W. Wolff, Distinguished Visiting Fellow at PIIE and former WTO Deputy Director-General, Itonde Kakoma, President and CEO of Interpeace, Franck Bousquet, Deputy Director of the Institute for Capacity Development at the IMF, Barbara Ramos, Chief of Strategies and Policies for Trade and Investment at the ITC, and Serge Stroobants, Director of Europe and the Middle East and North Africa (MENA) region at the IEP.
    Participants in the hybrid event also included Maika Oshikawa, Director of the WTO Accessions Division, co-editors Patrick Low, former Chief Economist at the WTO, and Roberta Piermartini, Chief of the Applied Economic Research Section at the WTO, as well as several other authors featured in the publication.
    Moderated by Amanda Miashiro, Legal/Economic Affairs Officer at the WTO Accessions Division and co-editor of the publication, the event discussed the complexity of trade and peace in light of a changed global political landscape. Panellists emphasized that fragility worldwide is increasing, with the average levels of peace at historical lows.
    The discussion raised key questions about which legal frameworks and conditions must be in place for trade to be a driver of peace and stability and how to transform the capacity of actors operating in fragile and conflict-affected contexts to not only be conflict-sensitive but also to actively contribute to peace outcomes. The recording of the event is available here.
    Panellists further recalled that peace is intertwined with the history of the multilateral trading system. They also highlighted the role of the g7+ WTO Group in advancing the Trade for Peace agenda for FCS. Shedding light on how fragility issues deeply affect societies, small and medium-sized enterprises and the economy, panellists stressed the importance of understanding conflict drivers and specificities of fragile regions to be able to fortify macroeconomic policies and state capacity, improve competitiveness and contribute to socioeconomic recovery.
    According to IEP data, the global economic impact of violence was more than US$ 19.1 trillion in 2023, which prompted a discussion on how trade could play a more effective role in reducing the cost and impact of economic violence by promoting peace. The full publication is available here.
    In addition to the publication launch, this session unveiled the Trade for Peace Research and Knowledge Database. This hub is dedicated to collecting ongoing research studies and other resources on the linkages between trade and peace, serving as a tool for stakeholders to support evidence-based policy development and strategy.
    For more information, see WTO Trade for Peace, 4th edition of Trade for Peace Week

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

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

    shutterstock LBeddoe/Shutterstock

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

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

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

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

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

    What is bullying?

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

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

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

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



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


    Initial responses to bullying

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

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

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

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

    The shift to prevention

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

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

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

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

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

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



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


    The importance of data

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

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

    Listening to students

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

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

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

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

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

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

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Intense heat changes our biology and can make us age significantly faster: study

    Source: The Conversation (Au and NZ) – By Rongbin Xu, Research Fellow in Health and Epigenetics, Monash University

    PorporLing/Shutterstock

    Heat takes it out of you. After a long, hot day, we feel tired and grumpy.

    But sustained periods of heat do more than that – they age us faster. Cumulative heat stress changes our epigenetics – how our cells turn on or off gene switches in response to environmental pressure.

    Now, new research from the United States explores the pressing question of how extreme heat affects humans. The findings are concerning. The more days of intense heat a participant endured, the faster they aged. Longer periods of extreme heat accelerated ageing in older people by more than two years.

    As the climate heats up, humans will be exposed to more and more heat – and our bodies will respond to these stresses by ageing faster. These findings are especially pertinent to Australia, where heatwaves are expected to become more frequent and intense in a warmer world.

    How, exactly, does heat age us?

    Ageing is natural. But the rate of ageing varies from human to human. As we go through life, our bodies are affected by stresses and shocks. For instance, if we don’t get enough sleep over a long period, we will age faster.

    While heat can directly sicken or kill us, it also has a long tail. Sustained heat stresses our bodies and make them less efficient at doing the many jobs needed to stay alive. This is what we mean when we say it accelerates biological ageing. This deterioration is likely to precede the later development of diseases and disabilities.

    What does that look like on a genetic level? You might think your genes don’t change over your life, and this is mostly true (apart from random mutations).

    But what does change is how your genes are expressed. That is, while your DNA stays the same, your cells can switch some of its thousands of genes off or on in response to stresses. At any one time, only a fraction of the genes in any cell are turned on – meaning they are busy making proteins.

    This is known as epigenetics. The most common and best understood pathway here is called DNA methylation (DNAm). Methylation here refers to a chemical our cells can use to block a DNA sequence from activating and producing proteins with various functions. Cellular changes in DNAm can lead to proteins being produced more or less, which in turn can flow on to affect physiological functions and our health status. This can be both bad or good.

    Heat stress can alter the pattern of which genes are turned off or on, which in turn can affect our rate of ageing.

    Severe heat stress can be remembered in cells, leading them to change their DNAm patterns over time. In laboratory testing, the effect is pronounced in fish, chickens, guinea pigs and mice.

    To date, much research on how heat affects epigenetics has focused on animals and plants. Here, the evidence is clear – even a single episode of extreme heat has been shown to have a long-lasting effect on mice.

    But only a couple of studies have been done involving humans, and they have been limited. This is the gap this new research is intended to help fill.

    Sustained heat changes how our cells express genes – accelerating ageing.
    aleks333/Shutterstock

    What did the study find?

    The study by researchers at the University of Southern California involved almost 3,700 people, with an average age of 68 years.

    Heat affects older people more than younger people. Our ability to control our body temperature drops as we age, and we are less resilient to outside stresses and shocks. We also know periods of extreme heat trigger a wave of illness and death, especially among older people.

    The study set out to better understand what happens to human bodies at a biological level when they’re exposed to intense heat over the short, medium and longer term.

    To do this, the researchers took blood samples and measured epigenetic changes at thousands of sites across the genome, which were used to calculate three clocks measuring biological age, named PcPhenoAge, PCGrimAge and DunedinPACE.

    Ageing is natural – but the speed at which we age can change.
    Bricolage/Shutterstock

    Then, they looked at the levels of heat each participant would have been exposed in their geographic areas over the preceding six years, which was 2010–16. They used the US heat index to assess heat, from caution (days up to 32°C), extreme caution (32–39°C) and danger (39–51°C). They used regression modelling to see how much faster people were ageing over the normal rate of ageing.

    The effect of heat was clear in the three biological clocks. Longer term exposure to intense heat increased biological age by 2.48 years over the six year period of the study according to PCPhenoAge, 1.09 years according to PCGrimAge and 0.05 years according to DunedinPACE.

    Over the period of the study, the effect was up to 2.48 years faster than normal ageing, where one calendar year equals one biological year of ageing. That is, rather than their bodies ageing the equivalent of six years over a six year period, heat could have aged their bodies up to 8.48 years.

    Importantly, the biological clocks differ quite substantially and we don’t yet know why. The authors suggest the PCPhenoAge clock may capture a broader spectrum of biological ageing, covering both short term and longer term heat stress, while the other two may be more sensitive to long term heat exposure.

    The way these researchers have conducted their study gives us confidence in their findings – the study sample was large and representative, and the use of the heat index rather than air temperature is an improvement over previous studies. However, the findings don’t account for whether the participants had airconditioning in their homes or spent much time outside.

    We need to know more

    Perhaps surprisingly, there has been little research done to date on what heat does to human epigenetics.

    In 2020, we conducted a systemic review of the science of how environment affects human epigenetics. We found only seven studies, with most focused on the effect of cold rather than heat.

    Now we have this new research which sheds light on the extent to which heat ages us.

    As we face a warmer future, our epigenetics will change in response. There is still a lot of work to do to see how we can adapt to these changes – or if we even can, in some parts of the world.

    Rongbin Xu received funding from VicHealth.

    Shuai Li receives funding from NHMRC, Cancer Australia, Victorian Cancer Agency, Cancer Council Victoria and NIH.

    ref. Intense heat changes our biology and can make us age significantly faster: study – https://theconversation.com/intense-heat-changes-our-biology-and-can-make-us-age-significantly-faster-study-250784

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: DeepSeek is now a global force. But it’s just one player in China’s booming AI industry

    Source: The Conversation (Au and NZ) – By Mimi Zou, Professor, School of Private & Commercial Law, UNSW Sydney

    Dorason/Shutterstock

    When small Chinese artificial intelligence (AI) company DeepSeek released a family of extremely efficient and highly competitive AI models last month, it rocked the global tech community. The release revealed China’s growing technological prowess. It also showcased a distinctly Chinese approach to AI advancement.

    This approach is characterised by strategic investment, efficient innovation and careful regulatory oversight. And it’s evident throughout China’s broader AI landscape, of which DeepSeek is just one player.

    In fact, the country has a vast ecosystem of AI companies.

    They may not be globally recognisable names like other AI companies such as DeepSeek, OpenAI and Anthropic. But each has carved out their own speciality and is contributing to the development of this rapidly evolving technology.

    Tech giants and startups

    The giants of China’s technology industry include Baidu, Alibaba and Tencent. All these companies are investing heavily in AI development.

    Alibaba CEO Eddie Wu earlier this month said the multibillion dollar company plans to “aggressively invest” in its pursuit of developing AI that is equal to, or more advanced than, human intelligence.

    The company is already working with Apple to incorporate its existing AI models into Chinese iPhones. (Outside China, iPhones offer similar integration with OpenAI’s ChatGPT.)

    But a new generation of smaller, specialised AI companies has also emerged.

    For example, Shanghai-listed Cambricon Technologies focuses on AI chip development. Yitu Technology specialises in healthcare and smart city applications.

    Megvii Technology and CloudWalk Technology have carved out niches in image recognition and computer vision, while iFLYTEK creates voice recognition technology.

    Multibillion dollar Chinese tech company Alibaba plans to aggressively invest in AI.
    testing/Shutterstock

    Innovative paths to success

    Despite United States’ chip sanctions and China’s restricted information environment, these Chinese AI companies have found paths to success.

    US companies such as OpenAI have trained their large language models on the open internet. But Chinese companies have used vast datasets from domestic platforms such as WeChat, Weibo and Zhihu. They also use government-authorised data sources.

    Many Chinese AI companies also embrace open-source development. This means they publish detailed technical papers and release their models for others to build upon. This approach focuses on efficiency and practical application rather than raw computing power.

    The result is a distinctly Chinese approach to AI.

    Importantly, China’s state support for AI development has also been substantial. Besides the central government, local and provincial governments have provided massive funding through venture funds, subsidies and tax incentives.

    China has also established at least 48 data exchanges across different cities in recent years. These are authorised marketplaces where AI companies can purchase massive datasets in a regulated environment.

    By 2028, China also plans to establish more than 100 “trusted data spaces”.

    These are secure, regulated environments designed to standardise data exchanges across sectors and regions. They will form the foundation of a comprehensive national data market, allowing access to and use of diverse datasets within a controlled framework.

    A strong education push

    The growth of the AI industry in China is also tied to a strong AI education push.

    In 2018, China’s Ministry of Education launched an action plan for accelerating AI innovation in universities.

    Publicly available data shows 535 universities have established AI undergraduate majors and some 43 specialised AI schools and research institutes have also been created since 2017. (In comparison, there are at least 14 colleges and universities in the United States offering formal AI undergraduate degrees.)

    Together, these institutions are building an AI talent pipeline in China. This is crucial to Beijing’s ambition of becoming a global AI innovation leader by 2030.

    China’s AI strategy combines extensive state support with targeted regulation. Rather than imposing blanket controls, regulators have developed a targeted approach to managing AI risks.

    The 2023 regulations on generative AI are particularly revealing of Beijing’s approach.

    They impose content-related obligations specifically on public-facing generative AI services, such as ensuring all content created and services provided are lawful, uphold core socialist values and respect intellectual property rights. These obligations, however, exclude generative AI used for enterprise, research and development. This allows for some unrestricted innovation.

    There are 43 specialised AI schools and research institutes in China, including at Renmen University in Beijing.
    humphery/Shutterstock

    International players

    China and the US dominate the global AI landscape. But several significant players are emerging elsewhere.

    For example, France’s Mistral AI has raised over €1 billion (A$1.6 billion) to date to build large language models. In comparison, OpenAI raised US$6.6 billion (A$9.4 billion) in a recent funding round, and is in talks to raise a further US$40 billion.

    Other European companies are focused on specialised applications, specific industries or regional markets. For example, Germany’s Aleph Alpha offers an AI tool that allows companies to customise third-party models for their own purposes

    In the United Kingdom, Graphcore is manufacturing AI chips and Wayve is making autonomous driving AI systems.

    Challenging conventional wisdom

    DeepSeek’s breakthrough last month demonstrated massive computing infrastructure and multibillion dollar budgets aren’t always necessary for the successful development of AI.

    For those invested in the technology’s future, companies that achieve DeepSeek-level efficiencies could significantly influence the trajectory of AI development.

    We may see a global landscape where innovative AI companies elsewhere can achieve breakthroughs, while still operating within ecosystems dominated by American and Chinese advantages in talent, data and investment.

    The future of AI may not be determined solely by who leads the race. Instead, it may be determined by how different approaches shape the technology’s development.

    China’s model offers important lessons for other countries seeking to build their AI capabilities while managing certain risks.

    Mimi Zou has previously received funding from the British Academy. She is affiliated with the Asia Society Australia.

    ref. DeepSeek is now a global force. But it’s just one player in China’s booming AI industry – https://theconversation.com/deepseek-is-now-a-global-force-but-its-just-one-player-in-chinas-booming-ai-industry-250494

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Senator Murray, Former FTA Worker, Park Ranger, BPA Analyst Lay Out How Mass Layoffs Across Federal Workforce Decimate Services, Leave Everyone Worse Off

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    Murray: “Elon Musk and Donald Trump are proving every single day they don’t know what they are doing, they don’t know what our federal workers do, and they don’t care if their firing spree ends up burning down something important.”
    ***VIDEO HERE***
    ***WA FACT SHEET: Impact in Washington State of Trump and Musk’s Reckless Mass Layoffs***
    Washington, D.C. — Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, held a virtual press conference with federal workers in Washington state—including from the Federal Transit Administration (FTA), National Park Service (NPS), and Bonneville Power Administration (BPA)—who were recently laid off through no fault of their own and with zero justification, as part of Trump and Musk’s unprecedented assault on the federal workforce. The speakers underscored how Trump and Musk’s mass firings will severely jeopardize essential services that help families each and every day, and will leave us all worse off.
    Murray was joined for the press call by: Emily Conner, former Federal Transit Administration Region 10 FTA grants management specialist from Shoreline; Sam Peterson, former Park Ranger with the National Park Service at the Lake Roosevelt National Recreation Area in Eastern Washington; and Katie Emerson, former Management and Program Analyst at the Bonneville Power Administration, who resides in Southwest Washington.
    “Elon Musk and Donald Trump are proving every single day they don’t know what they are doing, they don’t know what our federal workers do, and they don’t care if their firing spree ends up burning down something important,” Senator Murray said. “Just this week, they fired another 1,400 staff at the VA—people who are helping serve our veterans, gone for no reason. And here’s the thing—they are still trying to fire even more people with even less forethought. The Trump-Musk firing spree continues to be about as surgical as a wrecking ball… These mass layoffs have nothing to do with government efficiency. In fact, they will do the exact opposite. Trump and Musk’s reckless firing spree means veterans waiting longer to get their disability claims approved, slower review of new drugs and medical devices, slower response to natural disasters, fewer people who help keep our skies safe for the flying public, and the list goes on.”
    “These are real-life impacts on everyday people, regardless of political beliefs, affiliations, or how people voted. And the ultimate price for these sudden and chaotic staffing cuts is that the American people will pay for it literally with their time and their money–they just don’t realize it yet,” said Emily Conner, former Federal Transit Administration (FTA) Region 10 FTA grants management specialist from Shoreline who was abruptly laid off as part of Trump and Musk’s cuts through no fault of her own. “Federal workers are civil servants; they work to serve the American people, and they take that job very seriously. Now that there aren’t enough people left to do the work, there’ll be ripple effects across the entire country in small and large ways that people just don’t understand yet, and it’s only going to get worse with more force reductions.”
    “The Park Service exists to do the incredibly challenging job of preserving America’s treasures while also sharing them with the public, but thousands of us do it with a smile on our face, and for less compensation that we could receive in the private sector. The Park Service really exists to help make and keep Americans happy and preserve everything that is great about our amazing nation. Without me on the job, and people like me, the existing staff will be stretched thin, safety issues will arise, and the services that the American taxpayer has already paid for won’t be present in our national park sites,” said Sam Peterson, a Park Ranger at the Lake Roosevelt National Recreation Area in Eastern Washington who was recently laid off by Trump and Musk through no fault of his own and with zero justification.
    “In addition to the excess workload, staffing shortages will lead to increased overtime and travel costs to get severely limited crews out for critical maintenance work and to respond to system outages. BPA response times to power outages in some locations may be delayed, as our crews are shorthanded and overworked,” said Katie Emerson, a Program Analyst at the Bonneville Power Administration who had worked at BPA for more than 10 years as a contractor and direct employee before being laid off without cause as part of the probationary firings. “Staff shortages will also force already-planned power grid enhancement and expansion projects to be delayed, projects intended to strengthen power grid stability. Staff shortages will be felt not just in the present term, but also in the long term. Electrical apprenticeship recruitment and hiring for 2025 was cancelled. It takes four years to train these employees to be at full capacity, so this single year delay will be felt for many years to come.”
    Senator Murray has been raising the alarm about how mass firings at all manner of federal agencies will hurt families, veterans, small businesses, farmers, and so many others in Washington state and across the country. Senator Murray has spoken out on the Senate floor against this administration’s attacks on federal workers and held multiple press conferences to call attention to how Trump and Musk’s mass layoffs are hurting federal workers in Washington state and undermining services for everyone. Earlier this month, she released both a national fact sheet and a Washington state fact sheet detailing what we know about the mass layoffs so far. Senator Murray also sent an open letter to federal workers and a newsletter to her constituents in Washington state outlining her concerns with the administration’s so-called “Fork in the Road” offer.
    Senator Murray has also sent a flurry of recent oversight letters demanding answers about indiscriminate staffing reductions across federal agencies—including letters to HHS Secretary Robert F. Kennedy Jr. on mass firings across HHS as well as a letter focused specifically on firings at FDA, Energy Secretary Chris Wright on indiscriminate firings at BPA, HUD Secretary Scott Turner on reports of massive staff cuts at HUD, Interior Secretary Doug Burham on National Parks Service staffing cuts, and Acting USDA Secretary Gary Washington on the universal hiring pause for USDA firefighters, among others.
    Senator Murray’s full remarks, as delivered on today’s press call, are below and video is HERE:
    “Thank you all so much for joining me in this this conversation. Here’s where we are: the fact of the matter is Elon Musk and Donald Trump are proving every single day they do not know what theyare doing, they don’t know what our federal workers actually do, and they don’t care if their firing spree ends up burning down something really important.
    “And it’s not just because they’re just out of touch billionaires—though they clearly are out of touch billionaires—because maybe that would explain why they don’t care if firing staff who help child care and Head Start centers keep their doors open makes it harder for parents to get child care, or firing Social Security workers, which cuts off our seniors from help with their benefits, or firing our BPA workers which will raise energy costs for our families.
    “But still, even people like Trump and Elon who take private jets everywhere should understand you do not fire FAA workers weeks after the deadliest crash in decades—that, to me, is just common sense!
    “But Trump and Musk have shown they couldn’t care less—even if lives are at stake. Unbelievably, they have fired public health experts working on bird flu—and even nuclear weapons experts!
    “If Trump and Musk stopped and used a single brain cell for a single second, the danger of firing nuclear experts willy-nilly would have been obvious.
    “But no, it was only after a public outcry—when everyone pointed out what should have been obvious—that they tried to reverse course and hire some of them back.
    “Just this week, they fired another 1,400 staff at the VA—people who are helping serve our veterans, gone for no reason. And here’s the thing—they are still trying to fire even more people with even less forethought.
    “The Trump-Musk firing spree continues to be about as surgical as a wrecking ball.
    “First, it was that scammy ‘Fork in the Road’ email—which they’ve been awfully quiet about since their latest email.
    “Then it was firing everyone who was new, or who was newly promoted. They didn’t target low performers—they targeted some of our highest performers.
    “And now they want to lay off anyone who didn’t respond quickly enough to an email that they sent out over the weekend. Of course, we all know they’re not going to read millions of responses.
    “Which is unfortunate, actually, because Elon and Trump clearly do need to learn a thing or two about what our workers actually do, and how important it is. They obviously do not have the slightest idea.
    “And now, it is being reporting that they just want to chuck all of these responses into some AI they’ve cooked up for firing people. Honestly, with as thoughtless as Trump and Musk are sometimes—I can almost see why they’re so desperate for artificial intelligence to do the thinking that they don’t seem to be capable of.
    “But that is no way to treat people who have dedicated themselves to our country—often for years, and many of them, by the way, are veterans!
    “That’s right: nearly one-third of our federal workforce are veterans, people who have literally put their lives on the line for our country—and now, we’re all seeing what Trump and Musk think about that.
    “And let’s be clear: these mass layoffs have nothing to do with government efficiency. In fact, they will do the exact opposite.
    “Trump and Musk’s reckless firing spree means veterans waiting longer to get their disability claims approved, slower review of new drugs and medical devices, slower response to natural disasters, fewer people who help keep our skies safe for the flying public, and the list goes on.
    “President Trump and Elon Musk may not actually care who they fire, what these workers do, and what pain and danger it will mean for our families.
    “But I understand it, and unlike them—I actually want to focus this conversation on what our federal workers actually do and how firing them, en masse, without rhyme or reason, hurts the American people in a big way.
    “So today, I want to give the floor to some dedicated federal workers who can talk about the work they were doing—before Trump and Musk sent them packing for no reason—and why it is important for all of us.
    “Because these are not just the people who keep America going—they are some of the people who make America great. So, with that, I want to turn it over to three people who have been fired to share with you their stories—and I’m going to start with Emily.”

    MIL OSI USA News

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

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

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

    (2024/2081(INI))

    The European Parliament,

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

     having regard to the European Convention on Human Rights,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     having regard to Rule 55 of its Rules of Procedure,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Global challenges to democracy and human rights

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

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

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

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

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

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

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

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

    EU action plan on human rights and democracy

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

    EU Special Representative (EUSR) for Human Rights

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

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

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

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

    EU trade and international agreements

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

    EU human rights dialogues

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

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

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

    Democracy support activities

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

    EU support for human rights defenders

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

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

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

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

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

    Combating impunity and corruption

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

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

    EU actions at multilateral level

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

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

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

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

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

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

    Upholding international humanitarian law

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

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

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

    Team Europe approach

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

    Responding to universal human rights and democracy challenges

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

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

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

    Right to freedom of peaceful assembly and association

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

    Right to food, water and sanitation

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

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

    Climate change and the environment

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

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

    Rights of the child

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

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

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

    Rights of women and gender equality

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

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

    Rights of refugees and asylum seekers

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

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

    Rights of LGBTIQ+ persons

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

    Rights of persons with disabilities

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

    Rights of elderly people

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

    Right to equality and non-discrimination

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

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

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

    Right to freedom of thought, conscience, religion and belief

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

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

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

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

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

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

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

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

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

    Rights of indigenous peoples

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

    Right to public participation

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

    Human rights, business and trade

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

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

    Human rights and digital technologies

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

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

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

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

    °

    ° °

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

    EXPLANATORY STATEMENT

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

     

    The three reports are on:

     

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

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

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

     

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

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

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

    Entity and/or person

    European Partnership for Democracy/International Dalit Solidarity Network

    Clean Clothes Campaign

    Protection International

    Race & Equality

    FIDH – International Federation for Human Rights

    International Partnership for Human Rights

    Cairo Institute for Human Rights Studies

    Front Line Defenders

    Save the Children

    Avocats Sans Frontières

    Center for Reproductive Rights

    Reporters without Borders

    End FGM European Network

     

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

     

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

     

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

     

    COUNTRY

     

    Individual

    BACKGROUND

    ACTION TAKEN BY THE PARLIAMENT

    AFGHANISTAN

     

    Manizha Seddiqi Ahmad Fahim Azimi

    Sediqullah Afghan, Fardin Fedayee  Ezatullah Zwab

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

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

     

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

     

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

     

    ALGERIA

     

    Boualem Sansal

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

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

     

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

     

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

     

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

     

    AZERBAIJAN

     

    Dr Gubad Ibadoghlu

    Ilhamiz Guliyev

    Ulvi Hasanli Sevinj Vagifgizi

    Nargiz Absalamova

    Hafiz Babali,

    Elnara Gasimova Aziz Orujov

    Rufat Muradli

    Avaz Zeynalli

    Elnur Shukurov

    Alasgar Mammadli

    Farid Ismayilov

     

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

     

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

     

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

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

     

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

     

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

     

    AZERBAIJAN

     

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

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    BELARUS

     

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

    Ihar Losik

    Mikalai Kazlou

    Ryhor Kastusiou Mikalai Statkevich Pavel Seviarynets

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

     

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

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

     

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

     

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

     

    BELARUS

     

    Mikola Statkevich

    Ales Bialiatski

    Maria Kalesnikava Siarhei Tsikhanouski Viktar Babaryka Maksim Znak

    Pavel Sevyarynets Palina Sharenda-Panasiuk

    Andrzej Poczobut  Ihar Losik

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

     

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

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

     

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

     

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

     

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

     

    CHINA

     

    Ding Yuande

    Ma Ruimei

     

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

     

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

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

     

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

     

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

     

    CHINA

     

    Ilham Tohti

    Gulshan Abbas

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

     

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    CUBA

     

    José Daniel Ferrer Garcia

     

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

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

     

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

     

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

     

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

     

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

     

    CRIMEA

    Iryna Danylovych, Tofik Abdulhaziiev and Amet Suleymanov

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

     

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

     

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

     

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

     

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

     

    DEMOCRATIC REPUBLIC OF THE CONGO

     

    Jean-Jacques Wondo

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

     

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

     

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

     

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

     

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

     

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

     

    GREECE

     

    George Karaivaz

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

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

     

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

     

    HONG KONG

     

    Andy Li

    Joseph John

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

     

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

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

     

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

     

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

     

    HONG KONG/ CHINA

     

    Jimmy Lai

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

     

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

     

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

     

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

     

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

     

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

     

    IRAN

     

    Pakhshan Azizi and Wrisha Moradi

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

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    KYRGYZSTAN

     

    Temirlan Sultanbekov

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

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

     

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

     

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

     

    RUSSIA

     

    Alexei Navalny

    Vladimir Kara-Murza

    Yuri Dmitriev

    Ilya Yashin

    Alexei Gorinov

    Lilia Chanysheva Ksenia Fadeeva, Vadim Ostanin

    Daniel Kholodny Vadim Kobzev

    Igor Sergunin

    Alexei Liptser Viktoria Petrova Maria Ponomarenko Alexandra Skochilenko

    Svetlana Petriychuk Evgenia Berkovich Dmitry Ivanov

    Ioann Kurmoyarov Igor Baryshnikov Dmitry Talantov Alexei Moskalev

    Oleg Orlov

    Boris Kagarlitsky

    Ivan Safronov

     

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

     

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

     

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

     

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

     

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

    TAJIKISTAN

     

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

    Manuchehr Kholiknazarov Buzurgmehr Yorov

     

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

     

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

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

     

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

     

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

     

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

     

    TÜRKIYE

     

    Bülent Mumay

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

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

     

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

     

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

     

    VENEZUELA

     

    Rocío San Miguel

    General Hernández Da Costa 

    Ronald Ojeda

    María Corina Machado

    Juan Freites

    Luis Camacaro Guillermo Lopez Emil Brandt

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    VENEZUELA

     

    Maria Corina Machado

    Juan Freites

    Luis Camacaro Guillermo López

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

     

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

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

     

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

     

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

     

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

     

     

     

     

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

     

    Year of Sakharov Prize award

    Name and surname

    Laureate / Finalist

    Country

    Situation (Detention / house arrest / temporarily released)

    Length of prison sentence

    Start date of detention

    2024

    Gubad Ibadoghlu

    Finalist

    Azerbaijan

    Under travel ban

     

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

    2021

    Alexei Navalny

    Laureate

     

    Russia

    Deceased in prison on 16/2/2024

     

    3,5 + 9 + 19 years

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

    2020

    Siarhei Tsikhanouski

     

    Maryia Kalesnikava

     

    Mikola Statkevich

     

     

    Ales Bialiatski

    Laureate

     

    Laureate

     

    Laureate

     

     

    Laureate

    Belarus

     

    Detention

     

    Detention

     

    Detention

     

     

    Detention

    18 years

     

    11 years

     

    14 years

     

     

    10 years

     

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

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

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

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

    2020

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

    Finalists

    Honduras

    Detention

    Unknown

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

    2019

    Ilham Tohti

    Laureate

    China

    Detention

    Unknown

    23/9/2014

    2018

    Nasser Zefzafi

     

    Finalist

    Morocco

    Detention

    20 years

    5/4/2019

    2017

    Dawit Isaak

    Finalist

    Eritrea

    Incommunicado detention

    Unknown

    23/9/2001

    2015

    Raif Badawi

    Laureate

    Saudi Arabia

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

     

    10 years

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

    2012

    Nasrin Sotoudeh

     

     

     

     

     

     

    Jafar Panahi

    Laureate

     

     

     

     

     

     

    Laureate

    Iran

     

     

     

     

     

     

    Iran

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

     

    Detained in 2022,

    released on 3/2/2023 after hunger strike

    38 years

     

     

     

     

     

     

    6 years

    6/3/2019 (most recent)

     

     

     

     

     

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

    2011

    Razan Zaitouneh

    Laureate

    Syria

    Kidnapped in 2013. Presumptions of detention and death.

     

    9/12/2013

    2009

    Memorial – Oleg Orlov

    Laureate

     

     

    Russia

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

    2.5 years

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

     

     

    ANNEX IV: LIST OF RESOLUTIONS

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

     

     

    Country/Region

    Date of adoption in plenary

     

    Title

    Africa

     

     

    Algeria

    23.01.2025

    The case of Boualem Sansal in Algeria

    Democratic Republic of the Congo

    23.01.2025

    The case of Jean-Jacques Wondo

     

    Gambia

     

    25.04.2024

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

    Nigeria

    08.02.2024

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

    Sudan

    18.01.2024

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

    Tanzania

    14.12.2023

    On the Maasai Communities in Tanzania

    Americas

     

     

    Cuba

    29.02.2024

    On the critical situation in Cuba

    Cuba

    19.09.2024

    The case of José Daniel Ferrer García in Cuba

    Guatemala

    14.12.2023

    On the attempt at a coup d’état in Guatemala

    Venezuela

    08.02.2024

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

     

    Venezuela

     

    14.03.2024

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

    Venezuela

    19.09.2024

    Situation on Venezuela

    Venezuela

    23.01.2025

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

    Asia

     

     

     

    Afghanistan

     

     

    14.03.2024

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

    Afghanistan

    19.09.2024

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

     

    Azerbaijan

     

    25.04.2024

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

    Azerbaijan

    19.12.2024

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

    Cambodia

    28.11.2024

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

     

    China

     

    18.01.2024

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

    China

     

    10.10.2024

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

    China/ Taiwan

    24.10.2024

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

     

    Hong Kong

     

    25.04.2024

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

    Hong Kong/ China

     

    28.11.2024

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

    Kyrgyzstan

    19.12.2024

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

    Tajikistan

    18.01.2024

    On Tajikistan: state repression against the independent media

     

    Tibet

     

    14.12.2023

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

    Middle East

     

     

     

    Iran/Israel

     

    25.04.2024

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

     

    Iran

     

    08.02.2024

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

    Iran

    28.11.2024

    The increasing and systematic repression of women in Iran

    Iran

    23.01.2025

    Systematic repression of human rights in Iran

    Iraq

    10.10.2024

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

     

    Palestine

     

    18.01.2024

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

     

    Palestine

     

    14.03.2024

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

    Europe and Eastern Partnership countries

     

     

     

    Azerbaijan/Armenia

     

    13.03.2024

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

    Azerbaijan/ Armenia

    24.10.2024

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

     

    Belarus

     

    14.12.2023

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

     

    Belarus

     

    08.02.2024

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

    Belarus

    19.09.2024

    The severe situation of political prisoners in Belarus

    Belarus

    22.01.2025

    Actions to address the continued oppression and fake elections in Belarus

    Crimea

    19.12.2024

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

     

    Georgia

     

    25.04.2024

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

    Georgia

    09.10.2024

    The democratic backsliding and threats to political pluralism in Georgia

    Georgia

    28.11.2024

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

    Greece

    07.02.2024

    On the rule of law and media freedom in Greece

     

    Hungary

     

    24.04.2024

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

    Hungary

    18.01.2024

    On the situation in Hungary and frozen EU funds

    Moldova

    09.10.2024

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

     

    Russia

     

    29.02.2024

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

     

    Russia

     

    08.02.2024

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

     

     

    Russia

     

     

    25.04.2024

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

     

    Russia

     

    25.04.2024

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

    Russia

     

    14.11.2024

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

    Russia

     

    23.01.2025

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

    Russia/ North Korea

    28.11.2024

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

    Serbia

    08.02.2024

    On the situation in Serbia following the elections

     

    Slovakia

     

    17.01.2024

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

    Türkiye

    10.10.2024

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

    Cross-cutting issues

     

     

    Children liberty

    13.12.2023

    On the situation of children deprived of liberty in the world

     

    LGBTIQ rights

     

    08.02.2024

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

     

     

    Protection of journalists

     

     

    27.02.2024

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

     

    Human rights and democracy

     

    28.02.2024

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

    Foreign and security policy

    28.02.2024

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

     

     

    Media freedom

     

     

    13.03.2024

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

     

     

    Forced labour

     

     

    23.04.2024

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

    Right of abortion

    11.04.2024

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

     

     

    Due diligence

     

     

    24.04.2024

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

     

    Fundamental rights

     

    18.01.2024

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

    Hate speech

    18.01.2024

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

     

     

    Business and human rights

     

     

    18.01.2024

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

    Freedom of scientific research

    17.01.2024

    On promotion of the freedom of scientific research in the EU

    Citizens, equality, rights and values

    16.01.2024

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

     

     

    Violence against women

     

     

    24.04.2024

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

     

    Human beings traffic

     

    23.04.2024

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

     

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – The consequent steps to be taken by the EU with regard to Israel’s illegal occupation of Palestinian territories – E-002219/2024(ASW)

    Source: European Parliament

    The Council would refer to its reply to Written Question E-001779/2024. As last discussed at the European Council on 17 October 2024[1], the European Union has reiterated its unwavering commitment to a just, comprehensive and lasting peace based on the two-state solution and the Union’s support to the Palestinian Authority to help address its most pressing needs and support its reform agenda.

    The European Union will actively support and engage with international partners on concrete irreversible steps towards the two-state solution reviving a political process to this end, including through the holding of an international peace conference as soon as possible. The EU has stressed that a credible pathway to Palestinian statehood is a crucial component of that political process.

    The EU has also recalled the need to fully implement the International Court of Justice orders.

    As regards the issue of the supply of military or related material to Israel, the Council refers to its reply to Written Question P-003630/2023, and recalls that the control on the export of arms by Member States is subject to national legislation, Council Common Position 2008/944/CFSP[2] and the Arms Trade Treaty[3] (ATT).

    The competent authorities of the Member States take the final decision whether to authorise or deny an individual licence for the export or transit of military equipment, in accordance with the said legal frameworks.

    The Council, through its competent Working Party, works towards increased convergence amongst Member States’ arms export policies, including recently through exchanges of views on the application of the criteria set out in the Common Position, in the light of the conflict in Gaza.

    • [1] https://www.consilium.europa.eu/media/2pebccz2/20241017-euco-conclusions-en.pdf
    • [2] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32008E0944
    • [3] https://thearmstradetreaty.org/treaty-text.html?templateId=209884
    Last updated: 26 February 2025

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Use of European ports to further Israel’s genocide, war crimes and crimes against humanity – E-002450/2024(ASW)

    Source: European Parliament

    The European Union is deeply alarmed by the dramatic military escalation in the Middle East and it has called on all parties to exercise the utmost restraint, put an end to all hostilities immediately and fully abide by international law, including international humanitarian law.

    It has also reiterated Israel’s right to defend itself and the European Union’s commitment to Israel’s security and to regional stability. In exercising its right to defend itself, Israel must fully comply with its obligations under international law, including international humanitarian law, in all circumstances. The EU has also recalled the need to fully implement the International Court of Justice orders[1].

    In relation to the situation, the Council has also imposed restrictive measures against a number of persons and entities under the EU framework of restrictive measures against serious human rights violations and abuses[2], as well as against those who support, facilitate or enable violent actions by Hamas and the Palestinian Islamic Jihad[3].

    Concerning arms trade, the Council is not in a position to comment on shipments from or through Member States. In this regard, the Council refers to its reply to Written Question P-003630/2023, and the fact that the control on the export of arms by Member States is subject to national legislation, Council Common Position 2008/944/CFSP[4] and the Arms Trade Treaty[5] (ATT).

    The competent authorities of the Member States take the final decision on whether to authorise or deny an individual export or transit license for military equipment, in accordance with said legal frameworks.

    The Council, through its competent Working Party, works towards increased convergence amongst Member States’ arms export policies. This includes exchanges of views on the application of the criteria set out in the Common Position.

    • [1] www.consilium.europa.eu/en/press/press-releases/2024/10/17/european-council-conclusions-17-october-2024/; www.consilium.europa.eu/en/press/press-releases/2024/06/28/european-council-conclusions-27-june-2024/
    • [2] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02020R1998-20240913&qid=1732270490517
    • [3] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02024R0386-20240913&qid=1732270685388
    • [4] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32008E0944.
    • [5] https://thearmstradetreaty.org/treaty-text.html?templateId=209884

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: Sydney ETO holds Chinese New Year reception in Auckland to celebrate Year of Snake (with photos)

    Source: Hong Kong Government special administrative region

    Sydney ETO holds Chinese New Year reception in Auckland to celebrate Year of Snake (with photos)
    Sydney ETO holds Chinese New Year reception in Auckland to celebrate Year of Snake (with photos)
    ******************************************************************************************

         The Hong Kong Economic and Trade Office, Sydney (Sydney ETO) hosted a Chinese New Year reception in Auckland, New Zealand, yesterday (February 25) to celebrate the Year of the Snake.           Over 150 guests from various sectors, including political and business circles, media, academia, community groups and government representatives, attended the reception. Among them were the Consul General of the People’s Republic of China in Auckland, Mr Chen Shijie; the Minister of Agriculture, Minister of Forestry, Minister for Trade and Investment and Associate Minister of Foreign Affairs of New Zealand, Mr Todd McClay; and the Mayor of Auckland, Mr Wayne Brown.           The Director of the Sydney ETO, Mr Ricky Chong, said in his welcoming remarks that Hong Kong and New Zealand share a long-standing and dynamic trade partnership built on a mutual commitment to open markets and free trade. Notably, New Zealand was the first foreign country to secure a free trade agreement with Hong Kong, reinforcing the depth of economic ties. The Hong Kong, China – New Zealand Closer Economic Partnership Agreement, signed in 2010 and in force since 2011, offers New Zealand exporters a competitive advantage and expands opportunities in the region.     “In Hong Kong, we are investing heavily to enhance our world-class infrastructure. A prime example is our new state-of-the-art Kai Tak Sports Park, set to open next month. With its 50 000-seat main stadium, the sports park will firmly put Hong Kong on the map as a global hub for major international sports and entertainment events. The world’s famous Hong Kong Sevens will also be held at the new Kai Tak Stadium from March 28 to 30,” Mr Chong added.     To promote Hong Kong’s pop culture, a music performance featuring Hong Kong teenagers in New Zealand was staged at the reception.       In addition to the reception in Auckland, the Sydney ETO also hosted Chinese New Year receptions in Sydney, Melbourne, Brisbane, Perth and Adelaide in Australia to celebrate the Year of the Snake with the communities. 

     
    Ends/Wednesday, February 26, 2025Issued at HKT 20:45

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI: LIS Technologies Inc. Appoints Preeminent Researcher Neil Campbell, Ph.D., as its Chairman of the Advisory Board for Laser Innovation and Modeling

    Source: GlobeNewswire (MIL-OSI)

    Oak Ridge, Tennessee, Feb. 26, 2025 (GLOBE NEWSWIRE) — LIS Technologies Inc. (“LIST” or “the Company”), a proprietary developer of advanced laser technology and the only USA-origin and patented laser uranium enrichment company, today announced that it has appointed Neil Campbell, Ph.D., as its Chairman of the Advisory Board for Laser Innovation and Modeling.

    “I am delighted to join LIS Technologies at this pivotal moment for the U.S. nuclear energy industry,” said Dr. Neil Campbell, Chairman of the Advisory Board for Laser Innovation and Modeling of LIS Technologies Inc. “The Company’s strong technical and leadership teams provide a solid foundation, and I look forward to contributing my own expertise to help ensure timely advancement to the next phase of development and, ultimately, demonstration.”

    Neil Campbell, Ph.D. possesses extensive expertise in laser technology, optics, pulse power, and fluid dynamics. He has been engaged extensively in laser development, spectrally from the ultraviolet through to the longwave infrared across chemical, gas and solid-state lasers -these being discharge, photolytically, relativistic electron beam, flashlamp, optically pumped molecular and diode laser excited. His work has been primarily within the research and development arena, for national and university laboratories, industry and defense, and including organizations such as the Atomic Energy Corporation of South Africa, the Council for Scientific and Industrial Research of South Africa, Grintek Avitronics, ARMSCOR, Applied Research Associates, and the University of New Mexico. Dr. Campbell also dedicates substantial time to mentoring master’s and doctoral students.

    Figure 1 – LIS Technologies Inc. Appoints Dr. Neil Campbell as its Chairman of the Advisory Board for Laser Innovation and Modeling.

    For several decades, Dr. Campbell’s efforts have been directed at alternate pump solutions for selected molecular lasers, with the goal of enabling a disruptive change in specific systems’ capability and performance envelopes. The goal has been to access much needed practical operational domain gains and performance parameters not currently viable via existing laser approaches. He holds eight patents, of which a subset focused on molecular lasers have been the subject of a successful, multi-year Department of Defense–funded research and development program. This laser technology holds promise for medical, energy, and extreme light science applications.

    “Neil’s addition is an important milestone for the Company, bringing on board a seasoned leader to advance our technology to the next phase,” said Jay Yu, Executive Chairman and President of LIS Technologies Inc. “The demand for our proprietary CRISLA technology has never been greater in the United States, as the government moves to strengthen its domestic capabilities and reclaim a leadership role in the nuclear energy sector. With Neil on board, LIST is positioned to capitalize on this growing momentum, and I’m confident his leadership will be invaluable as we continue to advance this vital technology to market.”

    Dr. Campbell is the most recent addition to the Company’s Laser Tiger Team and he will play a crucial role in the advancement of the Company’s proprietary technology following its recent selection as one of six companies to participate in the Low-Enriched Uranium (LEU) Enrichment Acquisition Program, worth up to $3.4 billion overall, with contracts lasting for up to 10 years. LIST’s Condensation Repression Isotope Selective Laser Activation (CRISLA) technology is the world’s only proven US-origin and patented advanced laser enrichment solution. Optimized for Low-Enriched Uranium (LEU), which is crucial for the continued operation of the United States’ current fleet of 94 nuclear reactors, and High-Assay Low-Enriched Uranium (HALEU), which is required to power the next generation of advanced nuclear reactors, CRISLA overcomes many of the complexities and limitations of traditional 16µm CO2 lasers, featuring a streamlined design due to its lower absorption and shorter wavelength at 5.3µm.

    With high throughput, high duty cycle and reduced complexity compared to competing technologies, the Company projects highly competitive capital and operational costs. Demonstrated in the 1980s and 90s, this technology is protected by a patent from the United States Patent and Trademark Office (USPTO).

    “It is a pleasure to welcome Dr. Campbell to the team,” said Christo Liebenberg, CEO of LIS Technologies Inc. “I have known Neil as a brilliant Laser Scientist dating back to our MLIS days at the Atomic Energy Corporation of South Africa in the 80’s and 90’s. His laser expertise will be immensely valuable as we move toward scaling our current infrared lasers that will be used in test loop demonstrations of our CRISLA technology. I also look forward to seeing how Neil will leverage his modeling skills to strengthen our future laser engineering efforts, and collaborate with him to position LIS Technologies at the forefront of this innovative and burgeoning industry.”

    About LIS Technologies Inc.

    LIS Technologies Inc. (LIST) is a USA based, proprietary developer of a patented advanced laser technology, making use of infrared lasers to selectively excite the molecules of desired isotopes to separate them from other isotopes. The Laser Isotope Separation Technology (L.I.S.T) has a huge range of applications, including being the only USA-origin (and patented) laser uranium enrichment company, and several major advantages over traditional methods such as gas diffusion, centrifuges, and prior art laser enrichment. The LIST proprietary laser-based process is more energy-efficient and has the potential to be deployed with highly competitive capital and operational costs. L.I.S.T is optimized for LEU (Low Enriched Uranium) for existing civilian nuclear power plants, High-Assay LEU (HALEU) for the next generation of Small Modular Reactors (SMR) and Microreactors, the production of stable isotopes for medical and scientific research, and applications in quantum computing manufacturing for semiconductor technologies. The Company employs a world class nuclear technical team working alongside leading nuclear entrepreneurs and industry professionals, possessing strong relationships with government and private nuclear industries.

    In 2024, LIS Technologies Inc. was selected as one of six domestic companies to participate in the Low-Enriched Uranium (LEU) Enrichment Acquisition Program. This initiative allocates up to $3.4 billion overall, with contracts lasting for up to 10 years. Each awardee is slated to receive a minimum contract of $2 million.

    For more information please visit: LaserIsTech.com

    For further information, please contact:
    Email: info@laseristech.com
    Telephone: 800-388-5492
    Follow us on X Platform
    Follow us on LinkedIn

    Forward Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. For LIS Technologies Inc., particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following which are, and will be, exacerbated by any worsening of global business and economic environment: (i) risks related to the development of new or advanced technology, including difficulties with design and testing, cost overruns, development of competitive technology, loss of key individuals and uncertainty of success of patent filing, (ii) our ability to obtain contracts and funding to be able to continue operations and (iii) risks related to uncertainty regarding our ability to commercially deploy a competitive laser enrichment technology, (iv) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission; and other risks and uncertainties discussed in this and our other filings with the SEC. Only after successful completion of our Phase 2 Pilot Plant demonstration will LIS Technologies be able to make realistic economic predictions for a Commercial Facility. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network

  • MIL-OSI Canada: Province Asks Federal Government to Investigate Tire Imports

    Source: Government of Canada regional news

    Premier Tim Houston is asking the Canada Border Services Agency (CBSA) to urgently investigate imports of passenger vehicle and light truck tires from China, Cambodia and Vietnam.

    In a letter to federal Public Safety Minister David McGuinty, Premier Houston says it is imperative that the CBSA act now based on strong evidence that suggests tire manufacturers from these countries are flooding the Canadian market.

    “I am committed to standing up for Nova Scotians and businesses, and it is clear to me that these imports are putting jobs at risk and undermining the stability of our domestic tire industry,” said Premier Houston. “The global trade market is facing immense uncertainty right now, and we have to focus on the things we can control – defending ourselves against industries with unfair trade practices that threaten our economy and job security is absolutely within our control.”

    Nova Scotia has been conducting extensive consultations with industry stakeholders as part of its response to remove internal trade barriers and respond to the threat of U.S. tariffs. Through this analysis and a review of import data, the Province believes the threshold has been met for the CBSA to self-initiate an anti-dumping investigation into import tires from these countries.

    Under the Special Import Measures Act, the CBSA has authority to launch an investigation without the need for a formal industry complaint if there is clear evidence of unfair trade harming Canadian industries.


    Quick Facts:

    • Michelin is one of Nova Scotia’s largest employers with nearly 4,000 direct employees, and the company’s exports account for nearly one per cent of Nova Scotia’s provincial gross domestic product
    • between 2022 and 2024, imports of passenger vehicle and truck tires from China, Cambodia and Vietnam increased by nearly 30 per cent

    Additional Resources:

    News release – Legislation to Remove Barriers to Trade: https://news.novascotia.ca/en/2025/02/25/legislation-remove-barriers-trade


    MIL OSI Canada News

  • MIL-OSI USA: Cortez Masto, Rounds Introduce Bipartisan Legislation to Promote American Businesses in Competition with China

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto
    Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Mike Rounds (R-S.D.) introduced bipartisan legislation to help American businesses compete with Communist China. The Strengthening Exports Against China Act would incentivize economic growth by eliminating barriers for American businesses competing directly with China in emerging industries like artificial intelligence and semiconductors. Companion legislation has been introduced in the House by Representatives Young Kim (R-Calif.) and Joyce Beatty (D-Ohio).
    “The Chinese Communist Party provides massive subsidies and financing for businesses in emerging industries. To remain competitive, the United States needs to do more to support innovative businesses here at home,” said Senator Cortez Masto. “My bipartisan legislation will support more American businesses directly competing with China to help them make breakthroughs in AI, critical mineral mining and processing, and other transformational areas.”
    “It’s time for fair competition on the global stage,” said Senator Rounds. “We must level the playing field for U.S. exporters when they’re up against firms backed by the Chinese Communist Party’s opaque financing. The Strengthening Exports Against China Act would allow the Export Import Bank to increase export financing and insurance support to U.S. firms that export products in direct competition with China.”
    The Export-Import Bank (EXIM) creates American jobs by promoting and financing exports. The China and Transformational Exports Program (CTEP) was established on a bipartisan basis in 2019 to counter Chinese export subsidies and financing while advancing U.S. innovation and export competitiveness in 10 Transformation Export Areas, including AI, 5G, energy efficiency, and semiconductors. Unfortunately, the CTEP is struggling to scale up due to the rules governing EXIM financing. Under current law, if EXIM projects reach or exceed a two percent default rate, the Bank must immediately freeze all lending. This default rate cap poses a significant challenge to EXIM’s ability to support U.S. exporters in emerging, less established fields. The Strengthening Exports Against China Act would eliminate the default rate cap for exporters covered by the CTEP program to help them better compete directly with PRC rivals.
    The full text of the legislation can be found here.
    Senator Cortez Masto has led efforts in Congress to strengthen our national security and supply chains. She has consistently blocked burdensome taxes on mining and wrote important provisions of the Bipartisan Infrastructure Law to bolster Nevada’s critical mineral supply chain. She’s also introduced bipartisan legislation to strengthen the domestic supply chain for rare-earth magnets, which are critical components of cell phones, computers, defense systems, and electric vehicles, but are almost exclusively made in China.

    MIL OSI USA News

  • MIL-OSI USA: Luján Statement on Confirmation of Jamieson Greer as Trade Representative

    US Senate News:

    Source: US Senator for New Mexico Ben Ray Luján
    Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Committee on Finance, issued the following statement after voting against Jamieson Greer to serve as the U.S. Trade Representative:
    “In the first month of the Trump administration, the President attacked our nation’s allies and closest trading partners. New Mexicans and Americans across the country deserve a Trade Representative that will help lower costs, not one that will add fuel to the President’s trade war and raise costs for American families.
    “During Mr. Greer’s nomination hearing, I questioned him on the negative impacts President Trump’s trade war would have on New Mexico businesses and families. Mr. Greer could not guarantee that New Mexicans would not face negative impacts and that showed me all I needed to know: Mr. Greer will pursue the President’s trade war at the expense of American families.
    “I am committed to lowering costs for New Mexicans and trade policies that help our small businesses grow and succeed. As a member of the Senate Committee on Finance, I will hold the administration accountable for needlessly igniting trade wars that raise prices, threaten American industries and jobs, and hurt New Mexicans’ bottom lines.”

    MIL OSI USA News

  • MIL-OSI Economics: Landmark EU Data Boundary for the Microsoft Cloud completed

    Source: Microsoft

    Headline: Landmark EU Data Boundary for the Microsoft Cloud completed

    At Microsoft, we remain committed to enabling European businesses to thrive by providing the tools and support necessary to drive their success and give our customers throughout the European Union more control over their data. To fulfill these goals, today Microsoft is announcing that it has completed the EU Data Boundary for the Microsoft Cloud, an industry-leading solution that stores and processes public sector and commercial customer data in the EU and European Free Trade Association (EFTA). 

    With the completion of the boundary, our European commercial and public sector customers are now able to store and process their customer data and pseudonymized personal data for Microsoft core cloud services including Microsoft 365, Dynamics 365, Power Platform, and most Azure services within the EU and EFTA regions. In addition, Microsoft will store professional services data from technical support interactions for the core cloud services within the EU and EFTA regions.  

    This milestone is the culmination of a massive, multi-year engineering effort across hundreds of Microsoft product teams and thousands of developers around the globe. The EU Data Boundary reflects Microsoft’s commitment to delivering unmatched cloud services that support European transparency, protect privacy, and enhance customer control. It’s a reflection of our commitment to Europe and is part of a wide range of residency capabilities and solutions we provide to our customers.  

    The EU Data Boundary has been delivered to our customers in three phases: 

    • Microsoft launched Phase 1 in January 2023, enabling the storage and processing of customer data for core services, including most of the Microsoft Cloud suite of online services: Microsoft 365, Dynamics 365, Power Platform, and Azure.
    • Phase 2, launched in January 2024, expanded the scope of the EU Data Boundary to include pseudonymized personal data, ensuring even data that is pseudonymized to prevent direct identification remains within these regions.
    • Phase 3, with the completion of the EU Data Boundary in February 2025, ensures that when customers in the EU and EFTA request technical support for services such as Microsoft 365, Power Platform, and Dynamics 365, the professional services data provided by customers (such as logs) and generated by Microsoft (such as support case notes) are now stored within the EU and EFTA regions. For certain Azure services, additional customer action may be required to obtain the professional services data storage commitment, which is documented here.

    Building on decades of commitment to Europe

    Microsoft’s dedication to Europe spans more than 40 years. Over the past 16 months, we have invested more than $20 billion in AI and cloud infrastructure across the continent to expand our local options and meet growing demand.

    In addition, Microsoft offers a suite of solutions to provide our customers with greater control over their data’s location and to fulfill Microsoft’s fundamental principles and approach to transparency, accountability, and data protection:

    • Across our products, Microsoft offers more granular controls over the location of Microsoft 365 customer data through Microsoft 365 Advanced Data Residency.
    • Our Microsoft Cloud for Sovereignty enables specific public sector customers to build and digitally transform Azure workloads while meeting sovereignty, compliance, security, and policy requirements.
    • We continually innovate to meet customer needs and lead in transparency and accountability through our European Cloud Principles.

    Taken together, these efforts reflect our ongoing focus on supporting Europe’s innovation, growth, and technology needs as the region moves into an increasingly digital future.

    Advancing global cybersecurity with the Microsoft Cloud

    Microsoft is deeply committed to cybersecurity, prioritizing the protection of our customers and the broader global digital ecosystem. Through the Secure Future Initiative (SFI), Microsoft integrates security into every aspect of our operations, from product design to daily practices. This global effort is essential in combating increasingly complex cyberattacks, ensuring a safer digital environment for our European customers and organizations worldwide.

    In limited security instances that require a coordinated global response, essential data may be transferred with robust protections that safeguard customer data. In these circumstances, Microsoft provides transparent information and implements comprehensive security measures, including encryption, strict access controls, and other resilient protections. This global intelligence allows Microsoft to provide real-time alerts and security response mitigation, ensuring customers remain protected no matter where a threat originates. Customers can learn more at: What is the EU Data Boundary?

    At Microsoft, we believe cloud technology can be innovative, secure, and built to honor European values. The EU Data Boundary for the Microsoft Cloud is another example of how we are working to empower European organizations with the solutions and tools they need to grow and thrive in a modern, secure cloud environment.

    While our products and services continue to be compliant with EU regulations, we are dedicated to listening to our customers in all parts of the world—and will continuously evolve to go beyond compliance where necessary to meet our customers’ unique needs.

    Learn more about the EU Data Boundary for the Microsoft Cloud.

    Tags: data privacy, EU, European Union

    MIL OSI Economics

  • MIL-OSI: Annual General Meeting announcement

    Source: GlobeNewswire (MIL-OSI)

    Amsterdam, February 26, 2025

    SBM Offshore announces that the agenda of the Annual General Meeting of Shareholders (AGM) and the invitation for shareholders to attend the AGM have now been published on the Company’s website. The AGM will be held at the Steigenberger Airport Hotel Amsterdam (Stationsplein Zuid-West 951, 1117 CE Schiphol, the Netherlands) on Wednesday April 9, 2025 at 2.30 p.m. Central European Time.

      

    Corporate Profile

    SBM Offshore is the world’s deepwater ocean-infrastructure expert. Through the design, construction, installation, and operation of offshore floating facilities, we play a pivotal role in a just transition. By advancing our core, we deliver cleaner, more efficient energy production. By pioneering more, we unlock new markets within the blue economy.

    More than 7,800 SBMers collaborate worldwide to deliver innovative solutions as a responsible partner towards a sustainable future, balancing ocean protection with progress.

    For further information, please visit our website at www.sbmoffshore.com.

    Financial Calendar   Date Year
    Annual General Meeting   April 9 2025
    First Quarter 2025 Trading Update   May 15 2025
    Half Year 2025 Earnings   August 7 2025
    Third Quarter 2025 Trading Update   November 13 2025
    Full Year 2025 Earnings   February 26 2026

    For further information, please contact:

    Investor Relations

    Wouter Holties
    Corporate Finance & Investor Relations Manager

    Media Relations

    Giampaolo Arghittu
    Head of External Relations

    Market Abuse Regulation

    This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

    Disclaimer

    Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. These statements may be identified by words such as ‘expect’, ‘should’, ‘could’, ‘shall’ and / or similar expressions. Such forward-looking statements are subject to various risks and uncertainties. The principal risks which could affect the future operations of SBM Offshore N.V. are described in the ‘Impacts, Risks and Opportunities’ section of the 2024 Annual Report.

    Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results and performance of the Company’s business may vary materially and adversely from the forward-looking statements described in this release. SBM Offshore does not intend and does not assume any obligation to update any industry information or forward-looking statements set forth in this release to reflect new information, subsequent events or otherwise.

    This release contains certain alternative performance measures (APMs) as defined by the ESMA guidelines which are not defined under IFRS. Further information on these APMs is included in the 2024 Annual Report, available on our website Annual Reports – SBM Offshore.

    Nothing in this release shall be deemed an offer to sell, or a solicitation of an offer to buy, any securities. The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate legal entities. In this release “SBM Offshore” and “SBM” are sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

    “SBM Offshore®“, the SBM logomark, “Fast4Ward®”, “emissionZERO®” and “F4W®” are proprietary marks owned by SBM Offshore.

    Attachment

    The MIL Network

  • MIL-OSI: WENDEL: 2024 Full-Year Results: a very active year, a dual model in place, strong value creation & a growing return to shareholders

    Source: GlobeNewswire (MIL-OSI)

          

    2024 Full-Year Results: a very active year, a dual model in place, strong value creation & a growing return to shareholders

    Fully diluted1 Net Asset Value per share of €185.7,
    representing a +16.9% year-over-year value creation, adjusted for the dividend paid

    Dividend boosted at €4.7 per share, up +17.5% year-over-year

    Strong portfolio rotation: more than €2 billion of capital reallocation

    Significant expansion of the Asset Management platform in Europe and US, and development of our dual business model towards more recurring cash flows and growth

    Fully diluted Net Asset Value2as of December 31, 2024: €185.7 per share, up +14.4%

    • Value creation of +16.9%3 over 2024, adjusted for the €4 dividend paid in May 2024 reflecting:
      • The increase in Bureau Veritas’ share price (+28.3% YoY) on the back of the quality of its LEAP | 28 strategic plan
      • The changes in the valuation of unlisted assets, on a like-for-like basis, in line with their respective operating performances and multiples, and active management of private principal investments to create long term value through repositioning and accretive bolt-ons (Stahl, Scalian, and CPI).
      • The strong growth of IK Partners’ FRE to €69.9 million, above estimates (€60 million). IK Partners’ AuM up +24% in 2024, totaling €13.8 billion, with €3.4 billion raised.

    Delivering strong and recurring returns to shareholders, in line with the strategic roadmap published in 2023

    • Ordinary dividend of €4.70 per share for 2024, up +17.5% compared to 2023, to be proposed at the Annual Shareholders’ Meeting on May 15, 2025, representing slightly above 2.5%4 of NAV and a 4.8%5 yield vs share price as of February 21, 2025. This dividend level takes into account the first partial integration of Asset management activities into Wendel in 2024, which will be mechanically higher in 2025.
    • €100 million share buyback launched in October 2023 completed in July 2024. €92.5 million share bought back in 2024.

    Very active investment activity & capital allocation

    • Principal Investments:
      • €2.3 billion proceeds and value crystallization
      • €0.7 billion invested including €0.6 billion in Globeducate
    • Asset Management:
      • €0.4 billion invested for the acquisition of 51% of IK Partners
      • $1.13 billion will be invested in equity to acquire 75% of Monroe Capital, as announced on October 22, 2024 (closing expected in the first quarter of 2025)

    Strong financial structure and committed to remain Investment Grade

    • Debt maturity of 3.6 years with an average cost of 2.4%
    • LTV ratio at 7.2%6 as of December 31, 2024, and 22.9%7 on a pro forma basis taking into account future investment commitments in IK Partners funds and the acquisition of Monroe Capital.
    • Pro forma total liquidity of €1.28 billion as of December 31, 2024, including €0.4 billion in cash and €875 million in committed credit facility (fully undrawn)

    Reappointment of Wendel’s Executive Board

    • On February 26, 2025, Wendel’s Supervisory Board decided to reappoint the members of the Executive Board.   Laurent Mignon has been reappointed Chairman of the Executive Board and David Darmon, Member of the Executive Board, Deputy CEO, for a period of four years ending to April 6, 2029

    Net income, Group share at €293.9 million, showing a strong increase

    • The net income from operations rose from €711 million to €753.7 million, up 6%.
    • Net income, group share, at €293.9 million in 2024, compared with €142.4 in 2023, due to the disposal of Constantia Flexibles in 2024.
    Laurent Mignon, Wendel Group CEO, commented:

    “2024 was a very active year for Wendel and its portfolio companies. Fully diluted net asset value growth, adjusted for the €4 dividend paid in 2024, was 16.9%, driven in particular by the good share price and operational performance of Bureau Veritas and the strong growth of our new third-party asset management business.

    We continued to execute our strategic plan, as detailed in 2023, with determination, rigour and financial discipline.

    In 2024, we further improved our cash flow generation and value creation profile, notably with the announced acquisition of Monroe Capital, which will give us critical mass to develop our third-party asset management platform. We also focused on premium assets in our principal investments activites, highlighted by the acquisition of Globeducate in October 2024.

    These value-creating and recurring cash flow generating transformations now enable us to propose a dividend that is 17.5% higher than last year, reaching 4.70 euros for the financial year 2024.Our transition to a dual model is now well grounded, with top partners in asset management such as IK Partners in private equity and Monroe Capital in private credit, bringing third-party assets under management to more than 33 billion euros.The priorities of Wendel’s teams are to create value on existing assets, to successfully build the private asset management platform around IK Partners and Monroe Capital, and to maintain a solid financial structure.

    I would like to thank the members of the Supervisory Board for their renewed full support, as well as the Wendel teams who are skillfully accompanying our value-creating transformation.

    In 2025, Wendel’s teams will pursue the roadmap defined two years ago, supporting our principal investments companies in their value creation process, building the third-party asset management platform through the successful integration of Monroe Capital, the continued development of IK Partners as well as the implementation of commercial synergies between the two entities, and continuing to have an agile management of our balance sheet to seize the right opportunities, while maintaining a solid financial structure. We are confident that the development of this dual model will continue to create more value and more recurring returns for our shareholders.”

    Wendel’s net asset value as of December 31, 2024: €185.7 per share on a fully diluted basis

    Wendel’s Net Asset Value (NAV) as of December 31, 2024, was prepared by Wendel to the best of its knowledge and on the basis of market data available at this date and in compliance with its methodology.

    Fully diluted Net Asset Value was €185.7 per share as of December 31, 2024 (see detail in the table below), as compared to €162.3 on December 31, 2023, representing an increase of +14.4% since the start of the year and + 16.9% restated from the dividend paid in 2024. Compared to the last 20-day average share price as of December 31, the discount to the December 31, 2024, fully diluted NAV per share was -49.6%.

    Bureau Veritas contributed very positively to Net Asset Value, as end of December 2024, its 20-day average share price was up strongly YTD (+32.5%). IHS Towers (-28.0%) and Tarkett (+15.4%) share price impacts were negligible given the weight of Bureau Veritas in NAV. Total value creation per share of listed assets was therefore +€25.9 on a fully diluted basis over the course of 2024.

    Unlisted asset contribution to NAV was negative over the course of the year with a total change per share of -€4.9 reflecting selective assets’ operational performances offsetting the good performance from CPI.

    Asset management activities were consolidated and accounted in the NAV for the first time at the end of June following the acquisition of IK Partners. There is no sponsor money included in the NAV yet, as no capital has been called. IK Partners’ valuation is up by €6.0 per share, driven by strong performance and positive market multiples evolution.

    Cash operating costs, Net Financing Results and Other items impacted NAV by -€1.0, as Wendel benefits from a positive carry. The impact of year-to-date share buyback activity would be +€1.4 per share as of December 31, 2024.

    Total Net Asset Value creation per share amounted to €27.4 in 2024.

    Fully diluted NAV per share of €185.7 as of December 31, 2024

    (in millions of euros)     12/31/2024 12/31/2023
    Listed investments Number of shares Share price (1) 3,793 3,867
    Bureau Veritas 120.3m/160.8m €29.5/€22.2 3,544 3,575
    IHS 63.0m/63.0m $3.2/$4.4 192 251
    Tarkett   €10.5/€9.1 57 40
    Investment in unlisted assets (2) 3,612 4,360
    Asset Management Activities (3) 616
    Other assets and liabilities of Wendel and holding companies (4) 174 6
    Net cash position & financial assets (5) 2,407 1,286
    Gross asset value     10,603 9,518
    Wendel bond debt     -2,401 -2,401
    IK Partners transaction deferred payment -131
    Net Asset Value     8,071 7,118
    Of which net debt     -124 -1,115
    Number of shares     44,461,997 44,430,554
    Net Asset Value per share 181.5 €160.2
    Wendel’s 20 days share price average   €93.5 €79.9
    Premium (discount) on NAV -48.5% -50.1%
    Number of shares – fully diluted 42,466,569 43,302,016
    Fully diluted Net Asset Value, per share 185.7 €162.3
    Premium (discount) on fully diluted NAV -49.6% -50.7%

    (1)   Last 20 trading days average as of December 31, 2024, and December 31, 2023.
    (2)   Investments in unlisted companies (Globeducate, Stahl, Crisis Prevention Institute, ACAMS, Scalian and Wendel Growth as of December 31, 2024. As of Dec 31,2023 also included Constantia Flexibles and excluded Globeducate). Aggregates retained for the calculation exclude the impact of IFRS16.
    (3)   IK Partners’ activity, no sponsor money at this stage.
    (4)   Of which 1,995,428 treasury shares as of December 31, 2024, and 1,128,538 treasury shares as of December 31, 2023
    (5)   Cash position and financial assets of Wendel & holdings.

    Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.
    If co-investment and managements LTIP conditions are realized, subsequent dilutive effects on Wendel’s economic ownership are accounted for in NAV calculations. See page 246 of the 2023 Registration Document.

    Wendel’s Principal Investments’ portfolio rotation

    In 2024, Wendel has realized a total of €2.3 billion in disposals for its own account and has invested c.€0.7 billion, reflecting the acceleration of the diversification of its investment portfolio, in line with the strategy announced a few months ago:

    • Wendel announced on January 4, 2024, that it had completed the sale of Constantia Flexibles, generating total net proceeds9 for Wendel of €1,121 million for its shares, i.e. a valuation over 10% higher than the latest NAV on record before the announcement of the transaction (as at March 31, 2023).
    • Wendel announced on April 5, 2024, that it had successfully completed the sale of 40.5 million shares in Bureau Veritas, representing c.9% of the Company’s share capital, for total proceeds of approximately €1.1 billion. The transaction was carried out at a price of €27.127, or a discount of 3% from the previous day’s share price.
    • Wendel Growth realized its investment in Preligens, a leader in artificial intelligence (AI) for aerospace and defence, generating net proceeds to Wendel of c.€14.6 million, translating into a gross IRR of 28%10. In addition, Wendel Growth announced on June 11, 2024, the acquisition of a minority stake in YesWeHack through an equity investment of €14.5 million.
    • Wendel reinvested €43.7m in Scalian upon the acquisition of Mannarino on June 21, 2024. This Canadian company is a leading engineering services specialist for advanced technology R&D for the aviation sector, primarily in North America, with recognized expertise in safety-critical embedded software and systems.
    • On October 16, 2024, Wendel completed the acquisition of c.50% of Globeducate, one of the world’s leading bilingual K-12 education groups, from Providence Equity Partners. Wendel invested €607 million of equity, at an Enterprise Value of c.€2 billion11, to join Providence, and both firms will now own c.50% of the group.

    Wendel’s Asset Management platform evolution

    Acquisition of Monroe Capital dramatically expands Wendel’s Asset Management platform and rebalances its business model towards more recurring cash flows and growth

    Wendel announced on October 22, 2024 that it had entered into a definitive partnership agreement including the acquisition of 75% of Monroe Capital LLC (“Monroe Capital” or “the Company”) for $1.13 billion, and a sponsoring program of $800 million to accelerate Monroe Capital’s growth, and will invest in GP commitment for up to $200 million.

    For Wendel, the acquisition of a controlling stake in Monroe Capital, a private credit market leader focused on the U.S. lower middle market that has established an outstanding track record, would represent a significant and transformational advancement of the strategy it announced in March 2023 to develop its third-party asset management platform to complement its longstanding Principal Investment business.

    With IK Partners and Monroe Capital, Wendel’s third party asset management platform will reach more than €33 billion in AUM12, and should generate, on a full year basis, c.€ 455 million revenues, c.€160 million pre-tax FRE (c.€100 million in pre-tax FRE (Wendel share) in 2025. Wendel’s objective is to reach €150 million (Wendel share) in pre-tax FRE in 2027.

    Third Party Asset Management value creation and performance

    2024 performance

    Over 2024, IK Partners had particularly strong activity, generating a total of €163.3 million in revenue, up 31% YoY, and a strong growth of FRE to €69.9 million. Total Assets under Management (€13.8 billion, of which €3 billion of Dry Powder13) grew by 24% since the beginning of the year, and FPAuM14 (€10.1 billion) by 33%. Over the period, €3.4 billion of new funds were raised (IK X, IK PF III, IK SC IV and IK CV I) and 11 exits have been announced, for over €1.6 billion.

    Sponsor money invested by Wendel

    Wendel committed €500 million in IK Partners funds, of which €300 million in IK X. These commitments have not yet been called as of December 31, 2024.

    Principal Investment companies’ value creation and performance

    Figures post IFRS 16 unless otherwise specified.

    Listed Assets: 36% of Gross Asset Value

    Bureau Veritas’ LEAP | 28 strategy delivers outstanding results in 2024; Confident 2025 outlook

    (full consolidation)

    Revenue in 2024 amounted to €6,240.9 million, a 6.4% increase year-on-year. The organic increase was 10.2% (including 9.6% in the fourth quarter) benefiting from robust underlying trends across businesses and geographies.

    Adjusted operating profit increased by 7.1% to €996.2 million. This represents an adjusted operating margin of 16.0% up 11bps on a reported basis and up 38 bps at constant currency.

    Bureau Veritas posted a record free cash flow of €843.3 million (+27.9% year-on year). As of December 31, 2024, adjusted net financial debt was €1,226.3 million, i.e. 1.06x EBITDA, compared with 0.92x at December 31, 2023.

    In line with LEAP I 28 plan focused portfolio strategy and through active portfolio management, in 2024 Bureau Veritas completed: i) the acquisition of 10 bolt-on companies for a total annualized revenue of c. €180 million; ii) the divestment of its Food testing business and of a technical supervision business on construction projects in China (c. € 165 million in annualized combined revenue). Bureau Veritas ended the year with its inclusion in the CAC 40, the benchmark index of the Paris stock exchange. This achievement underscores the Group’s consistent operational success and marks a significant milestone in Bureau Veritas’ remarkable journey.

    2025 outlook

    Building on a strong 2024 momentum, a robust opportunities pipeline, a solid backlog, and a strong underlying market growth, and in line with LEAP | 28 financial ambitions, Bureau Veritas expects to deliver for the full year 2025:

    • Mid-to-high single-digit organic revenue growth;
    • Improvement in adjusted operating margin at constant exchange rates;
    • Strong cash flow, with a cash conversion15 above 90%.

    For further details: group.bureauveritas.com

    IHS Towers – IHS Towers will report its FY 2024 results in March 2025

    Tarkett reported its annual results on February 20, 2025

    For more information: https://www.tarkett-group.com/en/investors/

    Unlisted Assets: 34% of Gross Asset Value

    (in millions) Sales EBITDA Net debt
      2023 2024 2023 including IFRS 16 2024     including IFRS 16 Δ End of December including IFRS 16
    Stahl €913.5 €930.2 €204.0 €206.9 +1.4% €383.8
    CPI $138.4 $150.1 $68.6 $74.0 +7.8% $378.2
    ACAMS $102.9 $102.1 $24.6 $25.1 +2.0% $165.0
    Scalian €539.9 €533.4 €63.9 €59.8 -6,3% €345.6
    Globeducate(1) na €352.2 na €84.2 na na

    (1)   Globeducate acquisition was completed on October 16th, 2024. Globeducate fiscal year ends in August, and figures shown are last twelve months at the end of August 2024. Indian operations are deconsolidated and accounted for by the equity method due to the absence of audited figures for the year ending in August-24.

    Stahl – Total sales up +1.8% in 2024 despite market challenges in the automotive and luxury goods end-markets. Strong EBITDA margin of 22.2%. In 2024, Stahl completed its transformation into a pure-play specialty coatings formulator for flexible materials.

    (Full consolidation) 

    Stahl, the world leader in specialty coatings for flexible materials, posted total sales of €930.2 million in the full year of 2024, representing a total increase of +1.8% versus 2023.

    Organically, sales were slightly down -1.1%, in a context of tougher markets in automotive and luxury goods, while FX contributed -1.5%. Acquisitions contributed positively (+4.4%) to total sales variation.

    Full Year 2024 EBITDA16 amounted to €206.9 million (+1.4% vs. 2023), translating into a strong EBITDA margin of 22.2%, thanks to a disciplined margin and fixed costs management, as well as a good diversification across geographies and segments.

    Net debt as of December 31st, 2024, was €383.8 million17, versus €329 million at the end of 2023 and leverage stood at 1.7x18.

    On November 18, 2024, Stahl announced the sale of its Wet-end leather chemicals division, that marks an important step in the Group’s strategic journey. The proposed sale completes Stahl’s transformation into a pure-play specialty coatings formulator for flexible materials. The transaction is subject to customary closing conditions and is expected to close in H1 2025.

    Pro forma for the sale of the Wet-end leather chemicals business and the acquisition of Weilburger Graphics GmbH, 2024 sales would amount to c.€ 759 million, EBITDA to c.€180 million (i.e., a 23.7% margin) and leverage would stand at an estimated 1.6x. These transactions strengthen Stahl’s growth profile, with the company now better positioned for faster growth, and have an accretive impact on its EBITDA margin.

    Crisis Prevention Institute reports +8.5% revenue and +7.8% EBITDA growth

    (Full consolidation)

    CPI recorded 2024 revenues of $150.1 million, up +8.5% compared to 2023, or +8.4% organically (FX impact was +0.1%), resulting from strong growth in the consumption of training materials, signifying active training of broader staff throughout the Company’s primary customers in educational, healthcare and human services settings. In addition, the Company benefitted from continued growth in its Enterprise segment, a core strategic focus targeting large health systems.

    Full Year 2024 EBITDA was $74.0 million19, reflecting a margin of 49.3%. EBITDA was up +7.8% vs. last year while margins are stable (49.6% in 2023), despite investments to scale in International markets.

    As of December 31, 2024, net debt totaled $378.2 million20, or 4.6x EBITDA as defined in CPI’s credit agreement, following the c. $100 million dividend payment to Wendel in April of 2024. Given current leverage, CPI repriced its Term Loan and received a 50bps interest rate stepdown, or a c. $1.4 million annual savings.

    On January 21st, 2025, CPI announced the acquisition of Verge, a Norwegian leader in behaviour intervention and training. This acquisition extends CPI’s presence in the Nordics, and enhances CPI’s ability to support professionals worldwide, leveraging Verge’s innovative techniques to address challenging behaviours, aggression and violence.

    ACAMS – Total sales stable and improved 24.6% margin amid strong transformation momentum

    (full consolidation)

    ACAMS, the global leader in training and certifications for anti-money laundering and financial crime prevention professionals, generated 2024 revenue of $102.1 million, down 0.8% vs. 2023. The results for 2024 reflected continued growth and market expansion in North America and Europe, largely offset by soft sales in the Asia-Pacific region and from exhibition spend at certain conferences early in the year, slower sales to non-banking customers at consultancies and governments.

    EBITDA21 in 2024 was $25.1 million, up 2% vs. 2023, and reflecting a margin of 24.6%, up 70 bps year-over -year.

    As of December 31, 2024, net debt totaled $165.0 million22, slightly up from $155.8 million at the end of 2023, which represents 6.7x EBITDA leverage as defined in ACAMS’ credit agreement, with ample room relative to the 9.5x covenant level.

    This past year has been pivotal in the Company’s transformation, with the addition of CEO Neil Sternthal who joined from Thomson Reuters in early 2024 and subsequently made several additions to the senior leadership team, and shifted focus to core growth with large enterprise customers, product and market expansion including the introduction of its Certified Anti-Fraud Specialist certification (CAFS), and key investments in the technology platform. These critical investments are all geared toward advancing the impact of the Company’s mission of combating financial crime, accelerating its strategy and further developing its position as a technology-enabled provider of trusted information, data and analytics for the anti-financial crime (AFC) community.

    Management expects the significant changes will, over time, create a more robust platform for the global AFC community and a more scalable, consistent business model with accelerated growth for ACAMS.

    ACAMS anticipates modest growth in 2025 as the recent changes take hold with improved growth toward the end of the year and into 2026.

    Scalian – Slight decrease of total sales of -1.2% in 2024, in the context of continued market growth slowdown. EBITDA margin rate at 11.2%, down c. 60 bps, mainly due to lower utilization rate and the marked slowdown in certain sectors (automotive in Germany and civil aeronautics). Acquisition of Dulin in January 2024 and Mannarino in June 2024.

    (Full consolidation since July 2023.)  

    Scalian, a European leader in digital transformation, project management and operational performance consulting, reported total sales of €533.4 million as of December 31, 2024, a -1.2% decrease vs. 2023. The slowdown is spread across several sectors, particularly automotive in Europe and Aeronautics (supply chain disruptions). Sales are down -4.0% organically and benefited from a positive scope effect of +2.8%.

    Scalian generated an EBITDA23 of €59.8 million in 2024. The EBITDA margin rate stood at 11.2%, down c. 60 bps vs. 2023, mainly explained by lower utilization rate, partially offset by strict SG&A control.

    As of December 31, 2024, net debt24 stood at €345.6 million (leverage of 6.46x25 EBITDA).

    In 2024, Scalian announced the acquisition of Dulin Technology in January, a Spanish-based consulting firm specializing in cybersecurity for the financial sector, and Manarinno in June, a Canadian-based company that is a leading engineering services specialist with a unique know-how in advanced technology R&D for the aviation sector.

    Globeducate – Total sales up +10%26over LTM as of August 2024 Year-end. Strong EBITDA margin at 23.9%27in line with expectations.

    (Accounted for by the equity method. Globeducate acquisition was completed on October 16th, 2024. Globeducate fiscal year ends in August, and figures shown below are last twelve months at the end of August 2024 and first 3 months of the Globeducate year (September – November). Indian operations are deconsolidated and accounted for by the equity method due to the absence of audited figures for the year ending in August-24).

    Globeducate, one of the world’s leading bilingual K-12 education groups, posted total sales of €352.2 million1 for the full year ending in August 2024, representing a total increase of +10% year on year.

    EBITDA2 for the year ending in August amounted to €84.2 million, translating into a strong EBITDA margin of 23.9%, in line with expectations. This solid financial performance was fueled by a combination of organic and external growth.

    Over the first quarter of Globeducate’s fiscal year (September – November), Globeducate completed 3 acquisitions: Olympion School in Cyprus, and Ecole des Petits and Battersea in the UK.

    Net debt as of November 30th, 2024, was €490 million28 and leverage3 stood at 6.2x.

    Consolidated Accounts

    On February 26, 2025, Wendel’s Supervisory Board met under the chairmanship of Nicolas ver Hulst and reviewed Wendel’s consolidated financial statements, as approved by the Executive Board on February 21, 2025. The audit procedures by the statutory auditors on the consolidated financial statements are underway. The audit report would be released mid-March 2025. 

    Wendel Group’s consolidated net sales29 totaled €8,063.5 million, up +13.1% overall and up +8.4% organically. FX contribution is -3.9% and scope effect is +8.6%.

    The overall contribution of Group portfolio companies to net income from operations, Group share amounted to €274.1 million, down -24.3% year on year impacted by the disposal of Constantia and the sale of 25% of the stake in Bureau Veritas. Net income from operation, Group share, was €232.7 million, down -5.8%.

    Financial expenses, operating expenses and taxes at Wendel SE level totaled €63.0 million (of which €22.4 million non-cash), down -45.4% from the €115.3 million (of which €25.3 million non-cash) reported in 2023. Operating expenses are slightly down and financial expenses are positive with a positive carry of cash generating €35.6 million. 2024 is impacted by a goodwill depreciation of €188.2 million, mainly related to Scalian and the Stahl’s wet-end division, which is in the process of being sold.

    Net income Group share €293.9 million strongly up vs.€142.4 million in 2023, reflecting a €418.6 million capital gain group share from the disposal of Constantia Flexibles in H1 2024.  

    ESG achievements

    Non-financial ratings: Wendel improves its CSA rating from S&P, confirms its inclusion in the DJSI World and Europe.

    For the sixth year in a row, Wendel has been included in the Dow Jones Best-in-Class (previously Dow Jones Sustainability Indices) World and Europe indices, making it one of the top 10% of companies in terms of sustainability in the Diversified Financials category. With a score of 76/100 in its category, Wendel is well above the average for its sector (26/100). This rating places Wendel in the top 1% of its sector “FBN Diversified Financial Services and Capital Markets”

    Through the review of the Corporate Sustainability Assessment questionnaire, S&P Global assesses the ESG (Environment, Social, Governance) performance of listed companies in different industries since 1999. The top 10% of companies with the best performance in terms of sustainability, according to criteria defined for each industry, are included in the Dow Jones Best-in-Class Indices (previously Dow Jones Sustainability Indices).

    New ESG roadmap 2024-2027

    In 2024, Wendel defined a new ESG roadmap, approved by the Supervisory Board and the Executive Board, notably to take into account the Group’s recent strategic developments, including the new third-party asset management activity (IK Partners and Monroe Capital acquisitions).
    This roadmap includes five priorities: Governance & Business Ethics, Reliability of extra-financial information, Health & Safety, Climate change & adaptation, Parity.

    These five priorities will apply to all Wendel’ investment activities, encompassing both principal investment and third-party asset management. The detailed policies and action plans of the roadmap will be presented in the sustainability report included in the Group’s 2024 Universal Registration Document.

    Renewal of the Executive Board of Wendel

    On 26 February 2025, the Supervisory Board of Wendel decided to renew the appointments of Laurent Mignon and David Darmon as Chairman of the Executive Board of Wendel and Member of the Executive Board and Group Deputy CEO of Wendel, respectively, for a period of four years until 6 April 2029, with effect from 7 April 2025.

    Renewal of the appointments of members of the Supervisory Board

    At the General Meeting of 15 May 2025, it will be proposed to the shareholders that Nicolas ver Hulst, Priscilla de Moustier, Bénédicte Coste and François de Mitry be reappointed as members of the Supervisory Board for a further four-year term. If the renewal of their mandate is approved, Nicolas Ver Hulst will remain chairman of the Supervisory Board, Priscilla de Moustier and Bénédicte Coste will continue their roles on the Governance and Sustainable Development Committee, and François de Mitry will continue his role on the Audit, Risk and Compliance Committee.

    Agenda

    Thursday, April 24, 2025

    Q1 2025 Trading update – Publication of NAV as of March 31, 2025 (post-market release)

    Thursday, May 15, 2025

    Annual General Meeting

    Wednesday, July 30, 2025

    H1 2025 results – Publication of NAV as of June 30, 2025, and condensed Half-Year consolidated financial statements (post-market release)

    Thursday, October 23, 2025

    Q3 2025 Trading update – Publication of NAV as of September 30, 2025 (post-market release)

    Wednesday, December 10, 2025

    2025 Investor Day.

    About Wendel

    Wendel is one of Europe’s leading listed investment firms. Regarding its principal investment strategy, the Group invests in companies which are leaders in their field, such as ACAMS, Bureau Veritas, Crisis Prevention Institute, Globeducate, IHS Towers, Scalian, Stahl and Tarkett. In 2023, Wendel initiated a strategic shift into third-party asset management of private assets, alongside its historical principal investment activities. In May 2024, Wendel completed the acquisition of a 51% stake in IK Partners, a major step in the deployment of its strategic expansion in third-party private asset management and also announced in October 2024 the acquisition of 75% of Monroe Capital. Pro forma of Monroe Capital, Wendel manages more than 33 billion euros on behalf of third-party investors, and c.7.4 billion euros invested in its principal investments activity.

    Wendel is listed on Eurolist by Euronext Paris.

    Standard & Poor’s ratings: Long-term: BBB, stable outlook – Short-term: A-2 since January 25, 2019

    Wendel is the Founding Sponsor of Centre Pompidou-Metz. In recognition of its long-term patronage of the arts, Wendel received the distinction of “Grand Mécène de la Culture” in 2012.

    For more information: wendelgroup.com

    Follow us on LinkedIn @Wendel 

    Appendix 1: 2024 Consolidated sales and results

    2024 consolidated net sales

    (in millions of euros) 2023 2024 Δ Organic Δ
    Bureau Veritas 5,867.8 6,240.9 +6.4% +10.2%
    Stahl(1) 913.5 930.2 +1.8% -1.1%
    Scalian(2) 126.8 533.4 n.a. n.a.
    CPI 128.0 138.8 +8.4% +8.4%
    ACAMS(3) 91.6 93.7 +2.4% -0.6%
    IK Partners(4) n.a. 126.5 n.a. n.a.
    Consolidated sales 7,127.6 8,063.5 +13.1% +8.4%

    (1) Acquisition of ICP Industrial Solutions Group (ISG) since March 2023 (sales’ contribution of €89.7M vs €89.1M in 2023) and acquisition of Weilburger since September 2024 (sales’ contribution of €18.2M).                                                                        

    (2) Scalian, which had a different reporting date to Wendel (refer to 2023 consolidated financial statements – Note 2 – 1.” Changes in scope of consolidation in 2023″), realigns its closing date with Wendel group. Consequently, 2024 sale’s contribution correponds to 12 months’ sales between January 1st 2024 and December 31st 2024. Last year’s contribution corresponds to 3 months’ sales between July 1st 2023 and September 30 2023.

    (3) The sales include a PPA restatement for an impact of -€0.6M (vs -€3.4M as of 12M 2023). Excluding this restatement,the sales amount to €94.2M vs. €95.2M as of 12M 2023. The total growth of +2.4% include a PPA effect of +3,3%.                                         

    (4) Contribution of eight months of sales        

    2024 net sales of equity-accounted companies

    (in millions of euros) 2023 2024 Δ Organic Δ
    Tarkett (5) 3,363.1 3,331.9 -0.9% -0.4%
    Sales (Equity method) (6) 3,363.1 3,331.9 -0.9% -0.4%

    (5)Selling price adjustments in the CIS countries are historically intended to offset currency movements and are therefore excluded from the 
    “organic growth” indicator

    (6) Due to the recent acquisition date of the Globeducate group, its contribution is not yet included in Group sales.

    2024 consolidated results

    (in millions of euros) 2023 2024
    Contribution from asset management 42.3
    Consolidated subsidiaries 826.3 774.4
    Financing, operating expenses and taxes -115.3 -63.0
    Net income from operations(1) 711.0 753.7
    Net income from operations, Group share 246.9 232.7
    Non-recurring income/loss -60.4 532.3
    Impact of goodwill allocation -120.4 -107.9
    Impairment 0.7 -188.2
    Total net income(2) 530.9 989.9
    Net income, Group share 142.4 293.9

    (1) Net income before goodwill allocation entries and non-recurring items.

    (2) -€85.2M of change in fair value for IHS recognized through OCI and €784M of capital gain on the Bureau Veritas bloc accounted for through equity.

    2024 net income from operations

    (in millions of euros) 2023 2024 Change
    Total contribution from asset management: IK Partners n/a 42.3 n/a
    Bureau Veritas 594.0 643.3 +8.3%
    Stahl 90.3 100.2 +11.0%
    Constantia Flexibles 115.2 n/a
    CPI 20.7 22.2 +7.2%
    ACAMS 0.0 -0.7 n/a
    Scalian -2,8 -6.2 n/a
    Tarkett (equity accounted) 8.8 15.6 +76.2%
    Total contribution from Group companies 826.3 774.4 -6.3%
    of which Group share 362.1 274.1 -24.3%
    Operating expenses net of management fees -72.5 -72.2 -0.4%
    Taxes -1.5 -4.0 +169.8%
    Financial expenses -15,9 35.6 n/a
    Non-cash operating expenses -25.3 -22.4 -11.4%
    Net income from operations 711.0 753.7 +6.0%
    of which Group share 246.9 232.7 -5.8%

    Appendix 2: Fully diluted Net Asset Value bridge over 2024

    Appendix 3: Conversion from accounting presentation to economic presentation

    Please refer to table 7.1 of the consolidated statements.

    Appendix 4: Glossary

    • AUM (Assets under Management): Corresponding – for a given fund – to total investors’ commitment (during the fund’s investment period) or total invested amount (post investment period)
    • FRE (Fee-Related Earnings) : Earnings generated by recurring fee revenues (mainly management fees). It excludes earnings generated by more volatile performance-related revenues.
    • GP (General Partner): Entity in charge of the overall management, administration and investment of the funds. The GP is paid by management fees charged on assets under management (AuM)

    1 Fully-diluted NAV per share assumes all treasury shares are cancelled and a complementary liability is booked to account for all LTIP related securities in the money as of the valuation date.

    2 Fully diluted of share buybacks and treasury shares.

    3 Including the €4.0 per share dividend paid in 2024.

    4 Dividend payout calculated on the basis of fully-diluted NAV at the end of December 2024.

    5 Based on Wendel’s share price of €97.15 as of February 21, 2025.

    6 Including sponsor money commitment in IK (€-500m).

    7 Including sponsor money commitment in IK (€500m) and proforma of IK Partners transaction deferred payment (€-131m), Monroe Capital 100% acquisition (including estimated earnout and put on 25% of residual capital, i.e €-1.6bn) and GP commitments in Monroe Capital ($-200m for 2025).

    8 €2.4bn of cash as of December 31, 2024, restated from sponsor money commitment in IK (€-500m), IK Partners transaction deferred payment (€-131m), Monroe Capital 100% acquisition (including estimated earnout and put on 25% of residual capital, i.e €1.6bn) and GP commitments in Monroe Capital’s new strategies (c. $-200m for 2025).

    9 Net proceeds after ticking fees, financial debt, dilution to the benefit of the Company’s minority investors, transaction costs and other debt-like adjustments.
    10 Gross IRR of 28%. Net IRR of 26%.
    11 EV including IFRS 16 impacts. Excluding IFRS 16, EV stands at c.€1.86 billion.
    12 As of end of December 2024

    13 Commitments not yet invested

    14 Fee Paying AuM

    15 (Net cash generated from operating activities – lease payments + corporate tax)/adjusted operating profit

    16 EBITDA including IFRS 16 impacts, EBITDA excluding IFRS 16 stands at €201.0m.

    17 Including IFRS 16 impacts. Net debt excluding the impact of IFRS 16 was €364.4m.

    18 Leverage as per credit documentation definition.

    19 Recurring EBITDA post IFRS 16. Recurring EBITDA pre IFRS 16 was $72.8m

    20 Post IFRS 16 impact. Net debt pre IFRS 16 impact was $375.2m.

    21 EBITDA including IFRS 16. EBITDA excluding IFRS16 stands at $24.0m

    22 Including IFRS 16 impacts. Net debt excluding the impact of IFRS 16 was $164.2m.

    23 EBITDA including IFRS 16 impact. Excluding IFRS 16, EBITDA stands at €50.9 m. Mannarino taken into account for 6 months.

    24 Net debt including IFRS 16 impact. Excluding IFRS 16, net debt stands at €314.9 m.

    25 As per credit documentation (pre IFRS 16)

    26 Excluding Indian activities. Indian estimated revenue stands at €25 m.

    27 EBITDA including IFRS 16 impacts and excluding Indian activities. Indian estimated EBITDA stands at €9.8 m.

    28 As per credit documentation definition.

    29 Consolidated sales will be published only for Full Year and Interim results. For Q1 & Q3, sales by companies/activities will continue to be commented on an individual basis

    Attachment

    The MIL Network

  • MIL-OSI USA: Kaine Statement on Jamieson Greer Ahead of Confirmation Vote

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement ahead of the Senate’s confirmation vote of Jamieson Greer to be United States Trade Representative (USTR):

    “President Trump has proposed disastrous trade policies, including tariffs on our closest trading partners, which will raise costs and hurt Virginia businesses. We need a United States Trade Representative who will seek to expand markets for American exports, foster relationships with our allies, and reduce costs for American families. I don’t believe Jamieson Greer will do that, and that’s why I’m voting no on his confirmation.”

    MIL OSI USA News

  • MIL-OSI USA: Fischer Questions Michael Kratsios and Mark Meador at Nomination Hearing

    US Senate News:

    Source: United States Senator for Nebraska Deb Fischer

    U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Committee on Commerce, Science, and Transportation, questioned two of President Trump’s nominees: Mr. Michael Kratsios, nominated to be the Director of the Office of Science and Technology Policy (OSTP), and Mr. Mark Meador, nominated to be a Federal Trade Commissioner.

    During the hearing, Senator Fischer asked Mr. Kratsios about emerging technologies and the Department of Defense’s essential role in shaping national spectrum policy, especially given its unique testing abilities for wireless technology. She also asked about the lessons learned from the America’s Mid-Band Initiative Team (AMBIT) spectrum auction.

    Additionally, Senator Fischer questioned Mr. Meador about how he would effectively use agency resources to uphold the Federal Trade Commission’s (FTC) mission. She emphasized the importance of the FTC’s coordination with the Department of Justice (DOJ) on enforcement efforts to protect consumers.

    Click the image above to watch a video of Senator Fischer’s questioning

    Click here to download audio

    Click here to download video

    On the DoD’s Cutting-Edge Spectrum Testing and Innovation:

    Senator Fischer: Mr. Kratsios, I welcome your enthusiasm for advancing American leadership on emerging technologies. As you know, OSTP is responsible for coordinating science and tech policy among federal agencies. 

    When you were the United States Chief Technology Officer, one of your focuses was advancing DoD’s unique testing abilities to drive innovation. And at the time, you stated that the Department of Defense is “at the forefront of cutting-edge 5G testing and experimentation.” Do you still believe that?

    Michael Kratsios: I do, yes.

    Senator Fischer: 
    And when it comes to 5G and other spectrum matters, do you believe that DOD testing should be faithfully integrated into a national spectrum policy?

    Michael Kratsios: Yes, DOD is a critical component of the spectrum strategy.

    On AMBIT:

    Senator Fischer: Previously, I understood you were involved with “America’s Mid-Band Initiative Team,” known as AMBIT, and you brought that up a couple times yesterday in our discussion. And so, I looked into it a little bit more to familiarize myself with it. That was an auction of mid-band spectrum held by DOD, and it was to make those licenses available to wireless companies. Is that correct?

    Michael Kratsios: Yes. 

    Senator Fischer: Did the AMBIT auction cause more congestion for defense systems operating in the lower 3 [GHz] band?

    Michael Kratsios: 
    In my opinion, I think AMBIT provided an opportunity for a technical analysis of that spectrum range and find a way to be able to still complete the national security mission by moving some of the workloads that were in the auction band to lower bands. 

    Senator Fischer: 
    So, they had to compress that band even more then in order to accommodate that into the lower 3. Is that correct?

    Michael Kratsios: 
    Yeah, so some of the activities that were in the band that ultimately were auctioned were moved down to lower bands.

    Senator Fischer: 
    I also understand that AMBIT struggled on the back end with major relocation costs from the defense systems that were displaced in that process of compressing them. Is that correct?

    Michael Kratsios: 
    I haven’t tracked the details of that since I left office, but there’s always transition costs associated with freeing up bands, typically.

    Senator Fischer: Are you familiar with any of the costs? Are those readily available, so we can access those? Do you know how that cut into the net revenue that was expected from the auction?

    Michael Kratsios: 
    I’m not familiar with those details, but I can try to see what’s publicly available.

    Senator Fischer: That would be great. 

    On Responsible FTC Enforcement:

    Senator Fischer: 
    Mr. Meador, over the years, the Federal Trade Commission has faced off in court against the deepening pockets of major corporations, especially when it comes to Big Tech. If confirmed, how would you prioritize litigation and effectively use agency resources in upholding the FTC mission?

    Mark Meador: That’s a very important topic. I will say the FTC staff have gotten very good at doing a lot with often much less. If confirmed, my first step will be to consult with the Chairman and the Commissioners and of course, the staff, who understand what challenges they are facing. What do we have on our docket and what resources do we have available? And then we’re collaborating with all of them to determine which cases are the highest priority to protect the largest number of consumers from the gravest threats. 

    On FTC Coordination with the Department of Justice: 

    Senator Fischer: It’s my understanding that at times there can be tension with that enforcement coordination with the Department of Justice. Do you have any comments on that? Or if that would occur, what would you do?

    Mark Meador: Sure, this is something that has happened frequently in the past. Some of it has unfortunately been very public. I’m confident that President Trump has selected leaders for this administration who can work very well together. I think it is of paramount importance that both agencies be singing from the same hymn sheet, be aligned on policy and enforcement decisions, and there should really be no daylight between them when it comes to how they’re enforcing the antitrust laws.

    I think anything is possible if you don’t care who gets the credit. And so, when it comes to merger clearance, we should be focusing on protecting consumers as fast as possible, not trying to get one up on the other agency.

    Senator Fischer: Thank you both for putting yourselves forward to serve in these very dangerous times that we live in. I really appreciate it and thank you to your families as well.

    MIL OSI USA News

  • MIL-OSI United Kingdom: expert reaction to a modelling study suggesting that AMOC may be resilient to future warming

    Source: United Kingdom – Executive Government & Departments

    A modelling study published in Nature suggests that Atlantic Meridional Overturning Circulation (AMOC) may withstand climate extremes. 

    Dr Alessandro Silvano, Oceanographer, University of Southampton said:

    “AMOC will control extreme weather events, sea level rise and temperature over many areas, including Europe, and communities will need to adapt to changes, especially in case of collapse. This new study shows that what will happen is still not completely clear and a more “global approach” is needed, an approach that looks at the ocean as one large scale system where changes on one side of the planet can control what happens on the other side.

    “Whether an AMOC collapse could occur is one of the most pressing questions for the scientific community. Especially if this can happen over the next century. Some studies suggest the AMOC might be approaching a tipping point, others instead suggest AMOC to be more resilient to change in CO2 concentrations, melting of the Greenland Ice Sheet and changes in the precipitation. Therefore, at present, there is a debate about a potential collapse, while an AMOC weakening seems likely.”

    Dr René van Westen, Postdoctoral Researcher, Royal Netherlands Meteorological Institute, (KNMI), said:

    “The press release for this paper slightly oversells the point that the AMOC is ‘able to withstand future global warming’. In fact, the study still supports the conclusion that the AMOC is expected to severely weaken under extreme climate change, which is in line with the results from the latest IPCC report. 

    “The study’s results should certainly not be interpreted as showing that AMOC is a resilient system, given it finds that the AMOC still reduces to (very) weak strengths under human-caused global warming. 

    “In principle it is possible that all the AMOCs reached their collapsed state by the end of the 150-year long simulation. This can only be tested by continuing the simulation much longer to reach an equilibrium state, the simulations are too short to verify this. Nevertheless, the authors clearly demonstrate that the AMOC does not fully collapse (i.e. to 0 Sv strength) under 4xCO2 and show a prominent role for the Southern Ocean and Indo-Pacific Ocean. 

    “The study is still an exciting contribution to the literature. One of its key strengths is the inter-model comparison analysis under both 4xCO2 and hosing set-up. The authors show a clear relation in 34 different CMIP6 and demonstrate why the AMOC remains in a (very) weak state. 

    “It also demonstrates an important role for Southern Ocean dynamics, also suggested by previous research. However, Southern Ocean dynamics can only be adequately captured with high-resolution climate models in which large swirls (i.e., ocean eddies) are resolved. None of the 34 climate models used in this study have such a high resolution. It would be very interesting to see whether the proposed mechanism remains robust when resolving these swirls.

    “The key message of this paper is that the AMOC may be partly stabilised by ‘remote’ (i.e. outside the Atlantic Ocean) feedback processes. It is therefore good to consider these remote feedback processes when analysing the AMOC in future work. This will help to understand the future AMOC trajectory under climate change.”

     

    Prof Stefan Rahmstorf, Head of Research Department, Potsdam Institute for Climate Impact Research, said:

    “This new paper does not (and does not claim to) contradict other modeling studies about future AMOC changes and their climatic impact. 

    It has been well-established since the 1990s that the AMOC has a smaller, shallower part which is driven by the winds, meaning that a part remains once the density-driven (thermohaline) overturning has stopped. However, that wind-driven part is not nearly as important for climate as the part driven by differences in sea-water density. It is the latter which has a tipping point. 

    In previous studies about the risk of future AMOC collapse, the wind-driven part also persists since the winds won’t stop blowing, so this is not new information. The new study investigates the remaining wind-driven overturning in more detail, which is a valuable contribution to the scientific literature. It does not, however, change the assessment of the risk and impact of future AMOC changes in response to human-caused global warming.

    A false impression of contradicting our and other results may however easily arise from their different usage of the word ‘AMOC collapse’. To the new paper, this word implies zero or negative overturning in the North Atlantic north of the equator below 500 m, while in previous studies this term has been used for states with greatly weakened AMOC. The new study has used the same models as previous studies and its findings change nothing about the climate risk of a major AMOC weakening, which remains significant and would have global ramifications.”

    Dr Joel Hirischi, Associate Head of Marine Systems Modelling, UK’s National Oceanography Centre (NOC), said:

    Does the press release accurately reflect the science?

    “Yes, it does. As it stands, the only bit that could be confusing is the statement saying that “…AMOC can only collapse if a Pacific meridional overturning circulation (PMOC) develops”.  

    “It would be clearer to say that for the AMOC to stop, the Southern Ocean upwelling must be entirely compensated in the Pacific Ocean. 

    “The authors clarify this later in the press release but it would be better to say this upfront.

     

    Is this good quality research?  Are the conclusions backed up by solid data?

    “I enjoyed reading this article and I find the research to be of excellent quality. The work and methodology are closely related to an earlier study by the same authors in Geophysical Research Letters but the key message about AMOC stability is new. 

    “The authors used a large number of numerical models and the key results are robust across a range of model solutions. This enhances my confidence that the key findings of the study are robust.

    How does this work fit with the existing evidence?

    “This latest work fits nicely in the ongoing debate as to whether the AMOC is likely to shut down or not as climate warms.  During the last two years, several studies have re-ignited the debate about whether the AMOC is likely to shut down, suggesting that the AMOC is more likely to shut down than we previously expected. This study provides a counterbalance and provides evidence for stabilising AMOC mechanisms linked to winds in the Southern Ocean. 

    “Direct observations of the AMOC do not suggest that the AMOC is shutting down and the results from this study are consistent with a view that the AMOC is not in immediate danger of shutting down.

    Have the authors accounted for confounders?  Are there important limitations to be aware of?

    “The numerical models used in this study test the impact of a very strong greenhouse gas forcing (4xCO2) or a freshwater hosing north of 50N in the Atlantic. Neither the CO2 forcing nor the hosing on their own can cause the AMOC to shut down. 

    “In our warming world, both global CO2 concentrations and freshwater discharge into the North Atlantic, are increasing in parallel. It is not obvious how both effects put together would combine. The possibility of non-linear, amplifying  AMOC interactions possible. To test that would require a new set of numerical experiments where CO2 and freshwater forcing are applied at the same time.    

    “The models used in the study typically have a low spatial resolution (in the order of 100km). Important features, such as ocean mesoscale eddies are missing and sharp temperature and salinity fronts are not realistically simulated. How strongly this affects the findings reported in this study, we do not yet know. 

    What are the implications in the real world?  Is there any overspeculation?  

    “The study highlights the importance of the wind-driven Southern Ocean upwelling to understand the AMOC and its stability. Observations in the North and South Atlantic, where the AMOC is currently being observed may not be enough to decide where the AMOC is heading and knowing the amplitude and variability of the wind-driven Southern Ocean upwelling could be key. 

    “The authors are careful and their results should be considered when discussing the probability of a future AMOC shut down. The applied perturbations are large:  4xCO2 is higher an anomaly than what we will get – even in a pessimistic outlook. The freshwater discharge (0.3 Sv = 300000 m^3/s) applied during 100 years is roughly equivalent to melting about 1/3 of the Greenland ice sheet. Both perturbations are large compared with what we will likely experience in the real World.”

     

    Sofia Palazzo Corner, PhD Researcher at the Centre for Environmental Policy, Imperial College London, said: 

    “This paper investigates the AMOC response to extreme climate change and finds that as waters continue to be pulled to the surface by wind in the Southern Ocean, so must waters sink elsewhere.  

    “This leads to two important results: an AMOC that weakens but doesn’t shut down completely, and the formation of a new overturning circulation in the Pacific: a PMOC.  

    “Though AMOC here shows resilience to complete collapse, ocean circulation definitely does not show a general resilience to climate change. Even a weakened AMOC will result in major impacts to global and regional climate, and the formation of a new overturning circulation in the Pacific is an extraordinary and dramatic change to global ocean dynamics. 

    “What’s unambiguous is that increasing carbon emissions are increasing the risk of major changes in global ocean circulation, including the AMOC. This study takes an extreme case to investigate the interactions between the Atlantic, the Southern Ocean and the Pacific, and finds that although the AMOC does not collapse completely, there is significant weakening, and a major transformation in the Pacific Ocean to accommodate the new balance between rising and sinking waters. 

    “These results are a signal to pay increased attention to other parts of the global ocean which may hold clues to the trajectory of AMOC in the 21st century.” 

    Prof Jonathan Bamber, Director of the Bristol Glaciology Centre, University of Bristol, said:

    “This paper presents a careful and thorough analysis of how the AMOC responds to both extreme greenhouse gas and freshwater forcing that could result from accelerated fossil fuel consumption and increased melting of the Greenland Ice Sheet. Their analysis is based on examining 34 state of the art climate models and strongly suggests that the AMOC is not close to a tipping point for present-day and near-future climate. That is good news. While they find no evidence for a switch off or collapse of the AMOC they do find a weakening in all cases and this, alone, should be cause for concern. Because the AMOC is responsible for so much of the oceanic poleward heat transport, changes in its strength have a huge impact on the climate of northwest Europe and globally.

    “A collapse of the AMOC would be devasting for civilisation so it is understandable that there has been a lot of focus on whether this might happen in the near future but a weakening of the AMOC should also be of concern. While it might not grab the headlines in the same way and its impact is a little more complicated to explain, it is still extremely important to model, understand, monitor and predict.”

     

    Dr Lee de Mora, Marine Ecosystem Modeller, Plymouth Marine Laboratory, said:

    “The Atlantic Meridional Overturning Circulation is hugely important to the global climate, influencing heat transport, carbon drawdown and deep water formation. Despite its importance, the future of the AMOC is not yet fully understood.”

    “On one hand, the climate models from Coupled Model Intercomparison Project Phase 6 (CMIP6) universally projected a weakening in the AMOC as temperatures increase, but they did not project a full collapse to zero at any warming level. On the other hand, some experiments have suggested that the AMOC is too stable in those CMIP-style models, and the real AMOC may be more prone to collapse.”

    “This paper from Baker et al. identifies AMOC-stabilizing mechanisms in the Southern Ocean and Pacific Ocean that may explain why the CMIP6 models have a stable AMOC”.

    Continued Atlantic overturning circulation even under climate extremes’ by Baker et al. was published in Nature at 16:00 UK time on Wednesday 26 February.

    DOI: 10.1038/s41586-024-08544-0 

    Declared interests

    Dr Alessandro Silano “None”

    Dr. René van Westen “None”

    Prof Stefan Rahmstorf “None”

    Dr Joel Hirischi “None”

    Sofia Palazzo Corner “No interests to declare. I’m a PhD student funded by the Grantham Institute, and research assistant funded by ESM2025.”

    Prof Johnathan Bamber “I am a member of the Advisory Committee for Earth Observation of the European Space Agency and a member of the European Space Science Committee, which receives funding from a number of national space agencies. I also receive funding from the European Commission.”

    Dr Lee de Mora “LdM was supported by the UK Natural Environment Research Council through The UK Earth System Modelling Project (UKESM, grant no. NE/N017951/1) and by the UK Natural Environment Research Council through the TerraFIRMA: Future Impacts, Risks and Mitigation Actions in a changing Earth System project, Grant reference NE/W004895/1.”

    MIL OSI United Kingdom