Over the course of the past 17 years, MET Group has become one of the most dynamically developing energy companies in Europe. The former gas trading company with roots in Hungary has now become a multinational corporation that has not only conquered European gas markets with its services, but has even won the “financial Oscar”, namely the TXF Award for the credit facility it structured in 2023.
Original article in Hungarian: Forbes
The integrated energy corporation is present in 15 countries by way of its subsidiaries, trades on 30 energy markets, and managed to successfully expand its access to money market resources last year. This fact is reflected by the EUR 1.33 billion credit facility that it agreed on in 2023 with a group of 17 international banks.
The jury of TXF, a leading financial data provider, unanimously voted to recognize MET Group’s unique financial solution with the award for the financing transaction of the year. The award-winning credit facility was developed jointly by the MET financial team and ING Bank. The new tool will support the group in continuing its growth strategy.
According to Benjamin Lakatos, majority owner and CEO of MET, the award is a recognition of not only the exceptional cooperation with lending banks but also proves that innovations are to be found in the fields of energy trading and finance.
“Our success is based on the fact that we always considered natural gas to be a financial product, as we have proven many times over the years. Since our approach to optimize real options was brought to life thanks to the expertise, perseverance, and hard work of our colleagues, the award is an important affirmation of our work not only from a business aspect but regarding the cohesion of our team on an emotional level.”
The growth strategy continues
The Swiss-based energy company saw excellent results in 2023 as well, in a less volatile market environment: utilizing the strength of its integrated business model, it closed the second-best fiscal year in its history with revenue of EUR 24.5 billion.
This allows the group to continue focusing on its growth strategy and its position as a reliable partner in the energy sector. The fact that the company now employs more than 1000 people from 50 nationalities in 15 countries is a good indicator of this growth.
In line with its growth strategy and its commitment to the energy transition, the energy company commissioned three new solar farms in 2023 and carried out a geographical bolstering of the results it achieved in renewable energy developments by entering new renewables markets in Switzerland, Germany and Poland.
MET Group also expanded its activities in the sales and trading segments, primarily by entering the French market. Growth of the LNG division also continued, with MET having the most geographically diversified LNG import structure in Europe. The company has booked capacities in Germany, Spain and Croatia, and in recent years has imported liquefied natural gas to eight countries, including the Mediterranean region and Northwestern Europe. Last year, MET imported more than 30 LNG cargos to Europe.
MET also opened offices in Singapore in 2023. MET Group has a 90% stake in its MET Asia subsidiary, with the remaining 10% owned by Keppel. MET Asia is focused on the development of the group’s LNG portfolio. MET has recently concluded a ten-year long-term USA-sourced LNG purchase agreement with Shell.
Working on supporting the energy transition
MET Group has extensive experience in the operation of green (renewable) and flexible (traditional) energy assets, allowing it to provide the widest array of support possible for the global energy transition. MET’s expertise in natural gas-based power generation helps with the green transition.
As renewable energy generation is weather-dependent, flexibility is required to balance the electricity grid. Until the time when batteries and other energy storage solutions become economical and competitive, natural gas remains a key transitional source of energy that supports flexibility in energy production.
Although natural gas trading continues to account for a large part of annual revenue, the group also has a green energy division. It currently operates six solar farms in Hungary and one in Spain, and two wind farms in Bulgaria.
According to the integrated energy company’s Chairman and CEO Benjamin Lakatos, the expansion of renewables is our common goal in the interest of a sustainable future. Lakatos feels that the green transition is on the right course in Europe, and we are finally doing more than just having theoretical discussions about it.
In February, the American news outlet Forbes asked the MET Group founder about the stability of the LNG market. The expert offered the following reply: “Thirty to fifty percent of the gas supply in the European Union is LNG, especially since the Ukrainian war started in February 2022. As a European, I have a pragmatic approach: it is in our continent’s interest to see more LNG coming to Europe at an affordable price.”