Mytilineos says turnover up 17% in H1

Mytilineos SA on Thursday announced a 17% increase in its first half turnover to 2.516 billion euros, from 2.154 billion in the same period last year. The company also said its EBITDA rose 9% to 438 million euros, its net profit after minorities jumped 61% to 268 million euros and earnings per share soared 59% to 1.94 euro.

Net Debt, on an adjusted basis, came in at 1.019 billion euros, excluding 220 million of non-recourse debt.

Following the most recent upgrade of Mytilineos by FITCH to "BB+", the company is now just one notch away from achieving the goal of investment grade, for the first time in its history. Successful issuance of a 7-year bond of € 500 million with interest rate at 0% and significant oversubscription, as the total offered amount exceeded 1 billion euros. This issue was the 1st for the Greek market in 2023, while it achieved the highest historical participation by private investors, to whom 91% of the issue was allocated. Following this issuance Mytilineos further enhances its available liquidity, ensuring the uninterrupted implementation of its investment plan.

Commenting on the Financial Results, the Chairman and CEO of the Company, Evangelos Mytilineos stated: " The strong financial performance, of the first half of 2023, confirms, once again, the resilience of Mytilineos’ business model in the face of constantly changing market conditions, the unprecedented volatility over the past two years as well as the most severe inflationary pressures recorded in recent years. Moreover, it also certifies the tangible benefits arising from the recent corporate transformation of MYTILINEOS Energy & Metals, which has already received a warm reception in the international financial and capital markets. The advantages and significant synergies from the coexistence of the Energy and Metals sectors are becoming more visible being the main drivers behind the Company's growth, despite the monetary tightening conditions and the significant de-escalation of energy prices during the first half of the year".

Mytilineos posted a record H1 performance driven by the Energy Sector. Besides the significant contribution of M Renewables (RES in Greece and abroad), which saw its profitability to more than double +117% compared to H1 2022, the Energy Sector was also favored by the strengthening of Mytilineos' presence in supply of both electricity and natural gas in the wider region of the Balkans and SE Europe. Moreover, in the domestic market, the presence of Mytilineos in electricity supply continued to grow steadily, with the completion of the acquisition of WATT+VOLT, which in turn resulted in a market share approaching 13% and serving over 500,000 customers.

The Metals Sector repeated its historically high levels of profitability from the first half of 2022, despite significant decline of both premia (over 50%) and aluminum prices (~23%). Metals performance is mainly attributed to the timely actions taken by the Company's management, regarding the favorable LME prices as well as € / $ exchange rate, while maintaining strict cost control. The synergies between Energy and Metals Sectors were also a key contributing factor, for Mytilineos, to be maintained among the world’s most competitive aluminum and alumina producers.

Mytilineos' financial performance is expected to further strengthen in the second half of 2023, with new investments gradually reaching completion, including the new 826MW power plant. Additionally, significant investments in Renewable Energy Sources are being promoted, expected to further boost the project portfolio, and thus M Renewables’ financial performance. These efforts are expected to result in significantly higher levels of profitability, while strong cash flows would allow the realization of those investments and the subsequent increase in turnover while maintaining control over key leverage metrics.

Regarding the construction activity, the Earnings before Taxes, Interests and Depreciation (EBITDA) of the newly established, spin-off branch of Mytilineos amounted to 7 million compared to 5 million in the corresponding period of the previous year. At the end of the first half of 2023, the backlog of infrastructure projects in progress exceeds € 550 million, while including projects that are in an advanced stage of contracting, it exceeds 900 million. The prospects for the construction industry in Greece are particularly positive, especially for concession and PPP projects, in which the Infrastructure Sector aspires to play a leading role.