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GreeceBusinessMytilineos: First quarter results; further development and internationalization of activities

Mytilineos: First quarter results; further development and internationalization of activities

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MYTILINEOS on Wednesday announced an 80% increase in net profit after minorities to 67 million euros in the first quarter of 2022, from 37 million in the same period in 2021 and said that earnings per share came in at 0.498 euro, an increase of 83% compared to the corresponding quarter of the previous year.

More specifically, turnover increased by 99% to 1.042 billion euros, compared to 524 million in Q1 2021. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased to 130 million, compared to 81 million in the corresponding period of 2021, while net debt stood at 914 million in a period with high capital expenditures, during which major investments are either near-completion or in full swing.

Following a record 2021 performance, MYTILINEOS is on a strong growth trajectory, responding successfully to a number of challenges related to increasing inflationary pressures, the energy crisis, rising interest rates, supply chain disruptions, the evolution of the pandemic and apparently the recent geopolitical tensions associated with Ukraine.
MYTILINEOS’ growth drivers stem from a series of major investments, which have either been completed during Q1 2022 and expected to contribute during the year or are in full deployment.

Major investments such as the increase in Aluminium production capacity to 250,000 tons (Project NEW ERA 250), the construction completion of the new 826MW CCGT plant, which has entered the cold commissioning stage with commercial operation expected in Q3 2022 as originally scheduled, as well as the development of new RES plants in Greece and abroad with the aggregate capacity exceeding 3GW, establishing MYTILINEOS a leader against global challenges posed by climate change as well as the need for a smooth energy transition.

Q1 2022 results already confirm management’s 2022 profitability targets, as stated in the 2021 Annual General Meeting (AGM). In the upcoming AGM, in June 2022, profitability guidance will be updated, taking into consideration the significant progress of the investments across all Business Units.

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Power & Gas Business Unit reported turnover of 641 million euros, representing 61.6% of the company’s total turnover, posting a 236% increase on a year-on-year basis. Earnings before interest, taxes, depreciation and amortization stood at 61 million, in-line with Q4 2021 and significantly improved compared to Q1 2021.

Domestic electricity demand recorded substantial growth in Q1 2022, an increase of 7.9% compared to the corresponding period of 2021, benefiting from the economic restart of the post Covid-19 era. The rapid escalation of geopolitical tensions pushed natural gas prices to new highs which in turn boosted the average daily price in the energy exchange (DAM) to 237 € /MWh in the first quarter of 2022, peaking at 427 € /MWh on March 8th, 2022. High CO2 prices, which in Q1 2022 came in at an average price of c.83 € /t, was also a contributing factor for the elevated DAM prices.

Regarding electricity supply, Protergia is consistently enhancing its presence in retail market, widening its customer base to 338,000 electricity and natural gas customers in the first quarter of 2022, claiming a c.7% market share.

During Q1 2022, both Alumina refinery and Aluminium smelter, continued their uninterrupted operation, increasing production levels, mainly those of recycled aluminium, in line with MYTILINEOS’s ambitious environmental targets, in an effort for the Company to meet increasing demand.

The Metallurgy Business Unit in the first quarter of 2022 recorded Turnover of € 214 million, which represents 20.5% of total turnover, compared to € 148 million in the first quarter of 2021. EBITDA came in at € 55 million, compared to € 35 million in the coresponding period of 2021, an increase of 55%.

The Renewables & Storage Development (RSD) Business Unit, records a strong start to the year in terms of profitability. In particular, turnover came in at € 120 million in Q1 2022 (representing c.11% of total turnover), 27% higher over the corresponding period of 2021, while EBITDA rose to € 12 million, vs € 5 million in Q1 2021, posting a 128% increase as well as a doubling of its EBITDA margin.

RSD’s Build, Operate & Transfer (BOT), was the main contributor of the aforementioned performance. In particular, following the sale of two projects in Spain with total capacity of 100MW, in December 2021, RSD BU builds momentum via the signing of two SPAs (Share Purchase Agreement), for two projects in the UK with total capacity of 100MW. RSD’s global portfolio is maturing rapidly, signaling strong prospects for more transactions to come in the following quarters.


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