Mytilineos is a leading industrial company with international presence in all five continents. It is active in Metallurgy, Power & Gas, Sustainable Engineering Solutions (SES) and in Renewables & Storage Development (RSD), operating via a unique synergistic business model.
It was announced on Friday that Mytilineos is one of just two Greek companies that were added to the MSCI Greece index, which forms part of the MSCI Global Standard indices. This should bring significant additional demand for Mytilineos’s shares. In this note, we also highlight Mytilineos’s strong Q122 results, reported on 4 May. They were roughly in line with our expectations. Net profit after minorities was €67m, an increase of 83% versus Q121 (€37m) and higher than the strong performance in Q421 (€65m). The strong performance extends across Power & Gas, Metallurgy and Renewable Storage Development, which have all delivered results in line with (or slightly above) our expectations. Sustainable Engineering Solutions is below expectations; however, we note that a number of projects are close to completion stage, which should imply a stronger performance in the coming quarters. Mytilineos is on a strong growth trajectory and has been investing to benefit from the energy transition. We maintain our forecasts and valuation of €27.0 per share.
Mytilineos possesses a portfolio of assets that enjoy low costs. CCGTs benefit from access to relatively low-cost natural gas, and low production costs for both alumina/aluminium allow the metallurgy business to be strongly cash flow generative.