Currency in EUR
Last close As at 28/03/2023
EUR25.14
▲ 0.14 (0.56%)
Market capitalisation
EUR3,564m
Research: Industrials
Mytilineos achieved record-high profitability in FY21, with a 31% increase in EPS, demonstrating its business model is resilient despite global challenges and providing a platform for even stronger performance in 2022. Q421 EBITDA of €118m outperformed seasonal trends, representing 47% growth versus Q420, driven by very strong performance in the Power & Gas division due to a combination of increased demand for electricity, favourable wind conditions, high efficiency and availability of its plants, along with its ability to source natural gas at very competitive prices. Mytilineos is well funded to support its investment in the energy transition, with financial flexibility of c €1.5bn augmented by strong operating cash flow across all areas of the business. Its annual dividend increased by 10% to €0.42 per share.
Mytilineos |
Record-high profitability with strong momentum |
FY21 results |
Industrials |
31 January 2022 |
Share price performance Business description
Analyst
Mytilineos is a research client of Edison Investment Research Limited |
Mytilineos achieved record-high profitability in FY21, with a 31% increase in EPS, demonstrating its business model is resilient despite global challenges and providing a platform for even stronger performance in 2022. Q421 EBITDA of €118m outperformed seasonal trends, representing 47% growth versus Q420, driven by very strong performance in the Power & Gas division due to a combination of increased demand for electricity, favourable wind conditions, high efficiency and availability of its plants, along with its ability to source natural gas at very competitive prices. Mytilineos is well funded to support its investment in the energy transition, with financial flexibility of c €1.5bn augmented by strong operating cash flow across all areas of the business. Its annual dividend increased by 10% to €0.42 per share.
Year end |
EBITDA |
Net income* |
EPS |
DPS** |
P/E |
Yield |
12/19 |
313 |
145 |
1.01 |
0.36 |
10.8 |
3.3 |
12/20 |
315 |
129 |
0.91 |
0.38 |
15.9 |
2.6 |
12/21 |
359 |
162 |
1.19 |
0.42 |
12.2 |
2.9 |
12/22e |
488 |
260 |
1.93 |
0.67 |
7.9 |
4.5 |
Note: *Net income is shown after minorities. ** Final distributed dividend per share in FY19 and FY20 and proposed dividend per share for FY21.
Despite the ongoing COVID-19 pandemic and the energy crisis in Europe, Mytilineos delivered record-high results in FY21, emphasising the robustness of its business model. Its quarterly results demonstrate strong momentum going into 2022, with a solid performance across the first three quarters followed by a particularly impressive Q4, which represented a 47% increase in EBITDA versus Q420 (or a 72% increase in net income). On an annual basis, Metallurgy, Sustainable Engineering Solutions and Renewables and Storage Development all achieved double-digit (or more) EBITDA growth compared to FY20. Power & Gas (P&G) was down just 6% on its record-high performance in FY20, despite three months of scheduled major maintenance of the Korinthos Power CCGT plant in H121. In H221, EBITDA for P&G increased by 15% versus H220 (to €99m).
Despite Mytilineos’s ongoing investment programme in the energy transition and capex of €379m in FY21, strong operating cash flow resulted in net debt increasing by just €267m over 2021 to €803m by year end. This equates to net debt to EBITDA of just 2.2x. Mytilineos continues to have significant financial flexibility, with total liquidity of c €1.5bn, augmented by strong operating cash flow in all areas of the business. Management’s confidence in the business is underpinned by its ongoing share repurchase programme, having bought back 7.9m shares (5.6% of total) over the last 18 months, and a proposed 10% increase in final dividend per share.
On the earnings call last Thursday afternoon, management reiterated its informal guidance of FY22 net income at least doubling compared to FY20. This equates to net income of c €260m (or more) in FY22, which is exactly consistent with our last published forecasts (in December). We look forward to publication of the full results along with the annual report in March, after which we will update our valuation model and forecasts. For now, we maintain our valuation (€24/share) and forecasts.
|
|
Research: Real Estate
Picton Property Income has increased the rate of quarterly DPS by 2.9% in respect of the three months ended 31 December 2021 (Q322), restoring the annualised rate to pre-pandemic levels. Including strong growth in NAV and adjusted for DPS paid, the Q322 NAV total return was 8.2% and is now more than 19% in the year to date.
Get access to the very latest content matched to your personal investment style.