Mytilineos 9M:17 trading update 1st glimpse: Strong set of results; FY:17 will exceed initial guidance

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Mytilineos Group announced its 9M:17 trading update.

  • Turnover stood at €1,120.5 million, (+23.9% y-o-y);
  • EBITDA came at €226.1m vs €128.3m (+76.3% y-o-y);

Net profit rise at €123.1million against €16.6 million for the same period in 2016.

  • Key highlights:
  • 9M:17 results benefited from the amount of the compensation awarded by the International Court of Arbitration. EBITDA benefited by € 21.0 million, while Net profit benefited by €27.9 million.
  • Moreover, EBITDA have been negatively affected by €13.9 million exchange rate differences in receivables valuation, related to the 250MW energy project of the Company in Ghana.

In Metallurgy trends in international markets remain favorable as prices increased 50%  vs H1:16 exceeding $450/tn and driving LME aluminium prices to a 14% increase to $2,185/tn.

  • In Energy sector Protergia ranked 1st among the private suppliers, with a market share of 3.86%, expanded by 30.8% relative to the same period in 2016. Generation of electricity by the Company’s thermal units for the nine months of 2017 grew by 17% to 3.45 TWhrs, corresponding to 10.1% of the domestic production.

In EPC company backlog is above €1bn fugure as the agreement between MYTILINEOS and the General Electricity Company of Libya (GECOL), announced in September, increases the signed backlog by $400 million

  • Strong 9M performance across the board sets FY:17 figures above initial guidance (i.e Turnover €1.5 – 1.7bn, EBITDA €300 – 330m, PBT €200m)
  • On our estimates the Group trades at 8.9x 2017 earnings and 7.9x its 2018 profitability.
  • The following table summarize 9M/Q3:17 results:
Mytilineos 2016 2017 Y-o-Y 2016 2017 Y-o-Y
EUR thous. 9M 9M (%) Q3 Q3 (%)
Sales 904,500 1,120,500 23.9% 268,750 309,081 15.0%
EBITDA 128,300 226,100 76.2% 27,358 70,096 156.2%
EBITDA Mrg 14.2%  20.2%  +599 bps  10.2%  22.7%  +1,250 bps 
Net Income 16,600 123,100 641.6% 4,163 42,446 919.6%
Net Mrg 1.8%  11.0%  +915 bps  1.5%  13.7%  +1,218 bps 

Manos Chatzidakis

Head of research

Beta Securities S.A.

29 Alexandras Ave.

GR – 11473

Athens, Greece

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