MYTILINEOS'
growth trajectory enhanced by
the synergies between Energy and Metallurgy
ATHENS,
Greece, April 25, 2024 /PRNewswire/ -- MYTILINEOS
Energy & Metals (RIC: MYTr.AT) (Bloomberg:
MYTIL.GA) announces its Q1 2024 financial results.
- 10% increase in Net Profit after minorities to
€158 million vs. €143 million in Q1
2023. Earnings per Share came in at €1.141, an increase of
10% compared to the corresponding quarter of the previous
year.
- 12% increase in Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA) to
€252 million, compared to €225 million
in the corresponding period of 2023.
- Turnover stood at €1,143
million, compared to €1,358 million in Q1 2023, a decrease
of c. 16% attributed to the consequences of the de-escalation of
energy prices.
- Net Debt, on an adjusted basis, came in at
€1,592 million, excluding €607 million
of non-recourse debt.
- Adjusted Net Debt to EBITDA stood at c.1.6x, level on
par with investment grade companies. The above have also been
reflected in the recent upgrades by FITCH and S&P, with
MYTILINEOS Energy & Metals being one notch away from the
investment grade level.
Following the historically high 2023 performance, MYTILINEOS, in
2024, maintains its strong growth trajectory, responding
successfully to a conjuncture of challenges related to the
weak pricing environment, the escalating geopolitical
tensions, which impacting energy markets, while
interest rates remain at the highest levels in recent
years.
MYTILINEOS' business model remains a key growth lever,
based on the powerful synergies derived from the coexistence of the
Energy and Metallurgy sectors, as well as MYTILINEOS' ability to
implement high-yield investments, while simultaneously maintaining
leverage and business risk at relatively low levels.
1. KEY FINANCIAL FIGURES
amounts in m.
€
|
Q1
2024
|
Q1
2023
|
Δ %
|
Turnover
|
1,143
|
1,358
|
-16 %
|
EBITDA
|
252
|
225
|
12 %
|
EATam
|
158
|
143
|
10 %
|
EPS*
|
1.141
|
1.040
|
10 %
|
Margins
(%)
|
|
|
Δ(bps)
|
EBITDA
|
22.1 %
|
16.5 %
|
554
|
EATam
|
13.8 %
|
10.6 %
|
324
|
*own equity
shares adjusted
|
As expected, turnover was significantly lower (-16%) due
to the significant decline in natural gas, electricity and metals'
prices.
This is the first time since the Group's corporate
transformation in 2022 that it has faced serious external headwinds
that have literally "tested" the resilience of the synergistic
Energy and Metals Model. The results have vindicated this historic
transformation: Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) showed a rise,
of 12% reaching €252 million, compared to €225
million in the corresponding period of 2023, benefiting from the
steady profitability growth of the Energy Sector, and in particular
of the RES activity. The above resulted in the substantial
strengthening of the EBITDA margin, by ~5.5 percentage points,
to 22%, confirming the robustness of MYTILINEOS' business
model, which consistently generates high levels of profitability
regardless of the energy price levels.
Net profit increased to €158m (+10%), which is a record
first quarter performance, in terms of profitability. This
record performance was primarily driven by RES, supported by both
the electricity generation, which has been enhanced by the
operation of the new 826MW CCGT, as well as by the consistently
robust performance of the Metallurgy Sector. MYTILINEOS, fully
utilizing its competitive advantages, has laid the foundations to
consolidate its profitability, steadily, at levels above €1
billion while entering a new phase of strong growth.
The Energy Sector, driven by M Renewables, managed to
increase its profitability in terms of EBITDA by 22% compared to Q1
2023. MYTILINEOS has been also benefited significantly by the
energy production activity, and the substantial contribution of the
new H-CLASS 826MW in particular, which is the most efficient user
of natural gas in the country, thus contributing to MYTILINEOS'
increased production compared to the levels of the first quarter of
2023.
Despite the significant decrease of premia, when compared to the
corresponding levels of 2023, the Metallurgy Sector achieved the
record-high profitability levels of Q1 2023. This performance is
mainly attributed to the timely actions taken by the Company's
Management regarding both securing favorable LME prices, the €/$
exchange rate, as well as strict cost cotnrol. The above,
along with the strategically important synergies provided by the
coexistence of the Energy and Metallurgy Sectors, maintains
MYTILINEOS among the most competitive aluminum and alumina
producers globally. The Company's position is expected to be
further enhanced and stabilized in the first quartile of the global
cash cost curve, due to the transition to less polluting energy
sources as well as the recent acquisition of IMERYS Bauxites, which
enhances MYTILINEOS' vertically integrated production model.
Regarding the construction activity (including M Concessions),
the Earnings before Taxes, Interests and Depreciation (EBITDA)
amounted to €3 million in Q1 2024, compared to €5 million in Q1
2023, due to a transitional phase of completion and delivery of
certain ongoing major projects and the commencement of new projects
in an early stage. Today, the backlog of infrastructure projects in
progress exceeds €1 billion when including projects in an advanced
stage of contracting (only including the percentage of METKA ATE
related to joint ventures). 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, starting in 2024 where we expect the first impact from the
consolidation of our 100% construction subsidiary METKA ATE.
2. BUSINESS UNITS OPERATIONAL UPDATES
2.1. Energy
Sector
amounts in m.
€
|
Q1
2024
|
Q1
2023
|
Δ %
|
Revenues
|
904
|
1,112
|
-19 %
|
EBITDA
|
184
|
150
|
22 %
|
Margins
(%)
|
|
|
Δ(bps)
|
EBITDA
|
20.4 %
|
13.5 %
|
684
|
The Energy Sector reported turnover of
€904 million, representing 79% of the
company's total turnover, posting a 19% decrease compared to
Q1 2023. Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA), driven by M
Renewables, stood at €184 million, increased
by 22% compared to €150 million in the corresponding period of
2023.
MYTILINEOS Energy & Metals is strategically positioned at
the forefront of the Energy Transition as a leading and integrated
energy company, with an international presence in the entire
spectrum of the energy sector (M
Renewables, M Energy & Generation
Management, M Energy Customer
Solutions, M Integrated Supply & Trading and M
Power Projects).
RES – MYTILINEOS'
Global portfolio*
|
Power
(GW)
|
RES in
Operation
|
0.8
|
RES Under
Construction
|
1.6
|
RES RTB & Late
stage of Development**
|
2.4
|
RES Early Stage of
Development
|
5.7
|
Total
|
10.5
|
*Energy storage
projects included
|
**Project ready to be
Build (RTB) or that will reach RTB stage within the next ~ 6
months
|
Total capacity of the operational and mature global portfolio
of M Renewables, which is dynamically expanding in all
five continents, is now c.4.8 GW, while including
projects in Early and Middle stages of development, with a capacity
of c.5.7 GW, MYTILINEOS' global portfolio now
approaches 10 GW, at the end of the first quarter of
2024.
Energy production from Renewable Sources, with a total
installed capacity of 779 MW, at the end of Q1 2024 amounted to
325 GWhs, of which 182 GWhs produced from Greek RES and the rest
143 GWhs from International RES.
MYTILINEOS, making utmost use of its Asset Rotation Plan,
recently entered into an agreement of strategic importance for the
Company, regarding projects with total capacity of c.2GW in
Europe, specifically in
Italy (503MW), Romania (516MW), Croatia (445MW), and Bulgaria (500MW). The successful Asset
Rotation Plan allows MYTILINEOS to continue the growth of M
Renewables' profitability, despite the current interest rate
environment, while making proper use of all available financing
tools. As a result of the above, the Company manages to have a
self-funded RES development model, while maintaining low leverage
levels and an excellent credit profile.
In Greece, the development of
the first phase (~300 MW) of the ~1.5 GW of the Greek
photovoltaic portfolio, is progressing smoothly, utilizing
resources from the Recovery and Resilience Facility (RRF), and are
gradually entering into operation. Simultaneously, the construction
of the second phase of the Greek Portfolio, with total capacity of
~700 MW, commenced in 2024. Regarding the international portfolio,
MYTILINEOS is currently constructing more than 1.3GW of
photovoltaic projects outside Greece, which are expected to become
operational in the near future.
In the context of the Global Energy Transition, through the
shift towards RES, as well as the Sustainable Development Strategy
adopted by the Company in recent years, MYTILINEOS proceeded
in April 2024 to conclude a bilateral
agreement for the supply of electricity with the Karatzis Group,
for the production of energy with a total capacity of 210MW, thus
reinforcing its "green" portfolio. The Company's focus on a strong
presence in the PPAs market is expected to intensify significantly
as the market "matures," following the example of other
company-owned PV park installations in many regions around the
world.
With regards to third party projects, the execution continues
unobstructed, in countries like: the United Kingdom, Greece, Italy
and Romania; with the contracted
backlog (signed but not executed) amounting to €245 million.
Greek Market Data –
Q1 2024
|
|
Production per Unit
type [TWh]
|
Q1
2024
|
Q1
2023
|
Q1 2024
% of mix
|
Q1 2023
% of mix
|
Lignite
|
1.1
|
1.4
|
8 %
|
12 %
|
Natural Gas
|
4.1
|
3.0
|
33 %
|
24 %
|
Hydros
|
0.9
|
0.8
|
7 %
|
7 %
|
RES1
|
5.7
|
4.9
|
46 %
|
40 %
|
Net Imports
|
0.6
|
2.2
|
5 %
|
18 %
|
Total
|
12.4
|
12.3
|
100 %
|
100 %
|
1Renewable Energy Sources
|
MYTILINEOS
Generation (TWhs)
|
Q1
2024
|
Q1
2023
|
Δ%
|
Thermal
Plants
|
2.0
|
0.8
|
150 %
|
RES
|
0.2
|
0.2
|
0 %
|
Total
|
2.2
|
1.0
|
120 %
|
During February 2024, natural gas
prices in Europe experienced a
significant decline at the lowest levels of recent years, before
their recent rebound, mainly due to the ongoing geopolitical crisis
both in Ukraine as well as the
Middle East. Electricity demand in
Q1 2024 remained at similar levels to that of Q1 2023.
MYTILINEOS' Greek power production, both from thermal and
renewable units, amounted to 2.2 TWh, which corresponds to 18%
of total Greek demand. Regarding the production of electricity from
thermal plants, the three combined cycle plants (CCGTs) along with
the high-efficiency combined heat and power (CHP)
plant, produced a cumulative ~2 TWh. This represents over
17% of total demand in the interconnected system and 49% of
production from natural gas plants, vs. 27% in the corresponding
period in 2023.
Total production from thermal units during Q1 2024, surged
significantly (+150%) compared to the corresponding period of 2023,
among other reasons, due to the contribution for the first
time of the new CCGT (Combined Cycle Gas Turbine) unit
(826 MW), which contributed more than 50% of
MYTILINEOS' Q1 2024 total thermal production. The new
CCGT commenced its operation at a critical period for the country,
contributing decisively to support the transition to an energy mix
with a significantly lower carbon footprint. The above, partly due
to increased country needs in the coming years, coupled with the
high degree of efficiency and flexibility of our units as well as
the supply of electricity at competitive prices, are expected to
significantly strengthen the Company's profitability in years to
come.
MYTILINEOS – Supply
of Energy & Natural Gas
|
Q1
2024
|
Q1
2023
|
Δ%
|
Total amount of Power
and Gas meters
|
550k
|
531k
|
3.6 %
|
Market share – March
2024*
|
17.4 %
|
10.3 %
|
-
|
During Q1 2024, in addition to the strong financial performance,
MYTLINEOS continued to steadily promote its strategic goals through
the completion of a series of acquisitions such as EfAEnergy and
Volterra (subject to Competition Commission approval), which
further strengthen the Company's energy pillar and are expected to
significantly enhance vertical integration in the retail market of
natural gas and energy supply.
Hence, MYTILINEOS at the end of
Q1 2024 represents a total of
550,000 electricity and natural gas meters, while its
share in the electricity market in March 2024 exceeded
the 17% level (HEnEx market shares). In the
coming period, MYTILINEOS is targeting to exceed 25%
of the Greek consumption, including the representation of
Aluminum of Greece, creating
an integrated "green" utility with international
presence. Taking advantage of the vertical integration of
the Company's operation in the Energy Sector, MYTILINEOS is now
solidifying its position as an integrated energy provider of the
new era.
At the same time, MYTILINEOS, beyond the Greek market, has
achieved significant penetration in other markets in the Southeast
European region, in terms of natural gas supply and trading,
as part of the Company's internationalization strategy. Having
secured most of Revythoussa terminal's available slots
for the coming years, while steadily increasing its trading
volumes, MYTILINEOS has become a major regional player in
the supply and trading of natural gas in both the Balkans
and the wider Southeastern Europe. This
achievement has enabled the company to secure competitive
natural gas prices and the benefits of this success are distributed
through MYTILINEOS' synergistic model to all company
operations.
Power
Projects MYTILINEOS
|
Q1
2024
|
Backlog of
contracted projects
|
€1.4 bn
|
Total
pipeline
|
€1.7
bn
|
M Power Projects sub-sector, focusing on projects that support
the goals of the energy transition and sustainable development, is
continuously strengthening its international presence, currently
executing 35 projects in 11 different countries.
At the end of Q1 2024, the backlog of contracted projects
amounted to €1.4 billion, while including projects at an advanced
stage of contracting, total backlog amounts to €1.7 billion, of
which 10% refers to projects in Greece, 24% in Poland and 45% in the United Kingdom, an activity which is expected
to record significant growth.
The Company, possessing the required know-how for high-demand
projects, aims to exploit in full all prospects arising from the
Recovery Fund.
Finally, it must be noted that an increasing part of the
M-Power Projects' turnover and profitability, stems from the
activity in the network segment, where there is in principle a
decision of the company's Top Management, for the economic
support (along with M-Renewables) towards infrastructures as
well as human resources (mainly Greek skilled engineers), in order
to exploit in full, the upcoming golden decade in the context of
the green transition.
2.2.
Metallurgy Sector
amounts in m.
€
|
Q1
2024
|
Q1
2023
|
Δ %
|
Revenues
|
205
|
225
|
-9 %
|
EBITDA
|
70
|
74
|
-5 %
|
Margins
(%)
|
|
|
Δ(bps)
|
EBITDA
|
34.3 %
|
32.7 %
|
160
|
Total Production
Volumes (ktons)
|
Q1
2024
|
Q1
2023
|
Δ%
|
Alumina
|
217
|
212
|
2 %
|
Primary
Aluminium
|
45
|
46
|
-2 %
|
Recycled
Aluminium
|
14
|
14
|
0 %
|
Total Aluminum
Production
|
59
|
60
|
-2 %
|
Aluminium &
Alumina Prices ($/t)
|
Q1
2024
|
Q1
2023
|
Δ%
|
3M LME
|
2,241
|
2,438
|
-9 %
|
Alumina Price Index
(API)
|
367
|
360
|
2 %
|
Aluminum (3M LME) average price
in Q1 2024, came in at 2,241$/t, from 2,438$/t in Q1
2023, marking a 9% decrease. Over the last period, metal prices
have been steadily increasing, surpassing the $2,600/ton level, driven by both the recovery of
industrial activity in China and
recent sanctions imposed by the US and the United Kingdom on Russian aluminum.
Aluminum billet premia declined further in
Q1 2024 with the average price standing at
$400/t from $600/t in the corresponding period of
2023. Despite their decline, aluminum billet premia could
potentially move upwards again, mainly due to the reduced European
aluminum production, which remains a significantly deficit market,
with most of its needs sourced by imports from third countries,
including the Middle East and
Russia, which are now
questioned.
Alumina Price Index (API) recorded a slight increase of 2% in Q1
2024, at 367$/t.
Despite a relatively weaker environment in the aluminum market,
MYTILINEOS, via proactive management actions, succeeds in
maintaining its profitability close to the record levels
achieved in the previous year. MYTILINEOS, among others has managed
to secure favorable LME prices and €/$ FX rate, while its effective
cost control, combined with the significant comparative advantages
offered by the coexistence of the Energy and
Metallurgy Sectors, secures strong profit margins, therefore
maintaining MYTILINEOS among the most competitive aluminum and
alumina producers globally.
Just as in previous years, in 2024, if there is no serious
deterioration on the various open geopolitical fronts, the company
is expected to further improve its performance in the remaining
quarters of 2024. As every year, detailed announcements on the
Company's full-year guidance will be given by the Chairman of the
Board of Directors at the Annual General Meeting of Shareholders on
June 4, 2024.
MYTILINEOS:
ΜYTILINEOS Energy & Metals is a multinational industrial and
energy company, a leader in the metallurgy and energy industries,
focused on sustainability and circular economy. The Company is
listed on the Athens Stock Exchange, with a consolidated turnover
and EBITDA of €5.492 billion and €1.014 billion, respectively.
MYTILINEOS is a reference point for competitive "green" metallurgy
at the European and global level, whilst operating the only
vertically integrated bauxite, alumina and primary aluminum
production unit in the European Union (E.U.) with privately owned
port facilities. In the energy sector, MYTILINEOS offers
comprehensive solutions, covering thermal and renewable energy
projects, electricity distribution and trading, alongside
investments in grid infrastructure, battery storage, and other
green technologies. The Company is active in the markets of all
five continents, in 40 countries, adopting a full-scale synergetic
model between the Metallurgy and Energy Sectors, while undertaking
end-to-end development of major energy infrastructure projects.
For more information, please visit:
www.mytilineos.com |
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