The 7 reasons the market called Mytilineos’ results strong

Of Haris Fludopoulos

Mytilineos’ half-year results were positively received by analysts, with all reports describing the performance as very strong, far exceeding market estimates.

At the same time, analysts note the decrease in net borrowing, despite record investments. As 80 to 90% of the investments are for company development costs, they will essentially lead to a renewed increase in the profitability of MYTILINEOS in the near future.

More in detail, according to analyst reports, the structural components that ensure the continuation of the increasing trend of MYTILINEOS’ profitability in the coming quarters, while at the same time proving the company’s ability to consistently achieve new profitability records on a recurring basis, are the following:

1. The speed of maturation of the company’s RES projects, through a steadily strengthening portfolio of projects, which currently reaches 8.6GW

2. As a result, in addition to the Energy Sector’s RES projects, analysts now expect a significant strengthening of the Company’s RSD sector, through significant sales that have been launched for the coming quarters.

3. The entry into commercial operation, in a critical energy period for the country, of the most efficient and cheap user of natural gas in the Greek market, which, in addition to significantly enhancing the profitability of MYTILINEOS, will also be the most economical thermal unit of production of electrical power

4. Ensuring fuel supply on competitive terms, through a diversified natural gas supply network, consisting of both pipeline gas and LNG, contributing catalytically to the country’s security of supply, on competitive terms.

5. Therefore the market considers that Greece and apparently MYTILINEOS are fully prepared to face a violent cut-off of natural gas from Russia, with the main problem in such an eventuality being the high fuel prices, in which, in the previous quarters , MYTILINEOS has proven in practice that it can successfully cope

6. Other factors that contribute and are expected to continue to significantly benefit MYTILINEOS’ future profitability are the strengthening of the US Dollar against the Euro and the stabilization of aluminum premia at today’s very high levels

7. Finally, the fact that the President and Managing Director of the company, operating in the interest of the shareholders he represents, leaves open all possibilities that could work to the benefit of the shareholders, including the introduction of company on a major foreign stock exchange.

Following the very strong results, analysts are expected to revise their estimates for the company’s profitability higher in the coming years, including in their models the new data as analyzed by the company’s President in the results conference call.

The company’s share price, at current levels, is considered particularly attractive by all analysts, who now see it as an ideal repositioning point for investors.

More specifically, the Piraeus analyst, now estimating the company’s EBITDA for 2022 above €650 million (from €504 million previously) and a dividend yield for the year 2022 of 6%, expects a re -rate on MYTILINEOS stock, and announces that it will soon come back with a new target price for the company.