Mytilineos - Defensive in 2020 and with growth beyond

Although FY20 will be challenging for Mytilineos, in our view its current rating does not reflect the resilience of the business or its longer-term potential for growth. Emphasis on cost control, the sourcing of competitively priced gas and the company’s exposure to a growing renewable business should mitigate some of the impact of COVID-19 and help underpin growth. A new combined cycle gas turbine (CCGT), due to be commissioned in Q421, should significantly boost profits from 2022.