Mytilineos - Reaping rewards from proactive management

Mytilineos has reported record-high quarterly results for the fourth consecutive quarter. Net profit after minorities increased by 283% to €146m, versus Q321 (€38m). It was encouraging to see a strong performance across all four divisions, with record quarterly results in Renewables & Storage Development (RSD), Sustainable Engineering Solutions (SES) and Power & Gas (P&G). RSD benefited from a strong pipeline of solar parks under construction coming to fruition; we expect this to continue in Q4. An influx of higher-margin gas projects helped drive earnings growth in SES. We upgrade our forecasts in this division. The continued strength in P&G is a testament to Mytilineos’s integrated model, its ability to source gas at competitive prices and the high efficiency and flexibility of its power generation portfolio. We also upgrade our forecasts in this division. Our per share valuation increases to €28.0 (from €27.0 previously).