Mytilineos - Strong H122 and with continued momentum

Mytilineos reported record-high H122 results. Net profit after minorities increased by 116% to €166m, versus H121 (€77m) and was higher than the previous record performance in H221 (€103m). In particular, Power & Gas and Metallurgy delivered results significantly above our expectations. Sustainable Engineering Solutions gained momentum in Q2 and the firm order backlog increased by 65%. We also expect Renewables & Storage Development to be stronger in H2 due to solar parks under construction nearing conclusion (potentially c 450MW). Mytilineos is on a strong growth trajectory and has been investing to benefit from the energy transition. On the earnings call, the chairman suggested that Mytilineos could potentially substantially exceed its previous informal FY22 net income guidance of €260m (with H2 notably better than H1). As a result of this, our forecasts and valuation are under review until the full H122 report is published.