Mytilineos - METKA (Results 2Q/H1 2014)

Manos Chatzidakis	1:55 μ.μ. (Πριν από 30 λεπτά)

Mytilineos (Results 2Q/H1 2014):  Mytilineos is expected to announce its Q2/H1 on 6 August before market opens. We expect a sequential improvement in EBITDA and Net Earnings on strong METKA performance, flat Energy sector results while Metallurgy (Aluminium) is starting to gain momentum. Despite the reduction in domestic energy demand and the regulatory changes in ADMIE formula  energy sector is expected to post zero growth rates y-o-y in bottom line (Η1:€12mn) due to capacity payments increases (79K/ΜW vs 44K/MW) effective from January 1st. We expect Metallurgy to post EBITDA €10mn and marginal losses. On the Group level we expect H1 sales to land at €650mn (-12%), EBITDA will reach €118mn (+26%) and net earnings at €24mn (+91%) on lower financials. Focus on the CC will be on deleveraging, developments in Energy market, small PPC and Aluminium spot prices. METKA (Results 2Q/H1 2014):  METKA will announce its Q2/H1 2014 results on 6 August before the opening of the market. We look for a strong Q2 in terms of EBITDA and net profits as the company accelerates the execution of EPC projects across all regions. In Q2 METKA should post 10% increase in Sales, 13% in EBITDA and -22% on Net earnings due to €12.5mn deferred tax booked 2Q:2013. Adjusting for DT we see net earnings up by 30%. We point out that since Q1 no new EPC projects were added reducing our estimated backlog to €1.3bn at the end of Q2. On the positive side we expect resilient operating margins helped by lower tax rate and rich cash position (Q1: €204m). Focus on the conference call (same day 17:45 GR time) will be on future projects award, participation in regional airports tender and business outlook in Syria.  Conference call details: ¡  Greek participants +30 211180 2000 ¡  UK participants + 44 (0) 800 3681063 ¡  US participants + 1 866 288 9315 Mytilineos Results H1 2014 (Estimates) In thous. euro 2013 2014 Δ Sales 730,799  650,000  -11.1%  Q2 371,755  305,420  -17.8%  EBITDA 93,869  118,000  25.7%  (% Sales) 12.84%  18.15%  +531 bps  Q2 44,514  50,749  14.0%  (% Sales) 11.97%  16.62%  +464 bps  Net Income 12,537  24,000  91.4%  (% Sales) 1.72%  3.69%  +198 bps  Q2 1,909  8,790  360.5%  (% Sales) 0.51%  2.88%  +236 bps  METKA Results H1 2014 (Estimates) In thous. euro 2013 2014 Δ Sales 289,930  360,000  24.2%  Q2 155,937  170,940  9.6%  EBITDA 45,287  58,000  28.1%  (% Sales) 15.62%  16.11%  +49 bps  Q2 22,346  25,280  13.1%  (% Sales) 14.33%  14.79%  +46 bps  Net Income 46,401  49,000  5.6%  (% Sales) 16.00%  13.61%  -239 bps  Q2 30,303  23,560  -22.3%  (% Sales) 19.43%  13.78%  -565 bps