Metlen announced a strong set of Q3:24 results broadly in line with estimates in underlying profitability and better than expected in net profits. Figures constitute a new record level profitability for the 9M period and support management guidance for €1.1bn FY:24 EBITDA.
- In a flash:
§ Turnover in the 9M period increased to €4,203 million, up +3% y-o-y on the back of strong Energy sector top line performance. Specifically Metlen market share to electricity generation in Greece reached 17.3% vs. 11.7% a year ago.
§ EBITDA increased by 6% reaching €763 million assisted by higher metallurgy division margin. Metallurgy has recorded the best 9M performance in the history of the Group.
§ Net Profit after minorities reached €482 million up +4% Accordingly, Earnings per Share increased to €3.49 from €3.34 in the corresponding period of 2023.
§ Net Debt, on an adjusted basis, came in at €2,064 million, excluding non-recourse debt. Despite the intensive CAPEX program, the adjusted Net Debt to EBITDA remained at the levels of 2.05x
§ Power projects pipeline at € 1.4bn; Backlog of contracted projects at € 1.2bn
§ As a final note the management said that “With regards to the new, significant projects, which are close to Final Investment Decision (FID), these should be announced gradually over the coming months, elaborating further on the Company’s Chairman recent statements, about doubling the Company’s size within the next 3-5 years”.
The following table summarise results vs. our estimates:
Segment – Key P&L items (m euro’s) |
|
|
|
|
|
|
|
|
Revenues |
2024 9Μ |
2023 9Μ |
y-o-y |
2024 Q3 |
2023 Q3 |
y-o-y |
2024 Q3 Est. |
vs Exp. |
Energy |
3,402 |
3,304 |
3.0% |
1,414 |
1,310 |
7.9% |
1,380 |
2.5% |
Metals |
630 |
715 |
-11.9% |
218 |
235 |
-7.2% |
221 |
-1.4% |
Construction/Other |
173 |
69 |
150.7% |
89 |
27 |
229.6% |
15 |
|
Total |
4,205 |
4,088 |
2.9% |
1,721 |
1,572 |
9.5% |
1,616 |
6.5% |
EBITDA |
2024 9Μ |
2023 9Μ |
y-o-y |
2024 Q3 |
2023 Q3 |
y-o-y |
2024 Q3 |
vs Exp. |
Energy |
545 |
193 |
182.4% |
223 |
229 |
-2.6% |
220 |
1.4% |
Metals |
207 |
532 |
-61.1% |
65 |
57 |
14.0% |
57 |
14.0% |
Construction/Other |
11 |
-2 |
|
1 |
-1 |
200.0% |
6 |
|
Total |
763 |
723 |
5.5% |
289 |
285 |
1.4% |
283 |
2.1% |
EBITDA mrgn (%) |
|
|
|
|
|
|
|
|
Energy |
16.0% |
5.8% |
+1,018 bps |
15.8% |
17.5% |
-171 bps |
15.9% |
-17 bps |
Metals |
32.9% |
74.4% |
-4,155 bps |
29.8% |
24.3% |
+556 bps |
25.8% |
+402 bps |
Construction/Other |
6.4% |
-2.9% |
+926 bps |
1.1% |
-3.7% |
+483 bps |
40.0% |
|
Total |
18.1% |
17.7% |
+46 bps |
16.8% |
18.1% |
-134 bps |
17.5% |
-72 bps |
Net Profit After Minorities |
482 |
462 |
4.3% |
200 |
193 |
3.6% |
185 |
8.1% |
Kind regards,
Manos Chatzidakis
Head of research
29 Alexandras Avenue
11473 Athens,Greece
Tel: +30 210 6478988/754
Email: [email protected]