(Información remitida por la empresa firmante)
In Greece, the development of the first phase (~300 MW) of the ~1.5 GW of the Greek photovoltaic portfolio, is progressing smoothly, utilizing resources from the Recovery and Resilience Facility (RRF), and are gradually entering into operation. Simultaneously, the construction of the second phase of the Greek Portfolio, with total capacity of ~700 MW, commenced in 2024. Regarding the international portfolio, MYTILINEOS is currently constructing more than 1.3GW of photovoltaic projects outside Greece, which are expected to become operational in the near future. In the context of the Global Energy Transition, through the shift towards RES, as well as the Sustainable Development Strategy adopted by the Company in recent years, MYTILINEOS proceeded in April 2024 to conclude a bilateral agreement for the supply of electricity with the Karatzis Group, for the production of energy with a total capacity of 210MW, thus reinforcing its “green” portfolio. The Company’s focus on a strong presence in the PPAs market is expected to intensify significantly as the market “matures,” following the example of other company-owned PV park installations in many regions around the world.
With regards to third party projects, the execution continues unobstructed, in countries like: the United Kingdom, Greece, Italy and Romania; with the contracted backlog (signed but not executed) amounting to €245 million.
During February 2024, natural gas prices in Europe experienced a significant decline at the lowest levels of recent years, before their recent rebound, mainly due to the ongoing geopolitical crisis both in Ukraine as well as the Middle East. Electricity demand in Q1 2024 remained at similar levels to that of Q1 2023.
MYTILINEOS’ Greek power production, both from thermal and renewable units, amounted to 2.2 TWh, which corresponds to 18% of total Greek demand. Regarding the production of electricity from thermal plants, the three combined cycle plants (CCGTs) along with the high-efficiency combined heat and power (CHP) plant, produced a cumulative ~2 TWh. This represents over 17% of total demand in the interconnected system and 49% of production from natural gas plants, vs. 27% in the corresponding period in 2023.
Total production from thermal units during Q1 2024, surged significantly (+150%) compared to the corresponding period of 2023, among other reasons, due to the contribution for the first time of the new CCGT (Combined Cycle Gas Turbine) unit (826 MW), which contributed more than 50% of MYTILINEOS’ Q1 2024 total thermal production. The new CCGT commenced its operation at a critical period for the country, contributing decisively to support the transition to an energy mix with a significantly lower carbon footprint. The above, partly due to increased country needs in the coming years, coupled with the high degree of efficiency and flexibility of our units as well as the supply of electricity at competitive prices, are expected to significantly strengthen the Company’s profitability in years to come.
During Q1 2024, in addition to the strong financial performance, MYTLINEOS continued to steadily promote its strategic goals through the completion of a series of acquisitions such as EfAEnergy and Volterra (subject to Competition Commission approval), which further strengthen the Company’s energy pillar and are expected to significantly enhance vertical integration in the retail market of natural gas and energy supply.
Hence, MYTILINEOS at the end of Q1 2024 represents a total of 550,000 electricity and natural gas meters, while its share in the electricity market in March 2024 exceeded the 17% level (HEnEx market shares). In the coming period, MYTILINEOS is targeting to exceed 25% of the Greek consumption, including the representation of Aluminum of Greece, creating an integrated “green” utility with international presence. Taking advantage of the vertical integration of the Company’s operation in the Energy Sector, MYTILINEOS is now solidifying its position as an integrated energy provider of the new era.
At the same time, MYTILINEOS, beyond the Greek market, has achieved significant penetration in other markets in the Southeast European region, in terms of natural gas supply and trading, as part of the Company’s internationalization strategy. Having secured most of Revythoussa terminal’s available slots for the coming years, while steadily increasing its trading volumes, MYTILINEOS has become a major regional player in the supply and trading of natural gas in both the Balkans and the wider Southeastern Europe. This achievement has enabled the company to secure competitive natural gas prices and the benefits of this success are distributed through MYTILINEOS’ synergistic model to all company operations.
M Power Projects sub-sector, focusing on projects that support the goals of the energy transition and sustainable development, is continuously strengthening its international presence, currently executing 35 projects in 11 different countries.
At the end of Q1 2024, the backlog of contracted projects amounted to €1.4 billion, while including projects at an advanced stage of contracting, total backlog amounts to €1.7 billion, of which 10% refers to projects in Greece, 24% in Poland and 45% in the United Kingdom, an activity which is expected to record significant growth.
The Company, possessing the required know-how for high-demand projects, aims to exploit in full all prospects arising from the Recovery Fund.
Finally, it must be noted that an increasing part of the M-Power Projects’ turnover and profitability, stems from the activity in the network segment, where there is in principle a decision of the company’s Top Management, for the economic support (along with M-Renewables) towards infrastructures as well as human resources (mainly Greek skilled engineers), in order to exploit in full, the upcoming golden decade in the context of the green transition.
2.2. MetallurgySector
Aluminum (3M LME) average price in Q1 2024, came in at 2,241$/t, from 2,438$/t in Q1 2023, marking a 9% decrease. Over the last period, metal prices have been steadily increasing, surpassing the $2,600/ton level, driven by both the recovery of industrial activity in China and recent sanctions imposed by the US and the United Kingdom on Russian aluminum.
Aluminum billet premia declined further in Q1 2024 with the average price standing at $400/t from $600/t in the corresponding period of 2023. Despite their decline, aluminum billet premia could potentially move upwards again, mainly due to the reduced European aluminum production, which remains a significantly deficit market, with most of its needs sourced by imports from third countries, including the Middle East and Russia, which are now questioned.
Alumina Price Index (API) recorded a slight increase of 2% in Q1 2024, at 367$/t.
Despite a relatively weaker environment in the aluminum market, MYTILINEOS, via proactive management actions, succeeds in maintaining its profitability close to the record levels achieved in the previous year. MYTILINEOS, among others has managed to secure favorable LME prices and €/$ FX rate, while its effective cost control, combined with the significant comparative advantages offered by the coexistence of the Energy and Metallurgy Sectors, secures strong profit margins, therefore maintaining MYTILINEOS among the most competitive aluminum and alumina producers globally.
Just as in previous years, in 2024, if there is no serious deterioration on the various open geopolitical fronts, the company is expected to further improve its performance in the remaining quarters of 2024. As every year, detailed announcements on the Company’s full-year guidance will be given by the Chairman of the Board of Directors at the Annual General Meeting of Shareholders on June 4, 2024.
MYTILINEOS:
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