Mytilineos Group gearing up for major transformation

Mytilineos, one of Greece’s leading industrial groups with activities in the sectors of EPC (Engineering-Procurement-Construction), Metallurgy & Mining, and Energy, will soon be transformed from a successful family-run enterprise into a corporation of European standards and reach, chief executive Evangelos Mytilineos noted during a conference call yesterday, staged to present the group’s 2016 financial results and future plans.

Mytilineos concluded the session by noting that he will be speaking as president and CEO of the new group by August, when the current year’s first half results are presented. Results would be rewarding for shareholders, he noted.

The corporate group’s boss highlighted that 2017 promises to be an especially significant year for the group, its administration and subsidiaries.

The transformed corporate group can be expected to produce an annual turnover figure of 1.5 billion euros, an EBITDA performance of 300 million euros, and a net profit of 200 million euros, he noted.

The group’s performance in the first quarter of 2017 confirms that figures forecast for the year last December will be attained, the corporate group’s boss noted.

The group’s Metallurgy division’s performance was mixed in 2016. It experienced a negative first half as a result of unfavorable commodity prices before rebounding for a positive second half.

An energy supply agreement was reached with main power utility PPC, the special consumption tax (EFK) imposed on natural gas was reduced, while the euro-dollar currencies exchange rate proved favorable for the division.

A new cost-cutting program, aiming to reduce costs by 100 to 150 dollars per ton, is now being implemented. This will be a challenging task as the division is already operating as an efficiently lean enterprise.

The Mytilineos boss noted that if the cost-cutting objectives are achieved then group member Aluminium of Greece will operate at a lower cost level than equivalent industries of the Middle East.

The corporate group’s energy division experienced growth and captured an increased share of the retail electricity market in 2016. An important agreement reached with mobile telephony company Cosmote, offering the Mytilineos energy supply firm Protergia major retail market presence through the former’s extensive retail network, was also stressed during the conference call.

Responding to a question on whether the Mytilineos group would consider acquiring main power utility PPC production units, expected to soon be placed for sale as a result of a bailout demand by the country’s lenders, the chief executive remained reserved, noting that the group’s position on the matter would become known if specific proposals are forwarded by the government.

The 2016 performance of METKA, the corporation’s leading international contractor and industrial manufacturing group, was affected by an unstable environment in the Middle East, the chief executive informed. The company is currently undergoing transformation and continuing to strive for diversification both in terms of projects taken on and their geographical location, the CEO informed.