UPDATE 1-Greece's Mytilineos Q1 profit boosted by asset sale

Greek metals and energy group Mytilineos (MYTr.AT: Quote, Profile, Research) said on Wednesday its net profit surged in the first quarter despite the recession in Greece, boosted by the sale of a unit and higher aluminium prices.

Net profit rose to 27 million euros ($33.52 million) from 1 million euros in the same period last year. In January, Mytilineos sold its unit ETADE to rival GEK Terna (HRMr.AT: Quote, Profile, Research) for 32 million euros before tax.

Mytilineos, a major producer and trader of aluminium and alumina in southeast Europe, is expanding into the energy sector to benefit from electricity shortages in the region.

The company managed to stay profitable last year, despite recession at home and record low aluminium prices, helped by successful hedging policies and the shutdown of a unit in Romania.

"Business volumes show a marked increase, influenced positively by the recovery of aluminium prices, the continuing strengthening of the dollar and the acceleration of projects from the record-high backlog secured by the group's subsidiary Metka," it said.

Sales gained 34 percent year-on-year to 206 million euros, helped by the recovery of aluminium prices, the strengthening of the dollar versus the euro and acceleration of projects by its unit Metka, the company said.

Earnings before tax, interest, depreciation and amortisation (EBITDA) more than tripled to 65.4 million euros.