€1280.3m market cap

€8.96 last close

Mytilineos operates three main businesses: metallurgy, power & gas and EPC and infrastructure. It operates in 29 countries across Europe, the Middle East and Africa and has 2,700 employees.

Investment summary

Q120 EBITDA fell by 12.4% (vs Q119, the strongest quarter in 2019), to €80.6m (however it rose 23.7% vs Q419). The standout performance was power & gas, which increased profits (vs Q119) thanks to an expansion of the supply and the renewable businesses and an increase in spark spreads (+55%). FY20 will be challenging, but the current share buy operation underlines management’s confidence in the business and the emphasis on cost control, the sourcing of competitively priced gas (recent agreement with Gazprom) and the growing renewable business should help mitigate the impact of COVID-19. Beyond FY20, the further growth of the renewable and supply businesses, additional cost reductions and the commissioning of a new CCGT plant (Q421) should provide a boost to profits.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 1527.0 204.0 167.0 101.0 8.9 7.9
2019A 2256.0 219.0 180.0 103.0 8.7 5.2
2020E 2124.0 192.0 161.0 93.0 9.6 7.7
2021E 2644.0 247.0 204.0 119.0 7.5 6.3
Industry outlook

Mytilineos possesses a portfolio of assets that enjoy low costs. CCGTs benefit from access to cheap natural gas and low production costs for both alumina/aluminium allow the metallurgy business to be strongly cash flow generative.

Last updated on 17/09/2020
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Share price graph
Balance sheet
Forecast net debt (€m) 528
Forecast gearing ratio (%) 38
Price performance
Actual 14.6 13.4 (9.2)
Relative* 10.1 15.0 18.0
52-week high/low €10.3/€5.0
*% relative to local index
Key management
Yiannis Kalafatas CFO
Evangelos Mytilineos CEO and Chairman