With a history dating back to 1908, the company has evolved from a humble metal trader to a leading industrial conglomerate with a focus on the green energy transition.
Under the leadership of Evangelos Mytilineos, who took over the family business in 1978, the company expanded through strategic acquisitions in copper, zinc, and lead mines across Europe. In 1990, the company was transformed into Mytilineos Holdings and listed on the Athens Stock Exchange three years later.
In the early millennium, several strategic acquisitions were made, leading to a strong expansion in both the energy and metallurgical sectors. In 2017, Mytilineos consolidated its subsidiaries, creating a multinational industry giant in energy and metallurgy.
The latest transformation in 2022 resulted in a name change and the formation of Metlen Energy & Metals, with a focus on sustainable development. The company is benefiting from several strong trends that are increasing demand for renewable energy and aluminum.
Energisektor
Within the energy sector, Metlen is a leading player, with an integrated energy supply chain spanning the entire value chain. The business includes the development, construction, and operation of thermal units and renewable energy projects in solar and wind power, design and construction of electrical infrastructure projects, as well as distribution and trading of natural gas.
The energy segment, which is the company’s largest operation, accounts for over 80% of total revenue. The company has a strong focus on renewable energy, which accounts for 31% of revenues in the energy sector, a share that is growing rapidly. The remaining share is natural gas.
The company also has an extensive portfolio in solar and wind power, as well as energy storage. Currently, it has a growing global pipeline of renewable projects totaling 10.5 GW, including energy storage. A pipeline of renewable projects that is constantly expanding.
Metlen is a leading player in the Greek electricity production market and is also undertaking a large renewable energy project in collaboration with Greece’s largest energy supplier, state-owned PPC. The renewable projects with PPC extend beyond Greece to also include Italy, Bulgaria, Croatia, and Romania.
Today, the UK is a very large market for Metlen, where they have been active for over ten years. Here, the company is undertaking several renewable projects in collaboration with private actors such as Vodafone and Gresham House, as well as state-owned companies like National Grid and Scottish Power. The British operations include several solar energy projects with battery/energy storage and electrical cable installation.
Metlen owns its own renewable energy parks in solar and wind power, as well as energy storage, while also project managing and building energy parks for other energy companies. They also handle operations and maintenance and assist with energy efficiency and smart cities.
Metallsektor
The metal segment currently accounts for around 17% of the company’s total revenue. Metlen is a European market leader in aluminum. It is the only player with a fully integrated production chain from bauxite mines to aluminum smelters and recycling of aluminum and zinc-lead.
Aluminium of Greece is one of Metlens most significant assets. Aluminium of Greece is Europe’s largest vertically integrated aluminum operation, offering cost-effective, low-carbon alumina and aluminum. They also have their own port for exporting both aluminum and the raw material alumina.
There are clear synergies for Metlen in also owning energy companies, which means an increasing share of the energy mix consists of renewable energy. By 2030, all electricity for Aluminium of Greece is expected to be renewable.
The company has also recently announced its intention to produce gallium and scandium, in line with the European Commission’s strategy for critical raw materials.
It is also Greece’s largest independent producer of recycled aluminum. Through optimal processing of recycled aluminum, the company can produce new raw materials with significantly lower energy consumption. Recycled aluminum consumes 20 times less energy than is required for primary aluminum production.
Forecast
Metlen reached a significant milestone in 2023 by exceeding 1 billion euros in EBITDA. According to estimates from S&P Global Market Intelligence, analysts believe that EBITDA will continue to grow by 4% this year and closer to 15% the following year to an EBITDA of 1.2 billion euros for 2025.
Revenue is also expected to grow by an average of 9% over the coming years, and pre-tax profit is expected to grow by nearly 7% per year, according to analysts. This results in a declining valuation during the period.
With an expected P/E ratio of just over 7 for this year’s earnings and a P/E ratio of 6 for 2026’s earnings forecasts, Metlen offers an attractive valuation. The valuation is significantly lower than the company’s historical average P/E ratio of 10.4 over the past ten years. It is also lower than competitors in the energy sector.
The dividend yield is 1.5% and is expected to increase to nearly 2% by 2026.
Metlen is one of the largest companies on the Athens Stock Exchange with a market capitalization of nearly $5 billion and is followed by eight analysts. Six have a buy rating on the stock, while the other two do not provide a recommendation. The average target price is 46.7 euros, which represents a 39% upside.
While Metlen is dependent on energy and aluminum prices, its involvement in project management, construction, operation, and maintenance of renewable energy facilities reduces the risk in the company.
An important factor for starting several renewable energy projects is that inflation continues to decline along with lower interest rates.
Triggers for the Future
A significant trigger for potential value appreciation is Metlen’s planned international listing on the London Stock Exchange (LSE) within the next 12-18 months. The announcement was made at the end of April, and the company also intends to move its headquarters from Athens to London.
This strategic move would not only strengthen the company’s international presence but also facilitate a potential increase in valuation. There is also a high likelihood that Metlen’s stock will be included in the important FTSE 100 index.
A successful listing on an international exchange like the LSE and index inclusion could open doors to a broader investor base and increased visibility, potentially leading to a higher valuation compared to current levels.
Outlook
Metlen Energy & Metals’ broad expertise across the entire value chain, from renewable energy, gas and electricity trading to aluminum production, combined with strong synergies between different business areas, provides a solid foundation for continued expansion and profitability.
Investment Opportunities
We believe that Metlen Energy & Metals is an attractive investment to capitalize on the growing demand for renewable energy and aluminum, which is a key metal for the energy transition. The plans for a dual listing on the London Stock Exchange, together with a likely inclusion in the FTSE 100 index, make the company an attractive choice for long-term investment.
Investment Manager’s Analysis: Metlen Energy & Metlas – A Green Investment Opportunity
In the ever-changing financial market, it’s crucial to stay ahead of the curve and invest in companies that are not only profitable but also environmentally conscious. Metlen Energy & Metlas is one such company that is paving the way for a greener future with its commitment to fully green aluminum and alumina production by the year 2030.
As the world’s best investment manager, I highly recommend buying into this exciting company that is perfectly positioned in today’s market. With a strong majority owner from the founding family still actively involved, Metlen Energy & Metlas is a solid investment opportunity.
Despite being listed on the Athens Stock Exchange, many traditional banks and online brokers are unable to facilitate digital trading for this company. This exclusivity adds to the allure of investing in Metlen Energy & Metlas, as it presents a unique opportunity for savvy investors.
In conclusion, investing in Metlen Energy & Metlas not only offers the potential for financial gains but also allows you to support a company that is leading the way in sustainable production practices. Don’t miss out on this green investment opportunity that is sure to make a positive impact on both your portfolio and the environment.