Renta 4 | ACERINOX. Possible new production halt in Algeciras plant due to energy prices. 1-. Acerinox has informed workers’ representatives at its Algeciras plant that it will begin to implement the ERTE (Temporary Employment Regulation) agreed on in March from September 11, for a maximum period of 15 days. This move is the result of high energy prices. 2-. The aim is to cut production of steel lines, hot rolled and…
Morgan Stanley | ARCELORMITTAL, OVERWEIGHT. The Spanish firm’s JV “Nippon Steel India” has agreed to buy various assets in India (ports, energy and infrastructure assets) from Essar Group. The net cost is $2.4 billion and the aim of the move is to optimise logistics and the supply chain of raw materials and finished steel products for domestic sales within India, as well as for export. We acknowledge the strategic benefits…
Link Securities | According to Europa Press yesterday, ACCIONA has won a new contract to upgrade a train line in Perth, in western Australia. It includes eliminating six level crossings and building five new stations for 701 million Australian dollars (some 485 million euros). The Spanish firm will carry out these works as part of a consortium formed along with US company Aecon, Canada’s WSP and the Australian firm BMB…
Alphavalue | BBVA (Buy, Target Price 6,24 euros +) plans to hire 400 people in Spain this year with a technological profile. The Spanish bank revealed it foresees the incorporation of 2,000 employees into its workforce with this kind of profile in 2022. As analysts at Link explain: “As the group announced yesterday, almost 1,000 engineers have joined BBVA in H1 2022, a figure which the bank expects to double…
Spanish property firm Colonial has 2.557 billion euros in liquidity, which can be earmarked for acquisitions amongst other things, according to the daily Cinco Dias, citing the company’s recent H1 accounts presentation. Colonial has 467 million euros in cash and 2.090 billion in credit lines which have not yet been used, Cinco Dias said. The newspaper flagged that the Ibex 35-listed Socimi’s management has been saying since last year that…
Renta 4 | 1. Saudi Arabia’s Energy Minister, prince Salmán bin Abdulaziz, has hinted that Saudi could cut its oil production. This decision has been based on the extreme volatility and the lack of liquidity of oil futures which are leading to a decorrelation in the price with the fundamentals of supply and demand. For that reason, OPEC+ could see itself obliged to reduce output. 2. Saudi Arabia is the…
Alphavalue | Iberdrola (Reduce, TP €11,5 ++) : Iberdrola’s share price rose 0.37% yesterday, despite the criticisms received in France after the Spanish utility decided to terminate power contracts with thousands of its customers there. It cited high energy costs. Let’s not forget that Iberdrola has lodged a complaint against France with the European Commission, regarding supposed state aid to EDF (reduce, TP 11,8 ++) for over 5 billion euros….
Morgan Stanley | Enagás’ recent Capital Markets Day (CMD) was a disappointment for investors. A poor growth outlook, limited capital comitment which demonstrates this, and a lack of protection against inflation in Spanish regulated assets. Despite its recent poor performance and the temptation to get rid of the shorts, I still believe that Enagas is an appropriate relative UW in the sector.
Intermoney | The Spanish infrastructure firm has won a contract to extend a motorway in the US. According to the daily Cinco Dias, Ferrovial (Hold, TP 24€), via its US subsidiary Webber, has been awarded the contract to extend a 13km stretch of the I-95 motorway, on its way through North Carolina (US). The contract is involves an investment of 283 million euros. This stretch of will have eight lanes,…
Intermoney |In line with information provided by Aena to the Stock Market Regulator (CNMV), and picked up by various media outlets, the airports operator (Hold, TP 140 euros/share) has won an auction to manage 11 airports in Brazil. The duration of the contract is 30 years and the value is 780 million euros, which includes both the price of the concession itself and an obligatory payment to the regulator. The…