The bad spell began in the middle of October with a profit warning for 2018 and has finished this week with the announcement of its exit from the Ibex35 at the end of the month. Between one event and the other, the company has suspended its dividend for 2019, has reorganised its leadership team, has been downgraded by Moody´s and S&P and has considered closing unprofitable stores in Spain.
The market is speculating that Banco Santander could return to business in Venezuela through the assets of Julius Baer. The Spanish bank has not operated in Venezuela since it sold its shares in Bank of Venezuela to the country’s government for 1.050 billion euros.
The Spanish utility agreed to modify the initial agreement to sell part of the electricity power stations of its subsidiary Scottish Power to Drax Group. This firm sought to renegotiate the contract following an European Court of Justice ruling that declared illegal the payments to some UK stations to guarantee the capacity of electricity generation in the country.
Naturgy has reached agreement with Argentina to recover 120 million euros. The company has been suffering significant damage to its accounts from the hyperinflation and the devaluation of the Argentine peso this year.
The Spanish blood products company could invest 5 bn$ in the Chinese pharmaceutical company Shanghai RAAS Blood Products, leader in China, which specialises in the investigation, production and sales of plasma products. The operation would be formalised in Q219. Grifols would reinforce its position in China and would reduce its dependence on the US.
Repsol has secured 12 new blocks in an area near to Pikka, the largest on-land oil discovery in the US in the last 30 years. The oil company has secured mining domination in a zone situated south of the River Colville (Alaska, US), where ConocoPhillips has also made significant discoveries. Repsol´s partner Oil Search has also secured four leasing contracts.
BBVA is a well-managed bank, but with a geographical exposure that is currently very negative. The financial entity’s shares have risen in a roller coast since the new President of Brazil, Andrés Manuel López Obrador, announced and then retracted his party’s plan to limit bank commissions.
Between September and October, Siemens Gamesa has registered sales of 9.122 billion, with an Ebit pre PPA (Power Purchase Agreement) costs of integration and re-structuring of 693 million and an Ebit margin of 7.6%. Siemens Gamesa is closing its first financial year since the merger.
The president elect of Mexico, Andrés Manuel López Obrador, confirmed the cancellation of the construction works for the airport of Mexico. This is the result of the binding referendum and means the end of a project with a budget of €10 bn, of which 20% has been completed. The president’s alternative proposal is to enlarge the the military airport Santa Lucia (terminal for international flights) and modernise the old airport of Benito Juárez in the centre of Mexico City (for domestic traffic).
Telefonica posted a profit of €2,721 M in the first nine months of the year, which represents an improvement of 11.6% compared to the same period a year ago.Net debt reduced for the sixth consecutive quarter and stood at €42,636m at the end of September. This fall represents a reduction of nearly 10% year-on-year.