Intermoney | OHLA (OHLA) (Buy, Target Price €0.70) announced on Thursday after the market closed that, in the award to terminate the joint venture contract in which the company controlled 55% with the State of Qatar for the construction of the Sidra hospital, the joint venture will ultimately have to pay around €900,000, meaning that OHLA’s outlay will be around half a million euros.
In July this year, the Arbitration Tribunal had ordered the JV to pay around €24 million, a figure that, following clarifications requested by the parties, has been significantly reduced. With this correction, the award is final. As OHLA points out, “both parties had cautiously announced, prior to the issuance of the correction to the award, that they would file an appeal for annulment before the English courts”; we will therefore see how this case develops in the future.
Assessment: This is good news for OHLA, which, unless the award is annulled, will have to pay a very small amount in a case in which Qatar initially sought compensation of €922 million. Last July, following the publication of compensation of just €24 million, we increased the company’s PO from €0.60 to €0.70 , given the clear reduction in litigation risks.
The company published its results for the first nine months of 2025 last week, with EBITDA up 30% to €113 million, in line with our forecasts, and a net cash position of €310 million.
