The arbitral award issued by the London Court of Arbitration on September 7 orders MGT Teesside Ltd (MGT) to pay the consortium formed by Técnicas Reunidas (TRE) (73%) and Samsung (27%) the net amount of EUR 120 million, bringing to an end an arbitration filed by the consortium in 2021 against its client for contract termination and the execution of performance bonds.
Additionally, regarding the Sitra Refinery project for Bapco, on September 17 the Madrid court of first instance lifted the injunctions it had granted last May in favor of TRE, which had suspended the payment of EUR 133 million in performance bonds executed by Bapco in its dispute with the contractor consortium of which TRE is a member. This consortium has initiated arbitration proceedings at the London Court against Bapco to protect its rights and continues discussions with its client aimed at finding a solution satisfactory to all parties.
The impact of these two events on TRE’s cash position represents a net outflow of EUR 49 million. On the income statement, the impact of the MGT award results in a profit of EUR 37 million, of which EUR 30 million is allocated to set aside an extraordinary provision for litigation. The net impact on earnings amounts to EUR 7 million, which does not alter the earnings forecast for fiscal year 2026 communicated to the markets.
