Abengoa has been chosen as the technological partner for the construction of the biggest solar complex in the world in Dubai. The size of the contract to be directly executed by Abengoa is $650 million (some 550 million euros).
Alphavalue | Trump’s capacity for confusing the markets is now a distinctive trait. Tearing up the nuclear agreement with Iran does not seem to be fuelling a new wave of fear about a war breaking out or an energy shock. The markets learned an early lesson with North Korean, when the conversations about nuclear glaciation suddenly led to the handshake on the other side of the border.
Donald Trump has announced the US’ withdrawal from the agreement with Iran and will reimpose economic sanctions on that country. Bankinter analysts believe OPEC and Russia hold the possible solution to the crude supply problem, substituting the production which could be withdrawn from Iran.
It seems Abengoa has reached an agreement with its main creditors who did not accept the plan (Liberty, Zurich and Exim US) to refinance its existing debt with a new bond issue under the same economic terms as the former senior debt but with a maturity date of six months earlier (up to March 2022).
Spanish Duro Felguera, specialized in turnkey projects within the energy, mining & handling, oil & gas, smart control systems and defense and security sectors, signed a Memorandum of Understanding with Metco Engineering for energy efficiency and resilience projects in the US. The deal is valued over $200 M per year.
Iberdrola which has 8% of Gamesa’s capital and supported the merger deal with Siemens sealed last year, is uncomfortable with the Siemens management in Gamesa. The merger agreement was subject to some conditions regarding the management and corporate governance of the new Gamesa, which Iberdrola is in the view that could be improved.
Two-thirds of the Spanish firms which originally made up the Ibex 35 index in 1992 have disappeared. This shows the importance of having an integrated risks management strategy to create resilient companies capable of adapting to their surrounding conditions, according to experts at KPMG.
Weaker balance sheets are not very attractive…From time time, we check out whether the “junk,” as defined by a non-investment grade credit rating, is a good investment. At the moment, it doesn’t seem to be.
Cellnex Telecom has presented its results for the first quarter of 2018. Revenues amounted to € 217 million (+15%) and EBITDA was € 101 million (+20%). The comparable net result closed at € 11 million, in line with the close of the same period in 2017, thereby taking into account the effect of the higher amortisations (+30% vs. 1Q 2017) and financial costs (+51% vs. 1Q 2017) associated with the growth of the group and the consequent expansion of its geographical footprint.
Telefonica posted a 7.4% rise in net profit in the first quarter of 2018 to 837 million euros from a year earlier. The figure beat FactSet’s analysts consensus for net profit of 800 million euros. But revenues fell 7.2% to 12.19 billion euros, as currency pressures offset improvements in the group’s home market.