Spanish banks’ debt with the European Central Bank, which reflects their gross demand of the institution’s regular financing operations, did not show any change in February and remained unchanged at 261.21 billion euros, exactly the same as a month earlier. However, according to Bank of Spain data reported by Europa Press, the increase is 100.24% compared to the same month of the previous year.
The telecom operators Movistar, Orange and Vodafone have agreed to form an alliance to bid together for the deployment of 4G and 5G mobile networks in rural areas that will be financed with European reconstruction funds. Specifically, Movistar, Vodafone and Orange would build between 3,000 and 4,500 new radio sites, adding an extra 15% and 23% to the existing ones.
The national installed capacity of renewable energies between 2006-2021 has increased significantly, especially wind and photovoltaic energy. As pointed by Intermoney, they have grown 139% and 9,110%, respectively. Similarly, the installed conventional energy (coal and fuel + gas) has decreased with declines of 53% and 73%, respectively. Spain would also exceed the European targets for the penetration of these energies with 42% compared to the European 38-40%. For the experts of Renta 4, the very strong operational and financial growth of the companies will be coupled with the growing trend of ESG.
Crude oil imports to Spain in January reached 4.475 m tons, which represents a 10.5% decrease agaisnt the same month last year, maintaining the levels of the last half of 2020, says the Corporation of Strategic Reserves of Petroleum Products. In January, 27 types of crude oil were imported from 14 countries. Nigeria was the leading supplier of crude oil with 979,000 tons, representing 21.9% of the total. It was followed by Mexico, with 721,000 tons – 16.1% of the total – and Libya, with 608,000 tons – 13.6%.
Inditex’s results in the year of the pandemic have shown an annual drop in profit and revenues of 70% and 28%, respectively, although the counterpart for the company has been the rapid conversion of its business model to the online environment, with internet sales growing by 77%. On the other hand, Inditex’s Board of Directors will propose a €0.70 per-share dividend at the Annual General Meeting scheduled for July. It will consist of an ordinary dividend of €0.22 and an extraordinary dividend of €0.48 per share.
The so-called insolvency moratorium for all companies in a situation near bankruptcy will be extended for the third time since the the health crisis began. A good number of experts believe that with this new extension, the situation of those firms will only get worse, as this is not sustainable indefinitely. In December 2020, the Spanish government did not consider either the criteria of the Bank of Spain, which flagged the moratorium would allow a higher survival rate of non-viable companies.
The new 11 billion euros stimulus package for the financial equilibrium of hotel and tourism firms, as well as small businesses, will get the green light from the government at the end of the week. This aid scheme will be backed by three funds to provide direct help for companies : one with aid to affected businesses channelled by the autonomous communities, a second one for the conversion of ICO credits and a third one for the recapitalization of medium-sized companies.
Procurement of civil works by the Ministries of Transport and Ecological Transition fell last year by 57%, bringing it back to 2015 levels. The company which benefitted most was ACS, which topped the rankings of both ministries, with a total portfolio of €279Mn. The low activity led a non-civil construction company such as Siemens to take second place (€133Mn), thanks to a railway signaling contract.
Ofelia Marín Lozano | A business with a positive operating result is viable in the long run, even with a lot of debt. So is a country with a primary surplus. Spain has not achieved this since 2007, with the real estate bubble. But the different behaviour of countries in an ordinary, normal situation (their higher or lower deficits, their surpluses or not in good times) can mark a very different future evolution, which is not evident at first sight. These notable differences are well exemplified by a comparison between Italy and Spain.
Iberdrola has agreed a public-private partnership with Seat and the Spanish government to build a battery factory for the electric car in Catalonia, specifically in the city of Martorell, where the automaker has its factory. However, this alliance could be open to other partners. The sources quoted in some media suggest that the investment would be around €6.8 Bn and that the project is likely to receive part of the resources from the European recovery fund.