The project involves the engineering, procurement, construction and commissioning (EPC) of infrastructure for the reception, processing and export of gas, and accounts for 10 per cent of the company’s order book.
Report by Renta 4
Técnicas Reunidas has announced that it has accepted a letter of intent for a contract toconstruct the onshore facilities of a gas plant in the Middle East.
The project comprises the engineering, procurement, construction and commissioning (EPC) of the infrastructure for the reception, processing and export of gas.
The contract, which will be signed on a “turnkey” basis for a fixed price, is worth approximately $1.65 billion (approximately €1.43 billion) and represents 10 per cent of the company’s order book at the end of 1H26.
Assessment: We view this news as very positive.
The award of a contract of this magnitude significantly strengthens the company’s order book, providing greater visibility on revenue and workload for the coming financial years.
The project consolidates Técnicas Reunidas’ leading position in the Middle East, one of its key geographical areas, and demonstrates the confidence of major clients in the region in its technical capabilities to execute complex, large-scale projects.
Although the contract is fixed-price, which entails certain execution risks,the company’s extensive experience in EPC projects of a similar nature should enable it to manage margins effectively. We reiterate our ‘Overweight’ recommendation and Target Price of €39 per share.
