Danish Parliament approves contract extension for Talgo to supply eight additional intercity trains for €184m


Banc Sabadell| Talgo (TLGO) announced on Friday at the opening that the Danish parliament has approved the extension of the contract with DSB for the supply of eight additional intercity Talgo 230 trainsets (and fleet parts for their maintenance) for a sum of €184 million (~4% of the portfolio including the DB contract and Egypt).

Assessment: Positive news although of little impact given that the contract was already announced and was only pending final approval. In any case, the materialisation of the possible expansion of the Saudi Arabia contract (between €600-800m; ~16% of the portfolio) is still awaited, as is the LeTrain contract (10 MAVs for €300m BS(e) / ~7% of the portfolio). Also the final signature of the €280m contract in Egypt (~6% of the portfolio), where there are no problems foreseen in principle, is expected.

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