Técnicas Reunidas, along with TSK and Siemens Energy, wins €310 M contract to develop two combined cycle plants in Mexico


Renta 4 | Técnicas Reunidas, in a consortium with TSK and Siemens Energy, has won a contract to develop two combined cycles in Mexico. The contract was awarded by the state-owned entity Comisión Federal de Electricidad de México. Last week, it awarded the consortium formed by Técnicas and TSK the construction of another two combined cycle plants.

The contract is worth 337 million dollars (310 million euros) and includes the design and construction of the plants. The value of the contract is very similar to that of the previous one for 335 million dollars.

Whatsmore, Técnicas Reunidas has been nominated as Preferred Contractor by Generadora San Felipe in the Dominican Republic. It has also signed a contract for the initial work on a combined cycle project in Puerto Plata. The signed contract currently stands at 2 million dollars and it is expected to be converted into a turnkey during H1’22.

Valuation: Positive news as it means the second contract in less than a week to build another two combined cycle plants, representing around 3% of the order book. So far this year, the contracts awarded are worth over 600 million dollars. This figure could increase by an additional nearly 150 million dollars, if the contract with Generadora de San Felipe materialises.

We expect a positive impact on the stock price. Underweight, TP 7,5 euros/share.