Intermoney | ACS (Buy, PO 48 €), through its subsidiary Thiess, has won a contract in Indonesia valued at 320 M€ to carry out mining operations for six years in Central Kalimantan, according to Expansión newspaper. Thiess will be responsible for all mining activities, including setting up facilities, technical services, overburden removal and water management. Work will begin in early 2025 and will be aligned with Thiess’ strategic focus on strengthening its presence in its key markets and building closer relationships with local communities and its customers.
Assessment: Good news for ACS, now through Thiess, its mining subsidiary, itself integrated into Cimic and Hochtief. Thiess is now globally consolidated as of May 2024 following the Group’s purchase of a 10% stake from Elliot Fund, bringing its shareholding to 60%. We expect this unit to contribute close to €1bn of EBITDA to ACS, or around 30%. Compared to the Group’s other construction businesses, Thiess generates margins above 20%, although its activity also requires a higher initial capex burden. We expect ACS EBITDA in 2024 to be €2,495m (+31%), reflecting a partial consolidation of Thiess; in estimates for 2025, with this unit contributing a full year, we expect EBITDA to be close to €3,300m.
