Renta 4: The company has informed the CNMV of the relaunch of the Hassi Messaoud refinery project in Algeria. It should be recalled that this contract was awarded at the end of 2019 to Técnicas Reunidas (55%) in consortium with Samsung (45%) for an amount of $3.7 billion, $2 billion for Técnicas Reunidas.
The new contract amounts to $4 billion and will be carried out by a new joint venture formed by Técnicas Reunidas (51%) and Sinopc (49%) for $4 billion, close to $2 billion for Técnicas Reunidas.
Assessment: This is positive news as it reactivates a project that had been stalled for almost five years and which was part of the portfolio. That said, the Técnicas Reunidas portfolio is not affected by this relaunch.
We value this news positively as it confirms the regularisation of relations with Algeria, which may give greater visibility to the recovery of all or part of the €80 million guarantee executed in another contract in Algeria by Sonatrach.
We reiterate our recommendation to OVERWEIGHT with a P.O. of 20.4 eur/share.
