Bankinter | Técnicas Reunidas has informed the National Securities Market Commission (CNMV) that it has been awarded a contract in the United Arab Emirates for a total amount of $3.394 billion. Specifically, it will develop oil exploration and production facilities for Abu Dhabi National Oil Company (Adnoc). The project is estimated to last five years and is a turnkey deal.
Opinion of the analysis team: Positive news. The contract is relevant as it represents 27% of its order book and is one of its largest projects. In addition, it returns to work for Adnoc, which is one of its main clients, and does so as a prime contractor. In this context, we reiterate our Neutral recommendation.
Técnicas Reunidas has won important projects and improved margins. However, the worse outlook for the Oil & Gas sector may reduce future investments in oil infrastructure companies, which leads us to maintain our recommendation.
