Técnicas Reunidas will build a new refinery in Algeria for more than 2 billion dollars

Gathered methods a contract has been awarded from Sonatrach, the state oil firm of Algeria, for the integral development of a new refinery in Haoud el-Hamra, Hassi Messaoud (Algeria), as the corporate knowledgeable the Nationwide Market Fee on Monday Securities (CNMV). The corporate's shares rise more than 6% in the Spanish inventory market.

The undertaking, whose contract will be signed in the beginning of January, will be executed in consortium with Samsung Engineering, though the participation of Técnicas Reunidas will be superior to that of this firm and will attain 55%.

The approximate quantity of the contract is 3,700 million dollars (about 3,303 million euros), of which more than 2,000 million dollars (1,786 million euros) will correspond to Técnicas Reunidas.

5 million tons

The new refinery, which is predicted to start out working in the primary half of 2024, will have a capability of 5 million tons per 12 months.

The contract consists of the integral execution of the refinery, together with all the method and environmental models, in addition to the mandatory auxiliary providers.

“The undertaking consists of among the most superior course of models with applied sciences targeted on deep conversion, clear gasoline manufacturing and compliance with probably the most demanding environmental necessities,” mentioned the Spanish firm.

With respect to the environmental models, the refinery will have an amines restoration unit, a sulfur restoration unit and an effluent remedy plant.

Técnicas Reunidas has highlighted that the new Hassi Messaoud refinery is likely one of the largest initiatives carried out in Algeria and is a part of a program that goals to extend native vitality manufacturing to fulfill the rising demand in the nation, on the identical time that oil merchandise consumed are tailored to European environmental requirements (Euro V).

The design of the plant will adjust to the “strictest” security and environmental requirements each in its development and operation, as defined by the Spanish firm.

Inventory market response

Técnicas Reunidas has introduced the undertaking shortly earlier than the opening of the European inventory market on Monday. After the bell ring, its shares have soared to six.6% in the Steady Market, enjoying a most intraday value of 23.88 euros (in comparison with 22.four euros in which they closed on Friday).

Additionally as a results of the operation in Algeria the analysts of Fidentiis they’ve returned to cowl the worth, after eradicating it from their radar in October 2017. Now they provide a twelve month goal value of 27.5 euros per share, which represents a potential for Reunidas Técnicas of 18% from their present ranges and So they provide a 'purchase' advice.

These views are even considerably pessimistic in the event that they have been purchased with these of your complete market consensus gathered by FactSet: This group of specialists offers the corporate a mean goal value of 27.83 euros per share, or what’s the identical, offers a bullish run close to 20%.

Thus, 57% of those analysts advise shopping for titles of Técnicas Reunidas; 29% advocate 'maintain'; and the remaining 14%, 'promote'. (You may examine right here the suggestions of the specialists on all of the values ​​of the Spanish, European and American inventory exchanges).