In This Article:
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Revenue: EUR2.1 billion for the first six months of 2024.
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EBIT: EUR84 million with a 4% margin for the first half of 2024.
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Net Cash Position: EUR318 million as of the end of the first half of 2024.
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Order Intake: EUR1.4 billion for the first half of 2024.
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Backlog: Close to EUR11 billion.
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Net Profit: EUR42 million for the first six months of 2024.
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Gross Debt Reduction: EUR63 million reduction, including EUR33 million repayment to SEPI.
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Service Business Order Intake: EUR142 million in the first half of 2024.
Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tecnicas Reunidas SA (TNISY) has introduced a new strategic plan called SALTA, aiming to double operating margins to 8% by 2028.
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The company reported a solid financial performance with a revenue of EUR 2.1 billion and an EBIT of EUR 84 million for the first half of 2024, maintaining a 4% margin.
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Tecnicas Reunidas SA (TNISY) has secured significant contracts, including a EUR 100 million service project in North America and a EUR 1.2 billion share in a joint venture with Sinopec for Saudi Aramco.
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The company is expanding its presence in North America and focusing on decarbonization, particularly in hydrogen and carbon capture, aligning with global energy transition trends.
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Tecnicas Reunidas SA (TNISY) has a strong order backlog close to EUR 11 billion, indicating a healthy pipeline of future projects.
Negative Points
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The company faces challenges with manpower shortages, particularly in less complex engineering roles, although it is addressing this with global branches.
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There are concerns about delays in investment decisions in sectors like steel decarbonization, which could impact project timelines.
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Hyperinflation in countries like Argentina and Turkey has negatively impacted financial charges by EUR 6.6 million.
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The refining division reported a negative EBIT margin of -1%, attributed to increased costs in the final stages of project delivery.
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Despite a strong pipeline, the pace of project execution and investment decisions in new technologies like blue ammonia is slower than expected.
Q & A Highlights
Q: Can you discuss the EUR100 million engineering services contract and its impact on working capital? Also, what other projects are in the pipeline? A: Juan Llado, Executive Chairman, explained that the contract is similar to a previous one with INEOS, focusing on home office engineering for about two years. It is a cost-plus contract, meaning no significant working capital impact. The company is also working on early-stage projects in the US and signing framework agreements with clients, indicating a positive outlook for future projects.