Duro Felguera rose almost 7% at the start of the stock market session this Monday, after falling more than a 44% at the close of the session last Friday, the date on which the Asturian engineering company returned to trading two weeks after the National Securities Market Commission (CNMV) suspended its negotiations due to litigation in Algeria and two days after announcing that it is requesting pre-bankruptcy.
Specifically, the company’s shares rose by 6.95%until its price reaches 0.3 euros, still below 0.504 euros with which the action was suspended on November 25, although around 9:30 a.m. this Monday it moderated its momentum to 1.6%up to 0.285 euros.
The CNMV lifted the precautionary suspension that weighed on the price of Duro Felguera after having been made available to it “sufficient information” of the circumstances that advised the adoption of the suspension agreement.
The supervisory body decided to suspend the listing of the Asturian company last November 25after the Algerian energy company Sonelgaz appear before the Chamber of Commerce and Industry from Algeria a request for arbitration against Duro Felguera for the suspension of Djelfa’s contract in Algeria. In said request, Sonelgaz requested lift the suspension of the contract and resume work, as well as compensation of some 413 million euros.
This Thursday, Duro Felguera sent a letter to the CNMV in which he explained the recorded impacts in relation to the Djelfa project in Algeria in the interim financial statements as of June 30, 2024 and which have required the restatement of the figures comparatives for fiscal year 2023, which involve losses of 48.8 million euros between January and June of last year, compared to the profits of 1.6 million that had been initially reported.
According to its interim income statement, the result in the first half of 2023 was 1.6 millionalthough with the negative impact of the Djelfa project, of 50.4 million, the company registered losses of 48.8 million euros in restated figures.
As a result of the accounting record carried out, the liability as of January 1 and December 31, 2023 increased by 49 and 99 million eurosrespectively, while the net equity as of January 1 and December 31, 2023 was reduced by 49 and 99 million euros, respectively.
On his side, the new accounting treatment The Algerian project is based on the execution scenario of the entire construction, which considers the updating of costs of the initial budget without any type of economic rebalancing by Sonelgaz and the maximum amount of penalty that has been in dispute since fiscal year 2021, entails the provision of a provision of 99 million euros.
In this way, the Asturian company returns to the trading floor two days after announcing that has requested pre-bankruptcy before the Commercial Courts of Gijón with the purpose of starting a negotiation for the approval of a restructuring planwhich allows its future viability and the conservation of the greatest number of jobs possible in the company.
This request for communication of negotiation with creditors will allow Duro Felguera to carry out the appropriate actions to search for a solution to disputes that affect it, among others and particularly, those related to the Djelfa project in Algeria.
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