Duro Felguera recorded losses of 52.4 million euros between January and June, compared to the 26.3 million it had reported last October, after having reviewed the financial information to account for the impact of the Djelfa project in Algeria. which is the subject of litigation.
According to the information sent to the National Securities Market Commission (CNMV), the company presented at the end of the period a negative working capital of 123 million euros and a negative accounting net worth of 220 million.
The CNMV has decided to lift the precautionary suspension of trading in Duro Felguera starting tomorrow, as reported this Thursday by the stock market supervisor.
The decision, which will be effective at 8:30 a.m., has been adopted considering that the company has made sufficient information available to the market about its situation.
The stock market supervisor suspended trading in Duro Felguera shares on November 25 after learning that the Algerian company Sonelgaz Production d’Electricité (SPE) had requested arbitration in which it claimed compensation of 413 million euros from the Spanish company. .
Four days later, Duro Felguera announced that it had decided to apply a “more conservative” accounting treatment to the contract for the Djelfa combined cycle (gas) plant (Algeria), signed with Sonelgaz, which implied the provision of a provision of about 100 million euros.
The arbitration
The engineering and capital goods group, which yesterday announced the request for pre-bankruptcy, has also restated the accounts for the 2023 financial year to reflect the impact of the Djelfa project, for which the client, the Algerian energy company Sonelgaz Production d’ Electricité (SPE) has requested arbitration to claim compensation of 413 million euros from the Spanish company.
The new accounts reflect that the company lost 48.8 million euros between January and June of last year, compared to the profit of 1.6 million that it reported at the time, when an accounting record of 50.4 million euros was made. the impact of the project.
Said accounting record is also reflected in the figures for current liabilities and net worth at the end of the last year.
Thus, as of December 31, 2023, current liabilities go from 411.8 to 523 million euros, and negative equity from 155.5 to 254.8 million.
Pre-contest of creditors
Duro Felguera announced yesterday, Wednesday, that it has submitted a request to the commercial courts of Gijón to begin negotiations with its creditors in order to approve a restructuring plan that allows for its “future viability and the conservation of the greatest number of jobs.” possible job.”
According to the company, which has some 1,500 workers, this request will allow the company to “carry out the appropriate actions to seek a solution to the disputes that affect it,” particularly those related to the Djelfa project in Algeria.
The Asturian company has assured that it will continue with “its normal activity executing ongoing projects.”
The Principality expresses its concern
The Government of the Principality admits its “concern” over Duro Felguera’s announcement to present pre-bankruptcy proceedings and trusts that this decision will facilitate “a satisfactory solution to its financial situation, given the relevance of the company to the industrial fabric of the Principality and the volume of direct and induced employment linked to its activity.”
The Asturian Executive has shown itself “in favor of this situation being faced with the greatest transparency with the Public Administrations and with the legal representatives of the workers” so that all parties can “contribute to overcoming this new scenario.”
The request for compensation
Duro Felguera has been suspended from trading by the CNMV since last November 25, after it became known that the Algerian energy company Sonelgaz Production d’Electricité (SPE) has requested arbitration to claim compensation of 413 million euros.
Duro Felguera announced last June the suspension of work on the Djelfa combined cycle thermal power plant project, a contract signed in 2014 for 544 million euros, “given the need to adjust it to the current reality.”
The company advanced the presentation of a written opposition to the arbitration request, “rejecting the claim” of Sonelgaz, understanding that the suspension of the contract by the Spanish company “is in accordance with the law due to the breaches it has incurred.”
In this context, the firm decided to apply a “more conservative” accounting treatment to the contract currently in dispute, which, according to what it announced, would imply the provision of about 100 million euros and the review of accounts and financial statements.
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