Half Year 2024 Tecnicas Reunidas SA Earnings Call Transcript
Key Points
- Tecnicas Reunidas SA (TNISY) has introduced a new strategic plan called SALTA, aiming to double operating margins to 8% by 2028.
- 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.
- 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.
- 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.
- Tecnicas Reunidas SA (TNISY) has a strong order backlog close to EUR 11 billion, indicating a healthy pipeline of future projects.
- The company faces challenges with manpower shortages, particularly in less complex engineering roles, although it is addressing this with global branches.
- There are concerns about delays in investment decisions in sectors like steel decarbonization, which could impact project timelines.
- Hyperinflation in countries like Argentina and Turkey has negatively impacted financial charges by EUR 6.6 million.
- The refining division reported a negative EBIT margin of -1%, attributed to increased costs in the final stages of project delivery.
- Despite a strong pipeline, the pace of project execution and investment decisions in new technologies like blue ammonia is slower than expected.
Good morning, everyone, and welcome to TR's 2024 first-half results presentation. It will be conducted by our Chairman, Juan Lladó; and our CEO, Eduardo San Miguel. It will last approximately 25 minutes. And you will be able to post your questions after the final remarks.
I now leave the floor to our Chairman, Juan Lladó.
Hi. Hello, everyone. Today, Eduardo and myself, as usually, will walk you through this presentation. First of all, I'll go through the main highlights of the first semester of 2024. And these highlights will include our main economic figures for the period, and very important, our strategic pillars for the upcoming years; in fact, a quick review of our SALTA strategy that we have celebrated a few weeks ago in Abu Dhabi.
And then afterwards, Eduardo will follow up with TR business performance during this first half of the year, which will include the commercial achievements, as well as always, our financial results for the period. And then as usual as well,
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