Duro Felguera will restate its accounts from 2022 to record a provision of 100 million for the lawsuit with Sonelgaz | Companies

Duro Felguera has finally spoken. After spending almost the entire week with trading suspended due to the filing of an arbitration claim by the Algerian energy company Sonelgaz, the Asturian company this Friday informed the National Securities Market Commission (CNMV) that it will revise its 2022 share reports. 2023 and will change the wording for the first half of 2024, adding a reserve of 100 million euros. “Notwithstanding the above provision, the net capital of the parent company as of June 30, 2024 remains positive for business purposes,” the engineering company said in its statement, in which it stressed that it would submit its written objection to Sonelgaz’s application. by December 10th.

The Spanish company is in trouble due to a $413 million claim by an Algerian company over the suspension of a contract to build a combined cycle plant in Djelfa in June. Duro Felguera claims that the Algerian has committed several breaches of the contract since it was signed in 2014, resulting in two claims by the Spaniards: one for 65 million in 2019; and another 113 million in 2020 for a total of 178 million.

In its statement, where the Spanish company provides a chronology of events, it indicates that in March 2020, due to the Covid-19 pandemic, Duro Felguera notified the suspension of the contract “as a situation of force majeure.” “, which was rejected by Sonelgaz. When no agreement was reached, in July of that year the Spanish company filed a request for arbitration with the Algerian Chamber of Commerce and Industry (the same thing that the energy company did this month). However, the situation is between both companies changed and in July 2021 they signed a peace with a protocol of agreement in which Sonelgaz committed to look into Duro Felguera’s claims, which ultimately did not happen.

Almost a year later, in June 2022, the Treaty of Friendship and Good Neighborhood between Algeria and Spain was torn apart due to the latter’s position in favor of Morocco on the Sahara issue. For this reason, the Maghreb country imposed a blockade on Spanish exports and banking operations (which lasted until November this month). “In these circumstances and after numerous attempts at a solution, the customer was informed on 18 June 2024 that work would be suspended. Duro Felguera then begins to work on resuming arbitration,” the engineers added in their statement.

Despite all this, as indicated by Duro Felguera, he will submit his letter in which he rejects Algeria’s claim, “with the understanding that the suspension of the contract is in accordance with the law due to violations committed by Sonelgaz”, and added that he “intends to seek compensation for the damage caused damage, the amount of which can be determined.”

Duro Felguera, which changed hands in February this year with the purchase of almost 55% of the capital by the Mexican companies Prodi and Mota-Engil, reported poor half-year results with losses of 26.3 million euros. While the company managed to grow its revenue by 11% between January and June, the buzz surrounding Duro Felguera has intensified significantly over the past month with the departure of previous CEO Jaime Arguelles, who left the company for good when he also left the board of directors. administration headed by Executive Councilor Eduardo Espinosa. He replaced Jaime Ishita, a strongman appointed by the Mexican owners of Duro Felguera, who became vice-president.