Técnicas Reunidas receives 340 million euros in State aid to face the pandemic

Técnicas Reunidas receives 340 million euros in State aid to face the pandemic

MADRID, Nov 15 (Reuters) – Spanish oil services company Técnicas Reunidas said on Monday it will receive a 340 million euro ($ 389.37 million) aid package from the Spanish state, from funds set aside to help companies to weather the pandemic.

The package, which includes two low-interest loans – one of them, for 175 million euros, with the possibility of conversion into shares – comes at a time when the company was in the red in the first nine months of the year. anus.

Técnicas Reunidas undertook not to pay dividends during the 4 and a half years of the loans and will assume the “obligation to comply with the strategic plan focused on energy transition, reduction of construction risk, diversification in less mature markets and implementation of efficiency and digitization “.

The company, whose traditional clients are oil and gas companies, said on Monday that its net loss in the January-September period was 157 million euros, compared to a small profit in the same period of the previous year, about sales that were reduced to 2,100 million euros from 2,810 million euros.

The company’s net loss was slightly lower than in the first half and President Juan Lladó stated that “we are sure that we have reached a turning point towards normalization and growth.”

Técnicas Reunidas has been hit hard by the pandemic, as restrictions on businesses and lockdowns around the world have raised operating costs, reduced productivity and caused its clients to delay their investment decisions.

The grants, structured through the Fund to Support the Solvency of Strategic Companies, will be implemented in a participatory loan of 175 million euros with an annual increasing interest rate of IBOR plus 2.5% to IBOR plus 5%, plus 1 % in case of obtaining benefits.

The group made a commitment to convert the participatory loan into equity for an amount of up to 35 million euros if the company undertakes a capital increase in the future.

In addition, there will be an Ordinary loan of 165 million euros maturing in 4 and a half years, partial repayments from the second year after the concession, and with a fixed interest rate of 2%.

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