Panama gives wings to Salini and Sacyr. The resumption of dialogue with the Canal Authority, after fears of blocking the construction site, has earned the Spanish group more than 5% on the Madrid stock exchange. At Piazza Affari, Salini Impregilo grows by over 2% around 17pm.
The two companies, which are part of the Grupo Unido por el Canal consortium together with the Belgian Jan De Nul and the Panamanian Constructora Urbana, would be severely affected if the 5,2 billion project were halted.
The Panamanian authority for the management of the canal has proposed to the consortium that will do the work to agree to co-finance additional costs equal to 1,6 billion dollars of the yard for the enlargement of the link between the Atlantic and the Pacific.
The consortium has not yet given an official answer, but the Spanish minister for public works – Madrid leads Grupo Unido por el Canal – is optimistic: “there is goodwill on the part of the canal and I believe also on the part of the consortium: : reaching an agreement is now up to the two sides”
Work on the $5,2 billion Panama Canal expansion began in 2009 and was scheduled to finish in 2014 to coincide with the Canal's 2015th anniversary, but completion was postponed to XNUMX , after an initial disagreement at the start of the construction site between Acp and Gupc on the quality of the cement used.
"The contract for the expansion of the Panama Canal has a value of 350 million euros in Salini Impregilo's order book at the end of September 2013, or 1,3% of the total order book equal to 26,7 billion", specify the analysts of Kepler Cheuvreux, recalling that in the 2012 financial statements Impregilo recorded a jumbo provision of 170 million euros relating to the Panama Canal. So in the worst case, in the absence of an agreement on extra costs, the company could be forced to record additional but limited provisions. While awaiting a solution, Kepler Cheuvreux continues to bet on the Sailini Impregilo share (buy with a target price of 5 euros).
