Italy firm wins Egypt’s $1bn petchem deal
Milan, March 26, 2014
Italy's Maire Tecnimont won a deal to develop facilities for a petrochemical complex at the entry of the Suez Canal in Egypt worth almost $1 billion, helping the engineering company expand its business in North Africa.
The company said on Wednesday the project, which it will share on a 50-50 percent basis with Dutch group Archirodon NV, had an estimated value of between $1.7 billion and $1.95 billion.
News of the deal, one of the biggest contracts ever sealed by Maire Tecnimont, sent shares in the Milan-based company up more than 7 percent to reach 2.36 euros, its highest level in more than two years.
"It is a big contract that will to boost Maire's backlog," said an analyst for the energy sector who declined to be named.
Maire will have to wait until the financing of the project is secured before including its stake of the contract in its backlog. This is expected later this year, the company said.
At the end of 2013 Maire Tecnimont's order book was 3.5 billion euros ($4.82 billion).
According to the agreement signed with Egypt's privately-owned Carbon Holdings, Maire Tecnimont will build utilities and offsite facilities for the Tahrir complex, which is expected to boost Egypt's annual export by more than 25 percent.
Dubai contractor Drake & Scull International will also join the works, even if its contribution to the project is yet to be decided.
"It's good news since the contract falls in Marie Tecnimont's core business," said another analyst.
The company said the deal will consolidate its leadership in petrochemicals. Last year oil, gas and petrochemicals generated almost 80 percent of Maire Tecnimont's revenues. – TradeArabia News Service