The following is a summary of the Técnicas Reunidas, S.A. (TNISF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Técnicas Reunidas reported revenues of €2.1 billion for the first 6 months of 2024, with an EBIT of €84 million.

• Net profit stood at €42 million for the first half of the year, aligning with a solid 4% EBIT margin.

• The company holds a robust net cash position of €318 million and has reduced its gross debt by €63 million.

Business Progress:

• Técnicas Reunidas continues to expand its presence in North America, capturing market growth and leveraging their Houston office.

• The company has propelled its services segment, achieving €142 million in order intake for the first half of the year, including projects related to low-carbon technologies.

• As part of their SALTA strategy, they have formed strategic alliances, notably with Sinopec, aiming to de-risk projects and enhance business management.

• The 2024 guidance projects €4.5 billion in sales with a focus on high-quality contracts and a strategy to reduce debt for improved balance sheet health.

Opportunities:

• The SALTA strategy is designed to enhance service offerings and expand in North America, focusing on decarbonization projects, including hydrogen and carbon capture.

• The company has secured significant engineering service contracts in North America and anticipates additional high-value projects driven by digitalization and energy transition requirements.

Risks:

• The petrochemical sector's EBIT margins are high at 25% for H1, contrasting with refining margins which have dipped into negative territory due to end-stage project costs.

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