Duro Felguera, with advanced negotiations for the entry of an investor, which will be known before the end of the year

The company will turn the energy crisis into an opportunity,

GIJÓN, June 28. (EUROPA PRESS) -

The new CEO of Duro Felguera, José Jaime Argüelles, has highlighted that the company he chairs is in a process of transformation to once again be an economic engine and industrial benchmark in Asturias and Spain, to which, according to him, the turning the current energy crisis into an opportunity and the arrival of an investor, about whom something will be known before the end of the year.

"We have solutions and a bright future," he assured. This was stated during his speech at the General Shareholders' Meeting of Duro Felguera, which was held in person and electronically, in which all the points on the Agenda were approved, including the general accounts for 2021.

Argüelles, likewise, has stressed that the arrival of the investor is key to generating the confidence that the company needs from the market, financial entities and shareholders. Regarding the investor, he has pointed out that the negotiations are progressing "very adequately". He added that they expect a "prompt solution that satisfies everyone."

"We are on the path to success," he assured. Regarding 2021, she has highlighted that it closed with a positive profit of 37 million euros net (22.6 million after taxes). Sales reached a figure of 84.5 million euros, which represented a decrease compared to 2020 of 37 percent.

He has highlighted as relevant having practically met the contracting forecasts, with a total amount of 175 million euros (123%), including one of 100 million for a decarbonization process in the Netherlands. Likewise, the portfolio of contracts at closing amounted to a global of 336 million euros, 92 percent of international projects.

In this line, it has advanced future forecasts. They plan to go, in this case, from revenues of 85 million in 2021 to almost 500 million in three years and up to 700 million in 2025. To do this, it will "strongly" boost contracting, from 175 million euros in 2021 to almost 400 million between three years and 600 million in 2025. Thus reaching an Ebidta of 48 million euros in 2025, with a margin close to 8 percent.

For Argüelles, they are a company prepared to develop their full potential, which is why they want to take advantage of the opportunity of a "changing" world and the energy transition and digital transformation.

Likewise, it has influenced that despite the tensions in the supply chain, the war in Ukraine due to the invasion of Russia, inflation or the energy crisis, they plan to close contracting agreements in the coming months that would add 200 million euros.

Yes, he has recognized that the diplomatic conflict between Spain and Algeria is being noted in one of the contracts they have on the African continent. According to him, some payments and delays in the work are being delayed, to which he has shown his desire to resolve it as soon as possible.

In the case of the contract in Candelaria (Colombia), he has attributed the problems to labor conflict. However, he has pointed out that they are in "close" contact with their client, Técnicas Reunidas, and it seems that it is "on the way to a solution".

Another contract in difficulty is the one in Abu Dhabi, where "limited" progress is being made on a project that has been stalled for two years. In this case, a new proposal has been made to the client and efforts are being made to reach an agreement, which he hopes will be achieved in order to finalize the contract.

On the other hand, he stressed that the contract in Romania is on the right track. Moreover, he has indicated that he believes that they are about to relaunch this project, in whose resolution of the problem progress has been made "firmly." Once it is unlocked, they hope to be able to finish the pending works "in the shortest possible time".

In the litigation section, positive transactional agreements were reached in 2021 in some projects, such as in Argentina, and negotiations continue in four others in Mexico, Chile, Costa Rica and India. In all of them, he has said that he trusts in reaching agreements.

Argüelles has also alluded to the support provided by the financial injection by Sepi (120 million euros) and the aid in the form of a participatory loan from the Government of the Principality (6 million). To this he has added the bank agreement to refinance the debt.

Funds that, according to him, have been used to prioritize the continuity of Duro Felguera's activity, aligning it with the current energy and digital transformation.

With this, Duro Felguera has achieved, in his opinion, a "firm" return to the markets, for which he was grateful for having had this "new opportunity".

Regarding the lines of work in 2022, he mentioned, among other things, the diversification of the business towards renewable energies, hydrogen, energy storage or intelligent management systems, as well as moving towards a revitalization of the company through new formulas of work.

At the same time, he recalled that last January they announced the restructuring of the company according to five pillars. One of them is to continue with its activity in the field of conventional energy and also in industrial plants (Oil

In the case of renewable energies, it has been announced that they are immersed in a project to manufacture marine wind structures (offshore wind power), a market they want to enter. Moreover, in response to the shareholders, he has indicated that Duro Felguera is waiting for the resolution of the port of El Musel to start this activity there.

In the same way, they plan to enter the hydrogen market and make it an important growth vector for Duro Felguera.

Other aspects are supplying services that provide differential solutions with great added value and digital security, which they want to extend to the civil sphere.

He has referred, yes, to the Tallerón de Duro Felguera, in the field of heavy boilermaking, and to the need for "salary moderation" to guarantee its future viability. For him, the solution is not to increase costs, but to improve productivity and competitiveness. In his opinion, this is the only way to be in a position to increase remuneration.

All in all, although he has concluded that Duro Felguera is "on the right track", he has confessed that it is going "slower" due to "supervening" circumstances, due to international geopolitical uncertainty and the current socio-economic crisis, which makes contracts difficult and paralyzes some investments. "We have evolved moderately well," he has maintained.

For this reason, it has transferred to the shareholders that the company needs more time for its recovery. That said, it has affected that they continue to maintain 400 million euros in pre-contracts, which must be closed. He has hoped, yes, to recover the activity they had this year.

The president of Duro Felguera, Rosa Aza, for her part, has also referred to the entry of an investor. In this sense, she has pointed out that there are several "very interesting" alternatives and that the company is carrying out a "careful" selection process. She has indicated, in addition to this, that she hopes that there will be important advances before the end of the year.

In addition, he stressed that the necessary time has been achieved to channel the company and regain the confidence of the markets, despite the economic situation and "high uncertainty".

In this context, he has drawn attention to economic growth in Latin American countries, such as Chile, economic strengths that he has seen as a business opportunity for Duro Felguera. "You can take advantage, if you know how to do things well", he added about the opportunity offered by renewable energies or hydrogen.