Duro Felguera’s shares are trying to catch their breath after they sank 44% on Friday upon their return to the Continuous Market after having been suspended from trading for two weeks due to litigation in Algeria and the pre-bankruptcy of creditors.
The value rose by more than 12% to 31.4 euro cents on Monday morning, but minutes later the titles softened their rise to 5.17% and 29.05 euro cents. Duro Felguera remains far from the 50.4 cents at which the action was suspended on November 25.
The CNMV lifted the precautionary suspension that weighed on the price of Duro Felguera last Friday after having been made available to it “sufficient information” about the circumstances that advised the adoption of the suspension agreement.
The supervisory body decided to suspend the listing of the Asturian company after the Algerian energy company Sonelgaz submitted to the Algerian Chamber of Commerce and Industry a request for arbitration against Duro Felguera for the suspension of Djelfa’s contract in Algeria.
In this request, Sonelgaz asked to lift the suspension of the contract and resume work, as well as compensation of around 413 million euros.
This Thursday, Duro Felguera sent a letter to the CNMV in which it explained the impacts recorded in relation to the Djelfa project in Algeria in the interim financial statements as of June 30, 2024 and which have required the restatement of the comparative figures of the fiscal year 2023, which suffered losses of 48.8 million euros between January and June of last year, compared to the profits of 1.6 million that had initially notified.
According to its interim income statement, the result in the first half of 2023 was 1.6 million, although with the negative impact of the Djelfa project, of 50.4 million, the company recorded losses of 48.8 million euros in restated figures.
As a result of the accounting record carried out, the liabilities as of January 1 and December 31, 2023 increased by 49 and 99 million euros, respectively, while the net equity as of January 1 and December 31, 2023 was reduced by 49 and 99 million euros, respectively.
For its part, the new accounting treatment of the Algerian project is based on the execution scenario of the entire construction, which considers the updating of costs of the initial budget without any type of economic rebalancing by Sonelgaz and the maximum amount of penalty that will be has been in dispute since fiscal year 2021, entails the provision of a provision of 99 million euros.