Técnicas Reunidas (AO) | Buy | Announces a contract in the Middle East

Research evidence excerpt

Técnicas Reunidas (AO) | Buy | Announces a contract in the Middle East

News comment

Release date: 15 June 2026

Kevin Roger

Head of Energy Equipment and Services

+33 1 53 65 36 74

kroger@keplercheuvreux.com

BuyTécnicas Reunidas

Spain | Energy equip. & services Beta Profile: MCap: EUR2.6bn

Target Price: EUR41.00 Bloomberg: TRE SM Reuters: TRE.MC

Current Price: EUR32.10 Free float 59%

Up/downside: 27.7% Avg. daily volume (EURm) 15.3

YTD abs performance 16.1% Market data: 12 June 2026

52-week high/low (EUR) 36.96/18.58

Announces a contract in the Middle East

Key points:

Técnicas Reunidas announced this morning that it has been awarded "two major projects for the engineering, procurement and

construction of upstream facilities to handle oilfield production in the Middle East". "Due to confidentiality requirements, no further

details about the projects can be disclosed at this stage".

We do believe that those contracts are the ones in Abu Dhabi: EPCI Packages 1 and 3 for the Upper Zakum oilfield. The total

contract value is close to EUR5.5bn.

Upstream recently reported that TRE was also a frontrunner on a key onshore package for the Dorra field development in Saudi

Arabia (offshore gas field). The total order intake would be close to EUR7bn.

On another positive side, the reopening of Hormuz will probably reassure many investors, as risks on the group's earnings are

significantly reduced. We do believe that TRE probably decided to frontload any potential bad noise on the Middle East,

especially as underlying performance was robust, to now benefits from a strong newsflow with 1) strong order intake, in Q2, and

the likely beat of the guidance, 2) sound market environment and long term outlook and 3) potential positive news in case of TRE

recovers some of those cost.