Talgo S.A. (BME:TLGO) shares fell more than 4% Wednesday, after the Spanish company reported a first-half EBITDA of negative €16.5 million and adjustments to its ICE L project.
The company said its order backlog reached an all-time high of €4.97 billion, driven mainly by a new contract awarded by Flixtrain for the manufacture of up to 65 Talgo 230 trainsets, including a firm order for 30 units and their maintenance for 15 years.
Including awarded projects pending formalisation, Talgo said the backlog would exceed €7 billion.
Talgo said trains for Denmark are already homologated, and for the ICE L in Germany, reception has begun. Deutsche Bahn will hold an official presentation of the Talgo 230 in Berlin on October 17.
The company said it and Deutsche Bahn are in talks to reduce the ICE L fleet to be supplied by Talgo from 79 to 60 units, through a Settlement Agreement that would adjust fleet size and include agreements on maintenance and rescheduling of project deliveries.
The company said this reduction and the agreement to end legal proceedings in Los Angeles resulted in a negative EBITDA adjustment of €40 million.
Talgo reported revenues of €270.1 million in the first half of the year. Without the adjustment for the potential reduction in scope of the ICE L project, revenues would have been €307.6 million.
The company said it is undergoing changes in its shareholding, with an investment consortium expected to acquire 29.8% of the stake currently held by Pegaso Transportation International.
Talgo said it is strengthening equity through a capital increase to be subscribed by SEPI and convertible bonds worth €150 million, and defining a new financing structure of €650 million with CESCE coverage, including a €120 million line of credit and a €500 million line of guarantees with CESCE coverage.
These operations are expected to be submitted to the General Shareholders’ Meeting and formalised before the end of the year.
Source :
https://www.investing.com/news/stock-market-news/talgo-shares-fall-over-4-after-h1-results-post-loss-and-ice-l-adjustments-4265534
