Técnicas Reunidas has been selected to execute the Engineering, Procurement, and Construction (EPC) of the processing units in a project to expand ExxonMobil’s refinery in Singapore.
This lump sum turnkey (LSTK) project will entail an investment of approximately €1.3 billion and will take 43 months to be completed.
Expansion in the Asian market
The project is part of Técnicas Reunidas’ strategy to position itself in the Southeast Asian market, which is set to rapidly grow in this sector.
It is part of ExxonMobil’s multi-billion dollar investment in Singapore, aimed at upgrading its product slate. The agreement has been communicated to the Spanish National Stock Market Commission.
Second project that ExxonMobil awards to Técnicas Reunidas
This agreement “marks the second individual project that ExxonMobil awards to TR and further strengthens TR’s presence in Southeast Asia,” the Spanish engineering company informed.
Técnicas Reunidades will collaborate with ExxonMobil in pursuit of this goal. On this basis, it will execute EPC tasks for different refining units. These tasks will use proprietary technologies, as well as licensed technologies and other units.
The company’s services range from in hydrotreating conversion units, sulphur recovery to thermal oil system and installation, and associated auxiliary services.
Técnicas Reunidas growing in the stock market
Rising oil prices have boosted Técnicas Reunidas stocks even before the news about the ExxonMobil contract was disclosed. This way, it has reached its maximum levels so far this year. The Spanish engineering company’s stocks on the IBEX 35 went up by 2 percent on Monday, reaching €25.58 by the end of the day.
The group’s stocks continued to rise early on Tuesday and hit new annual peaks, reaching over €26.
By the end of the day, Técnicas Reunidas went up by 2.6 percent, leading engineering companies.
This trend is helping TR position itself among the top stocks in the IBEX 35 in 2019. The firm has grown by 25 percent since the beginning of the year.
ExxonMobil further increases stocks
Now, the rise of Técnicas Reunidas’ stocks in the IBEX will be further boosted by this other new contract for the expansion of ExxonMobil’s refinery in Singapore.
The news sparked a rising trend, at moments growing by 4 percent, on the road to one of its best sessions of the year. Strong oil prices have benefitted this engineering company specialized in energy projects.
The rise recorded on Tuesday, following the ExxonMobil contract, exceeds all market expectations.
For more information, check Energía16