Tuesday, December 7

Old project in Chile has a negative impact on HOCHTIEF earnings in the current year

A decision in the arbitration proceedings on the old project in the South American country, from which the group withdrew in 2017, will burden the result this year with around 195 million euros, the SDAX-listed group announced on Friday evening in Essen.

The procedure referred to a project from 2012, which had the construction of a hydropower plant in Chile. The company withdrew from the Chilean market in 2017. A subsidiary of the HOCHTIEF Europe division was involved in the construction of the power plant through a joint venture. The company is currently analyzing measures to mitigate the corresponding effects – this also includes possible extraordinary income at group level.

The joint venture that was involved in the construction is also examining legal action. HOCHTIEF also emphasized that the profit forecast for the current year was not affected by the arbitration decision. This is because the forecast is based on profit before special items. The so-called operative group profit is still expected to be between 410 and 460 million euros. However, the inflow of funds (cash flow) will be burdened in the current year – with 146 million euros.

/ e.g.

FOOD (dpa-AFX)

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