July 31 (Bloomberg) -- Tecnicas Reunidas SA, a Spanish industrial engineering company, is set to win a $1 billion contract to build a natural gas-processing plant in Algeria, according to a document seen by Bloomberg News.
The company, based in Madrid, was chosen by a joint venture between GDF Suez SA of France and Algeria’s Sonatrach to design and build the facility with a capacity to produce 13 million cubic meters of the fuel a day, according to the document. Tecnicas competed for the contract with London-based Petrofac Ltd. and Japan’s JGC Corp.
Algeria’s Touat field is estimated to hold 68.5 billion cubic meters of natural gas and 8.5 million barrels of condensate, the document showed. Spokesman for GDF Suez and Sonatrach weren’t available for comment when contacted by Bloomberg News today.
Tecnicas reported today first-half net income of 66.9 million euros ($88.7 million), missing the 70.6 million euros projected by the average of seven analyst estimates compiled by Bloomberg. Net revenue in the period climbed to 1.4 billion euros from 1.3 billion euros a year earlier.
The shares dropped 5.1 percent, the most since February, trading 34.98 euros, at 2:32 p.m. in Madrid, valuing the company at 2 billion euros. They were the worst performer of 35 stocks on the benchmark IBEX 35 index.
Tecnicas said today its first-half order backlog reached a record as it climbed 13 percent from a year earlier to 7 billion euros. The engineering company also plans to continue diversifying, it said in a separate presentation today.
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