Mota Rises on Expectations of New Africa Orders: Lisbon Mover
Mota-Engil SGPS SA (EGL), Portugal’s biggest construction company, rose to the highest in more than two weeks as it expands operations in Africa while seeking contracts in the continent worth about $5 billion.
The stock climbed as much as 3.7 percent to 2.068 euros, the highest intraday price since March 6, and traded up 3.3 percent at 11:14 a.m. in Lisbon. That increased Mota-Engil’s market value to 421.8 million euros ($545 million). Trading volume was about 70 percent of the three-month daily average.
Chief Executive Officer Goncalo Martins said yesterday the Oporto-based company was studying or had presented proposals for projects in Africa worth about $5 billion. Mota-Engil plans to enter new markets in the continent, including Zambia, Ghana, Uganda and Kenya.
“The rise in net income and news that the company is negotiating new contracts in Africa is helping shares today,” said Juan Dieste, a trader at Orey iTrade in Lisbon.
Mota-Engil, which reported a 22 percent rise in 2012 net income to 40.7 million euros yesterday, sees its order book exceeding 3.5 billion euros in 2013, compared with 3.4 billion euros last year, according to Martins.
Mota-Engil is among Portuguese builders making inroads into emerging markets in Africa and South America to counter a slump in government spending in Portugal.
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