OHL - on Guarantees and Turnaround
All,
Please refer to our unchanged analysis here.
Results came mostly in line with guidance. However, any investment now is predicated on the outlook and the guarantees banks are willing to provide.
Performance Guarantees:
Friday's press release highlighted the support of the banks to the restructuring agreement. As we have previously emphasised, the support of the banks, especially when it comes to extending and expanding the performance guarantees, is essential for OHL to return to growth. Therefore, we see this as a major step forward in the turnaround process.
Turnaround:
The turnaround program started 3 years ago, is on track and almost complete. Luis Amodio, the new Chairman and member of the new controlling family, was in the call, which sends the right message. Asset sales are increasingly likely thanks to the recently transferred Pacadar and Alse Park assets from GVM and the inauguration of the anchor Four Seasons Hotel in Canalejas.
We remain positive on the name and would take a position if liquidity allowed it.
