OHL sinks 12% in the stock market after losing an appeal against Qatar

  • The lawsuit is for the completion works of the Sidra Hospital
  • The final local concessionaire can claim 1,134 million from the construction company

OHL arrives at sink more than 18% on the stock market this Thursday, until reaching a price of 0.85 euros per share. At closing, the penalty has been limited to 12.2% in the 0.91 euros per share. The construction company abandons the euro per share that it had managed to hold for the last 33 sessions after learning that it has lost an appeal that allows the Government of Qatar to claim 1,134 million euros to the consortium that it formed with the Cypriot Contrack Cyprus to build the Sidra Hospital.

The Spanish listed company has sent a relevant fact to the National Securities Market Commission (CNMV) shortly before noon in which it explains that the London Commercial Court “rejects his partial challenge of the fourth partial award issued in the existing arbitration between the Qatar Foundation and the joint venture” of which it was a part. In the accounts of the first half of the group, it was already reported that the group had challenged “the part in which the arbitral tribunal considered legal the resolution of the construction contract, of 1,875 million euros of budget“.

Now, a debate is opened between the parties in which “they will enter to discuss and justify within the arbitration their respective economic claims“. That is why the one chaired by Juan Villar-Mir de Fuentes specifies that currently “there is no economic condemnation, neither for nor against”, although the ‘joint venture’ of which it is a part claims 348 million euros and the Qatar Foundation raises the figure to 1,134 million euros.

Of the amount claimed by OHL and its Cypriot partner, 210 million euros of the executed guarantees and 43 million euros of modified supervening executed and unpaid have already been recognized by the arbitral tribunal“and are therefore undisputed amounts”, according to the relevant fact. Meanwhile, they assure that there is no recognition for the Qatari sovereign firm.

The Spanish owns 55% of the construction consortium, for which it would have to assume the payment of some 700 million euros. However, OHL denounces that it is “especially relevant and surprising” that 869 million euros are claimed for the completion of 5% of a work whose full budget amounted to the aforementioned 1,875 million euros budget. “The Qatar Foundation intends to obtain for that 5% (93.75 million euros in contract prices) an amount (869 million euros) equivalent to approximately 50% of the budget for the entire work (937.5 million euros)”, explains in the note sent to the supervisor of the Spanish markets.