OHLA shares jump as court orders its JV to pay less than original claim

Shares in OHLA OHLA.MC rise 5.3% after it said on Tuesday that an arbitral resolution will oblige its JV with Contrack Cyprus Limited to pay 24.3 mln euros ($28.62 mln) to Qatar Foundation over the Hospital de Sidra contract issue, well below the original claim of 329.3 mln euros

The Spanish construction firm says the verdict will not have a negative impact on its financial statements since the JV had set aside a 40 mln euro provision to meet the obligations

Sabadell analysts says this is positive news, as it closes the main short-term risk they had seen for the stock

"Our valuation included a cash outflow for this project of -147 M euros (~40% of the net claims attributable to OHLA), so pending the decision on costs and interest, the impact on our P.O. is +28% to 0.45 euros/share (+48% potential)," the brokerage adds

OHLA's share price is at its highest since June 11

($1 = 0.8490 euros)