HOCHTIEF Aktiengesellschaft (HOCHTIEF) today was informed of the decision in a long-running arbitration concerning a legacy project from 2012 for the construction of a hydro electric power plant in Chile. HOCHTIEF left the Chilean construction market in 2017. A subsidiary of the division HOCHTIEF Europe was involved in the construction joint venture. The decision will have a negative extraordinary one-off impact on HOCHTIEF's nominal net profit of around EUR 195 million (which includes the amount awarded, interest, legal fees and other costs), thereof approximately EUR 146 million will be cash flow effective. The guidance for the operational net profit of EUR 410-460 million remains unchanged, as the operational net profit does not include extraordinary one-off items. The company is currently analyzing actions including extraordinary profits at the HOCHTIEF Group to mitigate the impact. Furthermore, the joint venture is investigating options to challenge the decision.
Contact:
georg.von-bronk@hochtief.de