Israeli engineering company Baran Group (TASE: BRAN; Nasdaq:BRANF) announced today that it has signed a water infrastructure contract worth €160 million ($200 million, NIS 760 million) in a west African country.
Baran said that the turn-key project will include, among other things, conveyance systems with a total length of 90 kilometers, as well as collection, treatment, and pumping facilities. The company estimates that the project will be carried out over 42 months from the time of receipt of approval to start work, and said that the payment would be made in a “combined milestone-based and monthly payment” format. The company added, “The completion of the deal and its execution are subject to receiving financing for the project, and the signing of a binding financing agreement between the financing institution and the client.”
Less than two weeks ago, Baran announced the possibility that it would sign another mega- deal for an infrastructure, worth $200 million. Baran Group CEO Nahman Tsabar said today, “After a certain period that was characterized by fulfilling previous strategic projects, we are very happy with the success of Baran International in 2014, with its entry into a number of big projects, which will strengthen the group’s competitive and business positioning, and will help us ensure the future growth of the company.
In recent months, Baran, which provides engineering, project management and communications infrastructure services, has been working to increase its international activity, which is carried out by subsidiary Baran International. Since the beginning of the year, Baran International has received several contracts worth a total of $74 million, and the last two deals the company announced increase this sum significantly.
In the first half of 2014, Baran International’s revenue dropped 23% to NIS 20.18 million, however, it managed to significantly narrow its operating loss from this activity - from NIS 8 million, to less than NIS 1 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 5, 2014
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