OHLA - comment

The Spanish government has approved a law allowing cost pass-through for public works contracts signed before 2021. The construction trade body is now asking for this law to be extended to all contracts. OHLA will benefit from this new law, but getting pass-through on new contracts is critical for OHLA (and the other construction companies). Given the importance of infrastructure spending.

- Electricity prices are up 584%, with gas up 278%. Raw materials like corrugated steel and copper are up over 20%. The electricity cost is leading to concrete and steel production being suspended in some plants. These plants have stocks so the impact will not be immediate, however, if the prices remain so high, there will be shortages. 

- The lack of materials leaves the growth of construction in the air - El Independiente

- Tudela Veguín halts production for 10 days (cemnet.com) 

- UPDATE 1-Spain's electric steel mills cut output amid soaring power prices | Reuters