Mobico surges on Saudia Arabia contract win
Mobico Group PLC surged on Thursday as it announced that its ALSA subsidiary, as part of a joint venture, has won an eight-year capital-light contract in the Kingdom of Saudia Arabia, with a total contract value of €500m revenue.
The contract will be run with a local company and includes the operation of 156 vehicles, 126 of which will be electric, serving Qiddiya, a new city on the outskirts of Riyadh.
Mobico - formerly National Express - said Qiddiya is one of Saudia Arabia's key strategic projects and is expected to become the largest entertainment destination in the country.
The contract involves the operation of Park & Ride facilities and shuttle services connecting Riyadh and Qiddiya.
Executive chair Phil White said: "This new contract, which meets our disciplined return hurdles, strengthens Mobico's presence in the Middle East and showcases ALSA's ability to win competitive contracts in large-scale overseas projects, positioning ourselves as a leading operator of innovative, sustainable transport services."
At 0815 BST, the shares were up 8.2% at 30.02p.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
