No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Mobico 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.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.