Alfa Laval shares rose by 1% after the announcement of the company’s largest-ever order: a 1.1 billion Swedish kronor contract to supply technologies for producing biofuel as part of a Brazilian biofuel refinery project.
The Swedish company will supply pre-treatment technology for hydrotreated vegetable oil (HVO) for Acelen’s new biofuel refinery in Brazil. The order will be carried out in stages through 2029.
The contract is an important milestone for Alfa Laval and represents the largest one-off order in the company’s history. HVO is renewable diesel fuel produced from vegetable oils and other renewable feedstocks.
Citi analysts commented on the situation as follows: “Based on our calculations, Alfa’s total orders for Q2 are likely to be SEK 19.3 billion, which is 7% above the consensus forecast (orders in the food and pharma segment apparently will reach SEK 7.4 billion, which is 15% above market expectations).”.
The order is expected to have a positive impact on Alfa Laval’s results in the second quarter: analysts forecast the group’s total order volume at SEK 19.3 billion, which will exceed market expectations by 7%.