SIEGY - Venezuela taps Siemens to help rebuild power grid

Venezuela's government has hired Siemens ( OTCPK:SIEGY ) ( OTCPK:SMEGF ) to repair power plants as part of its plan to rebuild the country's crumbling electricity grid , Bloomberg reported Tuesday, without providing financial details.

Siemens ( OTCPK:SIEGY ) ( OTCPK:SMEGF ) signed contracts to work on gas- and diesel-burning generation facilities that serve Caracas and those that supply electricity to infrastructure used by the oil industry, according to the report, which cites the company's business manager in the country.

Siemens ( OTCPK:SIEGY ) ( OTCPK:SMEGF ) was granted licenses by the U.S. Treasury to work with state-owned Petroleos de Venezuela, which owns the plants, in a rare deal in which an international company is working with the Maduro's government, which is under U.S. sanctions.

The repairs could help overcome regular blackouts and years of rationing, as well as improve power supply in oil-producing areas hit by outages.

"Investors should remain bullish" on Siemens ( OTCPK:SIEGY ), which delivered a solid June quarter that saw revenues rise 11% Y/Y, Cavenagh Research writes in a bullish analysis posted recently on Seeking Alpha .

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