Saipem has exercised the purchase option relating to the drill ship of seventh generation Santorini, which is already operating in the Saipem fleet on the basis of a long-term charter agreement signed in 2021 with Samsung Heavy Industries. The exercise price of the purchase option - reports a company note - is equal to 230 million dollars, to be paid by the end of 2022.
The drillship is currently operating in the Gulf of Mexico for the execution of a contract with Eni which expires in the third quarter of 2023.
The investment decision is based on a expected return on investment greater than 15%, with a 5-year payback period, estimated on the basis of the existing contract (which covers a large part of next year) and the commercial prospects of Santorini. The activities of offshore drilling accumulated by Saipem - adds the note - now amount to over 1,5 billion euros, the highest value in the last 6 years: the existing contracts (including optional periods), determine a fleet commitment of around 80 % for 2023 and about 60% for 2024.
Santorini paid with available cash, 2022 guidance on net financial position confirmed
The investment in Santorini will be financed entirely with available cash, adds Saipem which confirms "the guidance on the level of the net financial position of approximately 300 million euros (post IFRS 16) at the end of 2022".
The results obtained in the sector and the commercial prospects are determined by the "favourable trend of demand in the offshore drilling market and in particular in the deep water sector"; from the level of daily market rates for seventh generation drillships, which continue to show a robust growth trend; from the "commercial discussions currently underway with major customers in the areas of potential use of the Santorini"; by the "scarce availability of technologically advanced vessels such as the Santorini, in a world market context in which the demand for drillships significantly exceeds the offer, with a trend expected to strengthen".
After a day on the shields, today Saipem shares lost 4,34% at 11:45 on Monday, rising sharply.
