Two huge orders for two companies that have risen to the top of the list on Piazza Affari. On the one hand Saipem with a new 4,1 billion contract, on the other Marie Tecnimont with a work package worth 8,7 billion, the largest ever signed by the group. Both companies have signed contracts with Adnoc, the Abu Dhabi oil company, as part of the development project of Hail and Ghasha.
For Saipem a package of onshore and offshore works worth 4,1 billion
The company headed by Alessandro Puliti, in consortium with National Petroleum Construction Company, has signed a letter of award with Adnoc for a new contract relating to package 1 of Hail and Ghasha Development Project in the United Arab Emirates. The value of the group's share is approximately 4,1 billion dollars.
Il project has as its objective development of the resources of gas fields natural Hail and Ghasha, located off the coast of Abu Dhabi. The scope of work includes engineering, procurement and construction (EPC) of four drilling centers and a treatment plant to build on artificial islands, as well as various facilities offshore and over 300 km of subsea pipelines. The awarding of this contract, says a company note, "confirms Saipem's distinctive ability to create integrated onshore and offshore projects, providing its customers with a unique and reliable interface for the development of complex projects”. Thus Saipem not only strengthens its long-standing relationship with Adnoc, but further consolidates its presence in Abu Dhabi, where it has an engineering and project execution center, as well as a new offshore logistics base in the port of Zayed.
Il Saipem title today in the late morning it gained 0,69% to 1,38 euros, while at the opening it gained 2,70%, rising to 1,4075 euros. “The new contract confirms Saipem's strong competitive position and the positive prospects of the sector,” he comments Akros Bank, confirming the buy rating and the target price of 1,90 euros on the stock which has jumped by 102,7% in one year.
With this new contract, order collection from the beginning of the year should have reached around 14,8 billion euros, of which 4,2 billion in the third quarter of 2023, after the 4 billion recorded in the second and 2,7 billion in the first, according to an analyst who prefers to remain anonymous, whose order collection estimate for the whole of 2023 was equal to 12 billion compared to the 13,6 billion recorded in 2022, according to an anonymous analyst quoted by MF.
Marie Tecnimont: onshore treatments for 8,7 billion
For the Group, led by the president and majority shareholder Fabrizio DiAmato, the contract awarded today with Adnoc is the biggest never awarded in its history and, according to the ceo Alessandro Bernini, will give a significant boost to the implementation of the strategic plan.
Il title in Piazza Affari late morning share was 3,93 euros with an increase of 6,22%, after having risen to 3,998 euros with an increase of 8%.
In detail, the group announced that the subsidiary Tecnimont, part of the Integrated E&C Solutions business unit, signed an award letter with Adnoc for the plant onshore treatment of the Hail and Ghasha project. The overall value of the EPC contract is approximately 8,7 billion of dollars and the project is expected to be completed during 2028.
In particular, the Hail and Ghasha project aims to operate with zero emissions, thanks also to the plant's CO2 capture and recovery units, which will allow its capture and storage. The scope of work includes two treatment units gas, three sulfur recovery sections, related utilities and offsites, as well as export pipelines. Tecnimont will also leverage the expertise of Maire's Sustainable Technology Solutions division to develop digital solutions innovations aimed at reducing emissions and optimizing energy consumption, allowing significant plant efficiency in terms of opex and capex.
“Today we were awarded the largest contract in the history of the Maire group, a multi-billion dollar project that will give a significant boost to the realization of our ten-year strategic plan”, underlines the CEO, Alessandro Bernini, saying he was honored to have achieved this great result with a leading global player like Adnoc, "further confirming the strength of our long and profitable relationship". This contract, “a historic recognition of Made in Italy engineering”, adds Bernini, “is the demonstration not only of our leadership in sulfur recovery and gas treatment plants but, more generally, of our undisputed execution capabilities and our technological expertise in the design of carbon-free industrial solutions."
According to the analysts of Banca Akros, the contract is enormous and this «is clearly very positive news» for the Maire Tecnimont group on whose stock the investment bank has confirmed the buy rating and the target price of 4,80 euros. Instead, Equita reiterated its hold rating and target price at 4,40 euros.
