Saipem on top in Piazza Affari after the signing of three new contracts worth 3,7 billion of dollars in Angola for the Kaminho project which concern the FPSO naval vessel, its operation maintenance (O&M) and Surf operations. At mid-morning the stock was at the top of the Ftse Mib with a rise of 3,5% at 2,36 euros.
Saipem's three contracts in Angola
The company led by Enrico Puliti has been awarded three new contracts by TotalEnergies Ep Angola Block 20, a subsidiary of TotalEnergies, for the Kaminho project relating to the development of the Cameia and Golfinho oil fields, located approximately 100 km off the coast of Angola. The total amount of the contracts is equal 3,7 billions of dollars.
In details, the first contract covers engineering, procurement, construction, transportation and commissioning of FPSO Kaminho naval vessel (Floating Production Storage and Offloading). The according to contract It includes operation maintenance of the same FPSO vehicle for a period of 12 years with a potential extension of 8 years, the third involves engineering, procurement, supply, construction, installation, pre-commissioning and assistance for the commissioning and start-up phase of a pSurf package (Subsea Umbilicals, Risers Flowlines), which includes approximately 30 km of 8′ and 10′ pipelines and risers and umbilicals. The associated structures will also be manufactured in Saipem's local factory in Ambriz.
“The joint award of the Surf, FPSO and O&M contracts confirms the competitiveness of Saipem's integrated business model, in particular its unique ability to provide engineering and project management services in the offshore and plant engineering sectors, associated with a fleet of cutting-edge naval systems and on-site manufacturing capacity,” the company commented in a statement.
The judgment of the analysts
Equity, which has a hold rating on the stock with a target price of 2 euros, says that the news "is positive as the contract represents approximately 50% of the estimated order collection for 2024 for the offshore E&C (Asset Based Services division) or 30% of the group's total collection for the year”. We estimate – states Equita – that the project could have a double-digit percentage margin in line if not higher than the average of the Abs division”.
Intermonte analysts also underline that the news is "very positive and confirms the strong order momentum in the Offshore segment". “The joint award of the Surf, FPSO and O&M contracts confirms the competitiveness of Saipem's integrated business model”, they underline. Also Intermonte, which has a buy rating with a target price of 3 euros on the stock, calculates that with these contracts the order intake since the beginning of the year should have reached around 6,2 billion. “For 2024 – say the analysts – our order intake estimate is equal to 13,4 billion”.
