The fort rise in oil prices is certainly the basis of spectacular performance of the Saipem Stock Exchange of the first four months of the year in which he earned the 42,9% outclassing Eni (+12%) and the other sector stocks present at Piazza Affari. But that is not all.
The rain of contracts collected by the company led by Stefano Cao has put the turbo into the engine and now it has found one more reason to race: the long-awaited peace with Gazprom, announced on April 18 after four years of legal battles over litigation related to theunilateral termination of the South Stream pipeline contract which completes an excellent quarterly.
Despite the confidentiality that still surrounds the Easter peace with the Russians, the agreement with Gazprom – according to what the financial weekly Milano Finanza claims – a fee of approximately 500 million should be worth Saipem, to which should be added a major contract that Cao should get towards the end of the year or in early 2020.
But, beyond the monetary aspects and the fresh money that will arrive in Saipem's coffers, the gold that Cao awaits is the new contracts and that the agreement with Gazprom unlocks. The first is the one for the construction of a gas pipeline to transport gas to Serbia which could provide Saipem with approx 150 million euro. But as a result of the agreement with the Russians, other projects should be implemented which would bring new orders and new jobs to Saipem not only in Europe, but in America, Africa, Asia and the Middle East.
They are on the table projects for 28 billion euros which are just waiting to be put out to tender and which make Saipem's eyes shine in the first quarter of 2019 it brought home orders for 2,5 billion and who hopes to reach one by the end of the year total revenues of 9 billion. Once again the Stock Exchange got ahead of the game, rewarding the Saipem stock, which is among the best of 2019 on the stock exchange list.
