Keep growing Saipem in the offshore sector, its core business. The San Donato Milanese company announces that it has been awarded two new contracts for a total amount of approximately 900 million dollars. These contracts are added to those stipulated a month ago in Guyana ed Egypt for a total value of approximately 1,2 billion dollars. The stock flies on the stock market with a +6,31% to 1,348 euros. This rise adds up to the performance of the last few months: after a black 2022 in which Saipem lost 75% on the stock market, there has been a comeback in the last three months with a +73%.
The details of the new contracts
In a note, the company says that these operations are scheduled for 2025 and will be performed by Saipem's flagship Castorone. The first contract – in partnership with Aker Solutions do Brasil – was awarded by Total Energy for the Lapa Southwest development project, a deepwater oil field in the Santos Basin in theSouthern Atlantic, 270 kilometers off the coast of Sao Paulo, Brazil. The scope of work includes the engineering, procurement, construction and installation of submarine umbilicals, risers and flowlines, as well as submarine production systems. Saipem will make the most of 'local content' using its shipyard in Guarujà, Centro de Tecnologia and Construcao Offshore, for logistics activities and the fabrication of quadruple joints and other production activities.
Il according to contract was awarded to Saipem by Equinor for the Irpa Pipeline project. The project, in deep water in the Norwegian Sea, consists of the installation of an 80 km Pipe-in-Pipe pipeline connecting the subsea production model of the Irpa field to the existing Aasta Hansteen platform. Equita Sim calculated that the two new contracts represent 15% of the estimated order intake for offshore E&C. Furthermore, they can have a double-digit margin with a more significant contribution to the estimates for 2024 (about 3%-4% at EBITDA level). However, Equita reaffirmed its cautious hold rating and the target price of 1,35 euro on the share. According to Bestinver Securities (target price between 0,65 and 0,70 euro) the two new offshore contracts are positive news for Saipem. Order intake in the offshore E&C sector has performed very well in 2022, as it is expected to exceed €9,2 billion, corresponding to a book-to-bill of around 2,2x. “Prospects for the offshore sector are positive and Saipem is seizing the opportunities arising from the recovery in demand,” Benstinver said in a statement.
The Court of Algiers acquitted Saipem on two counts. Appeal for the third
It is yesterday's news that the Court of Algiers acquitted Saipem of two counts in relation to the company's participation in a 2008 tender relating to Rhourde Nouss QH competitive feed studies. Instead he condemned her for a third charge, but Saipem has announced that it will appeal "with consequent suspension of the criminal and civil effects" of the sentence.
In particular, Saipem, as he says in a note, has been acquitted of the charge the crime of "violation of the laws and regulations on foreign exchange and capital movements to and from abroad" and the crime of "trafficking in influence". Instead, the court found the company responsible for the crime of "increase in prices on the occasion of the awarding of contracts concluded with a public company of an industrial and commercial nature with the authority and influence of its agents, to obtain advantageous prices compared to those normally charged, or to modify, at their advantage, the quality of the materials or services or the delivery or supply times”, imposing a fine of 34.000 euros. With reference, then, to the requests for civil action by Sonatrach and the Trésor Public, the Court of Algiers, acknowledging the absence of requests for damages by Sonatrach against Saipem, only partially accepted the requests of the Trésor Public, recognizing in favor of the latter compensation of 680.000 euros, the share of which is attributable to Saipem is equal to 170.000 euros.
