The die is cast: Saipem's mega capital increase was also approved by the shareholders' meeting and the oil&gas services group - which had also revised the 2022-2025 strategic plan - now has all the tools to be able to strengthen its business recovering from the tremendous fall of the last few months.
The shareholders' meeting, which met this morning, approved the recapitalization operation with the attribution to the Board of Directors of a mandate to increase the capital up to 2 billion euro. Voted for 99,99% of the present capital. In the ordinary session, the shareholders gave the green light for the 2021 budget (with the assent of 96,96% of the shareholders represented), closed with a loss of approximately 2,4 billion. 51,03% of the share capital was present at the meeting. Shareholders with stakes exceeding 3% are: Eni (30,5%), CDP Industries (12,5%) and Marathon Asset Management (5,6%).
La Exchange in recent days he had already smelled good intentions so much so that the stock on the stock exchange gained 24% in three days. This morning the group's shares entered the volatility auction when they reached 1,2155 euros, an increase of 4,97%. In the middle of the session, the stock traded at 1,16 euros, up 0,26%.
Saipem: financial maneuver in three stages
" planned financial maneuver is based on three points” the CEO recalled Francesco Caio, "among which thecapital increase of 2 billion and a credit line (RCF) of 1 billion with seven banks and a line signed on a bilateral basis by the banks participating in the financial maneuver for a total amount of approximately 1,35 billion euros".
The manager also recalled that in order to support the "financial needs of the company in the short term, until the capital increase is completed, the financial maneuver provides for a immediate liquidity intervention, for a total amount equal to 1,5 billion euros".
Last week, Caio, together with general manager Alessandro Puliti, said in an interview with Sole24Ore that the company is working to anticipate the start of the capital increase and to be able to complete it in the summer, thus shortening the times compared to the previous indication which spoke of September/October.
After the profit waorning in January, they had taken the field alongside Caio Puliti (in charge of Eni) and Paolo Calcagnini of Cdp and already at the end of March they had moved on to a new strategy .
" revision of the 2022-2025 strategic plan, underlined the president Silvia Merlo, “laid the foundations for the maneuver of strengthening of the financial and patrimonial structure of Saipem which became necessary in order to overcome the uncertainties that emerged in the face of the significant losses recognized in the fourth quarter of 2021, strengthen the financial statements, operate a de-risking intervention of the business model and support the execution of the plan itself".
During this morning's meeting, the chairwoman read out the letter to the shareholders with the annual financial report presented in April: "It closes a difficult year in which, however, we are confident that the strategic and organizational foundations have been laid for a robust and sustainable new phase of development” he recalled. “There are two main causes which led to the 2021 results. On the one hand, the impact that the pandemic has had on the prices and availability of raw materials and on logistics with repercussions on the costs, times and complexity of moving people and vehicles, leading to a significant deterioration in economic margins life of some projects related to Onshore E&C equal to approximately 440 million. On the other hand, some offshore wind projects, acquired between 2019 and early 2021, assuming a much lower level of risks and costs than what emerged during the implementation phase".
First quarter with record contracts, even in a difficult context.
“Thanks to a good level of acquisition of new contracts in the first quarter of 2021 for approximately 1,6 billion euros and equal to the revenues for the period, the order backlog remains at record level of over 25 billion euros and well diversified,” says the company. “The financial structure is robust with liquidity increasing to 2,5 billion euro as a result of the new bond issue successfully placed in March
Saipem in the first quarter it recorded revenues of 1,94 billion euros, up 20% compared to 1,62 billion in the same period of 2021, driven by offshore E&C and the two drilling segments, but below the consensus of 2,2 billion. Thanks to the reduction of quarterly losses (-98 million) and the increase in revenues.
The company also confirmed the financial estimates for 2022, specifying that at the moment there are no elements that modify the economic-financial targets communicated at the end of March, which envisage an adjusted EBITDA of around 500 million.
The signature for the sale of onshore drilling is expected by the end of the month.
