Saipem a new joint venture in Saudi Arabia. The Italian energy company and the Saudi construction company Nasser S. Al Hajri Corporation (NSH) have signed with the oil giant Saudi Aramco - as part of the Namaat Industrial Investment Programs initiative - an agreement for the execution in Saudi Arabia of onshore EPC projects – plant engineering works in the Oil & Gas, power and petrochemical sector – by a newly established joint venture (EPC National Champion), expected by the end of 2022.
Saipem stock rebounds on the stock market
This was announced by Saipem before the start of trading on the Stock Exchange, while it is grappling with the much troubled capital increase of 2 billion euro which triggered strong volatility on the stock which is currently worth just over 1,2 euros. Meanwhile the title bounces (+9,12% to 1,20 euro) after halving its value in the last two sessions (yesterday it closed down by 43,20% and on Tuesday by 48,6%, the worst performance for 37 years so much been suspended due to excess discount). The capital increase closed on Monday 11 July, with subscriptions for around 70% of the total number of new shares. Now the market is waiting for the second quarter accounts which will be released on Wednesday 27 July.
Consob has learned that on July 5 Goldman Sachs reduced its stake from 3,362% to 1,33%.
For Saipem new jv in Saudi Arabia: the "National Champions"
The initiative follows the memorandum of understanding signed and announced in September 2021, as part of Aramco's Namaat Industrial Investment Programs, aimed at establishing so-called "National Champions", explains the company in a note, in order to create a solid industrial ecosystem, foster the exchange of skills and technology and introduce new job opportunities. The establishment of the joint venture is subject to the definition at a later stage of the details regarding the related incorporation and "represents an opportunity to improve Saipem's presence in the growing Saudi Arabian market, with a new, even more efficient and effective operating model" , said the company from San Donato Milanese.
