Saipem, a services and solutions company for the energy and infrastructure sector, has been awarded a new contract in Qatar the value of 4 billion dollars to support the production of offshore natural gas field North Field, located off the country's northeastern coast.
“This important contract follows the EPC package for the North Field Production Sustainability Offshore Compression Complexes – [COMP 2] project, which Saipem was awarded in October 2022 and is currently under execution. This project further consolidates Saipem’s positioning and track record in Qatar,” the company said.
Il Saipem title at Piazza Affari it is quoted at 1,92 euros, up 3,25%.
Here's what Saipem will have to do off the coast of Qatar
This is an offshore EPC contract from QatarEnergy LNG for the combined packages COMP3A & COMP3B. Saipem's activities include engineering, procurement, fabrication and installation of 6 platforms, of about 100 km of pipelines 24 and 28 inch diameter rigid anti-corrosion alloy submarines, of 100 km of submarine composite cables, of 150 km of fiber optic cables and several other underwater structures.
“Very positive news, which highlights a strong outlook in the offshore segment”, comments Intermonte. The offshore campaign for this contract will take place between 2026 and 2028 and that the second quarter of 2024 was characterized by a strong order intake: 5,1 billion euros (book-to-bill equal to 1,5 times), mainly thanks to the contracts acquired in Angola (Agogo Integr. West Hub project worth 0,9 billion dollars and Kaminho project worth 3,7 billion dollars). In the first half of 2024, however, order acquisition was equal to 7,1 billion (book-to-bill equal to 1,1 times). “With this contract, order intake since the beginning of the year should be around 12 billion,” Intermonte calculates. “For the entire 2024 financial year, our current projection is 14,2 billion which today appears rather conservative. We confirm the positive recommendation on the stock: buy with a target price of 3 euros”.
