Saipem, the Italian energy services group, is making significant strides in its recovery efforts. The company is nearing the completion of troublesome projects that prompted a capital raise last year, according to the chief executive officer, Alessandro Puliti. He pointed out that the company is back on a growth trajectory, thanks to a surge in orders and a shift towards more lucrative projects.
“We are seeing now the results of several steps made in the right direction since our profit warning,” Puliti noted in Saipem’s 2023 Q3 earnings report.
Saipem reported a substantial 26% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to €230 million, marking the highest level since late 2019.
One of Saipem’s recent achievements is winning a substantial US$4.1 billion engineering, procurement, and construction (EPC) contract for a gas project in the United Arab Emirates, which has boosted its total order backlog to €32 billion.
Puliti expressed that the group is nearing full capacity in its offshore business and is even considering renting additional vessels to meet demand.
Furthermore, Saipem’s CEO mentioned that a significant liquefied natural gas project in Mozambique is likely to restart next year.
In January 2022, Saipem issued a profit warning, attributing it to rising supply chain costs and poor project margins, particularly in offshore wind and onshore construction. However, the company is now confident that it will successfully complete these challenging projects by the end of the next year, as confirmed by its finance chief, Paolo Calcagnini.
Saipem has scheduled a shareholder meeting on December 13 to vote on the potential issuance of new shares, slated for launch in 2029 when a €500-million equity-linked bond matures.
Saipem is a key sub-contractor for ExxonMobil’s Guyana operations and was charged with the delivery of a major subsea system for the Yellowtail project.
Additionally, with the Uaru development plan (FDP) finalized, oilfield giant Saipem has been given the greenlight by ExxonMobil Guyana to commence the final phase of the subsea work for the Stabroek block project.
