Saipem runs, improves guidance and confirms dividend

(Il Sole 24 Ore Radiocor) - Saipem improved estimates for 2024 and the stock recovered ground on the stock market. Saipem closed a solid quarter with revenues, ebitda and operating cash flow leading to confirmation of dividend policy and upward revision of 2024 estimates. Analysts' ratings were positive: for Equita - which has a hold rating with a target price of €2.30 - the third quarter results "consolidated the trend of sustained growth in turnover and ebitda - respectively +23% and +48% year-on-year - thanks to the performance of the offshore E&C business".

Ebitda in line with estimates and consensus, bottom line improved due to lower depreciation and financial expenses. Cash generation and the net financial position also improved. "Order intake was strong at 6.4bn (+23% yoy), thanks to projects in the Middle East. The backlog reached 33.2 bn. Jefferies underlines the positive element of the confirmation of the dividend policy: 'This suggests that Saipem is confident about the fourth quarter and through the end of the year. Many traders are focused on Saipem's project risks, so the confirmation of the dividend policy indicates that things are going well operationally. In addition, there are the upwardly revised forecasts, which reinforce this impression, say Jefferies, which has a buy rating and a target price of EUR 3.