Saipem rises at Piazza Affari, market bets on resumption of gas project in Mozambique
Analysts expect a major contribution to the company's growth
by Enrico Miele
1' min read
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The hypothesis that the maxi liquefied natural gas (LNG) project in Mozambique may finally be restarted is pushing the Saipem stock on the Italian Stock Exchange, which has been one of the best performers since the early stages. The number of trades is also in line, with over 30 million pieces already changed hands against an average of 35.2 million per session over the past thirty days.
FMI, security improves in Mozambique
The purchases come as analysts from Banca Akros return to an IMF dossier, published in recent weeks and dedicated precisely to Mozambique. Analysis in which the International Monetary Fund writes in black and white how 'security conditions in the north continue to improve and the major LNG project, stopped in April 2021, is expected to restart at the beginning of 2024'.The contract with TotalEnergies in Mozambique, in fact, was stopped in 2021 due to the lack of security conditions in the area. "The LNG plant project in Mozambique," Banca Akros analysts now write, "consists of the construction of two natural gas liquefaction trains, as well as all the necessary infrastructure, storage tanks and port facilities for export.
From the project push to company growth
The CCSJV Scarl joint venture, "led by Saipem with McDermott International and Chiyoda Corporation, was awarded in June 2019 the contract for the engineering, procurement and construction of the onshore LNG project in Mozambique for a total amount of $8 billion, of which Saipem's share is about$6 billion". Hence the analysts' conclusion: 'The project is large in size and could contribute positively to the company's growth once it is taken over'.
