Saipem on the rise, towards contracts from Saudi Aramco for $1bn
These would be two offshore engineering, procurement, construction and installation contracts. The two projects would cover the Zuluf, Marjan and Safaniyah oil and gas fields
by Chiara Di Cristofaro
1' min read
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(Il Sole 24 Ore Radiocor) - Saipem well set in Piazza Affari is hovering in the 2 euro area, after the descent of the last three weeks. Interest in the stock was revived by an article in Il Sole 24 Ore citing two probable contracts from Saudi Aramco for $1 billion. According to the newspaper, Upstreamonline Saudi Aramco has reportedly awarded two offshore engineering, procurement, construction and installation contracts to Saipem worth around $1bn. The two projects would cover the Zuluf, Marjan and Safaniyah oil and gas fields. "Since the second half of 2023," say Equita analysts, "offshore projects have exceeded 50 per cent of Saipem's backlog, thanks to strong demand in the segment. Equita's estimate - which has a hold rating with a target price of €2.25 - of order intake for the offshore E&C business (Abs division) is €7bn in 2024, after €3.5bn in the first half of 2024.
The other factor affecting Saipem stock is the confirmation of its BB+ rating by S&P, with stable outlook. "The confirmation of the rating by S&P," say analysts at Intermonte, "reflects expectations of a solid performance over the next two years, which should allow the company to continue to reduce debt and increase its rating leeway. Intermonte has a buy rating with a target price of €3 for Saipem.
