Company Reports

On Sept. 16, The Wall Street Journal reported that no-moat Saipem was awarded a $4 billion contract from QatarEnergy. After incorporating the incremental benefits in Saipem’s offshore engineering and construction segment, where we presume the incremental revenue opportunity will flow through, we lift our fair value estimate by 12% to EUR 2.80 from EUR 2.50. The raise was entirely due to the award, though after taking an additional look at the shares, we increased our country risk premium for the Italy-based oilfield-services company.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

Saipem delivered a solid second quarter, as the ever-robust pipeline for offshore oil and gas projects continues yielding long-term contracts worldwide. We maintain our no-moat rating and EUR 2.50 fair value estimate following results. At the time of writing, shares trade at a roughly 8% discount to our fair value.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

No-moat Saipem’s first-quarter results showed continued progress in improving margins and cash flow, in line with its 2024 targets. After incorporating the results into our model, we leave our EUR 2.50 fair value estimate unchanged. We view shares as slightly undervalued.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

No-moat-rated Saipem reported a strong and positive set of 2023 financial results, which sent shares up 13% on Feb. 29. Impressively, the company met or exceeded its 2023 guidance for revenue and EBITDA. Full-year revenue increased to EUR 11.9 billion and full-year adjusted EBITDA increased to EUR 926 million from EUR 9.98 billion and EUR 595 million, respectively. Adjusted EBITDA margin grew to 7.8% in 2023 from 6.0% in 2022. Additionally, 2024 guidance of EUR 13 billion and a 10% adjusted EBITDA margin surpassed our expectations. We plan to incorporate the results and guidance into our model shortly, but at first glance we expect to maintain our EUR 2.50 fair value estimate.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

Saipem continued on a solid growth trajectory in the third quarter as global offshore oil and gas activity continued to expand at a steady clip. Management confirmed the fiscal 2023 guidance it set in February, and we expect the firm will deliver similar performance in 2024. We maintain our no-moat rating and EUR 2.50 fair value estimate following the results.

Saipem offers services in three distinct business lines: asset-based services (handling engineering and construction for offshore oil and wind projects), energy carriers (covering onshore E&C), and offshore drilling.

Saipem’s second-quarter results reflect the significant acceleration in offshore oil and gas activity around the world. We maintain our no moat rating and EUR 2.50 fair value estimate following the results due to our favorable outlook for Saipem’s performance as the offshore industry commences what will likely be a multiyear upcycle. By our estimate, annual top-line growth will average 6% through 2027 with companywide adjusted EBITDA margins averaging 8% over the same period.

Saipem offers services in four distinct business lines: offshore engineering and construction, onshore E&C, offshore drilling, and onshore drilling.

No-moat Saipem posted solid first-quarter results, with revenue increasing 33% year over year and a firmwide adjusted EBITDA margin improving 100 basis points year over year to 7.5%. We're raising our fair value estimate to EUR 2.50 from EUR 2 following results.

Saipem posted solid fourth-quarter results as strengthening offshore activity around the world supported healthy demand for the firm’s drilling and engineering & construction (E&C) services. Total 2022 revenue jumped 53% year over year (excluding the onshore drilling segment, divested in the second quarter of 2022), and the firmwide EBITDA margin was 7% compared with negative 17% in 2021. We’ll incorporate the firm’s full financial results shortly, but for now we maintain our fair value estimate of EUR 2. Our no-moat rating and stable moat trend are also unchanged following results.

Saipem posted solid results in its third quarter as investment in offshore oil and gas production gains momentum around the world. We’re slightly raising our fair value estimate to EUR 2 per share following the results. Our no-moat rating, stable moat trend rating, and Morningstar Uncertainty Rating of Very High are unchanged.

Saipem offers services in four distinct business lines: offshore engineering and construction, onshore E&C, offshore drilling, and onshore drilling.

Saipem had a strong second quarter, posting sequential revenue growth of 22% and an EBITDA margin of 7%. After incorporating the results, we’re maintaining our fair value estimate. Our no-moat rating, stable moat trend, and Morningstar Uncertainty Rating of Very High are unchanged.

Saipem offers services in four distinct business lines: offshore engineering and construction, or E&C, onshore E&C, offshore drilling and onshore drilling.