Saipem Raises Expectations after Exceeding 2022 Targets

Italian energy services group Saipem on Monday raised its earnings expectations for 2023 and the next few years after beating 2022 targets as its restructuring plan started to bear fruit. 

The company reported adjusted core earnings of 595 million euros ($631 million) on sales of 9.98 billion euros last year. 

This compares with the company’s previous guidance for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of over 500 million euros and revenue of over 9 billion euros. 

Saipem, whose key investors include energy group Eni and Italian state lender CDP, last year had to raise 2 billion euros and sell assets to plug a hole in its balance sheet due to cost overruns at several contracts. 

After a strategy revision announced in March, adjusted net loss shrank to 139 million euros last year from 1.9 billion euros in 2021. Saipem cited positive market momentum and its improved performance for the revised outlook. It now estimates adjusted EBITDA of around 850 million euros, up from 800 million euros indicated in March. 

Capital expenditures are expected around 450 million euros, it said in a statement. Adjusted EBITDA is seen increasing to over 1.2 billion euros in the final year of its 2023-26 strategic plan. 

Saipem said it was confident about acquiring contracts for its engineering and construction business worth about 46 billion euros and for offshore drilling of 3 billion euros over the next four years.

($1 = 0.9429 euros)

 (Reuters – Reporting by Francesca Landini; Editing by Richard Chang)