Saipem SpA
MIL:SPM
Saipem SpA
In the intricate world of oil and gas, Saipem SpA stands as a prominent player, weaving a legacy deeply entrenched in the exploration, production, and transportation of energy resources. Originally a subsidiary of Italian energy giant ENI, Saipem has matured over the decades into a formidable engineering and construction company specializing in the oil and gas sector. Its operations span the globe, with a significant footprint in offshore and onshore projects, which include building complex infrastructures, pipelines, rigs, and platforms essential for the extraction and processing of hydrocarbons. By leveraging its expertise in harsh and challenging environments, Saipem not only constructs but also maintains critical infrastructure, ensuring the seamless continuity of energy flows from remote blocks in the ocean to metropolitan refineries and distribution networks.
Saipem's business model revolves around delivering comprehensive and innovative solutions, which enable it to generate revenue from various facets of the energy sector. Through its Engineering & Construction (E&C) and Drilling divisions, Saipem designs and executes large-scale projects, crafting bespoke solutions tailored to client needs across different terrains and climates. The company's Drilling division, both onshore and offshore, further complements its portfolio, providing services to national and international oil companies. Revenue streams are strengthened by long-term contracts with robust pipelines of projects, underscoring its role as a reliable partner in the energy supply chain. In an era where energy demands are evolving, Saipem continues to adapt by venturing into technology innovation and sustainability initiatives, seeking to navigate the shift towards cleaner energy sources while maintaining its prowess in traditional oil and gas ventures.
In the intricate world of oil and gas, Saipem SpA stands as a prominent player, weaving a legacy deeply entrenched in the exploration, production, and transportation of energy resources. Originally a subsidiary of Italian energy giant ENI, Saipem has matured over the decades into a formidable engineering and construction company specializing in the oil and gas sector. Its operations span the globe, with a significant footprint in offshore and onshore projects, which include building complex infrastructures, pipelines, rigs, and platforms essential for the extraction and processing of hydrocarbons. By leveraging its expertise in harsh and challenging environments, Saipem not only constructs but also maintains critical infrastructure, ensuring the seamless continuity of energy flows from remote blocks in the ocean to metropolitan refineries and distribution networks.
Saipem's business model revolves around delivering comprehensive and innovative solutions, which enable it to generate revenue from various facets of the energy sector. Through its Engineering & Construction (E&C) and Drilling divisions, Saipem designs and executes large-scale projects, crafting bespoke solutions tailored to client needs across different terrains and climates. The company's Drilling division, both onshore and offshore, further complements its portfolio, providing services to national and international oil companies. Revenue streams are strengthened by long-term contracts with robust pipelines of projects, underscoring its role as a reliable partner in the energy supply chain. In an era where energy demands are evolving, Saipem continues to adapt by venturing into technology innovation and sustainability initiatives, seeking to navigate the shift towards cleaner energy sources while maintaining its prowess in traditional oil and gas ventures.
Record Q1 Results: Saipem delivered its strongest first-quarter performance in a decade, with record highs in revenue, EBITDA, and cash flow.
Revenue Growth: Revenue reached EUR 3.5 billion, up 15% year-on-year, driven by strong offshore business and higher order execution.
Profitability: EBITDA grew by 31% to EUR 351 million, with margin improvements to 10%. Net income increased by 35% to EUR 77 million.
Cash Flow & Debt: Operating cash flow hit EUR 395 million, and net debt was reduced by EUR 285 million. Available cash stands at EUR 1.6 billion.
Backlog & Visibility: The backlog remains near record highs, providing strong revenue visibility for 2025 and 2026, with 90% of 2025 revenue already covered.
Order Intake & Strategy: Q1 order intake was EUR 2.1 billion, in line with previous years, and new contracts reflect a lower-risk, value-over-volume approach focused on energy transition.
Guidance Confirmed: Management reiterated full-year 2025 guidance, including the EUR 500 million free cash flow target after lease repayments.
No Immediate Macro Impact: Management sees no significant direct impact from global tariffs or recent macro volatility, and customer activity remains robust.
