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1. Company Snapshot

1.a. Company Description

Saipem SpA provides energy and infrastructure solutions worldwide.The company operates through five divisions: Offshore Engineering & Construction (E&C), Onshore Engineering & Construction, Offshore Drilling, Onshore Drilling, and XSIGHT.It offers engineering, construction, installation of platforms, pipelines, subsea fields, maintenance, modification, operation, and decommissioning activities, as well as develops marine wind farms and energy integration projects.


The company also designs onshore project in the LNG and regasification, refining, petrochemical, fertilizers, pipelines, gas, oil processing stations, floaters, renewables, biotechnologies, CO2 capture, transportation, storage, and hydrogen production and transportation.In addition, the company provides procurement, project management, construction, and engineering integrated services for the energy industry markets and public infrastructures, as well as offshore and onshore drilling services on all types of rigs and in all geographical areas.As of December 31, 2021, its offshore drilling fleet consisted of twelve vessels, including six ultra-deep-water units, five high specification jack-ups, and one standard jack-ups.


The company also operates 9 fabrication yards and a sea fleet of 41 vessels; and onshore drilling fleet comprised 84 units.Saipem S.p.A. is headquartered in Milan, Italy.

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1.b. Last Insights on SPM

Saipem SpA's recent performance has been bolstered by several key developments. The company has secured a significant contract for the Liverpool Bay Carbon Capture and Storage (CCS) project in the UK, valued at €520 million. This project will support the HyNet industrial cluster, underscoring Saipem's expertise in large-scale energy infrastructure development. Furthermore, Saipem has renewed its Long-Term Agreement (LTA) with Saudi Aramco until 2027, solidifying its position as a preferred contractor for offshore project contracts. This strategic partnership will provide Saipem with a steady stream of opportunities in the region.

1.c. Company Highlights

2. Saipem's H1 2025 Results: Strong Revenue and EBITDA Growth

Saipem reported a robust financial performance in the first half of 2025, with revenue increasing by 12% year-on-year to EUR 7.2 billion. EBITDA grew by 35% to EUR 764 million, resulting in an improved EBITDA margin of 10.6% compared to 8.8% in H1 2024. The company's EPS came in at EUR 0.04, in line with analyst estimates. The strong EBITDA growth was driven by the asset-based services segment, which saw an 18% increase in revenue and a 38% rise in EBITDA.

Publication Date: Jul -29

📋 Highlights
  • Revenue Growth: Revenue increased by 12% year-on-year to EUR7.2 billion in H1 2025.
  • EBITDA Improvement: EBITDA grew 35% to EUR764 million, with a margin of 10.6% compared to 8.8% in H1 2024.
  • Strong Backlog: The company's backlog provides visibility for 2025 and 2026, with expectations of double-digit revenue growth in H2 2025.
  • Asset-Based Services: Asset-based services revenue rose 18% to EUR4.1 billion, driven by SURF and conventional activities.
  • Robust Liquidity: Saipem reported over EUR3 billion in liquidity and EUR1.3 billion in available cash, supporting its operations and investments.

Segmental Performance

Saipem's asset-based services revenue increased to EUR 4.1 billion, driven by SURF and conventional activities, with EBITDA standing at EUR 539 million. Drilling Offshore revenue remained stable at EUR 461 million, while EBITDA grew by 11% to EUR 185 million. Energy Carriers revenue grew by 6% to EUR 2.7 billion, with an improving EBITDA margin of 1.5%. As Alessandro Puliti, CEO of Saipem, noted, "The company is confident about seeing an increase in booking levels in the next couple of months due to several tenders in the final negotiation stages."

Cash Flow and Liquidity

Saipem generated EUR 842 million in operating cash flow, driven by EBITDA growth and working capital movements. The company's liquidity position remains robust, with over EUR 3 billion in liquidity and EUR 1.3 billion in available cash. However, cash flow generation is expected to be marginally positive in H2 2025, lower than H1 2025, due to working capital dynamics.

Valuation and Outlook

With a P/E Ratio of 14.09 and an EV/EBITDA ratio of 3.17, Saipem's valuation appears reasonable. The company's ROE stands at 12.79%, indicating a decent return on equity. Saipem expects double-digit revenue growth in H2 2025 and further EBITDA margin improvement. Analysts estimate revenue growth of 2.7% for the next year. The company's guidance for 2025 remains unchanged, and it expects an acceleration in new awards in H2 2025.

Growth Prospects

Saipem has made significant progress in CCUS projects, with EUR 2 billion in current projects, and is advancing its service businesses. The company's commercial pipeline remains unchanged at EUR 53 billion, providing visibility for future growth. With a strong backlog and a robust liquidity position, Saipem is well-positioned to capitalize on emerging opportunities in the energy sector.

3. NewsRoom

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Is the Subsea 7-Saipem Combination Too Powerful for Brazil?

Dec -04

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Oil and gas contracts value reports decrease in Q3 2025

Dec -01

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Is Saipem Attractively Priced After Recent Energy Project Wins?

Nov -03

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Oil and gas contractors supporting industry players in meeting net-zero goals

Oct -31

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New well in Zohr field enhances Egypt’s natural gas production

Oct -30

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Saipem secures offshore drilling contracts worth $135m

Oct -22

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Saipem Wins $700 Million Offshore Contracts for BP’s Shah Deniz Project

Oct -16

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Is Saipem (BIT:SPM) Undervalued? A Fresh Look at Its Growth and Fair Value

Oct -11

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.66%)

6. Segments

Asset Based Services

Expected Growth: 2.5%

Saipem SpA's Asset Based Services segment growth of 2.5% is driven by increasing demand for maintenance and operations services in the energy sector, coupled with the company's strategic focus on expanding its presence in the Middle East and Africa regions. Additionally, the segment benefits from Saipem's strong track record in project execution and its ability to provide integrated services to clients.

Energy Carriers

Expected Growth: 2.8%

Saipem SpA's Energy Carriers segment growth of 2.8% is driven by increasing global demand for LNG and LPG, expansion of offshore gas production, and rising investments in floating liquefaction and regasification units. Additionally, the company's strategic partnerships and technological advancements in vessel design and construction contribute to its growth momentum.

Offshore Drilling

Expected Growth: 3.2%

Saipem SpA's 3.2% growth in Offshore Drilling is driven by increasing demand for deepwater exploration, rising oil prices, and growing investments in renewable energy. Additionally, the company's strategic partnerships, technological advancements, and expanding presence in emerging markets contribute to its growth momentum.

7. Detailed Products

Offshore Drilling

Saipem provides offshore drilling services for oil and gas exploration and production, utilizing a fleet of drilling rigs and vessels.

Onshore Drilling

Saipem offers onshore drilling services for oil and gas exploration and production, utilizing a range of drilling rigs and equipment.

Engineering and Construction

Saipem provides engineering, procurement, and construction (EPC) services for oil and gas infrastructure, including pipelines, refineries, and processing facilities.

Installation of Pipelines and Umbilicals

Saipem installs pipelines and umbilicals for the transportation of oil and gas, as well as for the installation of offshore platforms and wind farms.

FPSO and FSO Services

Saipem provides services for the design, construction, and operation of floating production, storage, and offloading (FPSO) and floating storage and offloading (FSO) units.

Decommissioning and Abandonment

Saipem provides services for the decommissioning and abandonment of oil and gas fields, including the removal of offshore platforms and pipelines.

Renewable Energy Services

Saipem provides services for the development of renewable energy projects, including wind farms, solar farms, and hydrogen production facilities.

8. Saipem SpA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Saipem SpA is medium due to the presence of alternative energy sources and the increasing focus on renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for Saipem SpA is low due to the company's strong relationships with its clients and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Saipem SpA is medium due to the presence of a few large suppliers in the industry, but the company's strong relationships with its suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Saipem SpA is low due to the high barriers to entry in the industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry for Saipem SpA is high due to the presence of several large competitors in the industry, leading to a highly competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.91%
Debt Cost 13.74%
Equity Weight 47.09%
Equity Cost 13.74%
WACC 13.74%
Leverage 112.35%

11. Quality Control: Saipem SpA passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.2/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.44$

Current Price

2.44$

Potential

-0.00%

Expected Cash-Flows