Saipem
Note: This is a daily stock update and the information stands true as of 24/10/24, 09:00 CET.
Company Update:
Expert Opinion:
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Company Update:
Q3 revenue came in at €3.71bn, beating consensus by c8%.
Q3 EBITDA came in at $340m, a 4% beat vs. Bloomberg consensus. The backlog stands strong at €33bn, with projects from Qatar and Saudi Arabia driving new contracts to €6.4bn in the quarter.
More importantly, the group revised up its FY guidance with revenue now estimated above €14bn and EBITDA above €1.3bn. We expect consensus will have to revise up its numbers quite significantly.
The group also announced it will resume its dividend payment policy next year with a payout ratio between 30%-40% of FCF post-lease repayment, translating to c. €0.10 per share, according to AV estimates.
Expert Opinion:
This is one of the key strong convictions of my analyst. She describes Saipem as a clear and compelling buy, and I fully agree with her assessment. Note also that the rumors of merger between Seadrill and Transocean could trigger further interest in the sector.
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.