Saipem SPA has initiated the repurchase of up to 18.6 million shares for the 2024 portion of a three-year repurchase program.
Late last month, the Italian oilfield services company bought nearly 6.5 million shares for 14.3 million euros ($15.6 million), completing the 2023 portion of its 2023-25 long-term variable compensation plan. According to a company statement dated July 31, 2024, Saipem bought a total of nearly 29 million shares for 47.2 million euros ($51.5 million) under the 2023 portion.
The actual purchase of the 2023 portion was less than the 37 million shares authorized by shareholders at a maximum aggregate price of 59.3 million euros (64.7 million dollars).
For the 2024 portion, Saipem has 18 months to make purchases. “Based on the price of Saipem SpA shares on Borsa Italiana, Euronext Milan market/segment, on August 2, 2024, the potential maximum outlay for purchases under the program is estimated at approximately 40,220,000 euros ($43.9 million),” the Milan-based company said in a press release.
“Saipem currently holds 29,370,464 treasury shares, representing approximately 1.47 percent of the company’s share capital. No treasury shares are held through subsidiaries, trustees or intermediaries,” said Saipem, which is also backed by state-controlled Eni SPA.
Saipem’s investors approved the long-term variable incentive plan last year. The purchases depend on the company’s financial performance, it said on May 3, 2023 when announcing the shareholders’ approval.
For the first half of 2024, Saipem reported net profit of 118 million euros ($128.8 million), up from 40 million euros ($43.7 million) in the same period of 2023. Revenue was 6.4 billion euros ($7 billion), up from 5.3 billion euros ($5.8 billion) in the first six months of last year. The increase in revenue was due to offshore engineering, construction and drilling. Adjusted EBITDA was 565 million euros ($616.9 million), or 8.8 percent of revenue, Saipem said in a press release dated July 24, 2024.
Saipem reported net cash flow of €455 million ($496.8 million) in the first half of 2024, compared to €142 million ($155 million) in the first half of 2023. At the end of June, the company had free cash flow of €271 million ($295.9 million).
Capital expenditures for the period January to June 2024 totaled EUR 194 million (USD 211.8 million), down from EUR 139 million (USD 151.8 million) in the corresponding period in 2023.
Saipem recorded an order backlog of 30.5 billion euros (33.3 billion dollars) at the end of the first half of 2024, of which 6.6 billion euros (7.2 billion dollars) are to be executed this year. The company won new orders worth 7.1 billion euros (7.8 billion dollars) during this period, “confirming the strong market demand and the group’s competitive offer, particularly in offshore activities and large integrated projects,” said Saipem.
Saipem closed the first half of 2024 with a negative financial position and net debt of 148 million euros (161.6 million dollars).
“The results achieved in the first half and second quarter of the year underline the continued growth of sales and margins, the acceleration of cash flow generation and the strengthening of the financial position,” said Saipem.
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