Saipem announced that it has been awarded two new engineering and construction offshore contracts in Romania and in Germany with a total value of around EUR 1.8 billion ($1.97 billion).
With these acquisitions, Saipem confirms its leading role in the construction of infrastructures along the entire natural gas value chain, the company noted in a release sent to Rigzone.
In the release, Saipem outlined that its Romania deal relates to the Neptun Deep Gas Development Project located in the Black Sea, “for which the award procedure was completed by OMV Petrom”. The workscope for this contract includes the engineering, procurement, construction, and installation (EPCIC) of a gas processing platform at around 100 meters of water depth, three subsea developments, a 30-inch gas pipeline around 160 km long, and associated fiber optic cable from the shallow water platform to the Romanian coast, the company highlighted in the statement.
The gas processing platform will be fabricated at Saipem’s yards in Italy and Indonesia, and the offshore operations will be performed by the Saipem 7000 and JSD 6000 vessels, Saipem revealed, adding that the technological tests and analyzes for the materials used in the project will be carried out in Romania through the local entity of Saipem in Ploiesti.
Saipem’s Germany contract was awarded to the company by GASCADE Gastransport GmbH to execute the pipelaying of the ‘Ostsee Anbindungsleitung’ in the Pomeranian Bay in north-eastern Germany, Saipem highlighted in the release.
The company’s workscope for this deal includes the transportation and installation of a 48-inch gas line of around 50 km from the Lubmin site in northern Germany on the Baltic Sea to the Mukran port, along the east coast of the Rügen island, and the construction of landfalls, utilizing its own pipelay barge Castoro 10, Saipem noted in the release.
H1 Revenues, Order Intake, Backlog
In its first half 2023 results statement, which was posted on the company’s site last month, Saipem reported first half revenues of EUR 5.3 billion ($5.79 billion) and adjusted EBITDA of EUR 410 million ($448 million).
The former was up 28 percent compared to the EUR 4.2 billion ($4.59 billion) posted in the same period last year, and the latter was up 56 percent compared to the EUR 263 million ($287 million) reported in the corresponding period of 2022, Saipem highlighted in the results statement.
Saipem reported positive net results of EUR 40 million ($43.77 million) in the first half of 2023, compared to a loss of EUR 130 million ($142.26 million) in the same period last year. The company recorded an order intake of EUR 6.7 billion ($7.33 billion) during the period, which it pointed out in the results statement was up 58 percent compared to the corresponding period of 2022.
Over 80 percent of new contracts were in offshore business (engineering & construction and drilling), Saipem highlighted in the results, adding that its consolidated backlog has increased by over EUR 1 billion ($1.09 billion) compared to December 31, 2022.
Notable Deals
On June 28, Saipem revealed that it had been awarded two new contracts worth an overall amount of around $1 billion. One of these was for EPCI offshore activities in the Middle East and the other was for the development of underwater drones in Brazil, the company revealed at the time.
In May, Saipem announced that it had been awarded two new offshore contracts, one for an EPCI project in the Black Sea and one for decommissioning activities in the North Sea. The overall value of the contracts amounts to approximately $850 million, the company highlighted at the time.
Back in January, Saipem said it had been awarded two offshore contracts for a total amount of approximately $900 million. The company outlined that one of these was awarded by TotalEnergies for the LAPA Southwest (LAPA SW) Development Project and the other was awarded by Equinor for the Irpa Pipeline project.
In December 2022, Saipem announced that it had been awarded new contracts in Guyana and Egypt for a total amount of approximately $1.2 billion. The first contract was awarded by ExxonMobil Guyana for the UARU oil field development project and the second was awarded by Petrobel for the transportation, installation, and pre-commissioning of 170 km of umbilicals for the Zohr Field, according to Saipem.
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