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Saipem is one of the largest oilfield services companies in the world, and its headquarters is in San Donato, Milanese, Italy. Its full name is Società Anonima Italiana Perforazioni E Montaggi. The company was founded in 1957 when drilling company Saip merged with energy infrastructure company Snam Montaggi. It was formerly a subsidiary of Italian oil and gas company Eni but became autonomous in 2016 when Eni sold 12.5% of its stake. Eni retains a 30% share in Saipem as of April 2022.
Enrico Mattei is the founder of Saipem, and he is credited with transforming Italy’s oil industry to become more self-reliant during the 1950s. Saipem revolutionized offshore drilling and pipelines in Europe and has since expanded worldwide.
From the 1970s to the 1990s, Saipem constructed several major pipelines. These include the Trans-Mediterranean Pipeline that links Algeria to Italy, the Maghreb–Europe Gas Pipeline that links Algeria to Spain, and the Europipe I and Europipe II gas lines that connect Norway to Germany.
However, the company has also experienced controversies related to its business practices. Saipem paid a $30 million penalty in Nigeria in 2010 to settle a bribery investigation by the country’s government. The Italian government also found the company and its former CEO guilty of bribery and corruption in Algeria in 2018. This resulted in 197.9 million Euros being seized from the company.
Fast forward to 2022, Saipem and its approximately 90 subsidiaries have offices in over 60 countries ranging from Europe, the Americas, Africa, the Middle East, and Oceania. The company’s main lines of business range from remote areas and deepwater activities to hydrocarbon and fertilizer production, renewable energy development, and infrastructure construction and decommissioning.
Saipem Stock History
Saipem has been publicly traded on the Milan Stock Exchange since April 20, 1987. The symbol for Saipem is SPM.MI. As of April 2022, the company has a market cap of €1.153 billion.
When it went public in April 1987, the SPM stock started trading at €2.71 per share. At the close of the market on April 22, 2022, the shares traded at €1.16 each. The Saipem stock chart reached an all-time high price of €48.75 on March 1, 2012. The lowest recorded price per share was €0.95, which occurred in October 1991.
Although investors do not receive a dividend every year, Saipem pays dividends yearly. The highest dividend investors received was €0.70 per share in 2013. There were no dividends paid between 2014-and 2019. The most recent dividend paid was in 2020, and it totalled €0.01 per share.
How to Trade Saipem Stock
The Saipem stock price has experienced market forces that positively and negatively affected its stock price. The beginning of 2020 showed positive growth for Saipem shares. This was due to a trade agreement reached between the United States and China and new drilling contracts awarded that suggested stabilization in the energy sector.
However, the global economic crisis that resulted from the COVID-19 pandemic resulted in high price volatility for the greater market. This, coupled with the reduced demand and subsequent decrease in energy prices, caused a 49% decrease in Saipem stock price.
In general, there are several factors to consider when trading Saipem stock. External factors, such as the ones mentioned above, are key indicators of where the market may be heading. In addition, the results of OPEC meetings can directly impact energy stock prices. Oil producers failed to reach an agreement during the OPEC meeting on March 5, 2020, and Saipem shares fell by 31% between March 6 and March 12 of that year.
New legislation and regulations affecting energy production and import/export in countries where Saipem is active are another factor to be aware of. Quotas, prices, taxes, and trade agreements between countries can impact the share price for all energy companies, including Saipem. Economic recessions on a regional or global scale also affect energy consumption and prices.
Demand for more sustainable and renewable energy sources has been growing during the past decade, causing several industry players to start incorporating greener technologies into their operations. Saipem has taken a proactive approach to sustainability by reducing its environmental impact and tapping into the fast-growing wind and solar energy sectors. Saipem developed the world’s first floating wind farm in the North Sea and is currently working on the first floating solar park off the Norwegian coast.
Saipem’s top competitors include Worley, Nabors, and Oceaneering, publicly-traded companies. Private competitors include McDermott and Bechtel. Bechtel had the highest revenue of all of these companies in the fiscal year 2020, generating $17.6 billion.
Saipem Periodic Earnings
Saipem’s fiscal year ends on December 31. The company reports its earnings quarterly. In the fiscal year 2019, Saipem reported 9.1 billion EUR in revenue. In 2020, this figure dropped -by 19.6% to 7.34 billion EUR.
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** Disclaimer –While due research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.
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