Saipem rebounds in Q1

Saipem achieved a 65% year/year earnings increase to €145mn ($157.2mn) in the period from January to March, marking a recovery from its behemoth €1.2bn ($1.3bn) EBITDA loss for 2021.

The company's adjusted EBITDA rose from €88mn in the first three months of 2021. Revenues climbed by 20% year-on-year to €1.9bn, driven by drilling services and offshore engineering and construction (E&C) contracts.

Saipem is emphasising its core strengths in offshore drilling and E&C as part of its strategy through to 2025, as well as longer-term growth in the wind sector. The plans were adjusted after delays in offshore wind contracts led to the hefty loss for Saipem last year.

Saipem's E&C offshore unit posted adjusted core earnings of €65mn in the first quarter, as margins climbed from 1.4% to 7.8% yr/yr. Adjusted EBITDA at the drilling sector almost doubled yr/yr to €40mn.

In its strategic guidance for 2021 to 2025, Saipem expects to generate €24bn from new offshore E&C projects, up from €14bn in the original strategy published last October.

Strong first quarter financials also strengthen the appeal of a €2.2bn capital increase announced by Saipem on March 25.