Saipem, Italy's largest energy company, increases its 2024 forecast and confirms dividend plan
Saipem, an Italian energy contractor, raised its full-year forecast and confirmed that it will resume dividend payments in 2019, after exceeding expectations for the third-quarter results.
The group reported adjusted earnings between July and Septembre of 340 millions euros ($366million), above the analyst consensus of 323 millions euros compiled by LSEG.
New contracts reached 6.4 billion euro in the third quarter thanks to projects awarded by Qatar and Saudi Arabia.
Saipem expects to sell more than 14 billion euros in 2024, compared with a range previously between 12.7 billion euros and 13.3 billion.
EBITDA is projected to be greater than 1.3 billion euro in 2024, and the capital expenditure is estimated at less than 400 million euro.
In a press release, Saipem confirmed its dividend policy. It will distribute between 30 and 40 percent of the free cash flow after the repayment of lease obligations. The first dividend is expected to be paid out in 2025 based on 2024 results.
Saipem has won a contract for an offshore oil development project in Saudi Arabia worth $2 billion.
The company also won offshore contracts worth around $1 billion from Saudi Aramco and a contract worth $4 billion from QatarEnergy - one of the top LNG suppliers in the world. (1 euro = $0.9281) (Reporting and editing by Francesca Landini)
(source: Reuters)
