Published by Global Banking and Finance Review
Posted on February 25, 2025
MILAN (Reuters) - Italian energy contractor Saipem, which has agreed to merge with Norwegian rival Subsea 7, said on Tuesday it would resume paying a dividend after a four-year break.
The group said it would pay 333 million euros ($350 million) in dividends this year. It expects to pay at least another $300 million in 2026.
It also committed to slash gross debt by around 650 million euros by repaying all the maturities due in the 2025-27 period to improve its credit rating to investment grade.
The Saipem-Subsea 7 merger, announced over the weekend, will create a leading global player in offshore energy services.
Saipem published last year's results and its updated strategy, which does not take into account the merger expected to close in the second half of 2026.
In the 2025-28 period, Saipem aims to launch a consultancy service for project management and be more selective in taking onshore engineering and construction contracts to improve margins and reduce risks.
It plans to achieve revenue of 15 billion euros and earnings before interest, taxes, depreciation and amortisation of 1.6 billion euros this year.
Saipem ended 2024 with a record order intake that increased its backlog to an all-time high of 34 billion euros, while adjusted EBITDA rose 44% year on year to 1.3 billion euros.
"Saipem's performance in 2024 confirms ... the trajectory of growth and margin recovery of the group," it said in a statement.
The group, which counts energy group Eni and Italian state lender CDP as key investors, in 2022 had to raise 2 billion euros and sell assets to plug a hole in its 2021 balance sheet due to cost overruns at several contracts.
Since then it has restructured operations under a new management team and returned to full-year profit in 2023.
($1 = 0.9512 euros)
(Reporting by Francesca Landini; Editing by Richard Chang)
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