Saipem SpA

SPM: XMIL (ITA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€4.10	Wpxw	Zwkmqhfm

Saipem: QatarEnergy Contract Award Causes Us to Lift Our Fair Value Estimate by 12%

Joshua Aguilar

Sep 16, 2024

On Sept. 16, The Wall Street Journal reported that no-moat Saipem was awarded a $4 billion contract from QatarEnergy. After incorporating the incremental benefits in Saipem’s offshore engineering and construction segment, where we presume the incremental revenue opportunity will flow through, we lift our fair value estimate by 12% to EUR 2.80 from EUR 2.50. The raise was entirely due to the award, though after taking an additional look at the shares, we increased our country risk premium for the Italy-based oilfield-services company.

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