This is how much Saipem’s accounts sink
Saipem suffers on the stock market after the half-yearly accounts (revenues and net profit down). Do you need a capital increase? Here are numbers, comments and scenarios.
Storm on Saipem on the stock market after the quarterly accounts. Do you need a capital increase? Here are numbers, comments and scenarios.
WHAT SAIPEM CFO SAID ABOUT THE CAPITAL INCREASE
Saipem does not need any capital increase. This is what the CFO Antonio Pacciorett i declared in conference call with analysts. In the past, some brokers had hypothesized the need for a recapitalization if the current situation of strong uncertainty continued with further negative repercussions on the business. Hypothesis today therefore removed from management.
BAG EFFECT FOR SAIPEM
Saipem fell sharply in Piazza Affari, after the company announced that it had closed the first half of the year with a loss of 779 million euros. The accounts turned out to be below expectations. The securities sold at 10 am 4.3%, settling at € 1.93.
CHAPTER REVENUES AND NET PROFIT FOR SAIPEM
The company announced that in the first six months of 2021 it had revenues of 3.2 billion (-13%), a negative adjusted Ebitda of 266 million (positive of 355 million in the first half of 2020) and a negative net result of 779. million (loss of 885 million euros in the first half of 2020).
HOW SAIPEM'S DEBT GROWS
Technical investments decreased to 135 million (from 195 million) and net financial debt including IFRS16 lease liabilities increased to 1.4 billion (from 1.22 billion at the end of 2020).
THE NEW ORDERS OF SAIPEM
The company announced the acquisition of new orders for 4.4 billion (4.8 in the first half of 2020), with a residual order backlog of 23.6 billion which increases to 26.17 billion including the order backlog of non-Italian companies. consolidated.
THE NEW GUIDANCE OF SAIPEM
Saipem also presented the guidance for the second half (in the last year it had not been provided in light of the strong uncertainties): revenues are expected between 4.5 and 5 billion, a positive adjusted Ebitda, technical investments expected between 200 and 300 million and net financial debt at the end of the year post-IFRS 16 of around 1.6 billion.
THE NEW INDUSTRIAL PLAN
The new one to Francesco Caio is working on the new industrial plan that will be presented in the autumn and has already identified 84 initiatives for total annual savings estimated at around 100 million euros when fully operational. 'Saipem has the resources, skills and relationships with customers that allow us to plan the near future with a view to profitable growth, even in a challenging context still characterized by the uncertainties deriving from Covid-19', said the manager.
CAPITAL INCREASE DOSSIER
Analysts, however, are wondering whether it is necessary to strengthen capital. This possibility, however, was ruled out as said by the financial director, who declared: 'Saipem does not need any capital increase'.
THE JUDGMENT OF THE ANALYSTS
Banca Akros has cut the judgment and the price target in the light of the accounts: the first from 'Buy' has passed to 'Neutral', while the target price has been set at 2.03 euros, from the previous 2, 2 euros. 'The results are clearly below expectations and the net debt has grown. In addition, there is little visibility on the short-medium term prospects. So 'we adjusted the estimates to take into account the results and the increase in debt', the experts explained. Equita also recommends caution, after having defined the below-expected accounts. The sim recommends a 'Hold' on the shares, for which it calculates a price target of 2 euros.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/ecco-quanto-affondano-i-conti-di-saipem/ on Fri, 30 Jul 2021 08:41:35 +0000.