Home Business Saipem, what does the 4 billion plan to save the group foresee

Saipem, what does the 4 billion plan to save the group foresee


The intervention to save could amount to € 4 billion Saipem. The agency reports it Bloomberg explaining that 2 billion would come from a possible capital increase1 billion would be the revolving credit line subscribed by the banks and 1 billion would be the proceeds from the possible sale of drilling activities.
If the capital increase were two billion, as announced, Eniwhich controls 30% of the group, should write a check for 600 million, Cdpwhich instead represents 12.5%, should sign one worth 250 million.

Major details will arrive on March 15th, day in which the board will meet again to give the green light to new business plan and the financial maneuver essential to revive the destinies of the group. The key aspects of the new plan, in addition to the capital increase; the focus on the core business and derisking of potential divestments (drilling); and a rescheduling of the banks’ debt and waiver on loans.

We believe that the steps necessary to restore balance sheet balance have been initiated with the arrival of the new managers and the formulation of the strategic and restructuring plan ‘, commented Equita analysts. As for Intesa Sanpaolo, its experts consider that ‘the market will appreciate the focus on de-risking the order book’ while as regards the capital increase they believe that ‘the current share price is discounting the issue of rights for one operation of 1.5 billion euros with a discount of about 40% on the Terp (theoretical price ex law) ‘.

Pending the preliminary balance, Saipem stock -40% from the beginning of the year

Before that date, which is the February 24Saipem will announce the data of the preliminary balance sheet 2021 and the guidelines of the strategic review initiated by Alessandro Cleanthe manager who came to Eni to help solve Saipem’s problems who, on January 31 last year, raised a profit alarm: revenues for the second half of the year amounted to 3.5 billion compared to an estimated 4.5 billion, including margins they are one billion below expectations, with a loss for the whole of 2021 of more than one third of the share capital.

A red that, in accordance with the civil code, opens the door to capital strengthening interventions. At the base of the losses there would be several factors starting with stop to work in Mozambique commissioned by the French group Total which caused a reduction in revenues of over one billion euros. Also heavy effects of the pandemic, which resulted in a sudden freeze on investments by oil companies. The main shareholder Eni therefore decided to support his man Alessandro Puliti alongside Caio.

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Since the day of the announcement of the losses (last January 28) Saipem has lost about 40% of its value on the stock exchange with a capitalization that has thinned to 1.1 billion euros.

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