Saipem Posts Higher Profit for First 9 Months

Saipem SpA has reported EUR 221 million ($256.45 million) in net income and adjusted net income for the first three quarters, up 7.3 percent from the same nine-month period last year.

Third-quarter (Q3) net result was EUR 81 million, up from EUR 63 million for Q2 but down from EUR 88 million for Q3 2024, the Italian energy engineering company said in a statement on its website.

Saipem said it did not record any non-recurring item for January-September 2025.

“The trend of improvement in operational, economic and financial performance that started in 2022 continues in the third quarter of 2025”, it said.

January-September 2025 operating profit and adjusted operating profit totaled EUR 464 million, up 11.3 percent.

“The positive change in adjusted operating profit of EUR 47 million, to which is added the effect of the improvement in the balance of tax operations of EUR 14 million, is partly offset by the worsening of the balance of financial operations of EUR 46 million”, Saipem, backed by state-controlled energy producer Eni SpA, said.

Q3 2025 operating profit was EUR 159 million, up from Q2’s EUR 148 million but down from EUR 162 million for Q3 2024.

January-September 2025 revenue totaled EUR 10.98 billion, up 8.4 percent against the first nine months of 2024.

Q3 2025 revenue increased both quarter-on-quarter and year-on-year to EUR 3.77 billion.

Backlog as of Q3 was EUR30.56 billion: EUR20.01 billion in Asset-Based Services, EUR 9.42 billion in Energy Carriers and EUR 1.13 billion in Offshore Drilling. “The Offshore Drilling backlog of EUR 1,129 million reflects the impact of the cancellation of the Perro Negro 12 jack-up rental contract, valued at EUR 35 million, following the notification of the termination for convenience by the client Saudi Aramco, in the second quarter of 2025”, Saipem said.

Saipem expects to execute EUR 3.72 billion of the total backlog in Q4.

“The backlog including non-consolidated companies as of September 30, 2025 amounted to EUR 30,686 million (EUR 34,257 million as of December 31, 2024)”, it added.

EBITDA and adjusted EBITDA for the first nine months of 2025 stood at EUR 1.2 billion, up 32.7 percent.

“Specifically, there was an improvement in both the Offshore and Onshore Engineering & Construction segments”, Saipem said.

Free cash flow was EUR 908 million. “Pre-IFRS [International Financial Reporting Standards] 16 net financial position as of September 30, 2025, amounted to net cash of EUR 844 million. Net financial position, including IFRS 16 lease liability of EUR 1,255 million, amounted to net debt of EUR 411 million”, Saipem said.

“Pre-IFRS 16 gross debt as of September 30, 2025, amounted to EUR 1,760 million, liquidity to EUR 2,604 million of which available cash for EUR 1,355 million”.

Saipem affirmed its 2025 guidance announced February, expecting around EUR 15 billion in revenue, around EUR 1.6 billion in EBITDA, around EUR 900 million in post-lease liabilities operating cash flow and at least EUR 500 million in free cash flow after the repayment of lease liabilities.

On July 24 Saipem and Subsea7 SA announced a binding merger deal, following an initial agreement last February.

Subsea7 shareholders would receive 6.688 Saipem shares for each Subsea7 share. The combined company’s share capital would be equally divided between the shareholders of Saipem and Luxembourg-registered Subsea7 assuming all the latter’s shareholders participate in the transaction, a joint statement said.

As the biggest shareholders of Saipem, Eni and CDP Equity SpA would respectively own about 10.6 percent and 6.4 percent of Saipem7, the resulting company. Siem Industries SA, Subsea7’s top shareholder, would own around 11.8 percent, the statement said.

The parties expect to complete the merger in the latter half of 2026 subject to regulatory approvals, votes by the shareholders of both Saipem and Subsea7 and other customary conditions. Eni, CDP Equity and Siem Industries signed an agreement to vote for the combination.

Saipem7 would inherit projects in over 60 countries and operate “a full spectrum of offshore and onshore services, from drilling, engineering and construction to life-of-field services and decommissioning, with an increased ability to optimize project scheduling for clients in oil, gas, carbon capture and renewable energy”, the statement said.

Saipem7 would have more than 60 construction vessels able to perform “shallow-water to ultra-deepwater operations, utilizing a full portfolio of heavy lift, high-end J-lay, S-lay and reel-lay rigid pipeline solutions, flexible pipe and umbilical lay services, as well as market-leading wind turbine, foundations and cable lay installation capabilities”.

It would be supported by a global workforce of approximately 44,000 people including over 9,000 engineers and project managers, according to the statement.

To contact the author, email jov.onsat@rigzone.com