SAPMY - Long-Term Project Activities Are Strong But Debt Overload Is Saipem's Problem
Saipem Is Likely To See A Gradual Recovery Phase
Saipem S.p.A. ADR (SAPMY) provides drilling services, engineering, procurement, construction, and installation (or EPIC) of pipelines and complex projects in the onshore and offshore energy market. I think SAPMY's stock price is more likely to exhibit range-bound movement in the short term. Given the recovery in the international upstream projects, it is expected to offer robust returns in the medium-to-long-term.
A couple of factors are likely to put SAPMY's business on the path of recovery. These are higher crude oil price and increased tendering