SAPMY - Saipem Is Not Far From A Rebound
Saipem Faces Short-Term Challenges
In the near term, Saipem SpA’s (SAPMY) primary headwinds include phasing out of major high-margin EPCI (Engineering Procurement Construction and Installation) projects in some international territories and delays in final investment decisions in the upstream projects. Also, because the drilling contract rates have declined in the current downturn, its operating margin is unlikely to improve soon.
The company’s backlog has continued to increase in 2020 following addition to the natural gas-related projects and the subsea and offshore projects in recent times. I do not expect the stock price to