SAPMY - Saipem's Short-Term Outlook Is Not Encouraging But Robust Backlog Can Improve Long-Term Returns
Expect Saipem To Move Sideways
Saipem S.p.A. (SAPMY) offers engineering, drilling, and construction of major projects in the energy and infrastructure sectors. The company's backlog has increased in leaps and bounds after bagging a few significant LNG projects, including the Arctic 2 project. The LNG-related activities will be the key to keeping it going in the medium-term, although the low natural gas price will keep growth potential muted for now. With relatively low debt repayment obligation, I think the stock is likely to offer robust returns in the medium-to-long-term.
In 2019 so far,