Saipem targets $19 billion of contracts in second half of 2025

Saipem will more than double the number of bids submitted for major contracts in the second half of 2025, compared to the first six months.

This number completely overshadows the bids submitted in the first half of 2025 which were targeting contracts valued in aggregate at some €7 billion.

Chief executive Alessandro Puliti told analysts on Thursday morning that he expected news to emerge soon on the status of some bids.

"We are in the final stages of several tenders we submitted. Some of them, we're really in the very, very final negotiation stages," adding that results are expected "in the next couple of months".

Of the the number of opportunities, or contracting prospects, that could be awarded in the coming eight to 12 months, Puliti said: "Onshore, we are bidding prospects in the range of €15 billion that can be assigned."

However, speaking in the company's second-quarter conference call, he cautioned that the market is tough, so Saipem will continue to be very choosy about the contracts it takes on.

"To tell you frankly, the competition is very strong. We will be very selective. We want to make sure that our onshore activity is robust, is done in a de-risked manner and with the right price," he said.

These comments came in the context of a number of earlier questions from analysts about Saipem's liabilities, particularly a disastrous clean fuels refinery project in Thailand.

Saipem, Samsung E&A and Petrofac were responsible for the refinery upgrade but their work was hit by major problems leading to cancellation of the contract in April.

The client, Thai Oil — which has lined up another contractor to finish off the work — has now taken the three former incumbents to arbitration.

Puliti said: "On the ground, what is going on is that we're orderly handing over the project to the client."

Commenting on the impact of lower commodity prices on project timelines, he said Saipem has discerned a shift to awarding contracts more in the second half of the year than the first part of 2025.

"This is a normal dynamic, but this year what I see is stronger than the year before," he said.

The value of Saipem's commercial opportunities pipelines remains at €53 billion, unchanged from December 2024.

He also noted that clients continue to be unhappy with contractor quotes.

"Clients they are never happy with the price we submit. They always consider that we are too expensive. That's their mood — always," he said.