Italian energy and LNG engineering company Saipem reports soaring revenues and backlog from rise in projects
Saipem, the Italian energy and LNG engineering company specialising in subsea and oil and gas development projects and pipelines, posted soaring third-quarter revenues of more than €3 billion ($3.2Bln) as global demand surged.
Saipem said revenues to the end of September 2023 amounted to €3.02Bln compared with €2.85Bln in the same three months of 2022.
Quarterly gross earnings increased to €230 million versus €168M in the prior-year quarter. Net profits in the quarter came in at €39M versus a loss of €8M in the same quarter last year.
The Milan-based company said new contracts added to the backlog in the first nine months of 2023 amounted to €11.92Bln, an increase from the €6.92Bln in the corresponding period of 2022.
The backlog as of September 30, 2023 amounted to a total of €27.57Bln. These contracts comprised €15.08Bln in asset-based services, €10.33Bln in Energy Carriers and €2.15Bln in Offshore Drilling of which €2.69Bln was being completed in 2023.
LNG awards
Saipem won contracts earlier in 2023 with three linked to increased LNG production in Angola, Trinidad and Papua New Guinea.
“Group performance further improved with another quarter of growth in terms of revenues, margins, net result and cash generation, confirming the trend already recorded in the first six months of the year,” said Saipem.
“The improvement is recorded in the Offshore, Engineering and Construction and Drilling divisions,” Saipem added.
Saipem is also showing continued traction in the Middle East. After the close of the quarter, on October 5, Saipem, in consortium with National Petroleum Construction Company (NPCC), signed on behalf of Abu Dhabi National Oil Company a contract related to the Hail and Ghasha development project-package one in the United Arab Emirates.
Saipem said its share of the contract amounted to around $4.1Bln. The project is aimed at developing the resources of the Hail and Ghasha natural gas fields located offshore Abu Dhabi.
The project scope of work encompasses the engineering, procurement and construction (EPC) of four drilling centres and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 kilometres of subsea pipelines.
Adriatic FSRU
As part of the domestic Italian LNG build-out Saipem was awarded a contract by Italian gas system operator SNAM for the construction of the associated facilities for the new Floating Storage and Regasification Unit (FSRU) to be located in the Adriatic Sea offshore Ravenna as Italy’s fifth import terminal.
The contract, awarded jointly via a temporary venture with two other Italian companies Rosetti Marino and Micoperi, comprises the EPC and installation of a new offshore facility and for the docking and mooring of the FSRU.
The latest Italian floating terminal will be connected to shore via a 26-inch offshore pipeline of 8.5km length, plus a 2.6 km onshore pipeline and a parallel fibre optic cable.
Perma-Pipe opens its largest production facility outside US in UAE to supply LNG and oil and gas sector
US company Perma-Pipe International Holdings has opened its largest production facility outside North America in Abu Dhabi in the United Arab Emirates to tap into the increasing Middle East production expansion in the LNG, oil and pipeline natural gas sectors.
Perma-Pipe, based in Spring, Texas, said the official opening of the facility was attended by President and Chief Executive David Mansfield and Chairman Jerry Walker as well as dignitaries from the UAE, Saudi Arabia and Qatar.
While Qatar is embarking on a major natural gas and LNG expansion, the UAE and Saudi Arabia are also expanding their natural gas sectors with plans for increased production and subsequent equipment needs.
The US company, which is listed on the Nasdaq global exchange, said the Abu Dhabi factory is on a six hectare site and is fully equipped with technologies to provide the latest environmentally-friendly products for pipelines, gas-gathering and pipe insulation .
“We have every reason to believe that the demand for clean energy, such as LNG and hydrogen, will continue to grow in the years to come,” said CEO Mansfield.
“This new development is not specific to the UAE only. It is an export hub to serve projects all over the world. We now have a factory that is unique with its wide product offerings and with the capacity to respond to the growing demand,” added Mansfield.
Pre-insulated pipes
Perma-Pipe is leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling and other applications.
The new facility will offer fabrication and fusion bonded epoxy coating capabilities, and the XTRU-THERM® and PolyTherm® brands of insulation systems and other jacketed and reinforced products.
In total, Perma-Pipe has operations at 14 locations in six countries.
“This new production site opens up many perspectives for Perma-Pipe, the world leader in pre-engineered pre-insulated piping systems,” said Saleh Sagr, Senior Vice President for Perma-Pipe’s Middle East and North Africa region.
“We aim to meet the growing regional demand and also have a logistical position to better serve the oil and gas industry in the UAE with its large capacity and product quality,” Sagr added.
UAE energy company ADNOC to proceed with IPO offering minority stake in gas processing and LNG
Abu Dhabi National Oil Company (ADNOC) is proceeding with its plans to offer a minority stake in new subsidiary ADNOC Gas, which consolidates the emirate’s gas processing and LNG operations, through an initial public offering on the Abu Dhabi Securities Exchange in 2023.
Israelis shut East Med Tamar gas field supplying Israel, Egypt and Jordan over conflict with Hamas
The Israeli Energy Ministry said it asked US major Chevron Corp. to shut the Tamar natural gas field, which supplies Egypt and Jordan as well as Israel, because of continued rocket attacks on the city of Ashkelon, just 23 kilometres (14 miles) from the Tamar field’s offshore platform.
Saudi Aramco’s Hawiyah Unayzah Gas Reservoir Storage advances with Dutch firm winning contract
A heavy-lifting, transportation and installation contract has been awarded to privately held Dutch company Mammoet for Saudi Aramco’s natural gas storage and gas resources management project, the Aramco Hawiyah Unayzah Gas Reservoir Storage venture, located 260 kilometres (160 miles) east of Saudi Arabia's capital Riyadh.
Northern-most emirate in LNG-exporting UAE signs deal with Italian energy company Eni to target gas
Italian energy company Eni has been awarded a licence for Block 7 located in Ras Al Khaimah, the northern-most emirate of seven in the United Arab Emirates, as the Arab nation moves to boost its exploitable natural gas resources in addition to being an LNG exporter.
Italian gas network operator reports higher earnings even as demand falls and LNG deliveries rise
Italian natural gas network operator Snam, one of Europe’s leading energy infrastructure companies and operator of two LNG import terminals, reported an almost 4 percent rise in nine-month revenues to €2.03 billion ($2.40Bln) even as natural gas demand dropped because of Covid-19 lockdowns.
UK-listed Petrofac says Abu Dhabi National Oil Co. has terminated Dalma Gas project contracts
Petrofac, the London-based oil and gas services company, said it received a notice of termination from LNG exporter Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates for two natural gas contracts worth $1.65 million.
Qatar and Royal Dutch Shell sign deal to supply long-term LNG cargoes to Gulf state of Kuwait
Qatar has signed a new long-term sale and purchase agreement with Royal Dutch Shell to deliver 1 million tonnes per annum of liquefied natural gas to the neighbouring Gulf state of Kuwait starting in 2020.
This accord between Qatargas and Shell for the supply of LNG to Kuwait follows the recent pact signed between Qatar Petroleum and Kuwait Petroleum Corp.
Cargoes of LNG are shipped at present to the dockside facility at Mina Al-Ahmadi in Kuwait. This terminal has been in operation since 2009.
However, the Gulf nation is building a second and larger onshore terminal close to a new refinery complex at Al-Zour, about 90 kilometres south of Kuwait City.
The new Kuwaiti terminal is being constructed by a consortium led by Hyundai Engineering Co. of South Korea.
“These agreements demonstrate our commitment to Kuwait, which is a very important LNG market,” said the Qatari Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi, who is also President and Chief Executive of Qatar Petroleum.
He added that the new SPA further underlined Qatargas’s position as the a market leader in LNG and demonstrated the company’s track-record of providing reliable LNG to the global market place.
The supplies will come from the Qatargas IV Train at Ras Laffan. This is a joint venture owned 70 percent by Qatar Petroleum and 30 percent by Shell.
Kuwait’s domestic natural gas demand is increasing in line with other Middle East nations and it is already receiving additional deliveries from new suppliers such as the US.
The expansion in infrastructure comes as Kuwait and its neighbour, the United Arab Emirates, are already among the top 20 destinations for shipments from US exporters such as Cheniere’s Energy’s Sabine Pass export plant in Louisiana.
The state of Kuwait, like the other Gulf Cooperation Council members is embarking on an ambitious path of economic growth.
This requires cleaner energy sources such as natural gas that will contribute to reducing emissions and improving local air quality, while also supplying energy for industry and domestic consumption.
