Energy Morning - 24 June 2026

Research evidence excerpt

Energy Morning - 24 June 2026

Oil & Oil Services

Today’s focus: Oil & Oil Services

SUBC (BUY): CADE approve the Saipem7 merger without restrictions - Small positive

Yesterday, the Brazilian competition regulator CADE announced that they approve the Saipem/Subsea 7 merger without

restrictions. There has been speculation whether the combined entity would need to divest some key assets in order to get

the merger through. Hence, this decision is a positive for SUBC/SPM. However, market sources had been signalling an

unconditional clearance was imminent. Small positive to see the approval of the merger in Brazil without restrictions, although

we believe this has been largely expected.

SUBC (BUY) / SPM: Saipem divests jackup business at USD 285m - Small positive

Saipem has signed a binding agreement to sell its entire jackup business to ADES for USD 285m on a debt-free/cash-free

basis. Saipem operates three owned jackups (Perro Negro 7, 8, 10) and two leased rigs (PN11, PN13) in Saudi shallow-water.

The transaction values the owned rigs at USD 95m/rig on a gross basis, however, adding the value of the leased rigs indicates a

slightly lower implied value for the owned units. The rigs are '08/'10/'19-built premium units with long-term contracts with Aramco

into late '27/mid '33/early '29. The transaction valuation is broadly line with Clarksons' secondhand prices for similar spec units.

The disposal is consistent with Saipem's stated strategy of exiting commoditised shallow-water exposure in favour of deepwater

and harsh-environment drilling. Proceeds will be received in cash at closing, expected Q3'26, subject to regulatory approvals.

Other details: The leased rigs are on long-term contracts with Aramco into '28/'29, with purchase options at the end of the lease

period.