European Oil Services: Revisiting Sector Fundamentals and Valuation; Remain OW Saipem and Technip Energies

Research evidence excerpt

European Oil Services: Revisiting Sector Fundamentals and Valuation; Remain OW Saipem and Technip Energies

J P M O R G A N Europe Equity Research

30 June 2026

European Oil Services

Revisiting Sector Fundamentals and Valuation; Remain

OW Saipem and Technip Energies

In this note, we refresh our forecasts to incorporate QTD announced orders, European Oil & Gas

ACreassess the forward trajectory for margins and order intake across our coverage, Alejandra Magana

and update our valuation framework to reflect our revised outlook. (44-20) 3493-8031

alejandra.x.magana@jpmchase.com

The group has delivered a strong start to 2026, up ~50% YTD on average, J.P. Morgan Securities plc

supported by robust order announcements, net cash balance sheets across our Riddhi Agarwal

coverage, and solid revenue visibility, with 2026E revenues 80-90% covered and (91-22) 6157-5048

2027E coverage averaging ~60%, above five-year medians. In our view, the OFS riddhi.x.agarwal@jpmorgan.com

J.P. Morgan India Private Limited

subsector has also benefitted this year given its position as a relative safe haven for

energy investors in a turbulent, energy macro environment with volatile Specialist Sales contact details:

commodity price swings. Ian Mitchell - Specialist Sales -

European Energy

While valuation multiples now screen close to the upper end of historical ranges (44-20) 7134-1356

across our universe, we view the sector's re-rating as broadly defensible given ian.e.mitchell@jpmorgan.com

strong year-to-date order momentum and balance sheet strength. That said,

valuation support and upside from here are increasingly stock specific. In our view,

names will need either a high quality, scaled commercial pipeline to sustain order