Saipem | Europe Notes from the Conference Call

Research evidence excerpt

Saipem | Europe Notes from the Conference Call

Update

July 28, 2026 11:07 AM GMT

Morgan Stanley & Co. International plc+MSaipem | Europe Guilherme Levy

Equity Analyst

Notes from the Conference Call Guilherme.Levy@morganstanley.comMartijn Rats, CFA +44 20 7425-6616

Equity Analyst and Commodities Strategist

Martijn.Rats@morganstanley.com +44 20 7425-6618

Key Takeaways Alice Bergier Winograd

The main focus points during the conference call were: Alice.Winograd@morganstanley.com +44 20 7425-0174

1) New guidance for the year (what risks are reflected there, costs incurred in 1H, Saipem (SPMI.MI, SPM IM)

assumption for 2H). Energy Services | Italy

Stock Rating Overweight

2) W/C performance (how structural is the improvement that allowed for FCF

Industry View In-Line

guidance to be retained). Price target €4.90

Shr price, close (Jul 27, 2026) €4.36

3) Redundancy provisions and new orders coming up. 52-Week Range €4.85-2.17

Mkt cap, curr (mn) €8,697

Net debt (12/26e) (mn)* €(797)

The key highlights from today's conference call are below: EV, curr (mn)* €8,720

* = GAAP or approximated based on GAAP

• Guidance rationale for the year:

° Saipem has had cash costs in the order of €70mn in 1H reflecting higher

insurance costs, higher barge rates, temporary storage of certain

components, etc, on the back of higher waiting times to cross the Strait.

° The company is negotiating potential compensation from clients, but

conversations can take 6-7 months and therefore are more likely to be

recognised in 2027. Recovering half of the costs could be a positive

outcome for the company.

° There were three inbound crossings to Qatar in July and the company

has over ten inbound crossings scheduled for 2H26. The assumption

behind the new guidance is: the situation around the SoH is uncertain,