Saipem’s €860 million credit facilities come into force
Italy’s oilfield services provider Saipem has strengthened its financial structure and liquidity, after its two new credit facilities, totalling €860 million (nearly $945 million), came into effect.
Saipem entered into two new credit facilities in February 2023 with a pool of national and international banks. The effectiveness of these credit facilities was subject to the enactment of a specific decree by the Italian Ministry of Economy and Finance (MEF) and the subsequent registration by the Italian Court of Auditors, which took place in recent days.
Therefore, these credit facilities have now entered into force. As a result, the senior unsecured term loan of €390 million (almost $429 million) granted by a pool of national and international banks and 70 per cent guaranteed by SACE, the Italian Export Credit Agency, under the Garanzia SupportItalia instrument, was disbursed on 20 June 2023.
In addition, the revolving credit facility of €470 million (over $516 million) entered into in conjunction with the senior unsecured term loan became fully effective and therefore usable.
The announcement about the two new credit facilities came after Saipem ran into financial woes last year, which pushed the Italian player to cut costs, increase focus on offshore E&C and drilling, be more selective in projects, and reposition on low-risk offshore wind business in the following two years.
With this in mind, the firm sold its onshore drilling business to KCA Deutag for $550 million in cash plus an equity stake in the combined entity as part of its strategy to focus on offshore drilling.
Currently, Saipem has nine fabrication yards and an offshore fleet of 29 construction vessels – of which 26 are owned and three are managed by Saipem but owned by other companies – and 13 drilling rigs, of which nine are owned.
The Italian giant plans to use increasingly digital means, technologies, and processes geared towards environmental sustainability to support its customers and accompany them on the energy transition journey and the net-zero race.