Saipem SpA on Tuesday reported EUR 78 million ($91.53 million) in net income for the first quarter (Q1), up 1.3 percent from the same three-month period last year, with “improvements” in both onshore and offshore engineering and construction works.

The Asset-Based Services business, which includes offshore engineering and construction, saw a 2.4 percent increase to EUR 2.01 billion in revenue for the January-March 2026 period. The sequential improvement was “mainly attributable to higher volumes in North Africa and in the Pacific Asia area, partially offset by lower volumes in the Middle East”, the Italian company said in an online statement.

“The most significant contract awarded in the first quarter of 2026 relates to an additional offshore contract (Contract Release Purchase Order or CRPO) in Saudi Arabia under the existing Long-Term Agreement currently in force with Aramco”, Saipem said. “Saipem will be responsible for the engineering, procurement, construction and installation (EPCI) of a trunkline, comprising approximately 65 kilometers offshore and 12 kilometers onshore, as well as the related subsea facilities in the Safaniya oilfield”.

The Energy Carriers segment, which includes onshore engineering and construction, recorded a 2.6 percent decline to EUR 1.31 billion in revenue. Saipem attributed the decline to “lower volumes in the Sub-Saharan Africa area and in the Middle East, largely offset by the higher volumes in the Pacific-Asia area and in Italy”.

Q1 Offshore Drilling revenue fell 1.4 percent to EUR 208 million due to several jack-up rigs undergoing maintenance.

“Among the most significant awards in the first quarter was, for Aker BP, the third extension of the lease contract for a sixth-generation unit Scarabeo 8 for offshore drilling activities in Norway”, Saipem said.

Backlog across operations stood at EUR 29.61 billion at the end of Q1, including EUR 19.65 billion from Asset-Based Services.

Earnings before interests, taxes, depreciation and amortization totaled EUR 434 million, up 23.6 percent from Q1 2025. Saipem did not recognize nonrecurring or extraordinary items for Q1 2026. Operating profit was EUR 157 million. Free cash flow stood at EUR 337 million, down 12.9 percent from Q1 2025.

“In addition to the zero change recorded in the adjusted operating result, there was the effect of the improvement in the balance of financial operations of EUR 14 million, almost entirely offset by the worsening of the balance of equity investments and tax operations of EUR 13 million”, Saipem said. “In the quarter, non-recurring expenses have not been recognized”.

For the whole year Saipem expects revenue to be stable at EUR 15.5 billion compared to 2025. It expects to increase adjusted EBITDA from EUR 1.72 billion for 2025 to EUR 1.9 billion for 2026.

“It should be noted that, a further prolonged closure of the Strait of Hormuz could impact the delivery of certain components which are critical to Saipem’s projects globally, in addition to disrupting worldwide logistics and, potentially, driving up inflation”, Saipem said.

“However, the current crisis is also likely to further reinforce the already positive outlook for energy investments globally, on top of requiring additional investments needed to repair certain energy infrastructures in the Middle East”.

Saipem exited Q1 with EUR 1.22 billion in net cash and EUR 23 million in net debt.

Separately on Tuesday Saipem said it had received a new “limited notice to proceed” worth around $150 million from Exxon Mobil Corp for EPCI works in the Longtail project in the Stabroek block offshore Guyana.

“Execution of the main EPCI scope (including construction and installation activities) is subject to the receipt of the necessary governmental and regulatory approvals, as well as the Final Investment Decision by ExxonMobil Guyana Limited and its co‑venturers in the Stabroek Block”, Saipem said.

“Once approved, the full contract will have an expected duration of around four years and an estimated overall value of between $750 million and $1.5 billion.

 “Saipem has operated in the Stabroek Block for ExxonMobil Guyana Limited under seven offshore development contracts, four of which have already been completed, namely Liza Phase 1, Liza Phase 2, Payara, and Yellowtail”.

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