Share performance

During the course of 2013, the price of Saipem ordinary shares on the Italian Stock Exchange fell 49%, from €30.30 on January 2, to €15.50 on December 30. In the same period, the FTSE MIB index, which records the performance of the 40 most liquid and capitalised Italian stocks, reported a gain of 12%.

On May 23, 2013, a dividend of €0.68 per ordinary share was distributed to shareholders, representing a slight decrease compared with the dividend paid out in the previous year (€0.70 per share).

The Saipem share price experienced a first sharp downturn, from €30.50 to €19.90, on January 30, following an announcement made to the markets on January 29 that revised 2012 profits slightly downward and forecast results for 2013 that were significantly below the financial community’s expectations. In subsequent months, however, the award of a number of major contracts in the Offshore E&C sector renewed investors’ confidence in Saipem’s ability to attract new business, helping to fuel a recovery which saw the Company’s stock rise above the €24 mark towards the end of the first quarter of the year. During the second quarter of the year, the share price fluctuated, as it was adversely impacted by an unfavourable oil price environment, but buoyed by the presentation to the financial community of the Company’s operational review in London at the end of April. Mid-June saw a second sharp fall, following the announcement on June 14 that Saipem was revising its guidance for the year downward in the light of commercial problems in Algeria and technical/operational issues in the North America region in particular and on June 28, the share hit its lowest price of the year of €12.60. Subsequently, starting from the beginning of July, a gradual recovery commenced which saw the price climb back up to €18 in early November.

Towards the end of the year, the upturn was hampered by a period of uncertainty that affected the whole of the Oil Services sector, caused by the increasingly unpredictable timing of new contract awards by the oil companies, who are maintaining a very tight rein on new investments. As a result, a number of major oil services companies revised their profit guidance downwards, contributing to a negative share price trend which impacted the entire sector and saw the Company’s common stock close the year at a price of €15.54.

Stock exchange data and indices  Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 
Share capital  (€)  441,410,900  441,410,900  441,410,900  441,410,900  441,410,900 
Ordinary shares    441,265,604  441,270,452  441,275,452  441,297,465  441.297,615 
Savings shares    145,296  140,448  135,448  113,435  113,285 
Market capitalisation  (€ million)  10,603  16,288  14,447  12,983  6,860 
Gross dividend per share:             
- ordinary shares  (€)  0.55  0.63  0.70  0.68  -
- savings shares  (€)  0.58  0.66  0.73  0.71  -
Price/earning ratio per share: (1)             
- ordinary shares    14.48  19.30  15.69  14.39  .. 
- savings shares    14.48  19.09  14.38  17.13  .. 
Price/cash flow ratio per share: (1)             
- ordinary shares    9.05  11.97  9.24  7.97  19.95 
- savings shares    9.05  11.84  8.47  9.49  22.01 
Price/adjusted earning ratio per share:             
- ordinary shares    14.48  19.67  15.69  14.39  .. 
- savings shares    14.48  19.46  14.38  17.13  .. 
Price/adjusted cash flow ratio per share:             
- ordinary shares    9.05  12.11  9.24  7.97  19.95 
- savings shares    9.05  11.98  8.47  9.49  22.01 

(1) Figures pertain to the consolidated financial statements.

At the end of December, Saipem had a market capitalisation of approximately €6.8 billion. In terms of share liquidity, shares traded over the year totalled 847 million, versus 457 million in 2012, while the average number of shares traded daily for the year totalled 3.4 million, against 1.8 million in 2012. Meanwhile, the value of shares traded just topped €16 billion, which was in line with the 2012 figure.

The price of savings shares, which are convertible at par with ordinary shares, and are of limited number (113,285 at December 31, 2013), decreased by 51%, closing the year at €17.10.

The dividend distributed on savings shares was €0.71 per share, down 2.8% on the previous year (€0.73 per share).

Share prices on the Milan Stock Exchange (€) 2009 2010 2011 2012 2013 
Ordinary shares:             
- maximum    24.23  37.27  38.60  39.78  32.18 
- minimum    10.78  23.08  23.77  29.07  12.60 
- average    17.51  28.16  33.89  35.52  19.31 
- year-end    24.02  36.90  32.73  29.41  15.54 
Savings shares:             
- maximum    24.02  37.00  39.25  39.40  35.00 
- minimum    14.85  23.00  30.00  30.00  16.00 
- average    18.54  29.80  34.89  34.72  24.50 
- year-end    24.02  36.50  30.00  35.00  17.10 

Saipem and FTSE MIB - Average monthly prices January 2009-March 2014

Saipem and FTSE MIB - Average monthly prices January 2009-March 2014