Core Viewpoint - Saipem is preparing to resume operations in Venezuela following the easing of U.S. sanctions, anticipating demand from oil majors later in the year [1] Group 1: Saipem's Operations in Venezuela - Saipem's CEO, Alessandro Puliti, indicated that the company is ready to return to Venezuela as soon as there is client demand [1] - The easing of U.S. sanctions allows global energy companies to operate in Venezuela, with Saipem expecting contracts from both international and U.S. oil companies [1] - Currently, Saipem has not received any requests for tenders or engineering studies but expects these to materialize later in the year [1] Group 2: U.S. Sanctions and Market Context - The U.S. relaxed sanctions on Venezuela's energy sector earlier this month, issuing general licenses for companies like Chevron, BP, Eni, Shell, and Repsol to operate and negotiate contracts [1] - Venezuela possesses vast oil reserves, but the energy infrastructure is in a dilapidated state, posing challenges for major companies and contractors [1] Group 3: Other Projects and Financial Outlook - In Mozambique, Saipem is collaborating with TotalEnergies on a $20 billion liquefied natural gas project, reviewing orders after a long suspension [1] - Saipem expects its adjusted core earnings to rise to approximately €1.9 billion ($2.2 billion) in 2025, up from €1.7 billion [1]

Core Viewpoint - Subsea 7 S.A. has been awarded a significant contract by Shell for the Kaikias Waterflood project, enhancing their collaboration and leveraging deepwater expertise for efficient project execution [1][3]. Group 1: Contract Details - The contract is classified as "sizeable," defined by Subsea 7 as being between $50 million and $150 million [3]. - The Kaikias field is located approximately 210 kilometers off the Louisiana coast in the US, involving deepwater development in the Mars-Ursa Basin [1]. - The scope of work includes the transportation and installation of a subsea umbilical, riser, and a rigid flowline at water depths of up to 1,650 meters [1]. Group 2: Project Timeline - Project management and engineering activities will commence immediately from Subsea 7's Houston, Texas office [2]. - Offshore operations are scheduled to begin in 2027 [2]. Group 3: Company Positioning - Subsea 7 is recognized as a global leader in delivering offshore projects and services, focusing on creating sustainable value and being a preferred partner in the energy industry [4].

Core Insights - Subsea 7 S.A. has been awarded a substantial contract by OWP Gennaker for the Gennaker offshore wind farm in Germany, with offshore activities expected to commence in 2027 [1][2] - The contract involves the transportation and installation of 63 monopiles and transition pieces, with the contract value estimated between $150 million and $300 million [2] Company Overview - Subsea 7 is recognized as a global leader in delivering offshore projects and services, focusing on creating sustainable value in the energy industry [2] - The company has a strong track record in Germany, having supported over 20 projects and contributed to nearly 3,500 MW of clean energy [2]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Energy Services** sector in **Europe**, highlighting a selective investment approach amid a softer macroeconomic environment [1][6] - The oil market is currently absorbing increased supply from OPEC+ and non-OPEC sources, while the LNG market is expected to see a significant ramp-up in new liquefaction capacity [10] Company-Specific Insights SBM Offshore NV (SBMO.AS) - **Price Target Change**: Increased from €30.00 to €32.50, reflecting expectations for new orders and rising shareholder payouts [1][42] - **Investment Thesis**: Considered a top pick due to its strong cash flow profile, potential for new orders, and trading at an unwarranted discount [9][21] - **Financials**: Projected 2026 free cash flow yield exceeds 20%, with expectations for increased shareholder payouts acting as a catalyst for share price [21] Technip Energies NV (TE.PA) - **Price Target Change**: Decreased from €35.00 to €32.20 due to lower order intake expectations following the suspension of the Lake Charles LNG project [1][42] - **Valuation**: Currently trading at approximately 7x NTM EV/EBITDA, in line with historical peer levels but with limited upside potential [39] Subsea7 and Saipem - Both companies are rated **Overweight** and are expected to perform well in the coming quarters, with solid order intake and strong dividend potential [22][19] - Subsea7 is preferred over Saipem based on relative valuation, trading at a ~5% discount to Saipem [22] Vallourec - Minor adjustments in financial projections, with revenue and EBITDA estimates slightly modified for 2025 and 2026 [50] GTT - Exposed to LNG market dynamics, facing challenges due to delays in new LNG plant start-ups, contributing to an oversupplied LNG carrier market [37][39] Market Dynamics - Energy producers are expected to tighten budgets, impacting discretionary spending and shareholder distributions [11] - Long-cycle projects, particularly in offshore, are anticipated to be more resilient during this downturn, with the Middle East expected to continue investments despite macro challenges [13][27] Regional Insights - The **Middle East** is highlighted as a resilient area, with ADNOC committing to invest $150 billion over 2026-2030 and Saudi Arabia reactivating rigs [28][30] - A new OPEC+ framework for assessing production capacity may incentivize higher spending among members, benefiting companies like Arabian Drilling and Saipem [29][30] Conclusion - The report emphasizes a selective investment strategy within the energy services sector, favoring offshore-exposed companies like SBM Offshore, Subsea7, and Saipem while avoiding LNG-exposed stocks due to valuation concerns [9][19][35]

Core Points - Equinor has extended its agreement with Subsea7 for subsea inspection, maintenance, and repair (IMR) services for the Seven Viking vessel, which supports operations at oil and gas wells across the Norwegian Continental Shelf [1][2] - The contract extension allows the Seven Viking vessel to operate in the region until the end of 2027, with a value between $50 million and $150 million [2] - Equinor has finalized a contract with Odfjell Drilling for the use of the Deepsea Aberdeen rig, covering drilling operations on the Norwegian Continental Shelf [3][4] - The Odfjell contract is expected to add approximately $373 million to the company's firm order backlog, excluding additional services and bonuses [5] - Equinor has also extended its contract with DeepOcean for subsea IMR services, maintaining support through 2026 and into 2027 [6]

Core Insights - Subsea7 has been awarded a significant EPCI contract for the development of the Previously Produced Fields offshore Norway by ConocoPhillips, which includes engineering, procurement, construction, and installation of subsea structures [1][8] - The contract value is estimated to be between $300 million and $500 million, following a previous FEED study contract awarded in May 2025 [2] - The development will utilize existing infrastructure from the Ekofisk Complex, which is expected to reduce development timelines and costs [3][8] Company Relationships - This contract strengthens Subsea7's long-standing relationship with ConocoPhillips, allowing Subsea7 to engage early in the field development process [4] Project Details - The Previously Produced Fields are located approximately 290 kilometers southwest of Stavanger and will be developed through a tie-back to the Ekofisk Complex [3] - The project is pending regulatory approval of the Plan for Development and Operations (PDO) required for offshore projects in Norway [3]

Core Insights - Subsea 7 S.A. has received a significant extension of an existing frame agreement from Equinor for subsea inspection, maintenance, and repair services for the vessel Seven Viking, which will last until the end of 2027 [1][2] - The extension allows Seven Viking to perform IMR services for Equinor's oil and gas wells located on the Norwegian Continental Shelf, with project management and engineering work continuing from Subsea 7's Stavanger office [2][3] - Erik Femsteinevik, VP of Subsea 7 Norway, expressed appreciation for Equinor's decision to extend the IMR contract, emphasizing the commitment to support safe and efficient operations [3] Company Overview - Subsea 7 is recognized as a global leader in delivering offshore projects and services, focusing on creating sustainable value and being a preferred partner in the energy industry [3]

Core Insights - Subsea 7 S.A. has been awarded a large contract by ConocoPhillips Skandinavia AS for the Previously Produced Fields (PPF) development offshore Norway, which includes engineering, procurement, construction, and installation (EPCI) of subsea structures, umbilicals, risers, and flowlines (SURF) [1][3] - The contract follows a previous award for front-end engineering and design (FEED) that finalized the technical definition of the development [1][2] - The project is set to begin engineering and project management immediately, with major offshore campaigns planned for 2027 and 2028 [2] Company and Industry Overview - Subsea 7 is recognized as a global leader in delivering offshore projects and services for the energy industry, focusing on creating sustainable value and being a preferred partner and employer [4] - The Previously Produced Fields are located in the Greater Ekofisk Area, approximately 290 kilometers southwest of Stavanger, Norway, and will be connected to the existing Ekofisk Complex [2] - The contract is subject to authority approval of the Plan for Development and Operations (PDO) [3]

Core Insights - Subsea 7 S.A. has been awarded a significant contract by Ocean Winds for the BC-Wind project, marking its third contract in the Polish offshore wind market [1][3] - The BC-Wind project will be located in the Baltic Sea, approximately 23 kilometers off the Polish coast, and will consist of 26 wind turbine generators [2] - Seaway7's responsibilities include the transport and installation of 26 transition pieces and an offshore substation, with offshore activities expected to begin in 2027 [2] Company Overview - Subsea 7 is recognized as a global leader in delivering offshore projects and services, focusing on creating sustainable value and being a preferred partner in the energy industry [3] - The company aims to support the evolving energy sector by providing efficient offshore solutions [3]

Core Viewpoint - Oil majors in Brazil are united in their opposition to the proposed merger between energy contractors Subsea7 and Saipem, prompting an investigation by the antitrust agency Cade [1] Group 1: Industry Response - Major oil companies operating in Brazil have expressed their concerns regarding the merger, indicating a strong collective stance against it [1] - The antitrust agency Cade has requested additional information from Subsea7 and Saipem to further its investigation into the merger [1]