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Saipem (SAPMF) Faces Temporary Ban for Two Years in Brazil
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Saipem SpA (SAPMF - Free Report) , the Italian offshore engineering and construction group, and its subsidiary Saipem do Brasil, have been restricted from signing any new contract with the Brazilian public administration for the next two years.
In December 2022, the Brazilian Controladoria-Geral da União (CGU) issued a verdict to place a ban on Saipem from joining forces with the government. However, the ban has now been replaced with the decision to extend a temporary suspension for more than two years.
The decision followed a probe into the alleged irregularities of a 2011 deal signed with Brazilian energy company Petrobras regarding the construction of a gas pipeline. The contract, worth $140 million, was reportedly obtained by bribing an ex-Petrobras director. It was awarded by the BM-S-11 consortium.
According to Saipem, the sanctions do not affect its ongoing projects in Brazil. The company also shared its plans to appeal the decision.
Saipem was awarded two offshore contracts in Brazil and Guyana, in November. The total worth of these two contracts was around $1.9 billion.
Saipem is an Italian offshore engineering giant that possesses an offshore fleet of 23 construction vessels and 15 drilling rigs.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Enbridge is an energy infrastructure company with a diversified portfolio of midstream assets. With a huge network of transportation and storage assets, the company derives stable fee-based revenues.
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Saipem (SAPMF) Faces Temporary Ban for Two Years in Brazil
Saipem SpA (SAPMF - Free Report) , the Italian offshore engineering and construction group, and its subsidiary Saipem do Brasil, have been restricted from signing any new contract with the Brazilian public administration for the next two years.
In December 2022, the Brazilian Controladoria-Geral da União (CGU) issued a verdict to place a ban on Saipem from joining forces with the government. However, the ban has now been replaced with the decision to extend a temporary suspension for more than two years.
The decision followed a probe into the alleged irregularities of a 2011 deal signed with Brazilian energy company Petrobras regarding the construction of a gas pipeline. The contract, worth $140 million, was reportedly obtained by bribing an ex-Petrobras director. It was awarded by the BM-S-11 consortium.
According to Saipem, the sanctions do not affect its ongoing projects in Brazil. The company also shared its plans to appeal the decision.
Saipem was awarded two offshore contracts in Brazil and Guyana, in November. The total worth of these two contracts was around $1.9 billion.
Saipem is an Italian offshore engineering giant that possesses an offshore fleet of 23 construction vessels and 15 drilling rigs.
Zacks Rank & Other Key Picks
Currently, Saipem holds a Zacks Rank #2 (Buy).
Investors might also want to look at stocks such as Oceaneering International (OII - Free Report) , Vaalco Energy (EGY - Free Report) and Enbridge Inc. (ENB - Free Report) . While Oceaneering International and Vaalco Energy currently sport a Zacks Rank #1 (Strong Buy) each, Enbridge holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Enbridge is an energy infrastructure company with a diversified portfolio of midstream assets. With a huge network of transportation and storage assets, the company derives stable fee-based revenues.