Saipem SpA share performance

At December 31, 2011, the value of Saipem ordinary shares on the Milan Stock Exchange was €32.73, down 11% compared to year-end 2010. In the same period, the FTSE MIB index, which records the performance of the 40 most liquid and capitalized Italian stocks, reported a drop in excess of 25%.

The social unrest in North Africa and in the Middle East at the beginning of 2011 caused uncertainty about the security of hydrocarbon supplies, especially those towards Europe, and consequently generated a tense climate on international markets. Despite Saipem’s low level of exposure in the countries directly involved in the unrest, after closing 2010 near an all-time high, the share price fluctuated for the whole of the first quarter of 2011.
With the first signs that the crisis was easing, and with favourable trends in the oil services market, the share price began a phase of recovery that peaked in early May with a new historical high of €38.60. The recovery in the share price was also boosted by consistent trends in the signing of new contracts to be performed mainly with the new vessels near completion resulting from Saipem’s long-term investment plan.
The sovereign debt crisis, which heavily affected a number of euro zone countries, especially Italy, once again undermined market confidence and increased fears of a downturn in the global economy. This had a negative effect on the markets for most of the second quarter of the year. Saipem’s share fluctuated strongly, slipping in early October to a yearly low of €23.77, a level not seen since early 2010. During the last quarter, with record results confirmed for 2011, the share price recovered more or less steadily to remain above the threshold of €30, closing the year at €32.73.
At the end of December, Saipem’s market capitalization reached €14.4 billion (7th on the FTSE MIB) versus €16.3 billion in 2010. In terms of share liquidity, shares traded over the year totalled approximately €545 million, versus the approximately €745 million registered in 2010. The average number of shares traded daily for the year totalled 2.1 million (2.9 million in 2010). The value of shares traded amounted to €18.3 billion, down 11% compared with the figure of €20.6 billion recorded in 2010, making Saipem’s the ninth most traded share on the FTSE MIB.
On May 26, 2011, a dividend of €0.63 per ordinary share was distributed to shareholders, an increase of over 15% compared with the dividend paid out in the previous year (€0.55 per share).
The price of the savings shares, which are convertible at par with ordinary shares, and are of limited number (135,448 at December 31, 2011), fell by 18%, closing the year at €30, versus €36.5 at year end 2010. The dividend distributed on savings shares was €0.66 per share, up 14% on the previous year.

Stock Exchange Data and Indices    Dec. 31, 2007  Dec. 31, 2008  Dec. 31, 2009  Dec. 31, 2010  Dec. 31, 2011 
Share capital  (€)  441,410,900  441,410,900  441,410,900  441,410,900  441,410,900 
Ordinary shares  (No.)  441,251,800  441,262,713  441,265,604  441,270,452  441,275,452 
Savings shares  (No.)  159,100  148,187  145,296  140,448  135,448 
Market capitalization  (€ million)  12,051  5,262  10,603  16,288  14,447 
Gross dividend per share:             
- ordinary shares  (€)  0.44  0.55  0.55  0.63  0.70 (1) 
- savings shares  (€)  0.47  0.58  0.58  0.66  0.73 (1) 
Price/earnings ratio per share: (2)             
- ordinary shares    13.77  5.75  14.48  19.30  15.69 
- savings shares    14.38  8.12  14.48  19.09  14.38 
Price/cash flow ratio per share: (2)             
- ordinary shares    10.42  4.15  9.05  11.97  9.24 
- savings shares    10.88  5.86  9.05  11.84  8.47 
Price/adjusted earnings ratio per share:           
- ordinary shares    20.74  7.26  14.48  19.67  15.69 
- savings shares    21.65  10.25  14.48  19.46  14.38 
Price/adjusted cash flow ratio per share:           
- ordinary shares    13.98  4.88  9.05  12.11  9.24 
- savings shares    14.59  6.89  9.05  11.98  8.47 
(1) To be approved by the Shareholders’ Meeting to be held on April 20 and 27, 2012, at first and second call, respectively. (2) Figures pertain to the consolidated financial statements.
Share Prices on the Milan Stock Exchange (€)  2007  2008  2009  2010  2011 
       
Ordinary shares:            
- maximum
  31.56  30.44  24.23  37.27  38.60 
- minimum
  18.32  10.29  10.78  23.08  23.77 
- average
  24.72  23.19  17.51  28.16  33.89 
- year-end
  27.30  11.92  24.02  36.90  32.73 
Savings shares:            
- maximum
  41.50  30.05  24.02  37.00  39.25 
- minimum
  19.10  16.82  14.85  23.00  30.00 
- average
  26.97  26.43  18.54  29.80  34.89 
- year-end   28.50  16.82  24.02  36.50  30.00 

Saipem and FTSE MIB - Average monthly prices January 2007-March 2012

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