Oil Services Momentum: Saipem & Tenaris Outperform on Offshore Energy Contracts

Offshore Infrastructure Cycle

Tenaris and Saipem have posted sector-beating returns on Piazza Affari, benefiting from a multi-year revival in offshore deepwater oil and natural gas field developments worldwide.

Corporate Drivers

• Tenaris (Seamless Steel Tubes): High-margin premium tubular connections for deepwater drilling remain in high demand across Latin America and the Middle East.
• Saipem (Offshore Engineering & Construction): Order backlogs have expanded to multi-year highs, with offshore fleet utilization rates near maximum capacity.

Investment View

Energy equipment and service providers offer leveraged upside to elevated crude environments, combining operating leverage with expanding margins.