Italian oilfield services player Saipem has reported loss in 2018 of €472 million ($538 million), on revenues of €8.5 billion ($9.7 billion).
This result compares to net loss of €328 million ($374 million) on revenues of €9 billion ($10.3 billion) for the twelve months of 2017.
Revenues in the Q4 2018 were close to €2.5 billion ($2.85 billion). Full-year 2018 revenues are said to be better than expected from €8 billion forecast.
Adjusted result was net profit of €25 million, against €46 million in 2017, with profit of €8 million in the fourth quarter. The company recognised write-downs and reorganisation expenses of €497 million in 2018.
Saipem reported EBITDA of €848 million (€862 million in 2017), of which €206 million in the fourth quarter.
The company’s net debt decreased since December 31, 2017 from €1.29 billion at €1.16 billion. Net dept decreased more than previously expected to be at €1.3 billion.
New contracts secured in 2018 are valued at €8.7 billion, versus €7.4 billion in 2017, of which €2.6 billion in the fourth quarter 2018.
Reported backlog stands at €12.6 billion, against €12.4 billion at December 31, 2017, which does not include backlog of joint-venture contracts of €1.8 billion.
Saipem said it expects revenues of €9 billion in 2019.
Stefano Cao , Saipem CEO, said: “ The results for 2018 are beyond expectations: the guidance is fully confirmed, EBITDA is higher than expected and, thanks to cash generation, net debt is falling. We have been awarded a consistent number of new contracts in all business sectors, especially in Offshore E&C and Onshore E&C, while pursuing a path towards attaining a balance between oil and non-oil price related projects. Finally, we are in a promising phase of negotiations with South Stream BV aimed at obtaining an amicable settlement of the dispute, which could be reached as early as the end of March 2019. ”
Subsea World News Staff