Saipem Cuts Revenue Guidance

Saipem has lowered its full-year revenue estimates by some €500 million, reportedly due to delays in the award of contracts and variations in the execution schedule of few projects.

The Italian oilfield services player said it expects to achieve revenues of approximately €10.5 billion for 2016, down from previously estimated €11 billion in February this year. EBIT is expected to be in excess of €600 million and adjusted net profit about €250 million.

Saipem, has recorded net profit of €53 million for the first half of 2016, against a loss of €920 million in the first half ended June 30, 2015.

Earnings for the second quarter of 2016 came out negative €8 million, however, significantly narrowed when compared to around €1 billion loss a year earlier.

Revenues for the first six months of 2016 were down, amounting to €5.27 billion (€2,43 billion in the second quarter), versus €5,37 billion in the first half of 2015.

In the first six months Saipem secured new contracts amounting to €3.32 billion, of which €2.3 billion in Q2 (€3.5 billion in 1H 2015).

The company’s backlog at June 30, 2016 stood at €13.9 billion.

Subsea World News Staff

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