Saipem Sinks to €2.1 Bln Loss

  • Business & Finance

Saipem has plunged deeper into the red as longer-than-expected market recovery led to massive writedowns and reorganisation costs for the Italian oilfield services player in 2016.

The company has recorded net loss of €2.1 billion for the twelve months of 2016, of which €162 million in the fourth quarter. Full-year result has seen Saipem’s losses widen from €806 million in 2015 on writedowns and reorganisation costs of €2,3 billion.

Adjusted net profit was €226 million, which is lower than previously estimated €250 million.

Revenues for the 2016 were down, amounting to €9.98 billion (€2,1 billion in the fourth quarter), versus €11.5 billion in 2015.

Saipem has kept its guidance for 2017, with revenues estimated at approximately €10 billion, and net profit of more than €200 million.

For the full year, Saipem secured new contracts amounting to €8.4 billion, of which €1.7 billion in Q4 (€6.5 billion for the twelve months of 2015).

The company’s backlog at December 31, 2016 stood at €14.2 billion.

Subsea World News Staff

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