Saipem reports 59% profit plunge

Saipem semisub Scarabeo 529 October 2013 – Italian services giant Saipem has reported a 59% drop in quarterly profits to €101 million ($139.2 million).

The company, which has issued two profit warnings this year, confirmed it expected its net loss for the year to run to between €300 million and €350 million.

Chief executive Umberto Vergine said the company was “making efforts to step up operational performance”, and that this was having a positive effect on Saipem’s commercial position with clients.

“We are rebuilding a better margin portfolio through new contracts won since January 2013 and we continue to see opportunities in the market although the timing of some contract awards remains uncertain,” he said.

The Milan-based services player also chopped €500 million off its forecasted revenues for the year to around €12.5 billion.

The drop in profits was steeper than analysts’ average prediction of earnings of €113.4 million, according to Thomson Reuters I/B/E/S.

Revenues were near level with the third quarter of 2012 at €3.52 billion, but earnings before interest, taxation, depreciation and amortisation tumbled 48.3% to €209 million.

Saipem, which is 43% owned by oil major Eni, said new orders in the first nine months fell to €8.56 billion from €9.14 billion during the same period a year ago.

The company said it had also already secured new orders worth about €1.25 billion post-period.
*Bill Lehane, Upstreamonline

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