Nightmare day for share on the Saipem Stock Exchange, that at the end of the morning it loses almost a third of its value: -29,43%, to 1,3655 euros. Obviously, this is due to the worst drop on the Ftse Mib, which in the same minutes travels in positive territory (+1,19%) due to the positive reaction of the markets to the re-election of Sergio Mattarella to the Presidency of the Republic.
The wave of sales on Saipem shares was triggered by a heavy profit warning. Indeed, actually the group withdrew all 2021 guidance, admitting that the accounts turned out to be worse than expected in the second half on both the revenue and margin fronts. The company is therefore preparing to a new financial maneuver following the 2016 capital increase.
In detail, Saipem has revised the backlog, which "highlights, due to the persistence of the context of the pandemic, the current and prospective increase in the costs of raw materials and logistics - reads in a company note - a significant deterioration in economic margins life of some projects related to E&C Onshore and Offshore wind with consequent effect” on the accounts.
Saipem: here are the new forecasts for the 2021 accounts
Now the group predicts a consolidated adjusted Ebitda for the second half of 2021 down by around one billion euro compared to the already communicated outlook (margins were indicated as "positive" on 28 October on the occasion of the nine months and the presentation of the new plan) and a contraction in consolidated revenues in the second half of 2021 from 4,5 billion euros (which was the outlook) to 3,5 billion euros.
Instead, it should improve the net financial position at the end of 2021, equal to approximately 1,5 billion euros, compared to the outlook of 1,7 billion.
Based on this revision, Saipem's 2021 financial statements should close with losses exceeding one third of the share capital. The group "has also initiated preliminary contacts with the shareholders who exercise joint control over the company, Eni and Cdp Industria - continues the note - in order to also verify their willingness to participate in a timely and adequate financial manoeuvre".
Finally, the company has made contact with the banks for the breach of some covenants which could lead the institutions to ask for early repayment of some loans.
