Saipem's board of directors approved yesterday the consolidated preliminary results for 2014 which recorded revenues up by 8,7% to 12,87 billion, a gross operating margin up by 40% to 1,21 billion and a net loss of 230 million (from - 159 million in 2013) impacted by writedowns of 410 million related to impairment tests carried out in the fourth quarter. The adjusted net result is positive for 180 million. The adjustments are mainly related to the review of the useful life and the write-down of some cash generating units in the light of the deterioration in the oil price.
“Considering the uncertainties deriving from an unfavorable price scenario for 2015, the board of directors resolved to propose to the shareholders' meeting to maintain the pay-out policy adopted so far by not providing for any dividend on ordinary shares for 2014”, underlines the company.
The accounts also show a net debt down for the first time since 2011 to 4,24 billion (from 4,76 billion at the end of 2013) and an "excellent level of new order acquisitions" of 17,97 billion (from 10 billion last year).
For 2015, Saipem expects a profit of between 200 and 300 million, even if Saipem itself underlines "a significant part of the revenues and margins will depend on the evolution of the South Stream project, currently in the suspension phase". Furthermore, the company "will still have to execute 1,8 billion euros of low-margin contracts". All these uncertainties, also linked to a low oil price for 2015, give rise to guidance for this year with fairly wide ranges with revenues between 12 and 13 billion, an EBIT between 500 and 700 million and a net profit between 200 and 300 million. Technical investments will be equal to 650 million while the target for net debt is the reduction below 4 billion excluding the potential impact of exchange rate fluctuations.
