Even if oil prices are still at a 10-year low, Saipem confirm the goals for the 2016: revenues exceeding 11 billion euros, Ebit over 600 million and above all a return to net profit of around 300 million. Technical investments will be around half a billion, while net debt – thanks to the recent capital increase of 3,5 billion – will drop below 1,5 billion.
"The combination of our solid and diversified business portfolio, the projects already in the order book, the additional efficiencies identified and a strengthened balance sheet allow us to confirm the objectives outlined for 2016", said the CEO Stephen Cao.
As for the 2015, closed with revenues down to 11,5 billion (from 12,8 billion in 2014), a negative adjusted Ebit of 254 million and a net loss of 806 million (significantly worsening from -230 million in 2014 ). The residual order portfolio amounted to 15,84 billion while the net debt reached 5,39 billion (from 5,73 billion on 30 September last).
"In fourth quarter of the 2015, we recorded an operating margin of around 6%, thanks to the performance of the Offshore E&C and the confirmation of the break-even of the Onshore E&C, as well as the incisive cost cutting program that supported the company's profitability – he added Cao – following the capital increase and the refinancing, Saipem will be able to leverage on a more robust balance sheet, consistent with the historic moment the oil sector is going through”.
The financial director of the oil group, Alberto Chiarini, assured instead that "by the end of next week Saipem will extinguish all the debt owed to Eni”, which amounts to 6,1 billion, thanks to the proceeds of the capital increase that has just closed and 3,2 billion bank loans.
As for business prospects, according to Cao in the E&C sector (engineering and construction) there are opportunities for potential contracts of over 38 billion euros. The CEO also underlined that 74% of 2016 revenues are already guaranteed by the contracts in the portfolio.
"We do not expect changes in the 2016 guidance", concluded Cao, specifying however that if the situation on the crude oil market does not improve "there could be difficulties in winning new contracts, which could be reflected from 2017 onwards".
