The first three months of 2018 for Saipem closed with a loss of 2 million euros, a negative result if compared with the profits of 47 million euros in the same period of the previous year. The figure was affected by reorganization costs of 13 million euro and the contraction of activities in the Offshore and Onshore Engineering & Construction and Drilling sectors.
The adjusted net result - net of non-recurring items - fell to 11 million compared to 54 million in 2017, penalized by the contraction in the operating result (87 million euro compared to 112 million in the previous year) and by an increase of the tax rate. Adjusted profit was also below market expectations, down from €54m to €11m. The data published by Saipem are in line with the consensus and with the guidance announced by the group which rose by 1% on the Stock Exchange to 3,39 euros at 10:37 on Tuesday morning.
Revenues also decreased compared to the previous year, which stood at 1,92 billion euros compared to 2,26 billion in 2017. Adjusted Ebitda settled at 214 million against the 223 million of the consensus of analysts.
During the first quarter, the payable to Sonatrach relating to the Lpg arbitration award with the Algerian Sonatrach. Despite this, net debt as at 31 March 2018 fell to 1,2 billion euros against 1,3 billion as at 31 December 2017. The residual order book is 11,5 billion, of which 4,04 are related to the Offshore Engineering & Construction, 5,8 to Onshore E&C projects and the remainder to Drilling.
"The results of the first quarter of 2018 confirm the solid operational and management performance already recorded in 2017 and highlight a further decrease in net debt compared to the level recorded at the end of 2017", commented the CEO of Saipem, Stefano Cao .
"Furthermore, last March, with the aim of further strengthening Saipem's capabilities in the submarine pipeline laying sector and completing the range of services offered to the subsea market - continued Cao - we concluded the agreement for the purchase of the Constellation ship, a latest generation vessel equipped with the most advanced technology”.
During the conference call on Tuesday morning, the CEO explained that "they have been three very difficult years, Saipem in its recovery path has moved in a climate and context of investments by oil companies, and therefore, of very challenging revenues . We have been engaged in a total rationalization of the company structure. Today there are signs, for now still weak, of recovery, but these have yet to materialize". The next few years, continued Cao, "I see them carrying forward all the initiatives we have started, maintaining a strong focus on market developments".
On the sidelines of the intervention, Cao replied to questions on probable jobs related to the projects Edf and Engie in wind power: “The negotiation goes on. The projects remain on the list of those we are pursuing as a priority".
The stock held up at the opening on Piazza Affari, gaining 0,6%.
