Saipem's board of directors approved the nine-month accounts and the 2017-2020 strategic plan, confirming the 2016 guidance but revising downwards that for 2017. The financial statements as at 30 September show revenues of 7,88 billion (-6,6% ), an adjusted Ebitda up to 997 million (from 224 million in the same period last year) and an adjusted net result of 200 million (from a loss of 562 million).
In reality, "the even more challenging market context" pushed the company to "rationalisations and write-downs", which in the first nine months resulted in a net loss of 1,925 billion. Among the adjustments, note those on assets for 1,981 billion and onshore drilling credits for 144 million.
The 2017 guidance sees revenues at 10 billion, EBITDA at 1 billion, net profit above 200 million and net debt below 1,4 billion. The company also signals the acquisition of new orders which thus rise to 6,627 billion (from 5,35 billion last year) thanks to the 3,3 billion obtained in the third quarter alone.
Although the quarterly results were better than expected, Saipem is under pressure in Piazza Affari and dropped 5,6% at 10,30. The expectation was directed above all to the 2017 guidance, whose revision made by the management disappointed the operators. Revenues are in fact expected at around 10 billion, lower than previously communicated (over 11 billion) and net financial debt is expected to rise sharply on previous estimates from less than one billion to just under 1,4 billion. Ebit should reach analysts' expectations of 500 million, but probably as a result of the strong write-downs of over two billion declared by management which will reduce the amount of depreciation and amortization. The guidance at the Ebitda level of 1 billion is 20% lower than the expected level for the current year and lower than the consensus estimates which reached 1,1/1,2 billion.
However, the ability of Saipem's CEO, Stefano Cao, a profound connoisseur of the oil & gas world, bodes well. In fact, the group has also decided to proceed with the savings plan (greater efficiencies for 1,7 billion) and to start a reorganization of the group into five divisions - informs Mf - dedicated to each activity: offshore and onshore construction, drilling, high added value engineering. The new organization provides for the reduction of approximately 800 human resources and streamlined operating processes.
