Saipem closed the first half of 2016 with a net profit of 53 million euros, against a loss of 920 million in the same period of 2015. Furthermore, revenues amounted to 5,27 billion euros, down by 1,8 .324% on year, while adjusted ebit was equal to 479 million compared to the negative figure of the reference period equal to -140 million. The adjusted net result was 609 million, compared to -2015 million in the first half of 30. Net debt as of June 1.970th was 5.390 million, a sharp decrease compared to the 31 million as of December 2.040st and the 31 million as of March 2016st XNUMX.
However, the group has revised its 2016 guidance downwards: the updated projection on revenues is 10,5 billion euros compared to the 11 billion estimated in February, the adjusted operating profit remains unchanged at around 600 million euros, while the adjusted net profit is expected at around 250 million (300 million the February forecast). Technical investments are reduced to around 400 million from the previous 500, while net debt is seen unchanged at around 1,5 billion euros.
“In the first half of 2016 Saipem achieved robust operating results thanks to the excellent performance in the execution of offshore E&C orders - commented Stefano Cao, CEO of the company -, to the long-term contracts that still support the margins in offshore drilling and to the constant commitment in terms of cost reduction and process efficiency. Our distinctive skills have allowed the awarding of important new contracts, mainly in offshore projects, even in the persistence of the crisis in the sector and in particular in the drilling segment. The performance in the half-year allows us to achieve resilient results for the current year, in a market that is confirmed to be extremely complex".
Saipem then announced that it has been awarded two new Engineering and Construction contracts for onshore and offshore works in Indonesia, relating to the Tangguh Lng Expansion Project. The contracts were awarded by BP Berau Ltd., as operator of the Tangguh Lng Project, on behalf of the other partners participating in the production sharing contract
The first contract covers the engineering, procurement, construction and installation of offshore structures – specifically two unmanned platforms and subsea pipelines. Saipem will leverage its strong technological expertise in the design, manufacture and installation of subsea platforms and pipelines.
The second contract includes the construction of an onshore LNG plant with a liquefaction capacity of 3,8 million tonnes/year, ancillary services, an LNG jetty and related infrastructure. The contract has been awarded to CSTS, a joint operation led by Indonesian EPC contractor Tripatra together with Chiyoda, Saipem and Suluh Ardhi Engineering. Completion of the works is scheduled for 2020.
Lastly, also yesterday, the company released a note in which it says it has "acknowledged the decision of the Judge of the preliminary hearing to order the indictment also against the company" and to trust "that it will be able to demonstrate in the judgment on the merits of first instance the non-existence of the conditions for declaring the administrative liability of the company pursuant to Legislative Decree 231/2001". The case concerns the decision of the Milan magistrate Manuela Scudieri to commit the company to trial also in relation to a second corruptive conduct relating to the 2008 operation which led the shareholder Eni to buy the Canadian company First Calgary Petroleums Ltd, which as the only assets had a gas field in Menzel, Algeria, co-owned by the Algerian state-owned company Sonatrach, as part of the wider proceeding on the alleged payment of bribes to Algeria to obtain contracts.
