Oil companies under the spotlight in Piazza Affari. After the publication of the accounts - which took place on Wednesday evening with the markets closed - this morning the Saipem share managed to gain 10%, to 0,4248 euros, achieving the best increase of the Ftse Mib. Reverse speech instead for Tenaris, which – again after the accounts – this morning yields more than 4% in Milan, at 11,57 euros, the worst drop on the main Italian list.
In the first quarter, the Saipem group acquired new orders for a total of 1.025 million euros compared to 2.399 million euros in the first quarter of 2015. Saipem's order book at March 31, 2016 amounted to 14.031 million euros. Again between January and March, Saipem made technical investments of 45 million euro (150 million in the first quarter of 2015) and expects to make around 2016 million euro for the whole of 500, down 10% compared to the final balance 2015, contributing to a positive cash generation that will bring the net debt to less than 1,5 billion euro at the end of 2016.
The Board of Saipem also acknowledged the persistent volatility of oil prices, albeit in an improving trend, the uncertainty that still characterizes the market context, as well as the evolution of the order book and the important contract acquisition opportunities that they will reasonably be finalized within the first half of the year. In light of this, the Board of Directors, explains a note, will continue to monitor the situation and expects that the 2017-2020 strategic plan will be examined during the nine-month data, next October, when the 2017 guidance will be published.
Lastly, the BoD approved the adoption of a multi-year program of non-convertible bond issues called the 'Euro Medium Term Notes Programme' for an amount of up to 2 billion euro. The resources deriving from this program will mainly be used for the repayment of the Bridge to Bond facility for an amount of 1.600 million which must be repaid by the deadline of July 1, 2017 subject to the company's right to extend it until January 2018, XNUMX. adoption of the programme, it states, will allow the company to minimize the time required to seize financing opportunities offered by the capital market and institutional investors through future bond issues.
As for Tenaris, it archives the first quarter of the year with a net profit of 28 million dollars, a sharp decrease compared to the 254 million profit of the first quarter of 2015. Revenues amounted to 1,25 billion, with a drop of 44 % on the same fraction of last year. Ebitda stood at 205 million, with a contraction of 61% and the Ebitda margin was 16,3%, against 23,4% in the first quarter of 2015. Earnings per share fell to $0,02 from $0,22. Sales - comments the group in a note - continue to fall on a sequential basis conditioned by the continuing reduction in drilling activity worldwide and by the continued pressure on selling prices.
Sales and margins for the next two quarters – adds Tenaris – will be conditioned by the decline in prices and volumes which reflects the weak drilling activity, by the completion of deliveries to large pipeline projects in South America and by the severe context on the pricing front. “By the end of the year, however, we expect sales to start recovering thanks to the likely recovery of the drilling activities in North America and the orders acquired for the activities in the Eastern Hemisphere. We will continue to adjust the business in these adverse conditions, focusing on cost and cash flow management, while strengthening our market position in preparation for the recovery."
Cash from operating activities totaled $309 million in the first quarter and, after capital expenditures of $230 million, resulted in positive cash flow of $79 million. Net liquidity at the end of March was $1,9 billion.
