Saipem Warns On Profits After Falling To 2Q Loss
MILAN, July 25 (Reuters) - Italy's Saipem lowered its annual earnings forecasts on Tuesday citing tough market conditions after the oil services company fell to a second-quarter loss.
Saipem said it now expected adjusted net profits of around 200 million euros this year, down from a previous target of 230 million, because of higher financial costs.
It added the forecast did not include the impact of possible one-off items such as asset impairments and tax dispute settlements.
The company, jointly controlled by oil major Eni and state-lender fund FSI, lowered its revenue target to around 9.5 billion euros ($11 billion) from a previous estimate of around 10 billion euros.
In the second quarter Saipem fell to a net loss of 157 million euros on asset writedowns, missing a Thomson Reuters consensus forecast for a 51 million euro profit.
Saipem said the market outlook remained challenging, especially in the offshore sector, but added its pipeline of projects remained promising.
"Despite the ongoing difficult market context we have good visibility on upcoming significant order acquisitions," CEO Stefano Cao said.
He said the company was counting on securing orders worth $4 billion in the near future.
Russia's Novatek is expected to select Saipem to build offshore platforms for a liquefied natural gas facility in the Arctic, one of Novatek's partners said.
Oil service companies have been struggling to fill order books as oil majors defer projects and cut billions of dollars in costs to offset low crude prices.
Saipem, which employs around 35,000 people worldwide, is a market leader in subsea engineering and construction work including the world's most expensive oil field, Kazakhstan's Kashagan.
($1 = 0.8582 euros)
(Reporting by Stephen Jewkes; editing by Jason Neely)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension