Saipem Back in Black in Q3

Italian oil and gas contractor Saipem posted higher earnings for Q3 2019 than 2018, on the back of smaller impairments and better cost control.

Net profit came in at €30mn ($33.4mn) in the period, marking a reversal from a loss of €34mn a year earlier, the company said on October 24. Write-downs and re-organisation expenses came to just €1mn, compared with €34mn a year earlier.

Ebitda grew to €292mn from €232mn, despite a slight decline in revenues to €2.23bn from €2.26bn.

“I am particularly satisfied with the positive trend in all indicators resulting from the comprehensive and effective economic and financial rebalancing work carried out over the last few years,” CEO Stefano Cao commented. “As demonstrated by the record-breaking award of new contracts in the first nine months of the year shows, the company holds a leadership position in the market, particularly in those segments most closely linked with the energy transition.”

New orders, mostly in Saipem’s core engineering and construction businesses, more than doubled yr/yr to €13.9bn in the nine months. Its backlog now stands at €19.8bn, compared with €12.6bn at the end of December. They included its biggest ever contract, worth $6bn, for Mozambique LNG.

“The forthcoming challenges will see us engaged in the improvement of our positioning in the specific market segments and in the identification and pursuit of strategies that will allow us to consolidate and confirm our leadership,” Cao added.