Saipem Makes Profit in Q3

Italian contractor Saipem reduced its loss so far this year, even going into the black in the third quarter. It made a net loss for the period January to September 2017 of €57mn ($67mn), compared with a net loss of €1.925bn in the first nine months of 2016, it reported October 24. That included a net profit in 3Q2017 of €53mn contrasting with a net loss of €1.978bn in the same period last year.

CEO Stefano Cao said: “Despite the persistence of a challenging market context, Saipem’s performance in the first nine months of 2017 was solid from both an operational and management point of view.” Its updated guidance for full year 2017 is pre-tax earnings (Ebitda) of about €1bn, and adjusted net profit of some €200mn.

Most significant awards in 3Q 2017 included ramp-up of the Zohr supergiant gas field offshore Egypt, work on infrastructure to boost gas flows at Takoradi and Tema (both Eni contracts), and for the construction of the last section of Nord Stream 2 to be laid in the Baltic and its shore approach at Greifswald, Germany. In October Saipem was awarded new onshore engineering contracts in Mexico and Chile amounting to a total value of some $350mn.

Mark Smedley