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Saipem downs forecasted capex for 2019

Oil&Gas Materials 28 October 2019 14:54 (UTC +04:00)

BAKU, Azerbaijan, Oct.28

By Leman Zeynalova – Trend:

Italy’s Saipem company its capital expenditures at approximately 450 million euros for 2019, down from the 500 million euros forecast in the first half results, Trend reports citing Saipem’s report for the first nine months of 2019.

“High volatility in the oil price and the persistently low level of new investments by the oil companies will continue to characterize the last part of this year. In the first nine months, some important Final Investment Decisions (FIDs) in the gas segment contributed significantly to the high level of contract awards. The backlog at the end of September 2019, combined with forecasts for current commercial tenders, allows us to forecast revenues of around 9 billion euros for 2019,” said the company.

As for the first nine months of 2019, revenues amounted to 6,748 million euros, up by 11.4 percent on 2018, due to volume increases recorded by all divisions, and particularly by the Onshore and Offshore Engineering & Construction divisions.

Net profit in the first nine months of 2019 amounted to 44 million euros (loss of €357 million in the first nine months of 2018).

Capital expenditure in the first nine months of 2019, mainly relating to the maintenance and upgrading of the existing asset base, amounted to 229 million euros (365 million euros in the first nine months of 2018), broken down as follows:

- 105 million euros in Offshore Engineering & Construction;

- 10 million euros in Onshore Engineering & Construction;

- 66 million euros in Offshore Drilling;

- 48 million euros in Onshore Drilling.

Saipem is a leading company in engineering, drilling and construction of major projects in the energy and infrastructure sectors. It is “One-Company” organized in five business divisions (Offshore E&C, Onshore E&C, Offshore Drilling, Onshore Drilling and XSight, dedicated to conceptual design).

Listed on the Milan Stock Exchange, it is present in over 70 countries worldwide and has 32 thousand employees of 120 different nationalities.

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