Italy’s Saipem decides to withdraw 2020 guidance
BAKU, Azerbaijan, April 16
By Leman Zeynalova - Trend:
Italy’s Saipem company has decided to withdraw its 2020 guidance, Trend reports citing the company.
The Board of Directors - while recognizing that the operating activities of the company have till now progressed in line with the four-year industrial plan approved on 25 February 2020 despite the concurrent decrease in oil price, also supported by significant operative initiatives adopted by the company to better manage the COVID-19 emergency and the business continuity with the utmost respect for people’s health and safety, – took notice that the intensification of the uncertainty caused by the development of the pandemic might cause a sharp demand contraction and consequently a delay of some projects.
The Board of Directors resolved to withdraw the 2020 guidance, which was communicated on 26 February 2020, reserving the right to issue a new guidance should the market conditions become more stable, as a result of the effects that this deteriorated scenario is having on the ability to estimate the crisis impacts on the commercial and operating activities of the Company and consequently on its asset value, economic and financial results.
The Board of Directors will continue to monitor the scenario and will promptly update investors accordingly. The backlog and the balance sheet of the Company remain very solid, the available liquidity is in line with the financial planning and is appropriate to support operational needs.
In addition, with regards to Saipem Group’s financial debt, there are no significant maturities in 2020 and 2021, following the early redemption of 500 million euro bond maturing in 2021.
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