BAKU, Azerbaijan, April 23
By Leman Zeynalova - Trend:
Capital expenditure of Italy’s Saipem company in the first quarter of 2020, relating mainly to the maintenance and upgrading of the existing asset base, amounted to €59 million (€74 million in the first quarter of 2019), Trend reports citing the company.
Saipem said in its report that its capital expenditure is broken down as follows: - €24 million in Offshore Engineering & Construction; - €3 million in Onshore Engineering & Construction; - €11 million in Offshore Drilling; - €21 million in Onshore Drilling.
This is while its revenues amounted to €2,172 million, in line with 2019 as volume increases recorded in the Onshore Engineering & Construction division were offset by lower volumes recorded in the Offshore Engineering & Construction division.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to €240 million (€274 million in 2019); this reduction is attributable to a loss of operational performance in the Offshore Engineering & Construction and Onshore Drilling divisions.
Adjusted net profit recorded a loss of €9 million (profit of €29 million in 2019); alongside the variation of the adjusted operating profit from €126 million to €83 million, recording a reduction of €43 million, a deterioration in results from financial expenses and results from investments of €10 million was recorded, which was offset by an improvement in tax management and third-party interests of €15 million.
Net profit recorded a loss of €269 million (profit of €21 million in the first quarter of 2019) and, unlike adjusted net profit, was impacted by write-downs of tangible assets in the Offshore Drilling division of €260 million deriving almost entirely from the impairment test.
Saipem said that the worsening of the economic and financial crisis in the wake of the Covid-19 emergency has caused farreaching uncertainty and a consequent dramatic and widespread drop in the demand for services which, along with volatile commodity prices, particularly of oil, are leading to a revision of future investment plans, also by the company’s clients.
“Despite this deteriorated market context, the operating results for the quarter are robust, thanks to the strengthening of our financial position in recent years, the repositioning of the business towards energy transition, the size and diversification of the backlog and the quality of our assets. These factors, together with the launch of an adequate cost saving program, ensure a solid base for tackling the complexities expected in 2020,” said the company.
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