BAKU, Azerbaijan, Oct.28
By Leman Zeynalova – Trend:
In the first nine months revenues of Italian Saipem amount to €5,380 million (€6,748 million in the first nine months of 2019) and adjusted EBITDA amounts to €491 million (€899 million in the first nine months of 2019), Trend reports citing Saipem.
Both indicators, for all divisions, reflect results affected by the slowdown of projects due to the effects of the pandemic and by the postponement of some activities, agreed with the clients. Adjusted net profit recorded a loss of €210 million (profit of €91 million in the first nine months of 2019). The negative variation of the adjusted operating profit, of €415 million, is partly offset by the significant improvement of the net results from investments and financial expenses, as well as by the lower results of third-party interests.
Net profit recorded a loss of €1,016 million (profit of €44 million in the first nine months of 2019) and, unlike adjusted net profit, was impacted by the following special items: - write-downs of tangible assets in the Offshore Drilling division of €590 million, which had already been accounted for in the first half of 2020, deriving from the impairment test; - write-down of tangible assets and related working capital, as well as of the right-of-use of a third-party asset for €97 million; - contingent liabilities for €20 million, in relation to a pending judgement on a project already completed, deriving from the activity of periodic legal monitoring of the evolution of the overall dispute; - costs deriving from the healthcare emergency for about €99 million.
This amount includes the costs incurred in the period directly attributable to the Covid-19 pandemic, such as costs for the workers on stand-by in compliance with quarantine regulations and in such cases where activities at operating sites and onboard vessels were suspended by the authorities, for the purchase of personal protective equipment and devices in addition to the standard requirements, for sanitising work areas and for the organisation of charter flights to repatriate personnel. Net profit in the corresponding period of 2019, amounting to a profit of €44 million, unlike adjusted net profit, was impacted by the following special items: - write-downs and accruals for a jack up of €21 million; the asset was partially written down because it was likely to be replaced by a leased asset, due to the completion of the contract in backlog; - reorganization expenses of €26 million.
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