Saipem sees decrease in revenues due to slowdown of projects

Oil&Gas Materials 25 February 2021 13:00 (UTC +04:00)
Saipem sees decrease in revenues due to slowdown of projects

BAKU, Azerbaijan, Feb.25

By Leman Zeynalova – Trend:

In 2020, revenues of Italian Saipem company amounted to €7,342 million (€9,099 million in 2019) and adjusted EBITDA amounted to €614 million (€1,226 million in 2019): 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 certain activities, agreed with clients, Trend reports citing the company.

In addition, the offshore division is experiencing project operational difficulties. Adjusted net result recorded a loss of €268 million (profit of €165 million in 2019). The negative change of the adjusted operating result, of €586 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 result recorded a loss of €1,136 million (profit of €12 million in the first half of 2019) and, unlike adjusted net result, 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 €114 million; - contingent liabilities for €24 million, in relation to pending judgements on projects 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 €110 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; - re-organization expenses of €30 million.


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