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Saipem expects capex to rise in 2021

Oil&Gas Materials 25 February 2021 14:49
Saipem expects capex to rise in 2021

BAKU, Azerbaijan, Feb.25

By Leman Zeynalova – Trend:

Italian Saipem company expects its capital expenditure (capex) to be around 450 million euro in 2021, as compared to 322 million euro in 2020, Trend reports citing the company.

“2021 started in a context of uncertainty resulting from, on the one hand, the persistence of the pandemic and the fears of its variants and, on the other hand, the expectations associated with the discovery and rollout of vaccines. Nonetheless, Saipem is solid with a sizable backlog, a robust financial structure and interesting business prospects both in the traditional sectors and in those related to the energy transition, in addition to the important role it intends to play in the context of investments related to post-pandemic recovery programs launched in Europe,” the company said.

The business scenario for 2021 will still be influenced by the pandemic, especially in the first half of the year. For this reason, the company is currently unable to provide a firm financial guidance. Volumes for the year and beyond are well supported by the sizeable backlog, project mix and operational progress which enable us to expect for 2021 an adjusted EBITDA at a level similar to 2020.

New efficiency initiatives have been launched on structural costs for approximately €30 million in 2021, which add to the savings delivered in 2020. Capex in 2021 are expected around 450 million euro. Beyond 2021, with the progress of the vaccination campaign, the advancement in the execution of projects, combined with efficiencies and a further resumption of commercial activity, a return to growth of adjusted EBITDA and the restart of net debt reduction path are expected. This scenario does not factor a further and possible material macroeconomic and business context deterioration as a consequence, for instance, of the intensification of the Covid–19 pandemic. Saipem advances on its ESG path and commits to reduce greenhouse gas (GHG) emissions, scope 1 and 2, by 50 percent by 2035, a decisive step towards achieving a net-zero carbon emission profile in the future (“net-zero carbon”).

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