Saipem sees slight decrease in revenues, EBITDA records loss

Oil&Gas Materials 30 July 2021 09:48 (UTC +04:00)
Saipem sees slight decrease in revenues, EBITDA records loss

BAKU, Azerbaijan, July 30

By Leman Zeynalova – Trend:

Saipem’s revenues amounted to €3,200 million (€3,675 million in the first half of 2020) and adjusted EBITDA recorded a loss of €266 million, (profit of €355 million in the first half of 2020), Trend reports with reference to the company.

Saipem is a leading Italian company in engineering, drilling and construction of major projects in the energy and infrastructure sectors. It is “One-Company” organized in five business divisions (Offshore E&C, Onshore E&C, Offshore Drilling, Onshore Drilling and XSight, dedicated to conceptual design). It is present in over 70 countries worldwide and has 33 thousand employees of 120 different nationalities.

Project revenues include initial agreed contract price and additional remunerations related to variation orders on project scope of work and requested claims. Variation orders are composed by additional revenues deriving from project contractual works deviations required by the client; Claims are relevant to additional revenues related to additional costs incurred due to reasons born by the client. The cumulative amount of variations orders and claims (pending revenues) in the Engineering & Construction, determined with reference to the progress of the projects also in previous years, is of €376 million as at 30 June 2021 (€275 million as at 31 December 2020). The variations orders and claims (pending revenues) are included in the amount of revenues when they present a high probability of recognition in the object and/or in the price, even though there is still no agreement regarding their definition with relevant counterparties. Amounts exceeding €30 million are recognised only if supported by external technical-legal appraisals. The adjusted net result amounted to a loss of €656 million (a loss of €132 million in the first half of 2020). The negative change recorded in the adjusted operating result, €557 million, and in equity investments, €35 million, is decreased by the improvement in the balance of tax and financial expenses management as well as in the third party interest result for a total of €68 million.


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