Italian oilfield services contractor Saipem saw an increase in its quarterly loss despite higher revenues. However, on a yearly basis, Saipem managed to cut its losses.
Saipem on Tuesday posted a net loss of €271 million for the fourth quarter 2017 on revenues of €2.126 million. This compares to a €162 million loss on revenues of €2.091 billion in the same period of 2016.
Saipem’s full year 2017 revenues amounted to €8.999 billion, a 9.8% decrease compared to 2016, due to a contraction in the Offshore E&C, Floaters and Drilling sectors.
For the year 2017 Saipem reported a net loss of €328 million, which was reduced by write-downs of tangible assets of €252 million. Namely, in Offshore Drilling, a semi-submersible rig and inventory were fully written down as there were no prospects of utilization in the medium-term.
Furthermore, a few offshore rigs have been partially written down following impairment tests. In Onshore drilling, several drilling rigs and inventories have been fully written down, as their prospect of utilization in the medium-term was null or limited;
Saipem’s performance was also impacted by tax dispute settlements of €79 million and net reorganization expenses of €43 million.
In 2016, Saipem reported net loss of €2.087 billion.
Saipem’s backlog at the end of 2017 stood at €12.4 billion of which €6.4 billion is due to be realized in 2018.
Looking ahead, Saipem said that 2018 is expected to show weak signs of recovery, as the recent increase in oil prices has not, at the moment, resulted in the oil companies speeding up their investment programs, even though a few timid positive signs are emerging in certain market segments.
In 2018 Saipem expects revenues of €8 billion and capital expenditures of €300 million. Net debt is expected to be around €1.1 billion at the end of 2018.
Offshore Energy Today Staff