Saipem Push with US Drillers Draws a Blank
Italian oil services company Saipem is trying to lure big U.S.
Italy Watchdog Auditing Saipem for Impairment Charges
Italy's market regulator started an audit of Saipem in November to gather information on write downs the oil service company booked last year, Saipem said in its annual report. The Italian oil contractor announced impairments on a string of assets of around 2.1 billion euros ($2.2 billion) last October. In its yearly report Saipem also said South Stream Transport BV (SSTBV), owned by Russia's Gazprom, had filed damages against it for around 541 million euros for alleged misrepresentation in an arbitration case revolving around a defunct pipeline project.
Saipem Skids to Q3 Loss, Plans Job Cuts
Italian oil contractor Saipem posted a third-quarter loss of 1.978 billion euros ($2.15 billion) after asset writedowns, forecasting revenues in 2017 below those expected this year as the industry crisis continues. In a statement Saipem said it expected sales to be around 10 billion euros in 2017 from some 10.5 billion euros this year. It said it would be cutting 800 jobs in Europe in the 2017-2020 period. "Market recovery is delayed to 2017 and beyond," the Saipem chief financial strategic officer said in a call with reporters. ($1 = 0.9189 euros) (Reporting by Stephen Jewkes; editing by Francesca Landini)
Saipem Cuts Guidance on Delayed Projects, Charges
Italian oil contractor Saipem cut its sales and profit guidance for the year on Wednesday, citing delays by clients to oil projects and higher financial charges. Saipem, controlled by oil major Eni and state lender fund FSI, said it expected revenues for the year to come in at around 10.5 billion euros ($11.5 billion) from a previous target of more than 11 billion euros. Oil service companies around the world are finding business tough as global crude prices slide, prompting oil companies to cut back on spending. Adjusted net profit will be around 250 million euros this year, due to bigger financial charges and a higher tax rate.
Saipem Faces Falling Margins and New Rivals
Italian oil contractor Saipem faces new challenges after raising 3.5 billion euro ($3.8 bln) to stay afloat, as rising competition in its lucrative pipe-laying business threatens margins and orders. Oil services firms have been among the hardest hit by a two-thirds drop in oil prices since July 2014 as oil producers slashed spending by more than $100 billion. The timing could not be worse for Saipem's ageing vessel fleet as rival new capacity erodes typically high margins enjoyed by the company, which is controlled by oil major Eni and Italian state fund FSI.
Saipem Faces Solo Slog in Low Oil Price World
Shares plunge to near 20-year lows after issue results. A plunge in oil prices and little sign of recovery anytime soon have left Italian oil contractor Saipem ill-prepared to cope with life independent from former parent Eni, even after a 3.5 billion euro ($4 billion) fundraising. The much-needed money is essentially in the bank, as the share sale to existing investors is underwritten by a financial consortium and core investors Eni and state fund FSI. Saipem said on Thursday shareholders had signed up to 87.8 percent of the offering…
Saipem Shares Slide Before Rights Pricing
Saipem shares came under pressure on Thursday as the oil contractor geared up to price a giant rights issue that is widely expected to be sold at a steep discount to woo investors spooked by sliding oil prices. "They couldn't have chosen a worse moment to launch the recapitalisation," ICBPI analyst Guglielmo Marco Opipari said. Saipem, controlled by oil major Eni, approved last year a 3.5 billion euro ($3.8 billion) cash call as part of a four-year turnaround plan aimed at ensuring its survival. The contractor, which has a market capitalisation of 2.5 billion euros, will hold a board meeting on Thursday afternoon to price the issue that is due to start Monday.
Saipem Biggest Private Investor Votes for $3.7 bln Cash Call
Saipem's biggest private shareholder Dodge & Cox voted on Wednesday in favour of a 3.5 billion euro ($3.7 billion) capital increase designed to strengthen the Italian oil contractor's balance sheet. The U.S. investment company currently owns more than 12 percent of Saipem. "It's an important signal... It means they share our proposal," Saipem chairman Paolo Andrea Colombo said at a shareholder meeting. A majority of Saipem investors approved the cash call at the meeting. The oil contractor is controlled by a shareholder pact comprising state-owned investment fund FSI and state-controlled oil major Eni.
Saipem CEO Sees No Volkswagen Risk over Fleet Standards
The fleet Italian oil contractor Saipem uses to carry out its offshore construction and drilling business has been properly certified and there is no risk of any Volkswagen-like scandal, the CEO said on Tuesday. Italy's anti-establishment 5-Star Movement, the country's second-biggest party, claims that Saipem had not adopted proper practices when certifying its fleet, with an impact on safety and, indirectly, on the value of the fleet itself. "Is there a Volkswagen case at Saipem? No," Stefano Cao said in a parliamentary hearing. Cao…
Saipem Plans 3.5 bln Euro Rights Issue
Saipem rights issue to be completed in first quarter of 2016. Italian oil contractor Saipem is asking investors to pump in fresh capital equivalent to its current market value to help it to weather the oil service recession and plot a path to recovery as main investor Eni takes a step back. Saipem, which is 43 percent owned by Eni, said on Wednesday that it would hold a 3.5 billion euro ($3.87 billion)rights issue in the first quarter of next year as part of a new four-year turnaround plan aimed at ensuring the company's survival without its Eni safety net.
Maire Tecnimont Downplays Saipem Rumors
Italian engineering and construction group Maire Tecnimont denied a report on Tuesday it was carrying out due diligence on the onshore business of oil contractor Saipem. Italian daily Il Giornale said earlier on Tuesday Maire Tecnimont was looking at the onshore assets of Saipem and had started due diligence. "I deny what has been published in some press reports and in particular that there is any due diligence on Saipem underway," the spokeswoman told Reuters. Saipem, which is 43 percent owned by Italian oil major Eni , is due to unveil a turnaround business plan next week. Reporting by Massimo Gaia
Saipem Confident Will Prove it is Not Liable in Algeria Trial
Italian oil contractor Saipem said on Friday it was confident it would be able to prove that there were no grounds for the company to be held liable in a corruption trial. A Milan judge on Friday ruled that Saipem and a number of former employees of the company should stand trial for acts of corruption alleged to have taken place in Algeria up until the beginning of 2010, the company said. (Reporting by Francesca Landini)
Saipem Finalizing Bank Pool for Cash Call, Debt
Italy's Saipem is finalizing a banking consortium to put the troubled oil contractor on a solid financial footing and run a cash call of more than 3 billion euros ($3.4 billion) as it readies a turnaround plan, people close to the deal said. Two sources familiar with the matter said the consortium was still being cobbled together. At the moment there are seven core banks and a final decision is expected within two weeks, they said. The consortium will need to underwrite a share offering in excess of 3 billion euros which is expected to be unveiled on October 27, the sources said.
Saipem Slashes 2015 Guidance, Announces Job Cuts
Italian oil contractor Saipem slashed its guidance for the year on Tuesday as it booked writedowns of 929 million euros ($1 billion) and introduced a restructuring plan that foresees 8,800 job cuts. In a statement Saipem, which is 43 percent owned by oil major Eni, said it expected to post a net loss this year of around 800 million euros and an operating loss (EBIT) of around 450 million euros. Previous guidance had pegged net profits for the year at between 200 and 300 million euros and operating profits of 500 to 700 million euros. In the second quarter Saipem posted an EBIT loss of 949 million euros and a loss of 790 million euros in the first half.
Saipem Looks to Bain for Restructuring Plan
Italian oil contractor Saipem is working with Bain & Company to draw up a restructuring plan to help it cut costs and counter falling oil prices that have sapped its order book and stretched its balance sheet, three sources said. Saipem, 43 percent owned by state-controlled Eni, has lost around three-quarters of its value in the last 30 months after a corruption probe in Algeria, two profit warnings and increasingly bleak business prospects. The cancellation of a Black Sea pipeline contract was the latest blow. "The plan is called 'Fit to 60' -- whipping the company into shape to deal with life with crude at $60 a barrel…
Saipem to Resume Operations for Black Sea Pipeline
Italian oil contractor Saipem said on Friday it would restart work on an offshore pipeline in the Black Sea after South Stream Transport BV lifted a suspension of the works. Saipem had bagged contracts worth 2.4 billion euros last year mainly to build the first line of the South Stream pipeline from Russia to Bulgaria, but had to suspend work when the project was shelved in the face of objections from the European Union. Saipem is 43 percent owned by oil major Eni. (Reporting by Francesca Landini)
Saipem: No Financial Impact from Decision Over Seizure
Oil contractor Saipem said confirmation of a seizure order on the company on Thursday in a judicial case related to alleged international corruption would have no financial impact. An Italian appeals court said on Thursday it had upheld a 24.5 million euros seizure order against Saipem in a case related to alleged corruption in Nigeria. In a statement Saipem, which is 43 percent owned by Eni , said it would lodge an appeal against Thursday's ruling. Reporting by Danilo Masoni
Eni Reassures on Dividend, Looks to Cut CapEx
Italy's Eni reassured investors with a small dividend increase on Wednesday and pledged to cut capital spending after lower oil prices depressed fourth quarter profit. Larger energy companies, including BP and Total , have also said they do not intend to cut their dividends, a key attraction for investors, even if oil prices remain low. "The dividend is higher than 2013 and there was no scrip dividend which had been a worry. Cash flow was very good despite the oil price," a Milan-based analyst said. State-controlled Eni will pay an annual dividend of 1.12 euros for 2014, up from 1.10 euros a year ago.
Saipem Appoints Stefano Cao as New CEO
Veteran oilman Stefano Cao has been appointed as new CEO of Italian oil contractor Saipem , the company said on Thursday. Saipem is 43 percent owned by oil major Eni. The appointment, widely expected, is seen as paving the way for Eni to kickstart plans to sell down its stake to get its subsidiary's debt off its balance sheet. Cao spent almost 25 years at Saipem, leaving in 2000 as executive chairman to take charge of Eni's core exploration and production business where he managed Eni CEO Claudio Descalzi. He left Eni in 2008. (Reporting by Stephen Jewkes)
BG Signs Oil Contractor Deal with KBR
Oil and gas producer BG Group has signed an agreement with oil services company KBR to hire skilled contractors for its large-scale projects at short notice, an alliance that will allow BG to cut hiring costs. The agreement, which will last six years with an option to extend it to 10 years, will mean BG can call on KBR's global experts, including engineers and builders, as and when they are required for its large projects such as ones planned in Brazil, Tanzania and the United States. "In a lower oil price environment this is an important aspect of the alliance which enables BG Group to help minimise its fixed costs," the company said in a statement.
