Italian Regulator Fines Saipem for Late Profit Warning

Italian market regulator Consob fined Saipem 80,000 euros ($100,000) for delaying a profit warning in January last year, the latest setback for the oil services firms whose shares fell to a 10-year low on Friday.

The decision dates back to June 18, but was released in Consob's bulletin on Friday after a court dismissed a Saipem appeal. The company, controlled by oil major Eni, said it would now file an appeal with Italy's highest court.

"Saipem is confident that the supreme court will confirm the company did act correctly," it said in a statement.

On Jan. 29, 2013, Saipem said its 2013 profit would fall 80 percent, sending shares down more than 30 percent the following day. Consob said the company had been aware of price-sensitive information for 15 days before it disclosed it in the warning.

On Friday, shares in the company fell more than 5 percent to a 10-year low on heightened fears it may need to seek a capital increase after a string of setbacks.

The stock was down 4.8 percent at 8.27 euros by 1343 GMT, after touching 8.22 euros earlier in the session, its lowest since late 2004 and down from a 40-euro peak in September 2012.

Eni said late on Thursday it had put the sale of its Saipem stake on hold after the cancellation of the South Stream gas pipeline project and plunging oil prices shaved off almost half of the company's market value in two months.

South Stream's demise is the latest blow for Saipem following two profit warnings last year and a cut to this year's profit forecast in July.

"Any decision on how to strengthen Saipem's balance sheet will be deferred until the market stabilises, including the already flagged possibility of a capital increase, which in our view is becoming more likely," broker Equita said in a note.

Reporting by Agnieszka Flak and Giancarlo Navach