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. The company had previously guided to a profit of around 300 million euros.


($1 = 0.9101 euros)

(Reporting by Stephen Jewkes; editing by Agnieszka Flak)