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.

 

A Thomson Reuters consensus had pegged second-quarter operating profit at 120 million euros.