By Liam Moloney
Saipem SpA (SPM.MI), the Italian oil services company that has
shed almost half its value since the start of the year, Tuesday
recorded it worst quarterly net loss from provisions in Algeria,
Mexico and Canada and lower margins in projects.
Saipem, in which Eni SpA (E) is the biggest shareholder with a
43% stake, confirmed 2013 guidance of a net loss of between 300
million euros ($399 million) and EUR350 million, a flat operating
profit and revenue of about EUR13 billion.
It swung to a second-quarter net loss of EUR685 million and an
operating loss of EUR670 million as revenue slipped 36% to EUR2.10
billion. That compares with a net profit of EUR243 million and an
operating profit of EUR393 million in the same period last
year.
The second-quarter results are worse than anticipated by six
analysts polled by Dow Jones Newswires.
The Milan-based company disclosed late last year that it was
under investigation in Italy on suspicions of corruption involving
some of its Algerian contracts. The company denies any
wrongdoing.
Saipem further shocked investors by issuing two profit warnings
in the first half of the year.
On Tuesday, it appointed Piergaetano Marchetti, an expert in
Italian corporate governance, as its new deputy chairman. He will
provide oversight of the ongoing review of Saipem's governance and
control system, it added.
At 1427 GMT, Saipem shares gained 7.2% at EUR16.47, giving it a
market value of ERU6.79 billion, while Italy's benchmark FTSE Mib
adds 1.3%.
Write to Liam Moloney at liam.moloney@wsj.com
Order free Annual Report for Saipem SpA
Visit http://djnweurope.ar.wilink.com/?ticker=IT0000068525 or
call +44 (0)208 391 6028
Order free Annual Report for Eni SpA
Visit http://djnweurope.ar.wilink.com/?ticker=IT0003132476 or
call +44 (0)208 391 6028
Order free Annual Report for Eni SpA
Visit http://djnweurope.ar.wilink.com/?ticker=US26874R1086 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires