Saipem warns of loss equal to over one-third of equity
Italian offshore engineering and construction services provider Saipem warned on January 31 it expected to book a 2021 loss equal to more than one third of its equity.
Saipem said it suffered a significant drop in project margins last year, as the COVID-19 pandemic and supply chain disruptions led to project delays and drove up the cost of materials and logistics. The size of the anticipated loss means Saipem is required under Italian law to ask shareholders to agree to measures to improve its financial state. It may also give banks the right to seek repayment of loans faster.
EBITDA in the second half of 2021 is now projected to be €1bn ($1.1bn) weaker than the forecast Saipem made in October, the company said. It blamed the slump on increased costs at its onshore projects and difficulties with recent offshore wind developments, owing to delays in the delivery of critical supplies.
Saipem estimates that its revenues came to €3.5bn in the second half of the year, versus a previous guidance of €4.5bn.