Saipem Posts Strong Results Set for 2019

Italian oil and gas contractor Saipem reported a surge in adjusted net profits in 2019, as a result of increased business, it said on February 26.

Revenues were up 6.7% at €9.1bn ($9.95bn), the company said, thanks to "solid" performance from its onshore engineering and construction and onshore and offshore drilling divisions. Adjusted net income reached €165mn, from a mere €25mn a year earlier, with other factors including lower financial costs and reduced taxes.

 Adjusted core earnings (Ebitda) grew 35.1% to  €1.15bn, while net profit came to €12mn, versus a €472mn loss in the year before. Saipem's 2018 results were weakened by heavy impairments.

Fresh cash flow also soared to €887mn, from €200mn, and Saipem managed to slash its net debt to  €1.08bn, from  €1.71bn.

Saipem also pointed to a "strong acceleration of new orders' awards" that brought its backlog to a "record" €21.2bn. Some €17.6bn in new contracts were secured last year, compared with €8.75bn in 2018.

"Efforts over the last few years to achieve a solid and rigorous economic and financial stability have allowed us to beat all targets set for 2019," CEO Stefano Cao said.