Saipem posts record quarter net loss
BY LIAM MOLONEY
MILAN -- Saipem, 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 is the biggest shareholder with a 43% stake, confirmed 2013 guidance of a net loss of approximately $399 million, a flat operating profit and revenue of about $17 billion.
It swung to a second-quarter net loss of $908 million and an operating loss of $888 million as revenue slipped 36% to $2.7 billion. That compares with a net profit of $323 million and an operating profit of $521 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.
Dow Jones Newswires