Saipem reports first half results - unveils turnaround planCompany News // August 12, 2015
The Board of Directors of Saipem have published the company's six month report, to the end of June 2015, and endorsed a turnaround and cost cutting programme.
Saipem announced total write-downs of €929 million of net current and capital assets; rationalization of construction yards and disposal of vessels; and said it expected to make cumulative savings for 2015-2017 of €1,300 million.
The company said it would be "repositioning towards higher value core business segments," and noted that its first-half results reflect the termination of the South Stream contract and write-downs carried out in the second quarter.
Stefano Cao, Saipem's CEO, said: "Results for the second quarter of 2015 reflect a market that has greatly deteriorated. The further steep fall in the oil price has resulted in a major disruption, which is not likely to be reversed in the short-to-medium term and has resulted in clients taking an increasingly rigid approach in the operational and commercial management of contracts. In this scenario, Saipem needs a step change to respond more effectively to the new requirements of its clients.
"We have therefore launched an in-depth process of transformation throughout the company, which involves the rationalization of assets and the review of all processes.
"This will enable Saipem to improve its competitiveness, recover profitability and create value, leveraging its competitive advantages, including a solid and diversified backlog, robust and consolidated relations with its clients, a state-of-the-art fleet and a wealth of technology, competencies and experience.”