SAIPEM: New 2013 guidance driven by escalating commercial difficulties in Algeria, and other operational and technical issues
San Donato Milanese (Milan), June 14, 2013 - Following the presentation of the First Quarter results and the Operational Review on 23rd and 24th April and the Shareholder Meeting of 30th April, there has been a significant deterioration in our commercial position in Algeria. In addition, following appointment of new E&C Regional Managers, a number of operating issues materialized in relation two onshore contracts in an advanced stage of execution in Mexico and Canada, together with some unexpected technical challenges occurring in the E&C Offshore business. These issues will lead to a small number of large-scale contract losses which are the result of unrelated issues.
Guidance impacts:
o Escalation of commercial difficulties in Algeria
o Operational issues emerged since implementation of new management structure in April
o Technical problems in E&C Offshore
Corrective action taken
Recovery underpinned by recent favorable contracts, continuing strong drilling results
Saipem is organized into two Business Units: Engineering & Construction and Drilling, with a strong bias towards oil & gas related activities in remote areas and deepwater. Saipem is a leader in the provision of engineering, procurement, project management and construction services with distinctive capabilities in the design and execution of large-scale offshore and onshore projects, and technological competences such as gas monetization and heavy oil exploitation.
Website: www.saipem.com
Main telephone number: +39-025201
Shareholder Information Saipem S.p.A., Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (MI)
Relations with Institutional Investors and Financial Analysts:
Tel: +39-02520.34653
Fax: +39-02520.54295
E-mail: investor.relations@saipem.com
Media Relations: Barabino & Partners
Italy: a.paganomariano@barabino.it
Tel: +39-0272023535
Mobile: +39-3358304074
International: g.sanfelice@barabino.co.uk
Tel: +44 20 71526425
Mobile: +44-7775858152
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