Credit risk

Credit risk represents Saipem’s exposure to potential losses deriving from non- performance of counterparties. Credit risk arising in the normal course of operations is monitored by the business units and the administration department on the basis of standard procedures and periodic reporting.

For financial investments and the use of financial instruments, including derivatives, companies adopt the guidelines issued by the Treasury Department of Saipem.

The critical situation that has developed on the financial markets has led to additional preventative measures to avoid the concentration of risk/assets being adopted. In addition, operations involving derivative instruments are being managed with a greater degree of selectivity.

The company did not have any significant cases of non performance by counterparties. As at June 30, 2010, Saipem has no significant concentrations of credit risk.

metatags injection