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.

Main telephone number: +39-025201
Shareholder Information  Saipem S.p.A., Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (MI)

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SAIPEM: New 2013 guidance driven by escalating commercial difficulties in Algeria and other operational and technical issues

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