Saipem: Consob announces the conclusion of proceedings connected with the 2012 financial statements
San Donato Milanese (Milan), December 6, 2013 - Saipem announces that the regulatory authority Consob has declared, in a ruling issued on December 5, 2013, that on the basis of the Company’s press release of October 28, 2013, the proceedings commenced on July 19, 2013 with regard to a potential “non-compliance with international accounting standards” of the statutory and consolidated financial statements as at and for the year ended 2012 have been closed.
The content of the communication received from Consob is shown below:
«RE: Proceedings 1612/2013 – Non-compliance of the statutory and consolidated financial statements at and for the year ended December 31, 2012 of Saipem S.p.A. with article 154-ter, paragraph 7 or article 157, paragraph 2 of Legislative Decree no. 58/98 – Communication regarding conclusion of proceedings and request pursuant to article 114, paragraph 5 of Legislative Decree no. 58/98.
We refer herein to proceedings 1612/2013 commenced by this Division on July 19, 2013 regarding the adoption of measures pursuant to article 154-ter, paragraph 7 or article 157, paragraph 2 of Legislative Decree no. 58/98 in relation to a potential non-compliance with international accounting standards of the statutory and consolidated financial statements of Saipem S.p.A. as at and for the year ended December 31, 2012 and subsequent correspondence with the Company in question.
We also refer to the press release issued by the Company on October 28, 2013 on the occasion of the approval of its Interim Report at September 30, 2013, in which the Company states, inter alia, that “In light of the comments made by Consob in its notice of 19 July 2013, and for the sole purpose of preventing any possible differences with Consob in relation to the interpretation and application of accounting principles (in particular IAS 11) to its financial statements, Saipem prepared pro forma balance sheets as of 1 January 2013, 30 June 2013 and 30 September 2013, which reflect the allocation of costs related to the aforementioned longterm contracts; the pro forma shareholders’ equity as of 1 January 2013 has been decreased of € 245 million, while € 245 million were added to 2013 revenues as a result of the abovementioned adjustment pro forma shareholders' equity as of 1 January 2013”.
Specifically, in the above-mentioned press release, Saipem states that: “Balance sheet and income statement will include, pursuant to IAS 8, par. 42, although the Company does not share Consob’s interpretation, the effects of the pro-forma data also in the statutory and consolidated financial statements as of December 31, 2013”.
In this regard, this Commission is of the opinion that 2012 revenues and costs connected with five contracts were not recognized in accordance with international accounting standards IAS 11 and IAS 1. However, in the light of the Company’s announcement to the markets of its decision to apply IAS 8 paragraph 42 (“Errors”) in relation to the contracts in question, this Commission believes that there are no longer any grounds for closing these proceedings by exercising its power to request the Issuer to publish additional information pursuant to article 154-ter, paragraph 7 or its power pursuant to article 157, paragraph 2 of Legislative Decree no. 58/98. We therefore declare the proceedings in question as closed without exercising such powers.
This, however, shall be subject to checks to verify that the Directors have prepared the statutory and consolidated financial statements as at and for the year ending December 31, 2013 in compliance with the applicable international accounting standards - in particular with regard to the presentation of the error identified in the 2012 statutory and consolidated financial statements and accounting for its effects.
Should an examination of the statutory and consolidated financial statements at December 31, 2013 reveal an incorrect application of international accounting standard IAS 8, paragraph 42 (“Errors”), this Commission will consider the possibility of taking further action, including the adoption of the measures provided for pursuant to article 157, paragraph 2 of Legislative Decree no. 58/98.
Finally, pursuant to article 114, paragraph 5 of Legislative Decree no. 58/98, we request the publication without delay of the content of this letter in a press release to be issued in accordance with the procedures set out in Part III, Title II, Chapter I of Consob Regulations no. 11971/1999 and subsequent amendments.” »
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)
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Tel: +39-02520.34088
E-mail: media.relations@saipem.com
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E-mail: investor.relations@saipem.com
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