Home Energy services Saipem confirms targets after return to core profits

Saipem confirms targets after return to core profits

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A Saipem logo is seen on the deck of the deepwater drilling vessel Saipem 10000 in the port of Genoa, Italy, November 19, 2015. REUTERS/Alessandro Garofalo//File Photo

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MILAN, July 27 (Reuters) – Italy’s Saipem confirmed its 2022 guidance and business plan targets on Wednesday after the energy services group reported first-half adjusted core profit of 321 million euros ($325 million).

This month, investors agreed to fund just €1.4 billion of a €2 billion cash call, leaving underwriting banks to mop up the remaining new shares. Read more

However, CEO Francesco Caio sounded a more upbeat note after a big profit warning earlier this year and said the company would stick to its 2022-25 targets.

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“Based on these results, we confidently await the targets for the year and for the plan,” Caio said in a statement.

A year earlier, the group, controlled by the energy group Eni (ENI.MI) and the public lender CDP, had recorded in the first half a loss of 266 million euros in adjusted profit before interest, taxes, depreciation and amortization ( EBITDA).

It aims to reduce its net debt to around 800 million euros by the end of the year, excluding expected proceeds from the sale of its Onshore Drilling business, against 1.7 billion at the end of the first half.

The group plans to turn ships used to build offshore facilities into a separate entity to raise funds and further reduce debt, chief financial officer Paolo Calcagnini told reporters.

The company also said it did not expect a major LNG project in Mozambique to restart this year after being suspended last year for safety reasons.

Saipem shares, which have lost more than 80% of their value this year, gained 2% at 11:30 GMT.

First-half revenue jumped nearly 40% to 4.435 billion euros, helped by a positive performance in offshore engineering and construction and drilling thanks to a surge in global demand for infrastructure oil and gas.

Saipem expects to record an adjusted EBITDA of more than 500 million euros this year.

($1 = 0.9863 euros)

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Reporting by Francesca Landini, editing by Jason Neely and Keith Weir

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