Italian oil and gas contractor, Saipem, reported a 323 million euro ($377.6 million) net loss for the first half of the year on the back of write-downs and reorganization expenses that hit 329 million euro.
This compares to a 110 million euro loss in the first six months of 2017.
The company’s revenue slid 16.4 percent from 4.6 billion euro in the first half of 2017 to 3.8 billion in the period currently under review, Saipem’s report shows.
However, despite the drops, Saipem’s CEO, Stefano Cao said the company obtained a group margin in line with the guidance.
“We recorded a substantial volume of new contracts in all business sectors, especially in Offshore E&C and Onshore E&C,” he said adding that the company expects that commercial activity to maintain the momentum through to the second half of the year.
“In this regard, we have completed the evaluation of our business portfolio, defining strategic objectives and priorities that are specific for each division. We have approved a new phase of the reorganization, which will be fully operative by the end of the year,” Cao said.
The new objectives place the Offshore Engineering & Construction as the core business, focusing on completing the turnaround, aimed at recovering margins and portfolio repositioning.
There will also be changes to the drilling business, both onshore and offshore, aimed at improving efficiency.
In the first half of 2018, Saipem was awarded new contracts amounting to 3.98 billion euro, up from 2.08 billion euro in the first half of 2017, with the backlog at June 30, amounting to 12.58 billion euro, of which 3.57 billion euro is to be realized in 2018.