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Italy's Saipem wins EPC contracts in Saudi Arabia as 2018 loss widens

Loss-making oil and gas company announced global contract wins of $220m a day after reporting 2018 net losses of $534.2m

Saipem is an Italian EPC contractor.
© Pixabay
Saipem is an Italian EPC contractor.

Loss-making Italian engineering, procurement, and construction (EPC) contractor Saipem has been awarded onshore drilling work – both new and contract extensions – in Saudi Arabia and four other countries around the world.

The Milan Stock Exchange-listed business said it picked up new work in Saudi Arabia and Bolivia, and received extensions to existing contracts in Peru, Morocco, Romania, and Saudi Arabia.

The engineering company said the total value of these contracts is $220m, but did not provide further details about the scope of the contracts in its missive to the Italian bourse on 13 March.

Saipem announced the wins after it announced a net loss for 2018. Full-year losses at Saipem plunged from $371.2m in 2017 to $534.2m last year.

As a result of increased losses, the company’s board of directors has voted in favour of not distributing a dividend to its shareholders.

Sharper losses come as the company faces allegations of false accounting and market manipulation. Prosecutors in Milan have launched an investigation into Saipem’s chief executive officer and two managers over alleged offences between 2015 and 2017.

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Construction Week - Issue 734
Mar 21, 2019