Italian oilfield contractor Saipem has determined to withdraw its 2020 steering, reserving the precise to problem a brand new one ought to the market situations enhance.
After a gathering of the Saipem board of administrators, chaired by Francesco Caio, the corporate on Wednesday opted to withdraw its beforehand introduced steering for the 12 months.
Namely, the corporate in late February said that its 2020 steering for revenues was round €10 billion ($10.9 billion) and €600 million ($652.5 million) for capital expenditures.
The board analysed the evolution of the results of the COVID-19
pandemic on the worldwide financial situation and Saipem’s actions.
According to Saipem, the corporate’s working actions have till now progressed according to the four-year industrial plan authorised on 25 February 2020 regardless of the concurrent lower in oil value, additionally supported by vital operative initiatives adopted by the corporate to raised handle the COVID-19 emergency and the enterprise continuity with the utmost respect for individuals’s well being and security
But the Italian firm additionally famous that the intensification of the
uncertainty attributable to the event of the pandemic would possibly trigger a pointy
demand contraction and consequently a delay of some initiatives.
As a end result, Saipem withdrew its 2020 steering reserving the precise
to problem new steering ought to the market situations develop into extra secure.
This resolution got here on account of the results that this
deteriorated situation was having on the flexibility to estimate the disaster impacts
on the industrial and working actions of Saipem and consequently on its
asset worth, financial, and monetary outcomes.
Although the steering is not legitimate, it is very important observe that the agency’s backlog and the steadiness sheet are nonetheless very strong, and Saipem additional said that its obtainable liquidity was according to the monetary planning and was applicable to help operational wants.
With regards to Saipem’s monetary debt, there aren’t any vital
maturities in 2020 and 2021, following the early redemption of €500 million ($543.7
million) bond maturing in 2021.
The board will convene once more on 22 April 2020 to analyse the
outcomes as of 31 March 2020, and the shareholders’ assembly will happen on 29
Saipem has already taken steps to mitigate the results of the COVID-19 pandemic by having its workers keep at residence. The firm additionally cancelled and decreased to minimal all missions to and from the coronavirus danger areas overseas.
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