Saipem: expects sales to fall again in 2018
(CercleFinance.com) - The Italian oil services group Saipem had a 2017 financial year that was marked by a continued difficult market context, management said, with the group largely missing its forecasts of adjusted net income.
The group expects its sales to continue falling in 2018.
Last year, the Italian oil services company, of which Eni is the largest shareholder, saw its sales fall by 9.8% to around 9 billion euros, albeit with a slight recovery (+1.7%) in Q4.
Adjusted EBITDA fell by 23.9% over the year, reaching 1.3 billion euros, a trend that continued in Q4 (-37.2%), even though the group's net loss was reduced by 2.1 billion euros in 2016 to 328 million euros last year. In particular, asset depreciation weighed on the result - albeit less than in 2016. Given this situation, the group will not propose a dividend.
In 2018, Saipem anticipates a further decline in sales in 2018 to around eight billion euros, with its EBITDA margin expected to remain above 10%.
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