Italian oilfield services player Saipem said it will reduce workforce by some 800 at its European based facilities as it expects the market recovery to take longer than previously estimated.
The company has also decided to set up five divisions for the following sectors: Offshore Construction; Onshore Construction; Offshore Drilling; Onshore Drilling, and a new entity dedicated to high added value engineering activities and services.
Saipem also said it plans to rationalize a number of vessels and rigs in the Drilling and Offshore E&C sectors, in addition to several yards in the Offshore and Onshore E&C sectors.
“The downturn in our sector, which is lasting longer than initially expected, has affected market prospects and requires reduction in the value of the company’s asset base. The strategic plan that we have just approved aims to respond to these challenges through the adoption of a new organizational model. This industrial strategy follows on from and completes the extraordinary measures carried out this year, such as the change in shareholding structure, the capital increase and the refinancing of the debt, all of which have enabled the company to achieve solid financial stability,” said Stefano Cao, Saipem CEO.
In the first nine months of 2016, Saipem generated revenues of €7.88 billion, of which €2.61 billion in the third quarter. This compares with €8.44 billion in the first nine months of 2015.
The company recorded net loss of €1.92 billion in the first nine months of 2016, after write-downs of some €2.12 billion. Third-quarter loss was €1.97 billion.
In addition, Saipem said it estimates revenues to be around €10 billion in 2017, with net profit of more than €200 million.
Subsea World News Staff