Cost/return balance for work in the offshore wind sector needs to be reviewed, with renewables “no walk in the park”, according to Saipem chief executive Francesco Caio.
He made the comments during an interview today with CNBC International on the broadcast Squawk Box Europe.
Caio said that in offshore wind there are “still many complexities in putting these technologies in the water safely”.
He added: “There is an increasing awareness in the industry the cost/return balance needs to be reviewed and re-thought of.
“In Saipem, we have learned our lesson: the project is moving forward and we will execute it and complete it. What has been reflected in our numbers is the best estimate for the cost to complete.”
“In terms of renewable energies, there is an increase of awareness, but it will be no walk in the park.
“The path is here, I think, but to get there we need to take a step forward in our already solid financial past.”
Caio the challenges facing the company Saipem to get the business on track are a two-sided story.
“We are dealing with projects coming from the past particularly in offshore wind where we had some execution and technicality issues, but at the same time we are constructing the past forward in de-risking the business and going for more profitable and resilient growth,” he said.
“The strengths of our business comes in two parts. On one hand, the core business, which is going through a phase of investments such as the demand for energy, orchestrated and executed with a higher level of attention to the environment,” Caio added.
“I think that is where growth will come from, at least from the next three quarters.”
He said that there is a strong opportunity in the medium term for the development of digital-based services, where traditional customers are looking for ways to reduce their carbon footprint.
“We can play a role by strengthening what we are already doing, for instance in subsea robotics, and by using digital platforms and digital devices to lower maintenance cost and lower our customers’ carbon footprint,” he said.