Saipem believes the implementation of a “transformational strategy” that includes a focus on offshore wind will see the company manage the joint threats oil price volatility and COVID-19.
Chief executive Stefano Cao said its “comprehensive” move to pursue more renewables work has allowed the Italian marine contractor to build a “strong economic and financial configuration with solid assets and no significant short-term debt maturing”.
This is despite the company withdrawing its guidance for the year due to the pandemic and falling oil prices and confirming impairments and write-downs in offshore drilling assets of €260m, which led to a €269m net loss for the quarter, down from a €21m profit in the year-ago period.
Cao said: “We have gained a privileged competitive position having decided, for some time now, to support the energy transition by leveraging on our competencies and innovative technological tools.”
Saipem is pursuing €900m in new European business, including a large chunk in offshore wind, according to information published alongside today’s results.
“Despite this deteriorated market context, the operating results for the quarter are robust, thanks to the strengthening of our financial position in recent years, the repositioning of the business towards energy transition, the size and diversification of the backlog and the quality of our assets,” the company added.
“These factors, together with the launch of an adequate cost saving program, ensure a solid base for tackling the complexities expected in 2020.”