Saipem CEO Stefano Cao says he does not see clear signs of a recovery of the oil and gas market yet. The offshore contractor recorded a small profit of EUR 14 million over the first half of 2019, which Cao considers satisfactory following the loss of 2018.

Overall, the financial results of Saipem did improve considerably. Revenue grew from EUR 3.8 to 4.5 billion and the operating profit amounted to EUR 262 million, following a loss of EUR 74 million over the first half of last year. The net profit of EUR 14 million also reflects a considerable improvement compared to the loss of EUR 323 in the same period of 2018. So far in 2019, Saipem has been awarded new contracts with a total value of EUR 12.3 billion.

The Offshore Engineering & Construction Division recorded strong results thanks to good operational performance while the Onshore Engineering & Construction Division is still working on its turnaround. Drilling operations, both offshore and onshore show a stable operational profit (ebitda) with volumes increasing thanks to the expansion of the client base.

“I am satisfied with the positive results recorded in the first half of 2019 despite a scenario that does not yet show clear signs of recovery and, in particular, even if limited, with the fact that we are back to generating profit. These results stem also from the profound organizational and management transformation and from our firm strategic stance to anticipate the energy transition,” Cao commented on the half-year results.