ExxonMobil Guyana Tier 1 contractor Saipem has narrowed its losses to $2.4m for the first quarter of 2018.
The Italian oil and gas company’s Q1 2018 loss marks an improved financial performance, following the $331m loss reported in Q4 2017.
However, the Milan-based firm, operational in Saudi Arabia, Kuwait, and Oman, posted a decline in revenue and profit for Q1 2018.
Year-on-year quarterly revenue dropped from $2.7bn in Q1 2017 to $2.3bn in Q1 2018.
Saipem’s adjusted operating profit, including earnings before tax, for Q1 2018 hit $122m.
The company said the operational performance was in line with financial expectations, as Saipem continues to slash its debt.
Saipem’s Chief Executive Officer, Stefano Cao, said, “The results for the first quarter of 2018 confirm the solid operational and managerial performance previously demonstrated during 2017 and highlight a further reduction of net debt compared to the level recorded at year-end 2017.”
“Furthermore, last March, with a view to further strengthening Saipem’s capabilities in the subsea pipelaying sector and completing the range of services offered to the subsea market, the company finalised the agreement for the purchase of the ship, Constellation, a latest generation vessel equipped with cutting-edge technology,” he added.
As of 31 March, 2018, Saipem’s net debt amounted to $1.4bn, which the company said had been reduced by $117m when compared to Q4 2017.
The company said that it expected to generate approximately $9.7bn of revenue by the end of the financial year.
On the project front, Saipem won a $750m (OMR288.7m) onshore contract for the Duqm Refinery project in Oman earlier this year. The contract covers engineering, procurement, construction, and commissioning activities under Package 3, for offsite facilities, in the framework of the refinery development.
The company has been awarded an Engineering, Procuring, Construction and Installation (EPCI) contract for the Subsea Umbilicals Risers Flowlines (SURF) package for the Liza Phase 1 development offshore Guyana. Saipem’s contract also includes transportation and installation of umbilicals, manifolds, and associated foundations for the production, and water and gas injection systems. It is expected that the execution of the works will begin in 2019.