Italian multinational oilfield services company Saipem said on Wednesday the growing uncertainty caused by the COVID-19 pandemic might cause a sharp demand contraction and consequently a delay of some its projects.
Saipem said its Board of Directors resolved to withdraw the 2020 guidance, which was communicated on February 26. It is reserving the right to issue a new guidance should the market conditions become more stable.
The Board of Directors will continue to monitor the scenario and will promptly update investors accordingly, Saipem said.
“The backlog and the balance sheet of the Company remain very solid, the available liquidity is in line with the financial planning and is appropriate to support operational needs,” Saipem stated.
In addition, with regards to Saipem Group’s financial debt, there are no significant maturities in 2020 and 2021, following the early redemption of 500 million euro bond maturing in 2021.
Saipem said as planned in the financial calendar, the Board of Directors will convene on April 22, 2020 to analyse the results as of March 31, 2020, and the shareholders’ meeting will take place on April 29, 2020 in compliance with the terms already communicated to the market.
In Guyana, Saipem has been awarded subsea contracts for the first two phases of the Liza development in the offshore deepwater Stabroek Block. The company had announced in November 2019 that it was awarded a contract for the proposed Payara development project also located at the Stabroek Block.