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Despite winning a contract from Saudi Aramco for the development of the Haradh gas plant in July, Saipem reported a net loss of $409 million in the first nine months (9M) of 2018.
On the back of write-downs and reorganization expenses, the Italian oil services company, reported a sharp decline compared to $65 million in the same period last year, Saipem said in a statement.
However with an increasing backlog and contract wins on the rise, Stefano Cao, Saipem CEO, commented: “The market offers signs of a turnaround compared to recent years, supported by good visibility in commercial opportunities, especially in the engineering and construction sectors.
“In what is still a complex context, Saipem revealed a good operational and managerial performance, in particular in offshore engineering and construction and drilling in 9M 2018. This allows the company to confirm the guidance for 2018.”
The company won $800 million-worth of contracts in July 2018, one of which was a procurement and construction contract awarded by Saudi Aramco for its South Gas Compression Plant Pipelines project.
“Saudi Aramco remains our biggest client and Saudi Arabia continues to be a major pillar in our strategy. The sheer size of investments by Aramco is the long-term basis for our engagement and commitment,” Cao told Reuters.
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