Gulf Oil and Gas accountACCOUNT

Saipem Could Lose $1.55 Billion in 2015 Revenue on South Stream

Source: Reuters 12/3/2014, Location: Europe

Share |
Italian oil services firm Saipem (SPMI.MI) may lose 1.25 billion euros ($1.55 billion) in revenue in 2015 due to Russia's apparent cancellation of the South Stream gas pipeline project, CEO Umberto Vergine told daily Il Sole 24 Ore in an interview.

Russia on Monday scrapped the pipeline project to supply gas to southern Europe without crossing Ukraine. However, Saipem said on Tuesday it had not yet received formal notice of the termination of any South Stream contracts and operations were still underway.

In the interview published on Wednesday, Vergine also said that 2015 would still be a year of transition for the company and more time would be needed than initially expected to recover profitability and cut debt.

A Saipem spokeswoman confirmed the interview.

"2015 was supposed to be the year when we stabilize our performance but instead the road will still be uphill," Vergine told the paper. "If you also consider the drop in the crude oil price, the impact of these factors will not be marginal."

Saipem shares were volatile, with the stock up 0.9 percent at 10.1 euros by 0828 GMT (03:28 a.m. EST), after dipping into negative territory earlier. The stock fell more than 10 percent on Tuesday to a level last seen in 2008.

South Stream's demise is the latest blow for a group which lost half its stock market value last year following two profit warnings, and cut this year's profit forecast in July.

For more information about related Opportunities and Key Players visit Caspian Region Projects

Oil and Gas Pipeline >>

Oil and Gas Pipeline News in Italy >>

Russia >>  8/15/2018 - Nord Stream 2, the developer of a pipeline to supply Russian natural gas to the EU market through the Baltic Sea, has received a permit for the instal...
United Arab Emirates >>  8/10/2018 - The United Arab Emirates plans to build an oil pipeline connecting Eritrea and Ethiopia, the latest sign of the Gulf state’s increasing involvement in...

Tanzania >>  8/6/2018 - Tanzania wants to build a pipeline to pump natural gas to neighbouring Uganda, another step in the two countries’ bid to expand energy cooperation. ...
Iran >>  7/25/2018 - The National Iranian Gas Engineering and Development Company is to add 1,000 kilometers of gas distribution pipelines to the national gas distribution...

Russia >>  7/25/2018 - The Gazprom Board of Directors reviewed and approved the efforts as part of the implementation of the Power of Siberia project and the shaping of gas ...
Russia >>  7/24/2018 - The offshore installation barge “Castoro 10” (C10) has started preparatory works for future pipelaying for the Nord Stream 2 project today. The C10 as...

Related Categories: General  LNG Carriers  LNG Terminal  Natural Gas Storage  Oil and Gas Pipeline  Oil Storage  Railways  Tank Truck  Tankers 

Related Articles: General  LNG Carriers  LNG Terminal  Natural Gas Storage  Oil and Gas Pipeline  Oil Storage  Railways  Tank Truck  Tankers 


Italy Oil & Gas 1 >>  2 | 3 |

Oil & Gas Projects in Italy >>

More News

 

Oil & Gas Companies in Italy >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.