Gulf Oil and Gas accountACCOUNT

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

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

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 >>  4/18/2019 - South Stream Transport B.V and SAIPEM S.p.A. have positively ended their negotiations signing an agreement to amicably settle the arbitration concerni...
Singapore >>  4/16/2019 - Pipenet Pte Ltd (Pipenet), a wholly-owned subsidiary of Keppel Infrastructure Holdings Pte Ltd (Keppel Infrastructure), as a lead consortium partner t...

Russia >>  4/15/2019 - More than two years after submitting its first application for a route through Danish waters, Nord Stream 2 has submitted a third application. The thi...
Russia >>  4/11/2019 - A total of 1,000 kilometres of the Nord Stream 2 gas pipeline has now been laid in Finnish, Swedish and German waters. ...

United States >>  4/8/2019 - Tellurian (TELL) announced that its subsidiary Permian Global Access Pipeline LLC is conducting a binding open season to secure prospective shippers f...
Azerbaijan >>  4/4/2019 - TAP’s first ever offshore pipelines in Albania were successfully pulled ashore on March 30. The pipeline head reached kilometer point 0, where the off...

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

Related Links

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