Saipem increases revenue thanks to new deals

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Italian oil and gas contractor Saipem has announced bumper revenues for the first quarter of 2019.

The Milan-headquartered firm reported Q1 revenues of £1.8bn, compared to £1.6bn for the same period last year.

Saipem also saw a significant increase in new deals of £2.1bn for the beginning of 2019, a jump from £864m in Q1 2018.

Stefano Cao, Saipem chief executive, said: “The results of the first quarter of 2019 confirm the good operational and managerial performance already recorded in 2018, especially thanks to the strong results of the Offshore Engineering and Construction division.

“We have received significant new orders that improve our visibility for 2019 despite a market context that still shows no evident signs of recovery.”

Saipem announced a multi-million drilling deal with German producer Wintershall earlier this month.

The deal, understood to be between £50 and £100 million, will see Saipem drill two wells in the Norwegian section of the North Sea with the option for a further two wells.

The contract will be executed by the Scarabeo 8 semi-submersible rig, a drilling unit able to operate in harsh environments.

Saipem confirmed the contract will see the drilling rig in operation until 2020.

The North Sea deal with Wintershall was announced in conjunction with a four-year Middle East extension contract with the Perro Negro 7 jack-up rig for work that commenced at the beginning of 2019.

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