Saipem wind trouble
Jan 31 (LNGJ) - Leading Italian LNG project engineering company Saipem has issued a profits warning because of trouble with wind projects. The Milan-based company said it had initiated preliminary discussions with banking counterparties as well as with shareholders like energy major ENI to ascertain their willingness to support a financing package. Saipem said it experienced problems related to onshore and offshore wind development work in 2021. It has cut gross earnings forecasts for the second half by about €1Bln (US$1.1Bln).
“As a result, Saipem's earnings are expected to close with losses in excess of one-third of the company’s equity, which triggers the application of Article 2446 of the Italian Civil Code,” it explained. This Code covers a situation whereby losses reduce a company's net worth to be lower than the subscribed share capital by more than one third. In such a case a company needs to be re-capitalized.
