Saipem cuts 2026 forecast due to extra Gulf costs, denting shares (updated)

Subsea 7

28/07/2026 11:57

Updates with share reaction, adds Saipem CEO comments, Baker Hughes on Middle East
By Francesca Landini
MILAN, July 28  (Reuters) - Saipem SPMI.MI cut its 2026 core earnings forecast on Tuesday, sending the Italian oil and gas contractor's shares more than 7% lower as it said disruption in the Gulf meant extra costs and logistical difficulties.
Repeated Iran war flare-ups have forced oil and gas producers to take a more cautious stance and delayed tenders on repair works that Saipem and other contractors were expecting.
Saipem now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €1.75 billion ($1.99 billion) this year, from a previous €1.9 billion estimate.
Shares in Milan-based Saipem were down 7.9% at 1025 GMT compared with a flat blue-chip Italian index .FTMIB.
The intermittent closure of the Strait of Hormuz made it more difficult for Saipem to deliver large equipment to some clients in the Gulf region, Saipem's CEO told analysts on a call.
"We incurred higher rates for barges and insurance, temporary storage costs and expenses for the temporary repatriation of expat workers," said Alessandro Puliti, adding that Saipem had to wait for the right moment to pass.
Saipem, which counts Saudi Aramco 2223.SE, QatarEnergy and Abu Dhabi's ADNOC among its customers, spent around €70 million in the first half to enhance security for its personnel in the Gulf and to overcome logistical difficulties due to the war.
It expects similar extra costs in the second half, but said it was in talks with customers and was confident it could recover part of these next year.
Saipem said the de-consolidation of its shallow-water drilling business, which it recently sold, also impacted the full-year EBITDA estimate.
"We are taking a prudent stance on this year," Puliti said, adding the group planned to cross the strait around 10 times in the second half of this year to complete works in Qatar.
U.S. competitor Baker Hughes BKR.O on Monday said it expected annual global spending by oil and gas producers to decline modestly this year, with growth in Latin America, offshore Africa and onshore in North America offset by lower spending in Europe and the Middle East.
Saipem confirmed a previous €1 billion full-year operating cash flow forecast and said it expected order volume this year to be stronger than last after winning significant contracts in Africa, Indonesia and Italy.
Adjusted EBITDA fell nearly 3% in the second quarter to €402 million, Saipem said, missing an LSEG-compiled analyst consensus of €464 million.    
($1 = 0.8792 euros) 

(Reporting by Francesca Landini, editing by Gavin Jones)
((francesca.landini@thomsonreuters.com; +39 02 66129437; Reuters Messaging: reutersitaly.thomsonreuters@reuters.net/))