Saipem shares slide after guidance cut on Middle East impact

Subsea 7

28/07/2026 08:50

** Shares in Italy's Saipem SPMI.MI fall 7% on Tuesday to the bottom of Italy's blue-chip .FTMIB index after cutting its core profit 2026 guidance to reflect the cost impact of the Middle East crisis
** The oil and gas contractor now expects its adjusted EBITDA to come in at €1.75 billion ($1.99 billion) this year, down from a previous estimate of €1.9 billion
** Saipem's Q2 core profit was 13% below forecasts, according to J.P.Morgan, impacted by Middle East conflict-related costs and softer offshore drilling margins
** "We expect FY26 EBITDA estimates to decline by about 9%," JPM adds
** "While the new EBITDA forecast conservatively assumes no recovery of the additional costs, we believe that this could be overly prudent if client discussions prove successful," Berenberg notes 
** Norway's Subsea7 SUBC.OL - poised to merge with Saipem to form a global player in offshore energy services - is down 4.8% 

(Reporting by Fabrizio La Rocca, Enrico Sciacovelli)
((Enrico.sciacovelli@thomsonreuters.com))