Saipem Cuts Middle East Earnings Outlook Amid Rising Costs

Italian oil and gas contractor Saipem has revised its earnings forecast for 2026 due to rising costs in the Middle East. The company, which counts Saudi Aramco, QatarEnergy, Abu Dhabi's ADNOC among its clients, expects its adjusted EBITDA to come in at €1.75 billion this year, down from a previous estimate of €1.9 billion.

The de-consolidation of its shallow-water drilling business, which Saipem recently sold, also impacted the full-year estimate. The company spent around €70 million in the first half to enhance security for its personnel in the Gulf region and to overcome logistical difficulties due to the Iran war.

Saipem confirmed a previous €1 billion forecast for its full-year operating cash flow. Adjusted EBITDA fell nearly 3% in the second quarter to €402 million, missing an analyst consensus of €464 million compiled by LSEG.