Saipem Trims Earnings Forecast Amid Middle East Crisis 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 among its clients, attributed the downward revision to extra expenses linked to the ongoing conflict. Specifically, these costs include security enhancements for personnel in the Gulf region and overcoming logistical difficulties.
The de-consolidation of Saipem's shallow-water drilling business, sold recently, also impacted the forecast. As a result, the company now expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to come in at €1.75 billion for 2026, down from an initial estimate of €1.9 billion.
Saipem confirmed its previous forecast for full-year operating cash flow, set at €1 billion. The group spent around €70 million in the first half to address the Middle East crisis-related costs. It noted that the recoverability of these extra costs is uncertain and subject to commercial discussions with clients.