Saipem Trims Forecast as Gulf Conflict Weighs on Operations

Saipem, an Italian oilfield services group, cut its 2026 core earnings forecast due to disruption linked to the Gulf conflict. The company now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €1.75 billion this year, down from a previous forecast of €1.9 billion.

The conflict has driven up costs and created logistical challenges for Saipem and its US rival, Baker Hughes. Oilfield service companies had been seen as potential beneficiaries of the conflict due to expected demand for repairs and reconstruction work.

Instead, Baker Hughes said it expects global spending by oil and gas producers to decline modestly this year, citing weaker activity in Europe and the Middle East. Saipem incurred around €70 million in additional costs in the first half to strengthen security for personnel and overcome logistical difficulties.