MILAN: Italian oil services group Saipem confirmed its outlook for a net loss this year after posting a 59.6 percent fall in net profit in the third quarter.
The company, which has issued two profit warnings this year, confirmed a net loss for the year of 300-350 million euros, while trimming its revenue guidance to 12.5 billion euros ($17.23 billion) from 13 billion euros.
"The numbers are below expectations but the market was concerned there could be another profit warning on the way and is simply relieved," a Milan trader said.
Saipem shares closed up 5.1 percent. Some analysts had expressed concern the group might have to issue a third profit warning on cost overruns and weak intake of contracts.
Saipem, which is 43 percent owned by oil major Eni, said new orders in the first nine months were 8.56 billion euros, down from 9.14 billion euros a year ago.
But it added that after the close of the third quarter it had netted new orders worth about 1.25 billion euros, including preparatory work for the South Stream gas pipeline contract.
Net profit in the third quarter was 101 million euros, below a Thomson Reuters I/B/E/S consensus of 113.4 million euros.
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