Italian oil and gas contractor Saipem on Monday revised down its expectations for 2026 core earnings to take into account extra costs linked to the Middle East crisis.
The de-consolidation of its shallow-water drilling business, which Saipem recently sold, also impacted the full-year estimate, it said.
The Milan-based group now expects its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at €1.75 billion ($1.99 billion) this year, down from a previous estimate of €1.9 billion.
The company said it included in the new forecast both the extra costs already incurred due to the conflict in the Middle East and an estimate of future expenses that could affect the second part of this year.
"The recoverability of these extra costs cannot be precisely quantified at this stage, as it is subject to the outcome of commercial discussions with clients," Saipem said in a statement.
The group - which counts Saudi Aramco 2223.SE, QatarEnergy, Abu Dhabi's ADNOC and other national energy companies among its clients - 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.
It confirmed a previous €1 billion forecast for its full-year operating cash flow.
The group said adjusted EBITDA fell nearly 3% in the second quarter to €402 million, missing an analyst consensus of €464 million compiled by LSEG.
($1 = 0.8792 euros)
(Reuters - Reporting by Francesca Landini, editing by Gavin Jones)