UK markets closed
  • NIKKEI 225

    +382.88 (+1.47%)

    +56.92 (+0.26%)

    +5.28 (+5.36%)

    +5.30 (+0.31%)
  • DOW

    +215.59 (+0.69%)

    +470.46 (+2.77%)
  • CMC Crypto 200

    +12.79 (+2.88%)
  • ^IXIC

    +211.92 (+1.87%)
  • ^FTAS

    +46.18 (+1.18%)

Saipem sees financial resources running out by Q1 2023 if capital hike fails

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
FILE PHOTO: A staff member is seen on the Saipem 10000 deepwater drillship in Genoa's harbour
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

MILAN (Reuters) -Italy's Saipem said on Thursday it would have financial resources available for less than one year if its plans to raise capital did not go through.

The Italian energy services group on Wednesday launched a 2 billion-euro ($2.10 billion) rights issue, which will start on June 27, as it strives to bolster its finances and refocus its business after a surprise profit warning in January.

As part of the so-called Financing Package, Energy group Eni and Italy's State lender CDP, which control Saipem, have committed to subscribing 44% of the capital hike while banks had pledged to subscribe any unexercised rights up to 1.12 billion euros.

"In the event that the Financing Package is not successful, the financial resources available to the group are expected to be exhausted by the first quarter of 2023," Saipem said in a statement on Thursday.

The group added there were "significant uncertainties" regarding the successful outcome of the hyper-dilutive capital increase, which will only be completed if fully subscribed and is due to run until July 11.

Saipem said that in the event of a failing capital increase, there was a risk it would not be able to clinch the targets set in its 2022-2025 business plan or achieve them under the expected timelines, "considering also the uncertainties related to the evolution of the COVID-19 pandemic and the conflict between Russia and Ukraine."

The new Saipem shares will be offered at an issue price of 1.013 euros each to ordinary and savings shareholders at a ratio of 95 new shares for every 1 ordinary or savings share held.

Milan-listed shares in Saipem closed down 8% on Thursday at 30.31 euros.

($1 = 0.9507 euro)

(Reporting by Federico Maccioni and Giulio Piovaccari in MilanEditing by Gianluca Semeraro and Matthew Lewis)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting