S&P Global Ratings on May 27 changed its outlook on Italian oil and gas engineering company Saipem SpA from negative to stable while affirming its BB+ rating on Saipem and its debt instruments.
Ratings observed that the company's performance has improved in recent quarters and that its backlog has been growing despite relatively weak market conditions. The rating agency believes that Saipem will continue to book new projects while limiting capital expenditure and potential working capital outflow.
The stable outlook reflects Ratings' view that the company "will further build headroom under the rating on the back of early signs of recovery in the industry."
Following its first-quarter results, Saipem said it expects revenue for 2019 to reach €9 billion despite expectations of high oil price volatility and weak spending by oil companies.
Saipem reported a first-quarter backlog of €12.98 billion, up €361 million as the company was able to grab €2.52 billion in contracts during the period.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.