The Board of Directors of Saipem S.p.A. reviewed the Saipem Group consolidated third quarter results for the three months ending 30 September 2006 (unaudited), which have been prepared in compliance with the new International Financial Reporting Standards (IFRS). Third quarter results include the effects of the consolidation of Snamprogetti from 1 April 2006, the date of Saipem’s acquisition of control.Net profit for the third quarter of 2006, inclusive of the effects of the acquisition of Snamprogetti (12 million euro), amounted to 104 million euro, a 65% increase compared to the third quarter 2005.
Net profit for the first nine months of 2006, inclusive of the effects of the acquisition of Snamprogetti (22 million euro), amounted to 266 million euro, a 56% increase compared to the first nine months of 2005.
New contracts won during the first nine months of 2006 amounted to 8,417 million euro and the backlog at 30 September 2006 stood at 12,804 million euro.
Investments in the first nine months of 2006 amounted to 416 million euro.
New contracts and backlog
During the third quarter of 2006, Saipem stand-alone was awarded contracts amounting to 1,732 million euro (compared to 1,080 million euro in the third quarter of 2005); during the same period, Snamprogetti won contracts amounting to 903 million euro.
The most significant orders awarded in the third quarter include:
on behalf of Sonangol P&P, the contract for the provision and operation of an FPSO unit for the development of the Gimboa field, located in Block 4/05 offshore Angola, at a water depth of 700 metres;
on behalf of Burullus Gas Company, an EPIC-type contract for the Phase IV Phase IV development of the West Delta Deep Concession, in Egypt, comprising the design, engineering, procurement, construction, installation and commissioning of subsea systems for eight new wells and the expansion of the production system for the Scarab/Saffron and Simiam fields;
on behalf of Companhia Mexilhao do Brasil, the Mexilhao contract in Brazil, comprising the transport and installation of a jacket, piles and topsides for the PMXL-1 platform, as part of the development of the Mexilhao field, in the Santos basin, approximately 140 km offshore the State of San Paolo;
on behalf of Saudi Aramco, an EPC-type contract for the realisation of the gas-oil separation plant (GOSP), as part of the programme for the development of the Khurais oil field in Saudi Arabia, approximately 180 km north-east of Riyadh. The contract comprises the engineering, procurement and construction of four gas-oil separation trains, in addition to a number of production infrastructure facilities;
on behalf of Perù Lng, the Melchiorita Lng project in Peru, comprising the construction of a regassification terminal at Pampa Melchiorita, 200 km south of di Lima; the contract was acquired in joint-venture with Constructora Norberto Odebrecht and in consortium with Jan de Nul NV;
on behalf of Eni Exploration & Production, the three-year charter of the drillship Saipem 10000 in various geographical areas, starting from the third quarter of 2009;
on behalf of Exxon Mobil, the 16-month extension, following the exercise of an option, of the charter for the semi-submersible platform Scarabeo 7 in Nigeria;
on behalf of PDVSA, the charter of a rig in Venezuela for five years;
on behalf of PDVSA, the charter of four rigs in Venezuela: two rigs have been chartered for five years, one for one year, and one for four months;
on behalf of Zhaikmunai, the charter of two rigs in Kazakhstan for thirty-one and thirty-six months respectively;
on behalf of Saudi Aramco, the charter of a rig in Saudi Arabia for three years;
on behalf of Groupement Sonatrach Agip, the charter of a rig in Algeria for two years;
on behalf of Repsol YPF, the -year charter of two rigs in Algeria for one year;
on behalf of First Calgary, the charter of a rig in Algeria for two years.
New contracts awarded to the Saipem Group during the first nine months of 2006, inclusive of contracts won by Snamprogetti in the second and third quarter, amounted to 8,417 million euro.