Algeria, the country that has ruined the Saipem!

The company Saipem regret for being installed in Algeria? Corruption, the difficult market downturn, the group is in serious financial difficulties due in part to the recession Algeria.

Saipem is in the red for the last six months, is no longer a secret, but the downward spiral seems to continue for the company and its group ENI. The Italian company Saipem has lost almost 50% of its market value. A total disaster for the company, which has one of the worst results in the Italian Stock Exchange, a decline of 55.9%, reports the French economic newspaper Les Echos .

Sonatrach case II, the survey which slows Saipem

Several factors have put Saipem in this difficult position. Its risky and dubious contracts in Mexico, Canada, and especially in Algeria can earn them a net loss of € 300 million to 350 trillion this year. But Algeria is probably the country where Saipem has paid more expenses. The well-known Italian multinational, moreover, a clear "deterioration of its market position," in Algeria, reported the Italian daily newspaper “ Il Fatto Quotidiano “ also provides a "return of profits" in 2014.

In fact, the case of corruption, that Sonatrach II has put the Italian group in difficulty, and the location of the giant Italian in Algeria becomes questionable, even the CEO of Eni, Paolo Scaroni, he acknowledged. "The attitude of the Algerian oil company [Sonaratrach ed] to us has changed dramatically in recent weeks," said Paolo Scaroni. "Probably due to the recent intensification and broadening of the investigation by the Algerian authorities," the source added. This survey has clearly slowed the Italian company Saipem has lost a lot of money because of a deadlock in negotiations with Sonatrach and may not be able to recover these amounts. More "for a couple of weeks, Sonatrach has brought an action for damages," the Financial Times, citing Saipem.

Eni and Saipem expect an improvement

However ENI does not want to be overwhelmed by panic, "the effects are relatively small for us, because Saipem represents only 6% of our business, of course we are sorry," reassures Paolo Scaroni. Nevertheless, the subsidiary of the group continues to lead the group towards down, with almost 7 billion up from January. Saipem closed Monday at the Milan Stock Exchange, at € 14.24, a decrease of 29.19%, which has had an impact on Eni (-2.14%) . Hopefully rise rapidly up the slope as not to damage the reputation and performance of the group.

http://www.algerie360.com/algerie/politique/l%e2%80%99algerie-le-pays-qui-a-ruine-saipem/