Saipem SpA, Europe’s largest oil services firm, posted stronger-than-expected results on Monday and said oil-sector spending would drive more revenue and profit growth in 2012.
The Milan-based company predicted net profit would rise to about 1 billion euros ($1.3 billion) in 2012 and revenues to about 13 billion euros from 12.5 billion euros in 2011.
Its 2011 adjusted net profit rose 11.2 percent to 921 million euros, beating market expectations of 910 million euros.
“Oil industry spending is expected to rise in 2012, but widespread uncertainty of the global economy might affect the timing in the award of scheduled projects,” it said in a statement.
Oilfield service firms have benefited from strong oil prices which prompted their hydrocarbon-producing customers to raise investments. Brent crude oil has been trading above the $100 mark — a comfortable level for investments — for about a year.
Demand from emerging markets and Middle East supply disruption concerns should outweigh a slowdown in the eurozone, fuelling a 5-10 percent rise in investments this year after a 10 percent increase in 2010, according to Natixis estimates.
Saipem also proposed a 2011 dividend of 0.70 euros per ordinary share, topping expectations for 0.68 euros a share.
In January, oilfield services leader Schlumberger sounded cautiously optimistic about 2012 despite the impact on economic growth from Europe’s debt crisis.
Italy’s Eni, which controls Saipem, is exploring a giant natural gas find in Mozambique, the biggest in its history, and will continue developing the giant Kashagan oil field in Kazakhstan.
Shares in Saipem reached a six-month peak after the results, outperforming the oil sector. By 1252 GMT they were up 2 percent at 36.5 euros.
