Italy's Saipem to appeal Algerian ruling, fine over Arzew contract

Saipem's cash call wobbles as retail investors flee
Saipem's cash call wobbles as retail investors flee Copyright Thomson Reuters 2022
By Reuters
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MILAN -Italian energy services firm Saipem said it would challenge Tuesday’s decision by an Algerian court to uphold a previous ruling and fine against the company in a case centred around a natural gas contract.

Saipem said in a statement the court of appeals of Algiers had ruled the company and some of its units obtained the Arzew contract with a higher price than warranted.

Saipem said the upheld ruling had imposed fines and damages on Saipem and its units for an amount equivalent to 199 million euros ($209 million) at current exchange rates.

Saipem said that following the first degree ruling it had set aside the sum in last year’s accounts though the payment was on hold pending the appeal.

“Saipem notes that the Italian judiciary authority – further to criminal proceedings in which also the … award in 2008 of the project GNL3 Arzew had been analysed – fully acquitted the company on Dec. 14, 2020,” it said.

Saipem on Monday launched a 2 billion euro new share sale to bolster its finances after a surprise profit warning earlier this year. [nL8N2YA543]

($1 = 0.9508 euros)

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