Saipem SpA (SPM) plunged a record 39 percent after Europe’s largest oil-service provider cut profit forecasts, raising concern earnings across the industry will be lower than analysts estimated.
Saipem had its rating cut by at least 11 brokers after yesterday’s announcement that 2013 earnings before interest and tax would be 750 million euros ($1 billion) compared with analyst estimates of 1.7 billion euros. The company said the revised outlook was based on a review of its contracts.
Shares plummeted as much as 11.84 euros to 18.61 euros in Milan trading. The stock traded at 19.71 euros at 11:37 a.m. local time. Other providers of engineering to the oil industry dropped.Technip SA (TEC), Europe’s second-largest, fell as much as 7.9 percent, its biggest drop in more than a year. London-based Petrofac Ltd. (PFC) also tumbled as much as 7.9 percent.
http://www.bloomberg.com/news/2013-01-30/oil-services-plunge-in-europe-as-saipem-cuts-earnings-forecast.html
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