Reuters: Hot Stocks: UPDATE 1-Saipem indicated over 30 pct lower after profit warning

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UPDATE 1-Saipem indicated over 30 pct lower after profit warning Jan 30th 2013, 09:55 Wed Jan 30, 2013 4:55am EST * Cuts 2012 EBIT by 6 pct from previous forecast * Paints gloomy 2013 on contract margins (Adds analysts comment, background, shares) MILAN Jan 30 (Reuters) - Shares in Italy's Saipem were indicated about 30 percent lower early on Wednesday in Milan after the oil services group's unexpected profit warning a day earlier. Saipem had issued a profit warning on Tuesday after the stock market closed. The group cut its guidance for 2012 and forecast a fall of 80 percent in operating profits in 2013 for its onshore business and a 70 percent fall in offshore activity. The Italian company's profit warning is likely to put pressure on the entire oil services sector, Credit Suisse analysts said. Shares in oil company Eni, which controls Saipem, were down 4.5 percent. The cut in profit outlook for Europe's biggest oil services group followed a review of contracts and prospects by a new management team led by Chief Executive Umberto Vergine. Vergine took over at Saipem after an investigation into alleged corruption in Algeria prompted the resignation of former long-standing CEO Pietro Franco Tali. "Numbers are shocking, in particular on 2013," broker Mediobanca said in a note. (Reporting by Stephen Jewkes. Editing by Jane Merriman) Link this Share this Digg this Email Reprints

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