Saipem 2017 annual business report

Described are the organizational structure, its stock performance, new technology and financial strategies to reduce operational costs and optimize efficiency. Principal content of the Sapiem 2017 annual business report Saipem, an Italian gas and oil company is one of the largest international gas and oil contractor companies. Its main source of revenue has been the design and construction of several major pipelines around the world. Its mission and vision is the implementation of the best and modernized ideas to improve oil and gas projects in the world. Its main objective is to overcome all challenges posed by various situations around the world by utilizing every available opportunity. With all these in mind, Saipem had to greatly reshuffle its organizational shapewith five major divisions being the backbone of the structure.

This led to smooth decision making and greater dependence on responsibility and financial response was established. BOARD OF DIRECTORS The success of the company can be accredited to this amazing board of directors which have been very instrumental in propelling the group to greater heights. Chairman –Colombo Paolo 2. Executive Officer- Cao Stefano 3. In 2015 and 2016 the venture in oil and gas industry was low but in 2017 there was an improvement. Different measures were taken to make the company in the industry able to cope up with completion posed by other companies. Contracts were awarded to different departments as follows 1. Offshore engineering and construction departments which totaled to 46%. Onshore engineering and construction department which totaled to 45% 3. High technology systems have been put in place and have contributed to improved and quality services that give it a competitive advantage.

Research has made it possible to reduce the cost of production which has made the products the company supplies to be affordable prices Research has led to a great improvement in the equipment that use electricity. Installing the pipeline equipment under water that connects to the surface has been enabled and even made much simpler. Also there have been a lot of connections and coordination between the company and the Siemens which has enabled it attain improved subsea architecture like subsea bus architecture. It has also helped the company implement different control systems. The main areas of focus have been developments needed on managing the excavation of both soil and rocks and also managing the waste. Health issues have been of great concern to the company.

Health of any worker is a number one priority of the group. Measures like working gears have been put in place. The workers have health insurance to cater for their health. 5% in the 2017 financial. The salary total level has reduced to 1,618 million pounds in the 2017 financial year. In the 2016 financial year the total amount was 1,782 million pounds. Income per capita increased from 45. 2 to 47. There has been employment of different risk management. The assessment of risks is carried out by the management of the company. The analysis of the risk is carried through looking at risks that could affect the company’s objectives and aims putting in mind the business structure and how it is organized and also the procedure at which changes take place.

DIFFERENT KINDS OF RISKS ENCOUNTERED. Strategic partnership risks-saipem carries out business partnership with different companies worldwide and sometimes there can be breach of contract between the partners and this would bring a lot of inconveniences and confusion in the group and this will eventually lead to the poor performance of the business. Engagement of unlawful activities by third parties-sometimes the employees can participate into activities that are not lawful like stealing of equipment, financial mismanagement and misappropriation of funds that would cause the group to undergo loss. Also third parties or still workers can engage in different illegal activities in the name of the company that would affect the company. Sometimes the workers might give out very confidential information that would bring everything to a total mess and a complete stand still.

This information may leak out accidentally or intentionally for the gain of the employee. Over dependence on few main personnel and specialists- the company depends on few people who have a specific special knowledge on specific fields within the organization. I have learned a lot from this process particularly on the accounting frameworks and the financial statements. The statements of the financial situation of the business entity, the strength of its stock prices as well as the capital expenditure have really changed my perspective on the view of businesses. The most intriguing aspect of the report however is the large amount of numerical data that has not been presented in narrative form. There has been no attempt to try and decipher the data or even translate its meaning and its impact to the overall performance of the business entity.

Accounting , according to Weetman, should be taken further than just the processes of picking, assessing and presentation of financial information (2013). This led me to thinking on the role of the report in a company’s image and to what extent it can be used to portray the best aspects of a company. Reference list AS, Moss Maritime. "Code of Ethics. Di Pietra, Roberto, et al. "The effects of board size and ‘busy’directors on the market value of Italian companies. Salomone, Roberta, and Giulia Galluccio. "Environmental issues and financial reporting trends: a survey in the chemical and oil & gas industries. Weetman P (2013), Financial and management accounting, 6th Edition, Pearson Education. Zambon, Stefano, and Ilaria Bergamini. "Scoring company disclosure on intangibles: An application of an innovative methodology in a European perspective.