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Saipem shares down 9 pct after guidance, jobs cuts

Timothy Fadek | Bloomberg via Getty Image

Shares in Saipem were down more than 9 percent in early trading after the oil contractor slashed its guidance for the year late on Tuesday and axed 8,800 jobs as part of a restructuring plan.

Some brokers expressed concern about the need for a capital increase at the oil service company.

"We believe that given the existing debt and the very poor outlook for offshore drilling, a capital raise to entirely independently fund projects would be so large as to be implausible," Canaccord said in a note.

Shares in oil major Eni, which owns 43 percent of Saipem, were down



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