Europe’s largest oil services firm, Saipem, expects an economic and financial crisis in Europe to weigh on the global oil industry with delays in investments and big gas projects.

The group said, on Monday, investments by oil companies this year were still seen above those in 2011 and confirmed its 2012 targets including a net profit of about 1 billion euros, thanks to a solid order backlog.

However, European’s woes “are creating a climate of growing uncertainty regarding the global economy, which in turn impacts the timing of the awarding and start of projects planned by oil companies,” Saipem said in a statement on its quarterly results.

The crisis has weighed on gas demand in Europe, delaying projects such as the giant Shtokman development in Russia and the Galsi pipeline in Algeria where Saipem is involved.

On the positive, Saipem said several projects in Nigeria, Angola, Brazil, the Middle East and South East Asia were expected to be awarded in the second half of the year.

Saipem, whose advanced offshore fleet makes it well placed to grab growing investments in ultra deep waters and other harsh environments, said second-quarter net profit rose 7.6 per cent to 242 million euros, a touch below a 246 million euro consensus.

Contracts in Saudi Arabia, Russia, Nigeria in March and June contributed to a 6.3 billion euro order intake in the first half of the year, a 5 per cent rise from a year earlier.

The oil services industry is late-cycle as it relies on multi-year contracts with oil companies which make their investment decisions based on oil price trends.

After the release of the results shares in the Milan-based group, majority controlled by Eni, pared gains.