Saipem: First Quarter 2015 results

First quarter 2015:
• Revenues: €3,020 million (€2,891 million in the first quarter of 2014)
• EBIT: €159 million (€127 million in the first quarter of 2014)
• Net profit: €77 million (€61 million in the first quarter of 2014)
• Investments: €150 million (€204 million in the first quarter of 2014) 

• Net debt at the end of the quarter: €5,193 million (€5,610 at March 31, 2014; €4,424 million at December 31, 2014)
o This includes a negative cash impact of €381 million relating to FX hedging derivatives maturing in the quarter, an impact which will be fully recovered as the hedged projects are executed. Net debt before this impact was €4,812 million
o Cashflow of €269 million (+14% vs. the first quarter of 2014) 
 
• New contracts: €2,399 million (€3,900 million in the first quarter of 2014)
• Backlog: €21,526 million as at March 31, 2015 (€18,074 million at March 31, 2014; €22,147 million at December 31, 2014) 
 
• Guidance for full year 2015 confirmed  
o Revenues: between €12 and €13 billion  
o EBIT: between €500 and €700 million  
o Net profit: between €200 and €300 million  
o Investments: ~€650 million  
o Net debt: <€4 billion (excluding potential impact of US dollar fluctuations – current forecast is a negative impact of €500 million at year end) 
 
 
Umberto Vergine, Saipem CEO, commented: 
 
“During the first quarter of 2015, despite the negative market environment caused by lower oil prices, Saipem continued its recovery process and its operating results confirm an improving trend.   
 The strategy put in place over the past years is based on the strength of the drilling business, on the effort to complete legacy and loss making projects as well as possible, and on ensuring a positive contribution from new projects awarded in the context of a more solid and disciplined commercial policy.  
Largely as a result of the projects awarded in 2014, Saipem can count on a strong and diverse backlog in excess of €21 billion which highlights the trust that the company has been afforded by its clients, and which provides it with a strong market position in the context of a significant downturn.  
 Saipem’s recovery process is yet to be completed. At the same time, new challenges have arisen in the sector, in particular slowing client capex as a result of the current oil-price environment. However I am confident that Saipem has created a solid basis to enable it to complete its recovery process and return to historic levels of profitability.” 

Saipem operates in the Engineering & Construction and Drilling businesses, with a strong bias towards oil & gas-related activities in remote areas and deep-waters. Saipem is a leader in the provision of engineering, procurement, project management and construction services with distinctive capabilities in the design and execution of large-scale offshore and onshore projects, and technological competences such as gas monetization and heavy oil exploitation.

Website: www.saipem.com
Switchboard: +39 0244231 
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