Saipem: the Board of Directors approves the results for the third quarter and first nine months of 2023 and convenes the Extraordinary Shareholders' Meeting

In the third quarter:

·         Revenue: €3,016 million, +5.6% compared to €2,856 million in the corresponding period of 2022

·         Adjusted EBITDA: €230 million, +26.4% compared to €182 million in the corresponding period of 2022

·         A positive net result amounting to €39 million compared to a loss of €8 million in the corresponding period of 2022

 

In the first nine months:

·         Revenue: €8,363 million, +18.7% compared to €7,043 million in the corresponding period of 2022

·         Adjusted EBITDA: €640 million, +43.8% compared to €445 million in the corresponding period of 2022

·         Positive net result of €79 million compared to a loss of €138 million in the corresponding period of 2022

·         New contracts: €11,918 million, +72.1% compared to the corresponding period of 2022. Over 80% of new contracts was in offshore business (E&C and Drilling)

·         The backlog grows by over €3.5 billion compared to December 31, 2022

·         Pre-IFRS 16 net financial position as of September 30, 2023: positive net cash of €125 million (post-IFRS 16 net debt of €171 million)

 

On October 18, 2023, Consob, in response to the request made by the Company, communicated the revocation of the obligation to disclose supplementary information in periodic financial reporting, pursuant to Article 114, paragraph 5, of Legislative Decree No. 58/98, to which Saipem was subject from Consob's request on May 10, 2022.

 

***

 

Milan, October 25, 2023 – The Board of Directors of Saipem SpA, chaired by Silvia Merlo, approved in today's meeting the consolidated interim management report of the Group as of September 30, 2023 (not subject to audit).

 

During the same meeting, the Board of Directors also resolved to submit to the approval of the Shareholders' Meeting the proposal for authorization of  the convertibility into ordinary shares of the Company of the equity-linked bonds with nominal amount of €500,000,000.00 (five hundred million/00), maturing on September 11, 2029, reserved for qualified investors, named "€ 500,000,000 Senior Unsecured Guaranteed Equity-linked bonds due 2029" and issued on September 11, 2023 (the "Equity-Linked Bonds") and consequently the increase in the share capital of the Company, in connection with the conversion of the Equity-Linked Bonds, for cash and in a divisible form, excluding any shareholders’ pre-emption rights pursuant to Article  2441, paragraph 5, of the Italian Civil Code, for a maximum of € 500,000,000.00 (five hundred million/00), including any premium, to be executed in one or more tranches through the issuance of new shares with regular entitlement, having the same characteristics as the outstanding ordinary shares (the "Capital Increase").

 

 

Results of the first nine months of 2023:

·            Revenue: €8,363 million (€7,043 million in the corresponding period of 2022), of which €3,016 million in the third quarter (€2,856 million in the corresponding period of 2022).

·            Adjusted EBITDA: €640 million (€445 million in the corresponding period of 2022), of which €230 million in the third quarter (€182 million in the corresponding period of 2022).

·            Net result: €79 million (loss of €138 million in the corresponding period of 2022), of which €39 million in the third quarter (loss of €8 million in the corresponding quarter of 2022).

·            Capital expenditure: €206 million (€184 million in the corresponding period of 2022), of which €67 million in the third quarter (€98 million in the corresponding period of 2022).

·            Post-IFRS 16 net financial position: net debt of €171 million (net debt of €264 million as of December 31, 2022).

·            Pre-IFRS 16 net financial position: net cash of €125 million (net cash of €56 million as of December 31, 2022).

·            Order intake: €11,918 million (€6,924 million in the corresponding period of 2022), of which €5,228 million in the third quarter (€2,696 million in the corresponding period of 2022).

·            Backlog: €27,572 million (€24,017 million as of December 31, 2022), which increases to €27,679 million including the backlog of non-consolidated companies (€24,376 million as of December 31, 2022).

 

 

 

 

Highlights*

third quarter 2022	second quarter 2023	third quarter 2023	third quarter 2023 vs third quarter 2022 (%)	Continuing Operations	first nine months of 2022	first nine months of 2023	Sep 2023 vs Sep 22 (%)
2,856	2,765	3,016	5.6	Revenue	7,043	8,363	18.7
168	219	230	36.9	EBITDA	412	640	55.3
182	219	230	26.4	Adjusted EBITDA	445	640	43.8
54	101	112	ns	Operating result (EBIT)	81	304	ns
68	101	112	64.7	Adjusted operating result (EBIT)	114	304	ns
(34)	40	44	ns	Net result continuing operations	(157)	84	ns
(20)	40	44	ns	Adjusted net result continuing operations	(124)	84	ns
(8)	40	39	ns	Net result	(138)	79	ns
7	40	39	ns	Adjusted net result	(101)	79	ns
(158)	8	13	ns	Free cash flows	(773)	76	ns
88	(34)	(125)	ns	Net debt pre-IFRS 16 lease liabilities	88	(125)	ns
426	288	171	(59.9)	Net debt post-IFRS 16 lease liabilities	426	171	(59.9)
98	62	67	(31.6)	Capital expenditure	184	206	12.0
2,696	3,995	5,228	93.9	New contracts	6,924	11,918	72.1

* The results of the Onshore Drilling segment being divested, have been recognized as discontinued operations in accordance with the criteria set out in IFRS 5. The comparison periods have been restated for comparative purposes. 

 

Revenue and associated profit levels are not consistent over time, as they are influenced not only by market performance but also by climatic conditions and individual project schedules in the Engineering and Construction sector, and by contract expiry and renegotiation timing in the Drilling sector.

 

Continuing and Discontinued Operations and non-current assets held for sale

The Onshore Drilling (DRON) business was recognised as discontinued operations given that, during 2022, the activities in Saudi Arabia, the Congo, the United Arab Emirates, and Morocco were transferred, and during the first half of 2023 the activities in Kuwait and Latin America; exception is made for the activities in Argentina, which will be transferred, together with those in Kazakhstan and Romania, within the first half of 2024.

 

Management update 2023

In the first quarter of 2023, revenue amounted to €8,363 million (€7,043 million in the corresponding period of 2022) and the adjusted EBITDA amounted to €640 million (€445 million in the corresponding period of 2022). The improvement is recorded in the Offshore, both Engineering and Construction and Drilling, as commented below in the subparagraph “Analysis by sector of activity”.

 

The adjusted net result from continuing operations recorded a profit of €84 million (a loss of €124 million in the corresponding period of 2022). In addition to the positive change recorded in the adjusted operating result, amounting to €190 million, there is the effect of the improvement in the equity investments balance, partially offset by the deterioration of the tax management and financial management balance, for a total of €18 million.

 

No non-recurring expenses were recorded in the first nine months of 2023, and the result from discontinued operations is negative at €5 million.

In the corresponding period of 2022, the net result from continuing operations showed a loss of €157 million, and it accounted for net results adjusted for costs related to the health emergency and restructuring, totaling €33 million. Meanwhile, the result from discontinued operations recorded a profit of €19 million.

 

The revenue for the first nine months of 2023 for the discontinued operations of the Drilling Onshore business amounted to €79 million, and the EBITDA is negative at €5 million.

 

Capital expenditure in the first nine months of 2023, amounted to €206 million (€184 million in the corresponding period of 2022), and was divided as follows:

·               €159 million in Asset Based Services;

·               €9 million in Energy Carriers;

·               €38 million in Offshore Drilling.

 

The pre-IFRS 16 net financial position as of September 30, 2023 is positive at €125 million, including the positive impact of €79 million resulting from the accounting of the Equity-Linked Bonds. Net debt, including IFRS 16 lease liability of €296 million, amounted to €171 million.

Pre-IFRS 16 gross debt as of September 30, 2023, amounted to €2,739 million, liquidity to €2,823 million of which available cash for €1,664 million.

 

Backlog

In the first nine months of 2023 Saipem was awarded new contracts amounting to a total of €11,918 million (€6,924 million in the corresponding period of 2022). The backlog as of September 30, 2023 amounted to €27,572 million (€15,087 million in Asset Based Services, €10,334 million in Energy Carriers and €2,151 million in Offshore Drilling), of which €2,698 million to be executed in 2023.

The order backlog, including non-consolidated companies, as of September 30, 2023, amounts to €27,679 million (€24,376 million as of December 31, 2022).

 

New orders after the closing

As announced on October 5, 2023, Saipem, in consortium with National Petroleum Construction Company (NPCC), has signed on behalf of ADNOC a contract related to the Hail and Ghasha Development Project – Package 1 in the United Arab Emirates. Saipem's share of the contract amounts to around 4.1 billion USD.

The project is aimed at developing the resources of the Hail and Ghasha natural gas fields, located offshore Abu Dhabi. The project scope of work encompasses the engineering, procurement and construction (EPC) of four drilling centres and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 kilometers of subsea pipelines.

 

Extraordinary Shareholders' Meeting

The Board of Directors of the Company has resolved to convene the Shareholders' Meeting, in Extraordinary Session and on a single call, on December 13, 2023, to resolve upon the approval of the Capital Increase.

The notice of call and the documentation related to the sole item on the agenda of the Extraordinary Shareholders' Meeting will be made available to the public in accordance with legal terms at the registered office, through the authorized storage mechanism "eMarket STORAGE” (www.emarketstorage.com), on the website of Borsa Italiana S.p.A. (www.borsaitaliana.it), as well as in the dedicated section of the Company's website (www.saipem.com | Governance section - Shareholders' Meeting).

 

 

 

 

***

This press release should be read in conjunction with the Interim Consolidated Financial Statements as of June 30, 2023 and the Consolidated Financial Statements as of December 31, 2022 of Saipem, which are already available on the Company’s website (under the section “Investors” - “Quarterly results”).

***

 

Paolo Calcagnini, Manager responsible for the preparation of financial reports of Saipem SpA and Chief Financial Officer declares pursuant to Article 154-bis, subparagraph 2 of the Consolidated Law on Finance that the accounting information corresponds to the documentary results, books, and accounting records.

 

 

By their nature, forward-looking statements are subject to risk and uncertainty since they are dependent upon circumstances which should or are considered likely to occur in the future and are outside of the Company’s control. These include, but are not limited to: exchange and interest rate fluctuations, commodity price volatility, credit and liquidity risks, HSE risks, the levels of capital expenditure in the oil industry and other sectors, political instability in areas where the Group operates, actions by competitors, success of commercial transactions, risks associated with the execution of projects (including pandemic risks, geopolitical risks, supply chain risks and those risks related to ongoing investment projects), in addition to changes in stakeholders’ expectations and other changes affecting business conditions. Actual results could therefore differ materially from the forward-looking statements. The financial reports contain in-depth analyses of some of the aforementioned risks. Forward-looking statements and data are to be considered in the context of the date of their release. 

 

 

Conference call and webcast

The results contained in this press release will be presented tomorrow at 10:30 AM Italian time during a conference call and webcast by CEO Alessandro Puliti and CFO Paolo Calcagnini. The conference call can be joined by webcast, via the Company’s website www.saipem.com, by clicking on the banner ‘Saipem 9M 2023 results’ on the home page or following the URL: https://87399.choruscall.eu/links/saipem231026.html.

 

During the conference call and webcast, a presentation will be given that can be downloaded around 30 minutes before the estimated start time, from the webcast window or from the “Investors/Quarterly results and documentation” section of the website www.saipem.com. The presentation will also be available on the authorised storage mechanism “eMarketSTORAGE” (www.emarketstorage.com) and on the website of Borsa Italiana SpA (www.borsaitaliana.it).

 

 

Saipem is a global leader in the engineering and construction of major projects for the energy and infrastructure sectors, both offshore and onshore. Saipem is “One Company” organized into five business lines - Asset Based Services, Energy Carriers, Offshore Wind, Sustainable Infrastructures, Robotics & Industrialized Solutions. The company has 8 fabrication yards and an offshore fleet of 23 construction vessels (of which 21 owned and 2 owned by third parties and managed by Saipem) and 15 drilling rigs, of which 8 owned. Always oriented towards technological innovation, the company’s purpose is “Engineering for a sustainable future”. As such Saipem is committed to supporting its clients on the energy transition pathway towards Net Zero, with increasingly digital means, technologies and processes geared for environmental sustainability. Listed on the Milan Stock Exchange, it is present in over 50 countries worldwide and has 30 thousand employees of 120 different nationalities.

 

 

Website: www.saipem.com

Phone: +39 0244231

 

Media relations

E-mail: media.relations@saipem.com

 

Investor Relations

E-mail: investor.relations@saipem.com

 

Contact for individual investors

E-mail: segreteria.societaria@saipem.com

 

 

 

Analysis by sector of activity - Adjusted results

Asset Based Services

(€ million)

third quarter 2022	second quarter 2023	third quarter 2023	third quarter 2023 vs third quarter 2022 (%)				first nine months of 2022		first nine months of 2023		Sep 2023 vs Sep 22 (%)
1,568	1,439	1,494	(4.7)	Revenue		3,592		4,116		14.6
(1,438)	(1,295)	(1,341)	(6.7)	Costs		(3,298)		(3,703)		12.3
130	144	153	17.7	Adjusted EBITDA		294		413		40.5
(85)	(76)	(67)	(21.2)	Amortisation		(233)		(202)		(13.3)
45	68	86	91.1	Adjusted operating result		61		211		ns
8.3	10.0	10.2		Adjusted EBITDA %		8.2		10.0
2.9	4.7	5.8		Adjusted EBIT %		1.7		5.1
1,110	2,778	4,215		New contracts		3,417		8,492

 

Backlog as of September 30, 2023: €15,087 million, of which €1,441 million to be executed in 2023.

 

§  Revenue of the first nine months of 2023 amounted to €4,116 million and shows an increase of 14.6% compared to the corresponding period of 2022, mainly attributable to higher volumes in Latin America, Sub-Saharan Africa, Italy and the Far East.

 

§  The adjusted EBITDA of the first nine months of 2023 is positive for €413 million, equal to 10.0% of the revenue compared to the €294 million in the corresponding period of 2022, equal to 8.2% of revenue.

 

§  The most significant new contracts of the third quarter are related to:

-          on behalf of OMV Petrom, the Neptun Gas Development project in Romania, in the Black Sea, involves the engineering, procurement, construction, installation, and commissioning (EPCIC) of a gas treatment platform at a depth of approximately 100 meters. It also includes the development of three subsea fields, a gas pipeline of approximately 160 kilometers, and an associated fiber optic cable from the platform in shallow waters to the Romanian coast.

-          on behalf of Mellitah Oil & Gas BV Libyan Branch, within the scope of the Bouri Gas Utilization Project (BGUP), a contract for the revamping of platforms and structures in the Bouri field, located in deep waters between 145 and 183 meters off the Libyan coast. The contract entails the engineering, procurement, fabrication, installation, and commissioning of a gas recovery module of approximately 5,000 tonnes on the existing DP4 structure, along with the installation of connecting pipelines between the DP3, DP4, and Sabratha platforms.

-          on behalf of Eni Côte d'Ivoire, the Baleine Phase 2 project is related to the eponymous oil and gas field located offshore Ivory Coast, at a depth of 1,200 meters. The scope of the project involves the engineering, procurement, construction, and installation of approximately 20 kilometers of rigid pipelines, 10 kilometers of flexible risers and jumpers, and 15 kilometers of umbilicals connected to a dedicated floating unit.

-          on behalf of Snam Rete Gas, a contract for the construction of facilities for the new Floating Storage and Regasification Unit (FSRU) that will be located in the Adriatic Sea off the coast of Ravenna. The project includes the engineering, procurement, construction, and installation of an offshore structure, connected to the existing infrastructure, for the mooring and berthing of the FRSU vessel. It will be connected to the mainland via an 8.5-kilometer offshore pipeline, with an additional 2.6 kilometers on land, and a parallel fiber optic cable.

-          on behalf of Gascade Gastransport GmbH, a contract for the transportation and installation of the Ostsee Anbindungsleitung gas pipeline in the Pomerania Bay, in northeastern Germany. The project includes the transportation and installation of a gas pipeline of approximately 50 kilometers, from the Lubmin site in northern Germany on the Baltic Sea to the port of Mukran along the eastern coast of the island of Rügen, as well as the construction of terminals.

-          on behalf of BP, a contract for offshore activities in the Gulf of Mexico related to the Argos Floating Production Unit (FPU), a cutting-edge facility designed for oil and gas production in deepwater environments. The Argos FPU is located in the Green Canyon Block 780, approximately 1,400 metre water depth.

 

 

Energy Carriers

(€ million)

third quarter 2022	second quarter 2023	third quarter 2023	third quarter 2023 vs third quarter 2022 (%)				first nine months of 2022		first nine months of 2023		Sep 2023 vs Sep 22 (%)
1,160	1,147	1,345	15.9	Revenue		3,034		3,711		22.3
(1,155)	(1,145)	(1,343)	16.3	Costs		(3,016)		(3,700)		22.7
5	2	2	(60.0)	Adjusted EBITDA		18		11		(38.9)
(14)	(14)	(16)	14.3	Amortisation		(45)		(43)		(4.4)
(9)	(12)	(14)	55.6	Adjusted operating result		(27)		(32)		18.5
0.4	0.2	0.1		Adjusted EBITDA %		0.6		0.3
(0.8)	(1.0)	(1.0)		Adjusted EBIT %		(0.9)		(0.9)
1,546	346	966		New contracts		2,653		2,233

 

Backlog as of September 30, 2023: €10,334 million, of which €1,079 million to be executed in 2023.

 

§  Revenue for the first nine months of 2023 amounted to €3,711 million and shows an increase of 22.3% compared to the corresponding period of 2022, as an effect of the higher volumes in the Sub-Saharan Africa, Middle East, and Latin America.

 

§  The adjusted EBITDA for the first nine months of 2023 is positive at €11 million, equivalent to 0.3% of revenue, a decrease compared to the corresponding period in 2022, which benefited from a non-recurring income.

 

§  The most significant acquisition of the third quarter is related to the contract on behalf of Eni Congo for the conversion of the semi-submersible drilling unit Scarabeo 5 into a separation and enhancement plant (Floating Production Unit - FPU). The FPU is a semi-submersible production platform that receives fluids produced from the wellhead riser platforms, separates the gas from the liquids, and boosts it to supply the nearby floating natural gas liquefaction unit.

 

 

 

 

Offshore Drilling

(€ million)

third quarter 2022	second quarter 2023	third quarter 2023	third quarter 2023 vs third quarter 2022 (%)				first nine months of 2022		first nine months of 2023		Sep 2023 vs Sep 22 (%)
128	179	177	38.3	Revenue		417		536		28.5
(81)	(106)	(102)	25.9	Costs		(284)		(320)		12.7
47	73	75	59.6	Adjusted EBITDA		133		216		62.4
(15)	(28)	(35)	ns	Amortisation		(53)		(91)		71.7
32	45	40	25.0	Adjusted operating result		80		125		56.3
36.7	40.8	42.4		Adjusted EBITDA %		31.9		40.3
25.0	25.1	22.6		Adjusted EBIT %		19.2		23.3
40	871	47		New contracts		854		1,193

 

Backlog as of September 30, 2023: €2,151 million, of which €178 million to be executed in 2023.

 

§  Revenue for the first nine months of 2023 amounted to €536 million, an increase of 28.5% compared to the corresponding period in 2022, thanks to a favorable market environment, with increasing daily rates, and the greater contribution of the fully operational semi-submersible platforms Scarabeo 8 and Scarabeo 9, as well as jack-up Perro Negro 8 during the period.

 

§  The adjusted EBITDA in the first nine months of 2023 amounted to €216 million, equal to 40.3% of revenue, compared to €133 million in the corresponding period of 2022, equal to 31.9%, mainly attributable to better market conditions with increasing daily rates compared to the corresponding period of 2022.

 

 

 

 

 

The main vessel utilisation in the first nine months of 2023 was as follows:

 

Vessel	First nine months of 2023
	sold	idle
	(No. of days)
Semi-submersible platform Scarabeo 5	36	-	(b)
Semi-submersible platform Scarabeo 8	269	4	(a)
Semi-submersible platform Scarabeo 9	273	-
Drillship Saipem 10000	273	-
Drillship Saipem 12000	273	-
Drillship Santorini	273	-
Drillship Deep Value Driller*		23	(a)
Jack up Perro Negro 4	273	-
Jack up Perro Negro 7	273	-
Jack up Perro Negro 8	273	-
Jack up Pioneer Jindal*	273	-
Jack up Sea Lion 7*	192	81	(a)
Jack up Perro Negro 9*	221	52	(a)
Jack up Perro Negro 11*	163	110	(a)
Jack up Perro Negro 12*	-	212	(a)
Jack up Perro Negro 13*	-	125	(a)

(a) = days on which the vessel underwent class reinstatement/preparation works

(b) = vessel held for sale

 

* Leased vessels

 

 

 

 

Attached are:

 

the consolidated Balance Sheet, reclassified Income Statement (the Income Statement is reclassified according to the nature and destination of operating costs) and the Cash Flow Statement

 

RECLASSIFIED CONSOLIDATED BALANCE SHEET

 

 

(€ million)

	December 31, 2022	September 30, 2023
Net tangible assets	2,879	2,808
Right-of-use of leased activities	258	244
Net intangible assets	691	665
	3,828	3,717
Equity investments	128	146
Non-current assets	3,956	3,836
Net current assets	(1,589)	(1,349)
Employee benefits	(183)	(168)
Assets held for sale	166	78
NET CAPITAL EMPLOYED	2,350	2,424
Equity	2,068	2,251
Non-controlling interests	18	2
Net debt (cash) pre-IFRS 16 lease liabilities	(56)	(125)
Lease liabilities	320	296
Net debt	264	171
FUNDING	2,350	2,424
Leverage (net borrowing/equity + non-controlling interests)	0.13	0.08
NUMBER OF SHARES ISSUED AND OUTSTANDING	1,995,558,791	1,995,558,791

 

 

 

CONSOLIDATED INCOME STATEMENT RECLASSIFIED BY NATURE

 

 

(€ million)

third quarter 2022	second quarter 2023	third quarter 2023		First nine months
				2022	2023
2,856	2,765	3,016	Core business revenue	7,043	8,363
-	-	3	Other income and revenue	5	5
(2,277)	(2,110)	(2,367)	Purchases, services, and other costs	(5,388)	(6,465)
1	(6)	(7)	Net reversals of impairment loss (impairment loss) on trade receivables and other assets	(51)	(22)
(412)	(430)	(415)	Personnel and related costs	(1,197)	(1,241)
168	219	230	GROSS OPERATING MARGIN	412	640
(114)	(118)	(118)	Depreciation, amortisation, and impairment loss	(331)	(336)
54	101	112	OPERATING RESULT	81	304
(57)	(35)	(46)	Financial expense	(116)	(133)
-	15	17	Gains (loss) on equity investments	(24)	30
(3)	81	83	RESULT BEFORE TAXES	(59)	201
(31)	(41)	(39)	Income taxes	(98)	(117)
(34)	40	44	RESULT BEFORE NON-CONTROLLING INTERESTS	(157)	84
-	-	-	Result attributable to non-controlling interests -	-	-
(34)	40	44	NET RESULT - Continuing Operations	(157)	84
26	-	(5)	NET RESULT - Discontinued Operations	19	(5)
(8)	40	39	NET RESULT	(138)	79

 

 

 

RECLASSIFIED CONSOLIDATED INCOME STATEMENT BY DESTINATION

 

                                                                                                                                                                                                (€ million)

third quarter 2022	second quarter 2023	third quarter 2023		First nine months
				2022	2023
2,856	2,765	3,016	Core business revenue	7,043	8,363
(2,720)	(2,573)	(2,823)	Production costs	(6,658)	(7,784)
(12)	(14)	(15)	Idle costs	(88)	(54)
(27)	(26)	(21)	Selling costs	(84)	(80)
(7)	(8)	(6)	Costs for studies, research, and development	(19)	(20)
6	(2)	4	Other operating result (costs)	3	5
96	142	155	ACTIVITY MARGIN	197	430
(42)	(41)	(43)	General costs	(116)	(126)
54	101	112	OPERATING RESULT	81	304
(57)	(35)	(46)	Financial expense	(116)	(133)
-	15	17	Gains (loss) on equity investments	(24)	30
(3)	81	83	RESULT BEFORE TAXES	(59)	201
(31)	(41)	(39)	Income taxes	(98)	(117)
(34)	40	44	RESULT BEFORE NON-CONTROLLING INTERESTS	(157)	84
-	-	-	Result attributable to non-controlling interests -	-	-
(34)	40	44	NET RESULT - Continuing Operations	(157)	84
26	-	(5)	NET RESULT - Discontinued Operations	19	(5)
(8)	40	39	NET RESULT	(138)	79

 

 

 

 

 

 

 

 

 

 

RECLASSIFIED CASH FLOW STATEMENT

                                                                                                                                         (€ million)

third quarter 2022	second quarter 2023	third quarter 2023		First nine months
				2022	2023
(34)	40	44	Group’s result for the period – Continuing Operations	(157)	84
26	-	(5)	Group’s result for the period – Discontinued Operations	19	(5)
-	-	-	Result of non-controlling interest	-	-
			Adjustments:
149	18	5	Depreciation, amortisation and other non-monetary items - Continuing Operations	126	-
9	-	-	Depreciation, amortisation and other non-monetary items - Discontinued Operations	59	-
(195)	(19)	25	Changes in working capital related to operations - Continuing Operations	(574)	132
(19)	-	5	Changes in working capital related to operations - Discontinued Operations	(41)	5
(80)	39	74	Net cash flows from activities in the period - Continuing Operations	(605)	216
16	-	-	Net cash flows from activities in the period - Discontinued Operations	37	-
(98)	(62)	(67)	Continuing operations capital expenditure	(184)	(206)
(1)	-	-	Discontinued operations capital expenditure	(27)	-
-	(1)	-	Investments in equity, consolidated subsidiaries and business units	-	(1)
5	32	6	Divestments	6	67
(158)	8	13	Free cash flows	(773)	76
-	-	-	Buy-back of treasury shares	-	-
1,461	-	-	Cash flow from capital and reserves	1,919	-
-	-	79	Net variation of Equity-Linked Bonds	-	79
(40)	(18)	(29)	Repayments of lease liabilities	(97)	(88)
44	(1)	28	Exchange differences on net debt and other changes	86	2
1,307	(11)	91	Change in net debt pre-lease liabilities	1,135	69
(30)	8	26	Change in lease liabilities	(20)	24
1,277	(3)	117	Change in net debt	1,115	93
1,703	285	288	Net debt at the start of the period	1,541	264
426	288	171	Net debt at the end of the period	426	171