Saipem: 2011 Consolidated and draft Statutory Financial Statements; Call to General Shareholders’ Meeting

 March 13, 2012; h 15:30

• Revenues: €12,593 million
• Operating profit: €1,493 million
• Adjusted net profit: €921 million
• Adjusted cash flow: €1,563 million
• Dividends: €0.70 per ordinary share and €0.73 per savings share

San Donato Milanese, March 13, 2012.The Board of Directors of Saipem S.p.A. has approved the Saipem Group Consolidated Financial Statements for the period ending December 31, 2011, which reported an adjusted net profit of €921 million (€828 million in 2010) and net profit of €921 million (€844 million in 2010). The Board also approved the draft Statutory Financial Statements of Saipem S.p.A., which reported a net profit of €520 million, inclusive of net income from investments amounting to €293 million (€85 million in 2010).

The Board of Directors moved to propose the distribution of a dividend of €0.70 per ordinary share and €0.73 per savings share at the Annual Shareholders’ Meeting. Dividends will be paid from May 24, 2012 (ex-dividend date: May 21, 2012).

The Consolidated and draft Statutory Financial Statements of Saipem S.p.A. have been made available to the Board of Statutory Auditors and the Independent Auditors, together with the Directors’ Report.

The 2011 Annual Financial Report will be duly available at Saipem’s Headquarters and published on the Company’s website www.saipem.com.

The Board of Directors also approved the following reports: “Saipem’s Corporate Governance and Shareholding Structure”, “Saipem Sustainability” and the “Compensation Report”. These documents will be made available on Saipem’s website when the Annual Financial Report is published.

Finally, the Board of Directors approved the draft Statutory Financial Statements of the subsidiary Saipem Energy Services S.p.A., whose merger into Saipem S.p.A. was effective as per January 1, 2012.

Annual General Shareholders’ Meeting
Ordinary Part
The Board of Directors called for the General Shareholders’ Meeting to be held on April 20 or April 27, 2012, first and second call, respectively.

Extraordinary Part
The Board of Directors also called for the Extraordinary Shareholders’ Meeting to be held on April 20 or April 27, 2012, first and second call, respectively, to approve amendments to the Company’s Articles of Association required to comply with new regulations aimed at promoting gender balance in Boards of Directors and Internal Control Bodies of listed companies.

Saipem’s Chief Financial Officer, Mr Giulio Bozzini, in his capacity as manager responsible for the preparation of the Company’s financial reports, certifies, pursuant to art. 154-bis paragraph 2 of Legislative Decree no. 58/1998, that data and information disclosed in this press release corresponds to the Company’s evidence and accounting books and entries.

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Website: www.saipem.com
Switchboard: +39-025201
Shareholder Information
Saipem S.p.A., Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (MI), Italy

Relations with institutional investors and financial analysts:
Tel.: +39-02520.34653
Fax: +39-02520.54295
E-mail: investor.relations@saipem.com

The tables below provide the following:
- Saipem S.p.A. Reclassified Balance Sheet, Reclassified Income Statement and Statement of Cash Flow;
- Saipem Group Reclassified Consolidated Balance Sheet, Reclassified Consolidated Income Statement and Statement of Cash Flow.
Restatements of the reclassified balance sheet and income statement to statutory schemes are provided in the Directors’ Report of the Consolidated and Statutory Financial Statements of Saipem S.p.A. under the section

SAIPEM S.p.A.

BALANCE SHEET	(million euros)
	December 31, 2010	December 31, 2011
Tangible fixed assets	573	566
Intangible fixed assets	26	18
Financial investments	2,157	2,436
Non-current assets	2,756	3,020
Net current assets	(468)	(601)
Employee termination indemnities	(93)	(92)
CAPITAL EMPLOYED	2,195	2,327
Shareholders’ equity	1,075	1,314
Net debt	1,120	1,013
COVER	2,195	2,327

INCOME STATEMENT	(million euros)
	2010	2011
Operating revenues	4,718	5,547
Other revenues and income	40	86
Operating costs	(4,436)	(5,085)
Other operating income (expenses)	-	1
Gross operating profit	322	549
Amortisation, depreciation and write-downs	(82)	(92)
Operating profit	240	457
Financial expenses, net	(64)	(67)
Net income from investments	-	293
Income before income taxes	176	683
Income taxes	(91)	(163)
Net profit	85	520

SAIPEM S.p.A.

STATEMENT OF CASH FLOW	(million euros)
	2010	2011
Net income	85	520
Depreciation, amortisation and other non-monetary items	82	82
Losses (gains) from disposals	(3)	10
Dividends, interests and income taxes	126	(88)
Cash generated from operating income before variation in working capital	290	524
Variation in working capital relating to operations	421	104
Dividends, interests and income taxes received (paid)	192	86
Net cash flow from operations	903	714
Investments in tangible and intangible fixed assets	(251)	(121)
Financial investments	(351)	(280)
Disposals	48	58
Free cash flow	349	371
Transfer (buy-back) of treasury shares	34	11
Cash flow from share capital and reserves	(240)	(276)
Exchange rate differentials and other variation concerning net financial debt	2	1
Variation in net debt	145	107
Net debt at beginning of period	1,265	1,120
Net debt at end of period	1,120	1,013

SAIPEM GROUP

RECLASSIFIED BALANCE SHEET				(million euros)
	December 31, 2010		December 31, 2011
Net tangible fixed assets		7,403		8,024
Net intangible fixed assets		760		752
		8,163		8,776
- Engineering & Construction: Offshore	3,617		3,851
- Engineering & Construction: Onshore	444		464
- Offshore Drilling	3,204		3,550
- Onshore Drilling	898		911
Financial investments		105		102
Non-current assets		8,268		8,878
Net current assets		(658)		(663)
Employee termination indemnities		(193)		(200)
CAPITAL EMPLOYED		7,417		8,015
Net equity		4,060		4,709
Minority interest in net equity		94		114
Net debt		3,263		3,192
COVER		7,417		8,015
Leverage (net debt/shareholders’ equity)		0.80		0.68
SHARES ISSUED AND OUTSTANDING		441,410,900		441,410,900

INCOME STATEMENT	(million euros)
	2010	2011
Operating revenues	11,160	12,593
Other revenues and income	14	21
Operating costs	(9,338)	(10,479)
Gross operating profit	1,836	2,135
Amortisation, depreciation and write-downs	(517)	(642)
Operating profit	1,319	1,493
Financial expenses, net	(110)	(133)
Net income from investments	13	19
Income before income taxes	1,222	1,379
Income taxes	(344)	(392)
Income before minority interest	878	987
Minority interest	(50)	(66)
Adjusted net profit	828	921
Capital gain from the disposal of non-core assets	17	–
Tax charge	(1)	–
Net profit	844	921

SAIPEM GROUP

RECLASSIFIED STATEMENT OF CASH FLOW	(million euros)
	2010	2011
Group net income	844	921
Minority interest	50	66
Depreciation, amortisation and other non-monetary items	531	627
Gains from disposals	(17)	2
Dividends, interests and income taxes	382	483
Cash generated from operating income before variation in working capital	1,790	2,099
Variation in working capital relating to operations	(220)	(174)
Dividends, interests and income taxes received	(246)	(376)
Net cash flow from operations	1,324	1,549
Investments in tangible and intangible fixed assets	(1,545)	(1,106)
Financial investments	(4)	(93)
Disposals	53	18
Other investments and disposals	–	49
Free cash flow	(172)	417
Transfer of treasury shares	35	11
Cash flow from share capital and reserves	(263)	(297)
Exchange rate differentials and other variation concerning net financial debt	(18)	(60)
Variation in net debt	(418)	71
Net debt at beginning of period	2,845	3,263
Net debt at end of period	3,263	3,192