Saipem Board of Directors approves 2016 preliminary consolidated resultsFinancialSan Donato Milanese
Reported results penalised by rationalisations and write-downs
Adjusted EBIT and net debt in line with guidance
Resilient new contract acquisitions
Financial structure strengthened and bridge-to-bond facility fully reimbursed in advance
Cost savings target achieved
Guidance confirmed, with adjusted EBITDA estimated at approximately €1 billion
Implementation of the new organisational model
New cost savings target confirmed in a market context still expected to be challenging
San Donato Milanese, February 23, 2017 - The Board of Directors of Saipem SpA, chaired by Paolo Andrea Colombo, today reviewed the Saipem Group preliminary consolidated results as at December 31, 2016 which have been prepared in compliance with the International Financial Reporting Standards (EU approved IFRS).
Revenues: €9,976 million (€11,507 million in 2015) of which €2,091 million in the fourth quarter.
Adjusted EBITDA: €1,266 million (€608 million in 2015) of which €269 million in the fourth quarter.
Adjusted operating profit (EBIT): €582 million (-€154 million in 2015) of which €103 million in the fourth quarter.
Reported operating result (EBIT): -€1,499 million (-€452 million in 2015), of which €1 million in the fourth quarter.
Adjusted net profit: €226 million (-€508 million in 2015), of which €26 million in the fourth quarter.
Reported net profit: -2,087 million, net of write-downs and reorganisation costs of €2,313 million (-€806 million in 2015, net of write-downs of €298 million), of which -€162 million in the fourth quarter.
Capital expenditure: €296 million (€561 million in 2015), of which €129 million in the fourth quarter.
Net debt at December 31, 2016: €1,450 million (€5,390 million at December 31, 2015).
New contracts: €8,349 million (€6,515 million in 2015), of which €1,722 million in the fourth quarter.
Backlog: €14,219 million (€15,846 million at December 31, 2015).
Revenues: ~ €10 billion
EBITDA: ~ €1 billion
Net profit: > €200 million (inclusive of approximately €30 million for reorganisation costs)
Capital expenditure: ~ €0.4 billion
Net debt: ~ €1.4 billion
Stefano Cao, Saipem CEO, commented: “2016 was a pivotal year for Saipem’s recovery. All of the measures required to ensure the deconsolidation of the Company from Eni were completed and, at the same time, those needed to deal with the difficult market context, which in 2016 saw write-downs and a further significant rationalisation of the asset base, were put in place. I recall in this regard the share capital increase, the debt refinancing and the first bond issue. And at the end of the year we managed to repay the bridge-to-bond facility in advance. Adjusted EBIT for 2016 and net debt at December 31, 2016 were both in line with the guidance provided. Our renewed financial solidity, together with a robust and diversified order backlog, good operational performance, an aggressive cost-cutting plan and a streamlining of processes pursuant to our “Fit for the Future” programme, leads us to look with confidence to the future recovery of the Oil & Gas services market and confirm the targets for 2017 in a market context which, however, remains challenging. The new organisational model announced last October, which will be fully implemented beginning in May this year, will allow us to improve our offer to our clients in a more structured way addressing their needs effectively”.
Saipem is one of the world leaders in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market. The company has distinctive competences in operations in harsh environments, remote areas and deepwater. Saipem provides a full range of services with “EPC” and “EPCI” contracts (on a “turn-key” basis) and has distinctive capabilities and unique assets with a high technological content.
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