Saipem: First half 2015 results and turnaround plan. Repositioning Saipem to compete and create value in the new market context

San Donato Milanese, July 28, 2015 -  The Board of Directors of Saipem S.p.A. today approved Saipem’s consolidated Six-Month Report at June 30, 2015, and endorsed an incisive turnaround and cost cutting programme that will enable the Company to compete and create value in the new market context.  

In-depth review of Saipem’s competitive positioning in a highly deteriorated market environment:  
o Total write-downs of €929 million of net current and capital assets  
o Rationalization of construction yards and disposal of vessels  
o Expected cumulative savings for 2015-2017: €1,300 million  
o Repositioning the company towards higher value core business segments
o Strategic plan brought forwards, to be issued by the Q3 results announcement


First-half results take into account the termination of the South Stream contract and write-downs carried out in the second quarter: 
o Adjusted EBIT: €-579 million, which includes the impact of €718 million of write-downs of net current assets
o EBIT: €-790 million, which includes €211 million in write-downs of capital assets 
o Adjusted net profit: €-709 million
o Net profit: €-920 million
o Capital expenditure: €268 million (€329 million in the first half of 2014)
o Net debt at June 30, 2015: €5,531 million (€4,424 million at December 31, 2014) including a negative cash impact of €502 million relating to FX hedging derivatives maturing during the semester
o New contracts: €3,500 million (€13,132 million in the first half of 2014)
o Backlog: €19,018 million at June 30, 2015 (€22,147 million at December 31, 2014).

Updated guidance for 2015, which takes into account write-downs carried out during the quarter: 
 o Revenues: ~ €12 billion  
o Adjusted EBIT: ~ €-250 million
o EBIT: ~ €-450 million o Net profit: ~ €-800 million
o Investments: less than €600 million
o Net debt: less than €5 billion (excluding potential impact of US dollar fluctuations)
Stefano Cao, Saipem CEO, commented: 
 “Results for the second quarter of 2015 reflect a market that has greatly deteriorated.  The further steep fall in the oil price has resulted in a major disruption, which is not likely to be reversed in the short-to-medium term and has resulted in Clients taking an increasingly rigid approach in the operational and commercial management of contracts. 
In this market scenario, Saipem needs a step change to respond more effectively to the new requirements of its Clients. 
 We have therefore launched an in-depth process of transformation throughout the Company, which involves the rationalization of assets and the review of all processes, and which will generate cumulative savings of €1.3 billion between 2015 and 2017. 
This will enable Saipem to improve its competitiveness, recover profitability and create value, leveraging on its remarkable competitive advantages – a solid and diversified backlog, robust and consolidated  relations with its Clients, a state-of-the-art fleet and a wealth of technology, competencies and experience which make it unique in the market.” 


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.

Switchboard: +39 0244231 

Media relations
Tel: +39 0244234088;

iCorporate press office
Tel: +39 024678752; Mobile: +39 3669134595;

Relations with institutional investors and financial analysts
Tel: +39 0244234653; Fax: +39 0244254295;

Contact point for retail investors  

Saipem: First half 2015 results and turnaround plan. Repositioning Saipem to compete and create value in the new market context

pdf - 12-2022