Saipem: Results for the first half of 2018

Highlights
 Definition of business strategic priorities and new organizational structure  Strong operational performance particularly in the Offshore E&C segment
 Stable backlog with significant awards in the second quarter
 Stable net debt despite the investment in the new vessel
 Guidance confirmed
 Reported results affected by special items 
 
Results for the first half of 2018:
 Revenues: €3,798 million (€4,590 million in the first half of 2017), of which €1,883 million in the second quarter
 Adjusted EBITDA: €483 million (€524 million in the first half of 2017), of which €269 million in the second quarter
 EBITDA: €410 million (€473 million in the first half of 2017), of which €209 million in the second quarter
 Adjusted operating profit (EBIT): €255 million (€260 million in the first half of 2017), of which €155 million in the second quarter
 Operating profit (EBIT): loss of €74 million (€124 million in the first half of 2017), loss of €161 million in the second quarter
 Adjusted net profit: €6 million (€92 million in the first half of 2017), loss of €5 million in the second quarter
 Net loss of €323 million, net of write-downs and reorganization expenses of €329 million (loss of €110 million in the first half of 2017, net of write-downs, reorganization expenses and fiscal settlement of €202 million), loss of €321 in the second quarter net of write-downs and reorganization expenses of €316 million
 Capital expenditure: €313 million (€147 million in the first half of 2017), of which €281 million in the second quarter
 Net debt at June 30, 2018: €1,325 million (€1,296 million at December 31, 2017)
 New contracts: €3,986 million (€2,088 million in the first half of 2017)
 Backlog: €12,580 million (€12,392 million at December 31, 2017)   
                                                
Guidance 2018 confirmed
 Revenues: approximately €8 billion
 Adjusted EBITDA: greater than 10% on revenues  
 Capital expenditure: approximately €0.5 billion
 Net debt:  approximately €1.3 billion 
 
Stefano Cao, Saipem CEO, commented: 
“In the first half of 2018, Saipem achieved a solid operational performance which allowed it to obtain a good Group margin in line with the guidance. We recorded a substantial volume of new contracts in all business sectors, especially in Offshore E&C and Onshore E&C, in which we are achieving a balance between oil and non oil-price related projects, as well as the penetration of new geographical areas. We expect that commercial activity will maintain this momentum also in the second half of the year. In this regard, we have completed the evaluation of our business portfolio, defining strategic objectives and priorities that are specific for each Division. We have approved a new phase of the reorganisation, which will be fully operative by the end of the year, in order to ensure the Divisions’ full autonomy in the pursuit of the objectives and priorities defined, placing them in the best possible position to face the dynamics of the current market and to exploit future opportunities with the appropriate flexibility.  During the first half of the year, net debt remained stable compared to December 31, 2017, thanks to positive cash generation, which has allowed the company to absorb the outlay for the purchase of the vessel Constellation.” 

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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