Results for the first half 2019

Highlights

• New contracts: considerable award of new contracts, whose value is equal to €9.5 billion at June 30, 2019; this is already increased by approximately €3.2 billion thanks to new contracts awarded after the end of first half of 2019
• Net debt pre IFRS16: improved compared to 2018 yearend financial statements, this allows to revise the 2019 guidance to below €800 million, around €200 million less than the original guidance
• Net profit: even if limited, it is back to profit, with a strong improvement compared to the first half of 2018, which recorded a loss of €323 million
• Offshore Engineering & Construction Division: recorded strong results thanks to good operational performance
• Onshore Engineering & Construction Division: ongoing turnaround supported by the new organizational model has continued
• Offshore and Onshore Drilling: they both show stable EBITDA with volumes on the increase, also thanks to the expansion of the client base, and margins in line with the current market context

Results for the first half of 2019:

• Revenues: €4,519 million (€3,798 million in the first half of 2018), of which €2,363 million in the second quarter
• EBITDA: €574 million (€410 million in the first half of 2018), of which €308 million in the second quarter
• Adjusted EBITDA: €606 million (€483 million in the first half of 2018), of which €332 million in the second quarter
• Operating profit (EBIT): €262 million (a loss of €74 million in the first half of 2018), of which €144 million in the second quarter
• Adjusted operating profit (EBIT): €308 million (€255 million in the first half of 2018), of which €182 million in the second quarter
• Net profit: €14 million (a loss of €323 million in the first half of 2018), a loss of €7 million in the second quarter
• Adjusted net profit: €60 million (€6 million in the first half of 2018), of which €31 million in the second quarter
• Special Items – results 2019: write-downs and re-organization expenses of €46 million, (write-downs and re-organization expenses of €329 million in the first half of 2018), of which €38 million in the second quarter
• Capital expenditure: €135 million (€313 million in the first half of 2018), of which €61 million in the second quarter
• Net debt inclusive of IFRS16 lease liabilities: €1,574 million (€1,706 million at January 1, 2019)
• Net debt pre IFRS 16 at June 30, 2019: €1,043 million (€1,159 million at December 31, 2018)
• New contracts: €9,537 million (€3,986 million in the first half of 2018)
• Backlog: €17,637 million (€12,619 million at December 31, 2018)
• Backlog inclusive of non-consolidated companies: €19,435 million (€14,463 million at December 31, 2018)

Stefano Cao, Saipem CEO, commented: “I am satisfied with the positive results recorded in the first half of 2019 despite a scenario that does not yet show clear signs of recovery and, in particular, even if limited, with the fact that we are back to generating profit. These results stem also from the profound organizational and management transformation and from our firm strategic stance to anticipate the energy transition. The focus on innovation has allowed us to acquire contracts thanks to our offers of technological solutions, which respect the environment and strive to limit their carbon footprint. The ability to operate in new territories and communities that are less used to an industrial presence will facilitate our operations in Mozambique, a strategic area for the equilibrium of the African continent, and in east-west relations, where we have recently acquired the most economically significant contract in our history. This is a success, which will also offer important opportunities to our supply chain”.