Saipem: The Board approves 2019 preliminary financial statements
Highlights for the year 2019
- Strong growth in 2019 financial results:
- Revenues growing at €9.1 billion
- Adjusted EBITDA margin above 11% (pre-IFRS 16)
- Net debt below €500 million (pre-IFRS 16), strongly reducing compared to 2018 (approximately €1.2 billion)
- Net result: €12 million (loss of €472 million in 2018)
- Strong acceleration of new orders’ awards, for an amount in excess of €17 billion as at December 31, 2019; reaching approximately €20 billion when including new contracts awarded by non-consolidated companies
- Record backlog at approximately €25 billion euro, including circa €3.6 billion of non-consolidated companies’ backlog
- Confirmed solid operational results, specifically: Offshore Engineering & Construction Division delivered a good operational performance for the year; in Onshore Engineering & Construction Division the turnaround progresses positively with a consistent improvement in margins; Offshore and Onshore Drilling Divisions recorded increased volumes and margins in line with the still challenging context of the market
- The Board of Directors resolved to propose to the General Annual Meeting the distribution of an ordinary dividend of €0.01 per ordinary and saving share
Year 2020
Revenues are expected to be approximately €10 billion, with adjusted EBITDA above of €1.1 billion (post-IFRS 16), capital expenditure of approximately
San Donato Milanese, February 26, 2020 - Yesterday, the Board of Directors of Saipem S.p.A., chaired by Francesco Caio, reviewed the Saipem Group preliminary consolidated Financial Statements(1) as at December 31, 2019, which have been prepared in compliance with the International Financial Reporting Standards (EU approved IFRS). The Board of Directors resolved to propose to the Annual General Meeting the distribution of an ordinary dividend.
Results for 2019(2):
- Revenues: €9,099 million (€8,526 million in 2018), of which €2,351 million in the fourth quarter
- EBITDA: €1,146 million (€848 million in 2018), of which €280 million in the fourth quarter
- Adjusted EBITDA: €1,266 million (€1,002 million in 2018), of which €327 million in the fourth quarter
- Operating profit (EBIT): €456 million (€37 million in 2018), of which €54 million in the fourth quarter
- Adjusted operating profit (EBIT): €609 million (€534 million in 2018), of which €160 million in the fourth quarter
- Net profit: €12 million (a loss of €472 million in 2018), of which a loss of €32 million in the fourth quarter
- Adjusted net profit: €165 million (€25 million in 2018), of which €74 million in the fourth quarter
- Special Items - results 2019: write-downs and re-organization expenses of €153 million (write-downs and re-organization expenses of €497 million in 2018), of which €106 million in the fourth quarter
- Capital expenditure: €336 million (€485 million in 2018), of which €107 million in the fourth quarter
- Net debt inclusive of IFRS 16 lease liabilities at December 31, 2019: €1,082 million (€1,706 million at January 1, 2019)
- Net debt pre IFRS 16 at December 31, 2019: €472 million (€1,159 million at December 31, 2018)
- New contracts: €17,633 million (€8,753 million in 2018); these reach €19.747 million including new contracts awarded to non-consolidated companies
- Backlog: €21,153 million (€12,619 million at December 31, 2018), reaching €24,778 million including non-consolidated companies’ backlog (€14,463 million at December 31, 2018).
Stefano Cao, Saipem CEO, commented:
“Efforts over the last few years to achieve a solid and rigorous economic and financial stability have allowed us to beat all targets set for 2019, with particular reference to net debt, significantly down to below 500 million euro, strong improvement in adjusted net profit and adjusted EBITDA above 11%. The deep organizational and managerial transformation and the clear-cut strategic orientation to anticipate the energy transition have allowed us over the course of the year to be awarded an outstanding level of new contracts and achieve a record backlog, to which all divisions have contributed with solid performances. This repositioning is enabling Saipem to regain a leading role in the sector and to be prepared to face future challenges proactively and with optimism, with the objective of creating sustainable value for stakeholders”.
(1) Not subject to audit
(2) 2019 data include the impact of IFRS 16, details of which are illustrated in the following pages
pdf - 12-2022