Saipem: results for the first quarter of 2023
The improvement in the Group’s performance continues with the acquisition of new contracts, and a significant growth in revenues and margins in the quarter compared to the first quarter of 2022
The results are fully in line with the Strategic Plan objectives, from a commercial (refocusing on the offshore segment and commitment to the energy transition), operational (project progress in line with plan) and financial (cash generation and net result at breakeven with stable net financial position) point of view
With regard to the first quarter of 2023, the Saipem Group achieved:
· Revenues: €2,582 million, +41.6% compared to the corresponding period of 2022
· Adjusted EBITDA: €191 million, compared to €115 million in the corresponding period of 2022
· Order intake: about €2,7 billion. Over 65% of new contracts was in offshore business (E&C and Drilling)
· Pre-IFRS 16 net financial position as of March 31, 2023: positive net cash of €45 million (post-IFRS 16 net debt of €285 million)
· Completion of the sale of Onshore Drilling in Kuwait
This press release provides the quarterly information required by Consob on May 10, 2022, pursuant to Article 114, subparagraph 5 of the Consolidated Law on Finance.
***
Milan, April 19, 2023 - The Board of Directors of Saipem SpA, chaired by Silvia Merlo, approved today the interim management report of the Group as of March 31, 2023 (unaudited).
Results for the first quarter of 2023:
· Revenues: €2,582 million (€1,824 million in the corresponding period of 2022).
· Adjusted EBITDA: €191 million, equal to 7.4% of revenues (€115 million in the corresponding period of 2022).
· Net result at breakeven (loss of €98 million in the corresponding period of 2022).
· Capital expenditure: €77 million, compared to €37 million in the corresponding period of 2022.
· Post-IFRS 16 net financial position: net debt of €285 million (net debt of €264 million as of December 31, 2022).
· Pre-IFRS 16 net financial position: net cash of €45 million (net cash of €56 million as of December 31, 2022).
· Order intake: €2,695 million (€2,283 million in the corresponding period of 2022).
· Backlog: €24,130 million (€24,017 million as of December 31, 2022), which increases to €24,513 million including the backlog of non-consolidated companies (€24,376 million as of December 31, 2022).
Highlights*
|
Continuing Operations |
First quarter |
Fourth quarter 2022 |
First quarter |
First quarter 2023 vs first quarter 2022 (%) |
|
|
|
|
|
|
|
Revenues |
1,824 |
2,937 |
2,582 |
41.6 |
|
EBITDA continuing operations |
102 |
131 |
191 |
87.3 |
|
Adjusted EBITDA continuing operations |
115 |
150 |
191 |
66.1 |
|
Operating result (EBIT) continuing operations |
2 |
17 |
91 |
ns |
|
Adjusted operating result (EBIT) continuing operations |
15 |
36 |
91 |
ns |
|
Net result continuing operations |
(93) |
(158) |
- |
ns |
|
Adjusted net result continuing operations |
(80) |
(139) |
- |
ns |
|
Net result |
(98) |
(71) |
- |
ns |
|
Adjusted net result |
(85) |
(38) |
- |
ns |
|
Free cash flows |
(168) |
249 |
55 |
ns |
|
Pre-IFRS 16 net debt |
956 |
(56) |
(45) |
ns |
|
Post-IFRS 16 net debt |
1,251 |
264 |
285 |
(77.2) |
|
Capital expenditure |
37 |
339 |
77 |
ns |
|
New contracts |
2,283 |
6,017 |
2,695 |
18.0 |
|
|
|
|
|
|
* The results of the Onshore Drilling segment being divested, have been recognized as discontinued operations in accordance with the criteria set out in IFRS 5. The comparison periods have been restated for comparative purposes.
Revenues and associated profit levels are not consistent over time, as they are influenced not only by market performance but also by climatic conditions and individual project schedules in the Engineering and Construction sector, and by contract expiry and renegotiation timing in the Drilling sector.
Continuing and Discontinued Operations and non-current assets held for sale
The Onshore Drilling (DRON) business was recognised as discontinued operations given that, with the first closing in 2022, the activities in Saudi Arabia, the Congo, the United Arab Emirates, and Morocco were sold, while the activities in Kuwait were transferred at the beginning of 2023; the remaining activities in the Americas, Kazakhstan, and Romania will be transferred within the first half of 2023.
Reorganisation: impact on reporting
As previously mentioned, the Company’s new organisational structure is based on five business lines: Asset Based Services, Energy Carriers, Robotics and Industrialized Solutions, Sustainable Infrastructures, and Offshore Wind.
The information to the market, starting from the first quarter of 2023, in accordance with the provisions of IFRS 8 will be prepared following the reporting segments below:
· Asset Based Services, which will include the Offshore Engineering & Construction and Offshore Wind activities,
· Offshore Drilling, and
· Energy Carriers, which will include the Onshore Engineering & Construction, Sustainable Infrastructures, and Robotics and Industrialized Solutions.
The sectors clustered in the reporting segments above have similar economic characteristics; moreover, the new Offshore Wind, Sustainable Infrastructures, and Robotics and Industrialized Solutions sectors are not, at present, so significant that they deserve separate reporting, in accordance with IFRS 8. Given its relevance and economic characteristics, the Offshore Drilling sector will be reported separately, as usual.
The results restated based on the new reporting are broadly in line with the data released to the market in 2022; for further details regarding the effects of the regrouping, please refer to the following revenue and adjusted EBITDA data for the 2022 quarters.
|
REPORTED DATA |
|
first quarter 2022 |
second quarter 2022 |
third quarter 2022 |
fourth quarter 2022 |
Year 2022 |
|
|
|
|
|
|
|
|
|
Offshore E&C |
Revenues |
832 |
1,240 |
1,592 |
1,463 |
5,127 |
|
Adjusted EBITDA |
65 |
101 |
132 |
122 |
420 |
|
|
Onshore E&C |
Revenues |
863 |
963 |
1,136 |
1,326 |
4,288 |
|
Adjusted EBITDA |
10 |
1 |
3 |
(13) |
1 |
|
|
Offshore Drilling |
Revenues |
129 |
160 |
128 |
148 |
565 |
|
Adjusted EBITDA |
40 |
46 |
47 |
41 |
174 |
|
|
Total |
Revenues |
1,824 |
2,363 |
2,856 |
2,937 |
9,980 |
|
Adjusted EBITDA |
115 |
148 |
182 |
150 |
595 |
|
|
|
|
|
|
|
|
|
|
RESTATED DATA |
|
first quarter 2022 |
second quarter 2022 |
third quarter 2022 |
fourth quarter 2022 |
Year 2022 |
|
|
|
|
|
|
|
|
|
Asset Based Services |
Revenues |
813 |
1,211 |
1,568 |
1,434 |
5,026 |
|
Adjusted EBITDA |
64 |
100 |
130 |
120 |
414 |
|
|
Energy Carriers |
Revenues |
882 |
992 |
1,160 |
1,355 |
4,389 |
|
Adjusted EBITDA |
11 |
2 |
5 |
(11) |
7 |
|
|
Offshore Drilling |
Revenues |
129 |
160 |
128 |
148 |
565 |
|
Adjusted EBITDA |
40 |
46 |
47 |
41 |
174 |
|
|
Total |
Revenues |
1,824 |
2,363 |
2,856 |
2,937 |
9,980 |
|
Adjusted EBITDA |
115 |
148 |
182 |
150 |
595 |
|
|
|
|
|
|
|
|
|
Management update 2023
In the first quarter of 2023, revenues amount to €2,582 million (€1,824 million in the corresponding period of 2022) and the adjusted EBITDA amount to €191 million (€115 million in the corresponding period of 2022). The improvement is recorded in all the activities, mainly driven by Offshore sectors, as commented below in the subparagraph “Analysis by sector of activity”.
The adjusted net result from continuing operations was at breakeven (a loss of €80 million in the corresponding period of 2022). The positive change recorded in adjusted operating result (€76 million) is slightly increased due to the improvement in the balance of tax and financial operations totalling €4 million.
In the quarter, non-recurring expenses have not been recognised, and the result from discontinued operations is null. In the corresponding period of 2022, the net result from continuing operations showed a loss of €93 million and compared to the adjusted net result included costs deriving from the healthcare emergency of €13 million, while the net result from discontinued operations showed a loss of €5 million.
Revenues for the first quarter of 2023 for the Onshore Drilling business’ discontinued operations amounted to €41 million, and the EBITDA to €1 million.
The operating result in 2023 amounted to €1 million; financial expenses for €1 million bring the net result from discontinued operations to a null result.
Capital expenditure in the first quarter of 2023, amounted to €77 million (€37 million in the corresponding period of 2022), and was divided as follows:
· €65 million in Asset Based Services;
· €2 million in Energy Carriers;
· €10 million in Offshore Drilling.
Pre-IFRS 16 net financial position as of March 31, 2023 amounted to a net cash of €45 million. Net debt, including IFRS 16 lease liability of €330 million, amounted to €285 million.
Pre-IFRS 16 gross debt as of March 31, 2023, amounted to €2,563 million, liquidity to €2,608 million of which available cash for €1,449 million.
Backlog
In the first quarter of 2023 Saipem was awarded new contracts amounting to a total of €2,695 million (€2,283 million in the corresponding period of 2022). The backlog as of March 31, 2023 amounted to €24,130 million (€11,027 million in Asset Based Services, €11,514 million in Energy Carriers and €1,589 million in Offshore Drilling), of which €7,719 million to be executed in 2023.
The backlog including non-consolidated companies as of March 31, 2023 amounted to €24,513 million.
***
This press release should be read in conjunction with the Interim Consolidated Financial Statements as of June 30, 2022 and the Consolidated Financial Statements as of December 31, 2022 of Saipem SpA, which are already available on the Company’s website (www.saipem.com), under the section “Investor Relations /Financial information”.
***
Paolo Calcagnini, Manager responsible for the preparation of financial reports of Saipem SpA and Chief Financial Officer declares pursuant to Article 154 bis, subparagraph 2 of the Consolidated Law on Finance that the accounting information corresponds to the documentary results, books, and accounting records.
By their nature, forward-looking statements are subject to risk and uncertainty since they are dependent upon circumstances which should or are considered likely to occur in the future and are outside of the Group’s control. These include, but are not limited to: exchange and interest rate fluctuations, commodity price volatility, credit and liquidity risks, HSE risks, the levels of capital expenditure in the oil industry and other sectors, political instability in areas where the Group operates, actions by competitors, success of commercial transactions, risks associated with the execution of projects (including ongoing investment projects), the COVID-19 pandemic (including its impacts on our business, our ongoing projects worldwide and our procurement chain), in addition to changes in stakeholders’ expectations and other changes affecting business conditions. Actual results could therefore differ materially from the forward-looking statements. The financial reports contain in-depth analyses of some of the aforementioned risks. Forward-looking statements and data are to be considered in the context of the date of their release.
Conference call and webcast
The results contained in this press release will be presented tomorrow at 10:30 AM Italian time during a conference call and webcast by CEO Alessandro Puliti and CFO Paolo Calcagnini. The conference call can be joined by webcast, via the Company’s website www.saipem.com, by clicking on the banner ‘Saipem first quarter 2023 results’ on the home page or following the URL https://87399.choruscall.eu/links/saipem230420.html.
During the conference call and webcast, a presentation will be given that can be downloaded around 30 minutes before the estimated start time, from the webcast window or from the “Investor Relations/Quarterly results and documentation/Archive” section of the website www.saipem.com. The presentation will also be available on the authorised storage mechanism “eMarketSTORAGE” (www.emarketstorage.com) and on the website of Borsa Italiana SpA (www.borsaitaliana.it).
Website: www.saipem.com
Phone: +39 0244231
Media relations
E-mail: media.relations@saipem.com
Investor Relations
E-mail: investor.relations@saipem.com
Contact for individual investors
E-mail: segreteria.societaria@saipem.com
Analysis by sector of activity - Adjusted results
Asset Based Services
(€ million)
|
First quarter |
Fourth quarter 2022 |
First quarter 2023 |
First quarter 2023 vs first quarter 2022 (%) |
|
|
|
|
|
|
|
|
Revenues |
813 |
1,434 |
1,183 |
45.5 |
|
Costs |
(749) |
(1,314) |
(1,067) |
42.5 |
|
Adjusted EBITDA |
64 |
120 |
116 |
81.3 |
|
Amortisation |
(65) |
(81) |
(59) |
(9.2) |
|
Adjusted operating result |
(1) |
39 |
57 |
ns |
|
|
|
|
|
|
|
Adjusted EBITDA % |
7.9 |
8.4 |
9.8 |
|
|
Adjusted EBIT % |
(0.1) |
2.7 |
4.8 |
|
|
|
|
|
|
|
|
New contracts |
1,293 |
4,924 |
1,499 |
|
|
|
|
|
|
|
Backlog as of March 31, 2023: €11,027 million, of which €3,562 million to be executed in 2023.
§ Revenues of the first quarter of 2023 amounted to €1,183 million, nearly doubled compared to the corresponding period of 2022, mainly attributable to higher volumes in Sub-Saharian Africa, Central and South America, and the Middle East.
§ The adjusted EBITDA of the first quarter of 2023 is positive for €116 million, equal to 9.8% of revenues compared to the €64 million in the corresponding period of 2022, equal to 7.9% of revenues.
§ The most significant new contracts during the first quarter are related to:
· for TotalEnergies, in partnership with Aker Solutions do Brasil, the project for the development of LAPA Southwest (LAPA SW), a deep-sea oil field in the Santos basin in the South Atlantic. The scope of the project includes engineering, procurement, construction, and installation (EPCI) of subsea umbilicals, risers, and flowlines (SURF), as well as subsea production systems;
· for Equinor, the Irpa Pipeline deep-sea project in the Norwegian Sea, which includes the installation of a pipe-in-pipe line 80 km long, connecting the subsea production model of the Irpa field to the existing Aasta Hansteen platform;
· for Azule Energy, the Agogo Full Field Development project, a deep-sea greenfield development located around 180 km offshore Angola. The contract includes the engineering, procurement, construction, and installation (EPCI) of rigid pipe-in-pipe flowlines with associated subsea structures;
· for Saudi Aramco, in Saudi Arabia, within the Long Term Agreement (LTA), the contract including the engineering, procurement, construction, and installation (EPCI) of the topside of an offshore platform and the submarine system of flexible, umbilical and associated cables.
Energy Carriers
(€ million)
|
|
First quarter |
Fourth quarter 2022 |
First quarter |
First quarter 2023 vs first quarter 2022 (%) |
|
|
|
|
|
|
|
Revenues |
882 |
1,355 |
1,219 |
38.2 |
|
Costs |
(871) |
(1,366) |
(1,212) |
39.2 |
|
Adjusted EBITDA |
11 |
(11) |
7 |
(36.4) |
|
Amortisation |
(16) |
(14) |
(13) |
(18.8) |
|
Adjusted operating result |
(5) |
(25) |
(6) |
20.0 |
|
|
|
|
|
|
|
Adjusted EBITDA % |
1.2 |
(0.8) |
0.6 |
|
|
Adjusted EBIT % |
(0.6) |
(1.8) |
(0.5) |
|
|
|
|
|
|
|
|
New contracts |
329 |
248 |
921 |
|
|
|
|
|
|
|
Backlog as of March 31, 2023: €11,514 million, of which €3,785 million to be executed in 2023.
§ Revenues for the first quarter of 2023 amounted to 1,219 million and record an increase of around 40% compared to the corresponding period of 2022, as an effect of the higher volumes in the Middle East, Sub-Saharian Africa, and Latin America, which more than offset the lower volumes in Russia and the Pacific Asian area.
§ The adjusted EBITDA of the first quarter of 2023 was positive for €7 million, equal to 0.6% of revenues, a small decrease compared to the corresponding period of 2022, which benefitted from the non-recurring contribution of a contractual variation on a project in the Far East.
§ The most significant acquisition in the first quarter relates to the contract, awarded to the consortium formed by Impresa Pizzarotti & C and Saipem, for the construction of the high-speed/high-capacity railway link and station in Florence, on behalf of Rete Ferroviaria Italiana (RFI, Gruppo FS Italiane). The work consists in the construction of a new railway line of approximately 7 kilometres underground with two parallel tunnels, on average about 20 metres deep, completed with two terminal sections above ground, to the north between the stations of Firenze Castello and Firenze Rifredi, and to the south near the station of Firenze Campo di Marte.
Offshore Drilling
(€ million)
|
|
First quarter 2022 |
Fourth quarter 2022 |
First quarter 2023 |
First quarter 2023 vs first quarter 2022 (%) |
|
|
|
|
|
|
|
Revenues |
129 |
148 |
180 |
39.5 |
|
Costs |
(89) |
(107) |
(112) |
25.8 |
|
Adjusted EBITDA |
40 |
41 |
68 |
70.0 |
|
Amortisation |
(19) |
(19) |
(28) |
47.4 |
|
Adjusted operating result |
21 |
22 |
40 |
90.5 |
|
|
|
|
|
|
|
Adjusted EBITDA % |
31.0 |
27.7 |
37.8 |
|
|
Adjusted EBIT % |
16.3 |
14.9 |
22.2 |
|
|
|
|
|
|
|
|
New contracts |
661 |
845 |
275 |
|
|
|
|
|
|
|
Backlog as of March 31, 2023: €1,589 million, of which €372 million to be executed in 2023.
§ Revenues in the first quarter of 2023 amounted to €180 million, an increase of 40% compared to the corresponding period of 2022, thanks to a favourable market scenario, with daily rates increasing and the higher contribution in the quarter by the jack-up Perro Negro 8, being demobilised from Russia in the first quarter of 2022. The improvement has more than offset the lower contribution by the semi-submersible Scarabeo 5, under sale, which was operational only 36 days throughout the quarter, compared to being fully operational in the corresponding period of 2022.
§ The adjusted EBITDA in the first quarter of 2023 amounted to €68 million, equal to 37.8% of revenues, compared to €40 million in the corresponding period of 2022, equal to 31.0%, mainly attributable to better market conditions with increasing daily rates compared to the corresponding period of 2022.
§ The most significant acquisition in the first quarter of 2023 relates to a drilling contract, offshore Côte d'Ivoire, for the joint venture Eni Côte d'Ivoire Ltd and Petroci. The contract includes the use of the seventh-generation drillship Deep Value Driller, one of the most modern in the world, for which Saipem signed a lease with the company Deep Value Driller.
The main vessel utilisation in the first quarter of 2023 was as follows:
|
Vessel |
First quarter 2023 |
|
|
||
|
sold |
idle |
|
|
|
|
|
|
(No. of days) |
|
|
|
|
|
Semi-submersible platform Scarabeo 5 |
36 |
- |
|
|
|
|
Semi-submersible platform Scarabeo 8 |
86 |
4 |
(a) |
|
|
|
Semi-submersible platform Scarabeo 9 |
90 |
- |
|
|
|
|
Drillship Saipem 10000 |
90 |
- |
|
|
|
|
Drillship Saipem 12000 |
90 |
- |
|
|
|
|
Drillship Santorini |
90 |
- |
|
|
|
|
Jack up Perro Negro 4 |
90 |
- |
|
|
|
|
Jack up Perro Negro 7 |
90 |
- |
|
|
|
|
Jack up Perro Negro 8 |
90 |
- |
|
|
|
|
Jack up Pioneer Jindal* |
90 |
- |
|
|
|
|
Jack up Sea Lion 7* |
90 |
- |
|
|
|
|
Jack up Perro Negro 9* |
90 |
- |
|
|
|
|
Jack up Perro Negro 11* |
- |
90 |
(a) |
|
|
|
|
|
|
|
|
|
(a) = days on which the vessel underwent class reinstatement/preparation works
(b) = days on which the vessel was idle and not under contract
(c) = vessel held for sale
* Leased vessels
Attached are:
the consolidated Balance Sheet, reclassified Income Statement (the Income Statement is reclassified according to the nature and destination of operating costs) and the Cash Flow Statement;
RECLASSIFIED CONSOLIDATED BALANCE SHEET
(€ million)
|
|
December 31, 2022 |
March 31, 2023 |
|
|
|
|
|
Net tangible assets |
2,879 |
2,880 |
|
Right-of-use of leased assets |
258 |
281 |
|
Net intangible assets |
691 |
688 |
|
|
3,828 |
3,849 |
|
|
|
|
|
Equity investments |
128 |
92 |
|
Non-current assets |
3,956 |
3,941 |
|
Net current assets |
(1,589) |
(1,486) |
|
Employee benefits |
(183) |
(178) |
|
Assets held for sale |
166 |
128 |
|
|
|
|
|
NET CAPITAL EMPLOYED |
2,350 |
2,405 |
|
|
|
|
|
Equity |
2,068 |
2,102 |
|
Non-controlling interests |
18 |
18 |
|
Net debt (cash) pre-IFRS 16 lease liabilities |
(56) |
(45) |
|
Lease liabilities |
320 |
330 |
|
Net debt |
264 |
285 |
|
FUNDING |
2,350 |
2,405 |
|
|
|
|
|
Leverage (net borrowing/equity + non-controlling interests) |
0.13 |
0.13 |
|
|
|
|
|
|
|
|
|
NUMBER OF SHARES ISSUED AND OUTSTANDING |
1,995,558,791 |
1,995,558,791 |
|
|
|
|
CONSOLIDATED INCOME STATEMENT RECLASSIFIED BY NATURE
(€ million)
|
Fourth quarter 2022 |
|
First quarter |
|
|
|
2022 |
2023 |
|
|
2,937 |
Core business revenues |
1,824 |
2,582 |
|
4 |
Other income and revenues |
- |
2 |
|
(2,434) |
Purchases, services, and other costs |
(1,317) |
(1,988) |
|
83 |
Net reversals of impairment loss (impairment loss) on trade receivables and other assets |
(23) |
(9) |
|
(459) |
Personnel and related expenses |
(382) |
(396) |
|
131 |
GROSS OPERATING MARGIN |
102 |
191 |
|
(114) |
Depreciation, amortisation, and impairment loss |
(100) |
(100) |
|
17 |
OPERATING RESULT |
2 |
91 |
|
(79) |
Financial expense |
(23) |
(52) |
|
(41) |
Gains (loss) on equity investments |
(43) |
(2) |
|
(103) |
RESULT BEFORE TAXES |
(64) |
37 |
|
(55) |
Income taxes |
(29) |
(37) |
|
(158) |
RESULT BEFORE NON-CONTROLLING INTERESTS |
(93) |
- |
|
- |
Result attributable to non-controlling interests |
- |
- |
|
(158) |
NET RESULT - Continuing Operations |
(93) |
- |
|
87 |
NET RESULT - Discontinued Operations |
(5) |
- |
|
(71) |
NET RESULT |
(98) |
- |
|
|
|
|
|
RECLASSIFIED CONSOLIDATED INCOME STATEMENT BY DESTINATION
(€ million)
|
Fourth quarter 2022 |
|
First quarter |
|
|
|
2022 |
2023 |
|
|
2,937 |
Core business revenues |
1,824 |
2,582 |
|
(2,811) |
Production costs |
(1,705) |
(2,388) |
|
(20) |
Idle costs |
(46) |
(25) |
|
(31) |
Selling expenses |
(30) |
(33) |
|
(12) |
Costs for studies, research, and development |
(5) |
(6) |
|
1 |
Other operating income (expenses) |
1 |
3 |
|
64 |
ACTIVITY MARGIN |
39 |
133 |
|
(47) |
General expenses |
(37) |
(42) |
|
17 |
OPERATING RESULT |
2 |
91 |
|
(79) |
Financial expense |
(23) |
(52) |
|
(41) |
Gains (loss) on equity investments |
(43) |
(2) |
|
(103) |
RESULT BEFORE TAXES |
(64) |
37 |
|
(55) |
Income taxes |
(29) |
(37) |
|
(158) |
RESULT BEFORE NON-CONTROLLING INTERESTS |
(93) |
- |
|
- |
Result attributable to non-controlling interests |
- |
- |
|
(158) |
NET RESULT - Continuing Operations |
(93) |
- |
|
87 |
NET RESULT - Discontinued Operations |
(5) |
- |
|
(71) |
NET RESULT |
(98) |
- |
|
|
|
|
|
RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT
(€ million)
|
Fourth quarter 2022 |
|
First quarter |
|
|
|
2022 |
2023 |
|
|
(158) |
Group’s result for the period – Continuing Operations |
(93) |
- |
|
87 |
Group’s result for the period – Discontinued Operations |
(5) |
- |
|
- |
Result of non-controlling interest |
- |
- |
|
|
Adjustments: |
|
|
|
116 |
Depreciation, amortisation and other non-monetary items - Continuing Operations |
17 |
(23) |
|
(121) |
Depreciation, amortisation and other non-monetary items - Discontinued Operations |
30 |
- |
|
124 |
Changes in working capital related to operations - Continuing Operations |
(67) |
126 |
|
43 |
Changes in working capital related to operations - Discontinued Operations |
(5) |
- |
|
82 |
Net cash flows from activities in the period - Continuing Operations |
(143) |
103 |
|
9 |
Net cash flows from activities in the period - Discontinued Operations |
20 |
- |
|
(339) |
Continuing operations capital expenditure |
(37) |
(77) |
|
- |
Discontinued operations capital expenditure |
(8) |
- |
|
- |
Investments in equity, consolidated subsidiaries and business units |
- |
- |
|
497 |
Divestments |
- |
29 |
|
249 |
Free cash flows |
(168) |
55 |
|
- |
Buy-back of treasury shares |
- |
- |
|
- |
Share capital increase net of charges |
- |
- |
|
(1) |
Cash flow from capital and reserves |
458 |
- |
|
(31) |
Repayments of lease liabilities |
(29) |
(41) |
|
(73) |
Exchange differences on net debt and other changes |
6 |
(25) |
|
144 |
Change in net debt pre-lease liabilities |
267 |
(11) |
|
18 |
Change in lease liabilities |
23 |
(10) |
|
162 |
Change in net debt |
290 |
(21) |
|
|
|
|
|
|
426 |
Net debt at the start of the period |
1,541 |
264 |
|
264 |
Net debt at the end of the period |
1,251 |
285 |
Information required by Consob pursuant to Article 114, subparagraph 5 of Legislative Decree 58/98 (“TUF”)
* * *
At the request of CONSOB received on May 10, 2022 and motivated by the market’s need to be constantly informed given the “uncertainties around the Company’s (and the Saipem Group’s) ability to continue its activity as a going concern”, resulting from the audit of the Company’s financial statements and of the consolidated balance sheet as of December 31, 2021, the information requested by the supervisory authorities and herein presented.
It should also be noted that on July 15, 2022, the Group performed the Saipem capital increase approved by the extraordinary Shareholders’ Meeting of May 17, 2022.
In the reports to the Company's annual financial statements and consolidated financial statements as of December 31, 2022, it is disclosed that the uncertainties expressed in the Company's annual financial statements and consolidated financial statements as of December 31, 2021 regarding the Company's and the Group's ability to operate as a going concern have been fully resolved.
The following information is given as of March 31, 2023 regarding Saipem Spa and the Group of which the Company is the parent:
a. Net Financial Position of Saipem Spa and of the Saipem Group as of March 31, 2023, highlighting the short-term components shown separately from medium/long-term components
Following is the statement of net debt of Saipem Spa and the Saipem Group as of March 31, 2023, prepared according to the provisions of Consob document 5/21 of April 29, 2021 which implements the ESMA guidelines, compared to that of December 31, 2022.
Net Financial Position of Saipem SpA
|
Dec. 31, 2022 |
|
March 31, 2023 |
|||||
|
(€ million) |
Current |
Non-current |
Total |
|
Current |
Non-current |
Total |
|
A. Cash and cash equivalents |
1,032 |
- |
1,032 |
|
1,241 |
- |
1,241 |
|
B. Cash and cash equivalents |
- |
- |
- |
|
- |
- |
- |
|
C. Other current financial assets: |
353 |
- |
353 |
|
369 |
- |
369 |
|
- Financial assets measured at fair value through OCI |
- |
- |
- |
|
- |
- |
- |
|
- Loan assets |
353 |
- |
353 |
|
369 |
- |
369 |
|
D. Liquidity (A+B+C) |
1,385 |
- |
1,385 |
|
1,610 |
- |
1,610 |
|
E. Current debt: |
1,300 |
- |
1,300 |
|
1,382 |
- |
1,382 |
|
- Current financial liabilities with banks |
82 |
- |
82 |
|
53 |
- |
53 |
|
- Current financial liabilities with related parties |
1,182 |
- |
1,182 |
|
1,301 |
- |
1,301 |
|
- Other current financial liabilities |
|
|
|
|
|
|
|
|
- Lease liabilities |
36 |
- |
36 |
|
28 |
- |
28 |
|
F. Current portion of the non-current debt: |
112 |
- |
112 |
|
112 |
- |
112 |
|
- Non-current financial liabilities with banks |
112 |
- |
112 |
|
112 |
- |
112 |
|
- Ordinary bonds |
- |
- |
- |
|
- |
- |
- |
|
G. Current debt (E+F) |
1,412 |
- |
1,412 |
|
1,494 |
- |
1,494 |
|
H. Net current debt (G-D) |
27 |
- |
27 |
|
(116) |
- |
(116) |
|
I. Non-current debt: |
- |
99 |
99 |
|
- |
135 |
135 |
|
- Non-current financial liabilities with banks |
- |
- |
- |
|
- |
- |
- |
|
- |
- |
- |
|
- |
- |
- |
|
|
- Lease liabilities |
- |
99 |
99 |
|
- |
135 |
135 |
|
J. Debt instruments: |
- |
- |
- |
|
- |
- |
- |
|
- Ordinary bonds |
- |
- |
- |
|
- |
- |
- |
|
K. Trade payables and other non-current debts |
- |
- |
- |
|
- |
- |
- |
|
L. Non-current debt (I+J+K) |
- |
99 |
99 |
|
- |
135 |
135 |
|
M. Total debt as set out in Consob document No. 5/21, April 29, 2021 (H+L) |
27 |
99 |
126 |
|
(116) |
135 |
19 |
Reconciliation of net debt
|
|
Dec. 31, 2022 |
|
March 31, 2023 |
||||
|
(€ thousand) |
Current |
Non-current |
Total |
|
Current |
Non-current |
Total |
|
M. Total debt as set out in Consob document No. 5/21, April 29, 2021 (H+L) |
27 |
99 |
126 |
|
(116) |
135 |
19 |
|
N. Non-current loan assets |
- |
- |
- |
|
- |
- |
- |
|
O. Lease assets |
- |
- |
- |
|
- |
- |
- |
|
P. Net debt (M-N-O) |
27 |
99 |
126 |
|
(116) |
135 |
19 |
As of March 31, 2023, Saipem Spa recorded a positive net debt before net lease liabilities of €144 million (positive for €9 million as of December 31, 2022) and a negative net debt including lease liabilities of €19 million (negative for €126 million as of December 31, 2022).
Net Financial Position of the Saipem Group
|
|
Dec. 31, 2022 |
|
March 31, 2023 |
||||
|
(€ million) |
Current |
Non-current |
Total |
|
Current |
Non-current |
Total |
|
A. Cash and cash equivalents |
2,052 |
- |
2,052 |
|
2,010 |
- |
2,010 |
|
B. Cash and cash equivalents |
- |
- |
- |
|
- |
- |
- |
|
C. Other current financial assets: |
569 |
- |
569 |
|
533 |
- |
533 |
|
- Financial assets measured at fair value through OCI |
75 |
- |
75 |
|
71 |
- |
71 |
|
- Loan assets |
494 |
- |
494 |
|
462 |
- |
462 |
|
D. Liquidity (A+B+C) |
2,621 |
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