Saipem Group: the Board of Directors approves the consolidated results for the third quarter and first nine months of 2024

Highlights

With regard to the first nine months of 2024, the Group achieved:

·     Revenue: €10,130 million, +21% compared to the corresponding period of 2023

·     Adjusted EBITDA: €905 million, +41% compared to the corresponding period of 2023

·      New contracts: equal to €13.5 billion

·      Pre-IFRS 16 Net Financial Position as of September 30, 2024: net cash of €509 million (improved by €293                 million compared to December 31, 2023)

·      Post-IFRS 16 Net Financial Position: net debt of €124 million (improved by €137 million compared to                       December 31, 2023)

 

In the third quarter of 2024, the results achieved by the Group amounted to:

·        Revenue: €3,712 million, +23% compared to the corresponding quarter of 2023

·        Adjusted EBITDA: €340 million, +48% compared to the corresponding quarter of 2023

·        New contracts: approximately €6.4 billion

 

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Milan, October 23, 2024 – The Board of Directors of Saipem SpA, chaired by Elisabetta Serafin, approved in today's meeting the consolidated interim management report of the Group as of September 30, 2024 (not subject to audit).

 

 Results of the third quarter and first nine months of 2024:

·        Revenue: €10,130 million (€8,363 million in the corresponding period of 2023), of which €3,712 million in               the third quarter (€3,016 million in the corresponding quarter of 2023).

·         Adjusted EBITDA: €905 million equal to 8.9% of revenue (€640 million in the corresponding period of                    2023 equal to 7.7% of revenue), of which €340 million in the third quarter (€230 million in the                                  corresponding quarter of 2023).

·         Net result: profit of €206 million (€79 million in the corresponding period of 2023), of which €88 million                  in the third quarter (€39 million in the corresponding quarter of 2023).

·         Capital expenditure: €246 million (€206 million in the corresponding period of 2023), of which €52                        million in the third quarter (€67 million in the corresponding quarter of 2023).

·         Post-IFRS 16 net financial position: net debt of €124 million (net debt of €261 million as of December                  31, 2023).

·         Pre-IFRS 16 net financial position: net cash of €509 million (net cash of €216 million as of December 31,               2023).

·         New contracts: €13,522 million (€11,918 million in the corresponding period of 2023), of which €6,436                    million in the third quarter (€5,228 million in the corresponding quarter of 2023).

·         Backlog: €33,194 million (€29,802 million as of December 31, 2023), which increases to €33,407 million                    including the backlog of non-consolidated companies (€29,892 million as of December 31, 2023).

 

Highlights*

(€ million)

 

* The results of the Onshore Drilling segment, divested as of June 30, 2024, have been recognised as discontinued operations in accordance with the criteria set out in IFRS 5.

 

Revenues and associated profit levels are not linear 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

Discontinued operations include the remaining activities, in Argentina, Kazakhstan and Romania, of the

Onshore Drilling (DRON) business, the transfer of which was completed on June 30, 2024.

 

Update on the 2024 operating performance

In the first nine months of 2024, revenue amounted to €10,130 million (€8,363 million in the corresponding period of 2023) and the adjusted EBITDA amounted to €905 million (€640 million in the corresponding period of 2023). The improvement is recorded in particular in the Offshore, both Engineering and Construction and Drilling, as commented below in the subparagraph “Analysis by sector of activity.”

 

In the first nine months of 2024, the adjusted net result from continuing operations recorded a profit of €206 million (€84 million in the corresponding period of 2023). The positive change recorded in adjusted operating result (€113 million) is enhanced by the improvement in the balance of financial operations totalling €23 million, partially offset by the worsening of the balance of tax management for a total of €14 million.

No non-recurring expenses were recorded in the first nine months of 2024, and the net result from discontinued operations is null (negative at €5 million in the corresponding period of 2023).

 

The revenue for the first nine months of 2024 of the Onshore Drilling business - discontinued operations - amounted to €12 million (€79 million in the corresponding period of 2023), whereas the operating result equals zero (negative of €5 million in the corresponding period of 2023).

 

Capital expenditure in the first nine months of 2024, amounted to €246 million (€206 million in the corresponding period of 2023), and was divided as follows: 

·       €187 million in Asset Based Services;

·       €11 million in Energy Carriers;

·       €48 million in Offshore Drilling.

 

Pre-IFRS 16 net financial position as of September 30, 2024, amounted to a net cash of €509 million. Net debt, including IFRS 16 lease liability of €633 million, amounted to €124 million.

Pre-IFRS 16 gross debt as of September 30, 2024, amounted to €2,180 million, liquidity to €2,689 million of which €1,308 million available.

 

Backlog

In the first nine months of 2024 Saipem was awarded new contracts amounting to a total of €13,522 million (€11,918 million in the corresponding period of 2023).

The backlog as of September 30, 2024, amounted to €33,194 million (€29,802 million as of December 31,2023), broken down as follows: €20,428 million for Asset Based Services, €11,202 million for Energy Carriers, and €1,564 million for Offshore Drilling of which €3,842 million to be executed in the fourth quarter of 2024.

Including non-consolidated companies, the backlog as of September 30, 2024, amounts to €33,407 million (€29,892 million as of December 31, 2023).

 

Upgrade of 2024 guidance

Considering the results achieved in the first nine months of the year and the outlook of the current quarter, Saipem upgrades its guidance for 2024. 

 Revenue for 2024 is expected to exceed €14 billion, EBITDA for 2024 is expected to exceed €1.3 billion, Operating Cash Flow (post repayment of lease liabilities) for 2024 is expected to exceed €760 million and Capex for 2024 is expected to be lower than €400 million.

 Moreover, Saipem confirms its dividend policy of distributing approximately 30-40% of Free Cash Flow (post repayment of lease liabilities), with the first dividend expected to be paid in 2025 on the back of 2024 results (subject to approval of Board of Directors as well as to the approval of Shareholders in the Annual General Meeting).

 

The full version of the Press Release is available in PDF format 

 

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This press release should be read in conjunction with the Interim Consolidated Financial Report as of June 30, 2024 and the Consolidated Financial Report as of December 31, 2023 of Saipem SpA, which are already available on the Company’s website (www.saipem.com), under the section “Investor Relations /Financial information”.

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Paolo Calcagnini, Manager responsible for the preparation of financial reports of Saipem SpA 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 Company’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 pandemic risks, geopolitical risks, supply chain risks and those risks related to ongoing investment projects), 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 ‘Nine months 2024 results’ on the home page or following the URL https://87399.choruscall.eu/links/saipem241024.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 “Investors” - “Financial results” 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).

 

 

Saipem is a global leader in the engineering and construction of major projects for the energy and infrastructure sectors, both offshore and onshore. Saipem is “One Company” organized into business lines: Asset Based Services, Drilling, Energy Carriers, Offshore Wind, Sustainable Infrastructures, Robotics & Industrialized Solutions. The company has 6 fabrication yards and an offshore fleet of 21 construction vessels (of which 17 owned and 4 owned by third parties and managed by Saipem) and 15 drilling rigs, of which 9 owned. Always oriented towards technological innovation, the company’s purpose is “Engineering for a sustainable future”. As such Saipem is committed to supporting its clients on the energy transition pathway towards Net Zero, with increasingly digital means, technologies and processes geared for environmental sustainability. Listed on the Milan Stock Exchange, it is present in over 50 countries worldwide and has 30 thousand employees of 120 different nationalities.

 

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