Saipem: preliminary results for the fourth quarter and financial year 2024 and update of the Strategic Plan 2025-2028
Saipem’s performance in 2024 confirms, for the third consecutive year, the trajectory of growth and margin recovery of the Group, as well as the acceleration in cash flow generation and the strengthening of the company’s balance sheet.
Revenue stood at €14.5 billion in 2024, and EBITDA adjusted at €1.3 billion, corresponding to a growth year on year of 23% and 44% respectively. Net income in 2024 reached €306 million, increasing by 70% compared to 2023.
With a record order intake of €18.8 billion in 2024, the backlog reached an all-time high of €34 billion, providing excellent visibility on Strategic Plan targets.
The 2025-2028 Strategic Plan confirms the path of derisking of the business profile of the Group, including an acceleration of the repositioning of the Onshore E&C business as well as the introduction of a new Project Management Consultancy service.
The Board of Directors approved an upgraded shareholders remuneration policy that envisages the distribution of at least 40% of Free Cash Flow post repayment of lease liabilities.
In line with the upgraded shareholders remuneration policy, the Board of Directors intends to propose a dividend of €333 million (1) for 2025 (on the 2024 results) and envisages a dividend of at least $300 million (2) for 2026 (on the 2025 results).
In addition, with the aim of achieving an investment grade credit rating, Saipem commits to reduce gross debt (pre-IFRS 16) by approximately €650 million by repaying all maturities due in the 2025-2027 period.
Approval of Sustainability Plan for the period 2025-2028.
Highlights
With regard to 2024, the Group achieved:
- Revenue: €14,549 million, +23% compared to the corresponding period of 2023
- Adjusted EBITDA: €1,329 million, +44% compared to the corresponding period of 2023
- New contracts: equal to €18.8 billion
- Pre-IFRS 16 Net Financial Position as of December 31, 2024: net cash of €683 million (improved by €467 million compared to December 31, 2023)
- Post-IFRS 16 Net Financial Position: net cash of €23 million (improved by €284 million compared to December 31, 2023)
In the fourth quarter of 2024 alone, the Group's results amounted to:
- Revenue: €4,419 million, +26% compared to the corresponding quarter of 2023
- Adjusted EBITDA: €424 million, +48% compared to the corresponding quarter of 2023
- New contracts: equal to €5.3 billion
***
Saipem has updated its strategic guidelines presented in February 2024, confirming the steady improvement of the Group's performance and the favourable market conditions.
Guidance and medium-term targets have consequently been revised upwards.
Specifically, with reference to the year 2025, the Company expects:
- Revenue of approx. €15.0 billion
- EBITDA of approx. €1.6 billion
- Operating Cash Flow (after the repayment of lease liabilities) of approx. €900 million
- Capex of approx. €500 million
- Free Cash Flow (after the repayment of lease liabilities) of at least €500 million
Over the 2025-2028 period:
- Order intake of approx. €50.0 billion
- New contracts in “low/zero carbon” segments of approx. 30% of the total
- Revenue of at least €15.0 billion in 2028
- EBITDA of approx. €2.0 billion in 2028
- Operating Cash Flow (after the repayment of lease liabilities) of at least €3.7 billion (cumulated on 2025-2028)
- Capex of approx. €1.5 billion (cumulated on 2025-2028)
- Free Cash Flow (after the repayment of lease liabilities) of at least €2.2 billion (cumulated on 2025-2028)
- Upgraded shareholders remuneration policy that envisages the distribution of at least 40% of Free Cash Flow post repayment of lease liabilities
- Reduction of gross debt (pre-IFRS 16) by approximately €650 million by repaying all maturities due in the 2025-2027 period
- Commitment to maintain a minimum Available Cash position of €1 billion
- Target to achieve an investment grade credit rating in the medium-term
Milan, 25 February 2025 - The Board of Directors of Saipem SpA, chaired by Elisabetta Serafin, reviewed today the Group's preliminary consolidated financial statements as 31 December 2024 (3) drawn up in compliance with international accounting standards (International Financial Reporting Standard - IFRS - EU approved).
Results for the fourth quarter and 2024:
- Revenue: €14,549 million (€11,874 million in the corresponding period of 2023), of which €4,419 million in the fourth quarter (€3,511 million in the corresponding quarter of 2023).
- Adjusted EBITDA: €1,329 million equal to 9.1% of revenue (€926 million in the corresponding period of 2023 equal to 7.8% of revenue), of which €424 million in the fourth quarter (€286 million in the corresponding quarter of 2023).
- Net result: profit of €306 million (€179 million in the corresponding period of 2023), of which €100 million in the fourth quarter (€100 million in the corresponding quarter of 2023).
- Capital expenditure: €337 million (€482 million in the corresponding period of 2023), of which €91 million in the fourth quarter (€276 million in the corresponding quarter of 2023).
- Post-IFRS 16 net financial position: net cash of €23 million (net debt of €261 million as of December 31, 2023).
- Pre-IFRS 16 net financial position: net cash of €683 million (net cash of €216 million as of December 31, 2023).
- New contracts: €18,812 million (€17,659 million in the corresponding period of 2023), of which €5,290 million in the fourth quarter (€5,741 million in the corresponding quarter of 2023).
- Backlog: €34,065 million (€29,802 million as of December 31, 2023), which increases to €34,257 million including the backlog of non-consolidated companies (€29,892 million as of December 31, 2023).
Highlights*
(€ million)
|
fourth quarter 2023 |
third quarter 2024 |
fourth quarter 2024 |
Q4 2024 vs Q4 2023 (%) |
Continuing Operations |
2023 |
2024 |
2024 vs 2023 (%) |
|||||
|
|
|
|
|
|
|
|
|
|
||||
|
3,511 |
3,712 |
4,419 |
25.9 |
Revenue |
11,874 |
14,549 |
22.5 |
|
||||
|
286 |
340 |
424 |
48.3 |
EBITDA |
926 |
1,329 |
43.5 |
|
||||
|
286 |
340 |
424 |
48.3 |
Adjusted EBITDA |
926 |
1,329 |
43.5 |
|
||||
|
133 |
162 |
189 |
42.1 |
Operating result (EBIT) |
437 |
606 |
38.7 |
|
||||
|
133 |
162 |
189 |
42.1 |
Adjusted operating result (EBIT) |
437 |
606 |
38.7 |
|
||||
|
101 |
88 |
100 |
(1.0) |
Net result continuing operations |
185 |
306 |
65.4 |
|
||||
|
101 |
88 |
100 |
(1.0) |
Adjusted net result continuing operations |
185 |
306 |
65.4 |
|
||||
|
100 |
88 |
100 |
- |
Net result |
179 |
306 |
70.9 |
|
||||
|
100 |
88 |
100 |
- |
Adjusted net result |
179 |
306 |
70.9 |
|
||||
|
172 |
243 |
243 |
41.3 |
Free cash flows |
248 |
757 |
ns |
|
||||
|
(216) |
(509) |
(683) |
ns |
Net debt (cash) pre-IFRS 16 lease liabilities |
(216) |
(683) |
ns |
|
||||
|
261 |
124 |
(23) |
ns |
Net debt (cash) post-IFRS 16 lease liabilities |
261 |
(23) |
ns |
|
||||
|
276 |
52 |
91 |
(67.0) |
Capital expenditure |
482 |
337 |
(30.1) |
|
||||
|
5,741 |
6,436 |
5,290 |
(7.9) |
New contracts |
17,659 |
18,812 |
6.5 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
* 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 2024, revenue amounted to €14,549 million (€11,874 million in the corresponding period of 2023) and the adjusted EBITDA amounted to €1,329 million (€926 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.”
The adjusted net result from continuing operations recorded a profit of €306 million, improvement of €121 million compared to €185 million in the corresponding period of 2023. The positive change recorded in adjusted operating result (€169 million) is enhanced by the improvement in the balance of financial operations totalling €82 million, partially offset by the worsening of the equity investments balance and tax management for a total of €130 million.
In 2024 no non-recurring expenses were recorded, and the net result from discontinued operations is null (negative at €6 million in the corresponding period of 2023).
In 2024 the Onshore Drilling business - discontinued operations – recorded a revenue €13 million (€99 million in the corresponding period of 2023), whereas the operating result negative of €1 million (negative of €6 million in the corresponding period of 2023).
Capital expenditure in 2024, amounted to €337 million (€482 million in the corresponding period of 2023), and was divided as follows:
- €239 million in Asset Based Services;
- €23 million in Energy Carriers;
- €75 million in Offshore Drilling.
Pre-IFRS 16 net financial position as of December 31, 2024, amounted to a net cash of €683 million. Net financial position, including IFRS 16 lease liability of €660 million, was positive at €23 million.
Pre-IFRS 16 gross debt as of December 31, 2024, amounted to €2,184 million, liquidity to €2,867 million of which €1,688 million available.
Backlog
In 2024 Saipem was awarded new contracts amounting to a total of €18,812 million (€17,659 million in the corresponding period of 2023).
The backlog as of December 31, 2024, amounted to €34,065 million (€29,802 million as of December 31,2023), broken down as follows: €22,470 million for Asset Based Services, €10,270 million for Energy Carriers, and €1,325 million for Offshore Drilling of which €12,092 million to be executed in 2025.
Including non-consolidated companies, the backlog as of December 31, 2024, amounts to €34,257 million (€29,892 million as of December 31, 2023).
The pillars of the 2025-2028 Strategic Plan
- Execution excellence, ensuring the delivery of projects on time and on budget, with HSE as a priority, with a constantly improved cutting-edge fleet, an execution-oriented tendering process and modularisation as a key to reduce execution risk.
- Capitalizing on upstream Oil & Gas upcycle by penetrating new promising markets and strengthening the Group positioning in the countries where Saipem already has an established presence.
- New paradigm for Onshore E&C and Project Management Consulting offering, based on a value over volume approach, derisking of contractual schemes, Operations & Maintenance (O&M) as a source of recurring Revenue and a growing share of Project Management Consultancy (PMC).
- Broader offering in Energy Transition, both onshore and offshore, with focus on CCUS, Green and Blue Solutions, bio-fuels/SAF, LNG, offshore wind, nuclear and geothermal energy.
These pillars are supported by three cornerstones:
- A clear and disciplined capital allocation, with investment-grade credit rating target.
- Corporate simplification and operational flexibility.
- Continuous improvement in Health and Safety.
The 2025-2028 Sustainability Plan
The Sustainability Plan "Our journey to a sustainable business", approved by the Board of Directors for the period 2025-2028, is fully integrated in the Company’s strategic business guidelines. The Plan contains more than 100 objectives and consequent actions, indicators and target on 13 sustainability issues concentrated in three pillars: fighting climate change and protecting the environment, focusing on people, and creating value in the supply chain and in local communities.
***
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”.
***
Luca Caviglia, 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 ‘FY2024 Results and Strategy Update” on the home page or following the URL
https://87399.choruscall.eu/links/saipem250226.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 17 construction vessels owned 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 more than 50 countries around the world and employs about 30,000 people of over 120 nationalities.
Website: www.saipem.com
Media Relations
E-mail: media.relations@saipem.com
Investor Relations
Alberto Goretti - Head of Investor Relations and Rating Management
E-mail: investor.relations@saipem.com
Phone number: +39 0244231
Contact point for retail investors
E-mail: segreteria.societaria@saipem.com
(1) The dividend will be qualified as ordinary dividend. The final Euro amount will be determined based on a fixed amount equal to USD 350 million.
(2) The dividend will be qualified as ordinary dividend.
(3) Unaudited
pdf - 02-2025