Saipem Announces Preliminary Results for Q4 & Financial Year 2023

Source: www.gulfoilandgas.com 2/28/2024, Location: Europe

In 2023 the Saipem Group outperformed the targets of the Strategic Plan, exhibiting a year of progressive and constant growth in terms of turnover and margins, a positive cash generation and strengthening of the financial position. Net profit for the year was €179 million.

New orders, amounting to €18 billion, confirm the competitiveness of the Group and the positive market context.

Approval of the 2024-2027 Strategic Plan with an improvement in the economic and financial targets, and a broader offering in the low/zero carbon segment for the energy transition. Also approved the Sustainability Plan 2024-2027, integrated into the strategic business guidelines.

The Board of Directors approves a dividend policy that envisages a return to the dividend in 2025, based on 2024 expected results.

Highlights
With regard to 2023, the Group achieved:
- Revenue: €11,874 million, +19% compared to 2022
- Adjusted EBITDA: €926 million, +56% compared to 2022
- New contracts: approximately €18 billion. Over 70% of new contracts was in offshore
- business (E&C and Drilling)
- Pre-IFRS 16 net financial position as of December 31, 2023: positive net cash of €216 million (post-IFRS 16 net debt of €261 million)

In the fourth quarter of 2023 alone, the Group's results amounted to:
- Revenue: €3,511 million, +20% compared to the corresponding quarter of 2022
- Adjusted EBITDA: €286 million, nearly doubled compared to corresponding quarter of 2022
- New contracts: approximately €6 billion, approximately 60% of the total in the offshore business (E&C and Drilling)

Saipem has updated its strategic guidelines presented in February 2023, confirming the progressive improvement of the Group's performance and its ability to fully exploit the favourable market context. Economic and financial targets have consequently been revised.

Specifically, with reference to the year 2024, the Company expects:
- Revenue of €12.7-13.3 billion
- EBITDA margin of approx. 10%
- Operating Cash Flow (net of lease payments) amounting to €740-780 million
- Capex equal to approx. €440-480 million

Over the horizon of the 2024-2027 Plan, the Company expects:
- Acquisition of orders for approximately €50 billion
- New contracts in “low/zero carbon” segments of approximately a third of the total
- Compound annual growth rate (CAGR) of revenues of 4-5% over the period 2023-2027
- EBITDA margin of about 12% in 2027
- Operating Cash Flow (net of lease payments) amounting to approximately €3 billion
- Capex equal to approx. €1.4 billion
- Dividends equal to between 30-40% of the Free Cash Flow (net of lease payments)
- Payment of dividend in 2025, based on the 2024 expected results

Commenting on the results, Alessandro Puliti, CEO and General Manager of Saipem stated:

“2023 was an important year of growth and consolidation. Thanks to Saipem’s people and their commitment, we achieved the highest net income of the last ten years and we closed 2023 with an unprecedented order intake of 18 billion euro. This was made possible thanks to the trust of our shareholders, our clients, and to the contribution of the whole Company, which worked to achieve a significant operational and financial turnaround. Our Strategic Plan, and the favourable market context, will allow Saipem to aim for an improvement in our economic and financial objectives. Today we look to the future with a focus on excellence in project execution, operational flexibility, and an integrated approach across business areas, further broadening our offering in the low and zero carbon segments.”


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