Saipem's backlog has reached a new peak thanks to significant awards achieved during the period for about EUR4.8 billion, while activity on the projects continues under an unprecedented situation, with the company providing maximum priority to the health of its people.
Despite an understandable slow-down of operating results in the period, the financial flexibility remains substantial.
Solid and diversified backlog, which has increased to approximately EUR26 billion (over 70% of the E&C portion not related to oil) thanks to new acquisitions equal to 1.3 times the half year revenues (2.6 times the quarterly revenues)
Economic and financial results for the period, with revenues at around EUR3.7 billion, which reflect the postponement of certain activities agreed upon with the clients, with whom the company's dialogue remains constant, as it does with the suppliers, to support project progress while safeguarding the health of people
Adjusted EBITDA margin close to 10%
Solid and balanced financial structure with strong liquidity and no significant debt maturity prior to 2022; further enhancement achieved following the new bond issue at the beginning of July, which extends the average duration of debt
Net debt pre IFRS16 of around EUR900 million
Efficiency initiatives launched following the pandemic on many areas of the cost structure are progressing, with an expected contribution of about EUR190 million in 2020; the rescheduling of capital expenditure has been confirmed, and capex is now expected to be below EUR400 million
Impairment and write-down of assets mainly in the Offshore Drilling division of EUR669 million.
Confirmation of the strategy already outlined and of the Group's structure
Confirmation of the good visibility on future business opportunities, albeit on a longer time frame
The immediate activation of Saipem Crisis Unit, which coordinates more than 50 control units around the world, the adoption of adequate healthcare protocols and worker rotation procedures at the operating sites, as well as the acceleration of the remote work programme - since mid-February - gradually extended to all employees, and constant coordination with clients and suppliers, enabled to progress project activities, albeit within the limits posed on mobility and the need to safeguard the health of people, which remains the company's top priority.
During the period costs directly attributable to Covid-19 were recorded for about EUR44 million connected, among other things, to the purchase of personal protection equipment and devices in addition to standard requirements, the work areas sanitisation, the costs for charter flights, as well as stand-by costs.
At the present time, out of a total of about 34,000 employees, the percentage of overall Covid-19 positive cases reported by Saipem is around 2.5%, 30% of which is still infected and constantly monitored by the company.
Saipem has solid fundamentals underpinning the strategies adopted to decisively challenge the pandemic consequences and take advantage of opportunities during the recovery phase.
Stefano Cao, Chief Executive Officer, commented: 'The strengthening of the financial position and assets achieved in recent years, the timely orientation of the business towards energy transition, the size and diversification of the backlog and the suitability of the assets ensure a clear market position to Saipem. In addition, they guarantee a solid base to the strategies adopted to face the consequences of the pandemic and further future challenges and seize new opportunities to play a leading role in the recovery phase post Covid -19.
Despite the general economic context, heavily penalised by the prolonged health emergency, the execution activities of our projects around the world have progressed, within the limits posed on mobility and taking into account the reschedule of certain activities and the priority to safeguard the health of people. The backlog - considerably grown even during this difficult period - is solid and the liquidity is substantial, further strengthened by the new bond issue announced at the beginning of July.'
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