San Donato Milanese - Yesterday, the Board of Directors of Saipem SpA, chaired by Francesco Caio, approved the Interim Directors' Report of the Group as of September 30, 2020 (not subject to audit).
Results of the first nine months of 2020
Revenues: EUR5,380 million (EUR6,748 million in the first nine months of 2019), of which EUR1,705 million in the third quarter
EBITDA: EUR353 million (EUR866 million in the first nine months of 2019), of which EUR82 million in the third quarter
Adjusted EBITDA: EUR491 million (EUR899 million in the first nine months of 2019), of which EUR136 million in the third quarter
Operating profit (EBIT): loss of EUR772 million (profit of EUR402 million in the first nine months of 2019), of which a loss of EUR61 million in the third quarter
Adjusted operating profit (EBIT): EUR34 million (EUR449 million in the first nine months of 2019), of which a loss of EUR8 million in the third quarter
Net result: loss of EUR1,016 million (profit of EUR44 million in the first nine months of 2019), loss of EUR131 million in the third quarter
Adjusted net result: loss of EUR210 million (profit of EUR91 million in the first nine months of 2019), of which a loss of EUR78 million in the third quarter
Special Items: write-downs and expenses of EUR806 million (write-downs and re-organization expenses of EUR47 million in the first nine months of 2019), of which EUR53 million in the third quarter
Capital expenditure: 242 million (EUR229 million in the first nine months of 2019), of which EUR47 million in the third quarter
Net debt inclusive of IFRS 16 lease liabilities at September 30, 2020: EUR1,399 million (EUR1,082 million at December 31, 2019)
Net debt pre IFRS 16 at September 30, 2020: EUR973 million (EUR472 million at December 31, 2019)
New contracts: EUR5,335 million (EUR13,943 million in the first nine months of 2019)
Backlog: EUR21,038 million (EUR21,153 million at December 31, 2019), reaching EUR24,187 million including non-consolidated companies' backlog (EUR24,778 million at December 31, 2019).
Business scenario
Although the current year is still heavily affected by the impacts of the Covid-19 pandemic on the target markets, the group's volume of revenues and adjusted EBITDA in the second half are expected substantially in line with the first half. In such a context, 2020 efficiency initiatives on structural and operating costs have been confirmed. The rescheduling of capital expenditure allows to limit the related spending at below EUR400 million. Under a longer-term perspective, the strengthened and diversified backlog ensures a good outlook beyond the current year. This business scenario does not factor a further and possible deterioration of the market context as a consequence of the intensification of the Covid-19 pandemic.
Reorganisation: impact on reporting
The results of the XSIGHT Division are included in the Onshore Engineering & Construction Division because the numbers still do not warrant separate disclosure, so they are not disclosed to the market separately.
Business update for 2020
In the first nine months revenues amount to EUR5,380 million (EUR6,748 million in the first nine months of 2019) and adjusted EBITDA amounts to EUR491 million (EUR899 million in the first nine months of 2019): both indicators, for all divisions, reflect results affected by the slowdown of projects due to the effects of the pandemic and by the postponement of some activities, agreed with the clients.
Adjusted net profit recorded a loss of EUR210 million (profit of EUR91 million in the first nine months of 2019). The negative variation of the adjusted operating profit, of EUR415 million, is partly offset by the significant improvement of the net results from investments and financial expenses, as well as by the lower results of third-party interests.
Net profit recorded a loss of EUR1,016 million (profit of EUR44 million in the first nine months of 2019) and, unlike adjusted net profit, was impacted by the following special items: write-downs of tangible assets in the Offshore Drilling division of EUR590 million, which had already been accounted for in the first half of 2020, deriving from the impairment test; write-down of tangible assets and related working capital, as well as of the right-of-use of a third-party asset for EUR97 million; contingent liabilities for EUR20 million, in relation to a pending judgement on a project already completed, deriving from the activity of periodic legal monitoring of the evolution of the overall dispute; costs deriving from the healthcare emergency for about EUR99 million. This amount includes the costs incurred in the period directly attributable to the Covid-19 pandemic, such as costs for the workers on stand-by in compliance with quarantine regulations and in such cases where activities at operating sites and onboard vessels were suspended by the authorities, for the purchase of personal protective equipment and devices in addition to the standard requirements, for sanitising work areas and for the organisation of charter flights to repatriate personnel.
Net profit in the corresponding period of 2019, amounting to a profit of EUR44 million, unlike adjusted net profit, was impacted by the following special items: write-downs and accruals for a jack up of EUR21 million; the asset was partially written down because it was likely to be replaced by a leased asset, due to the completion of the contract in backlog; reorganization expenses of EUR26 million.
Contact:
Tel: +39 0244231
Fax: +39 0244244415
Email: segreteria.societaria@saipem.com
SAIPEM S.P.A. 
