Saipem: results for the third quarter and the first nine months of 2018

FinancialSan Donato Milanese

San Donato Milanese, October 24, 2018 - The Board of Directors of Saipem S.p.A., chaired by Francesco Caio, yesterday approved the Saipem Group's Interim Report at September 30, 2018 (not subject to audit).

Highlights

 Strong operational performance particularly in the Offshore E&C segment

 Stable backlog, level of awards in the third quarter in line with expectations

 Stable net debt despite the investment in the new vessel

 Guidance confirmed

 Reported results include special items mostly disclosed previously in the half-yearly report

Results for the first nine months of 2018:

 Revenues: €6,098 million (€6,873 million in the first nine months of 2017), of which €2,259 million in the third quarter

 Adjusted EBITDA: €760 million (€795 million in the first nine months of 2017), of which €277 million in the third quarter

 EBITDA: €642 million (€737 million in the first nine months of 2017), of which €232 million in the third quarter

 Adjusted operating profit (EBIT): €417 million (€400 million in the first nine months of 2017), of which €162 million in the third quarter

 Operating profit (EBIT): €43 million (€257 million in the first nine months of 2017), of which €117 million in the third quarter

 Adjusted net profit: €17 million (€151 million in the first nine months of 2017), of which 11 million in the third quarter

 Net loss of €357 million, net of write-downs and reorganization expenses of €374 million (loss of €57 million in the first nine months of 2017, net of write-downs, reorganization expenses and fiscal settlement of €208 million), loss of €34 million in the third quarter net of write-downs and reorganization expenses of €45 million

 Capital expenditure: €365 million (€198 million in the first nine months of 2017), of which €52 million in the third quarter

 Net debt at September 30, 2018: €1,270 million (€1,296 million at December 31, 2017)

 New contracts: €6,121 million (€4,717 million in the first nine months of 2017), of which €2,135 million in the third quarter

 Backlog: €12,456 million (€12,392 million at December 31, 2017)  

Guidance confirmed

 Revenues: approximately €8 billion

 Adjusted EBITDA: greater than 10% on revenues

 Capital expenditure: approximately €0.5 billion

 Net debt: approximately €1.3 billion

Stefano Cao, Saipem CEO, commented: 'The market offers signs of a turnaround compared to recent years, supported by good visibility in commercial opportunities, especially in the Engineering & Construction sectors. In what is still a complex context, the first nine months of 2018 Saipem revealed a good operational and managerial performance, in particular in Offshore Engineering & Construction and Drilling. This allows the Company to confirm the guidance for 2018. The third quarter recorded a solid performance in relation to the awarding of new contracts, in line with the expectations outlined in the half-yearly report, a tendency which seems to be confirmed also in the fourth quarter. The diversification in new markets and the search for opportunities in new geographical areas will likewise contribute to the creation of value for our stakeholders'.

Saipem is one of the world leaders in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market. The company has distinctive competences in operations in harsh environments, remote areas and deepwater. Saipem provides a full range of services with 'EPC' and 'EPCI' contracts (on a 'turn-key' basis) and has distinctive capabilities and unique assets with a high technological content.

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