Saipem S.p.a. · MIL:SPM

Saipem — Q3 2017 Earnings Presentation

26 slides from Saipem's earnings presentation, Oct 24, 2017

  1. Slide 1: Third Quarter 2017 Results Presentation

    THIRD QUARTER 2017 RESULTS PRESENTATION 24 October 2017

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS Forward-looking statements contained in this presentation regrading future events and future results are based on current expectations, estimates, forecasts and projections about the industries in which Saipem S.p.A. (the “Company”) operates, as well as the beliefs and ass

  3. Slide 3: Today's Presentation

    TODAY’S PRESENTATION 1 OPENING REMARKS 2 9 MONTHS 2017 RESULTS 3 OPERATIONAL AND COMMERCIAL UPDATE 4 XSIGHT 5 CLOSING REMARKS 3

  4. Slide 4: Opening Remarks

    OPENING REMARKS 9M 2017 Divisional Performance • Good performance in Offshore E&C Division • Margin recovery in Onshore E&C Division • Resilient Offshore Drilling margin despite revenue decline in 3Q Net Debt at €1.36bn, benefiting from cash flow generation and capital discipline 3Q Awards at €2.6bn

  5. Slide 5: 9 Months 2017 Results

    ™=y SAIPEM ENGINEERING c= ENERGY 9 MONTHS 2017 RESULTS

  6. Slide 6: 9M 2017 Results

    9M 2017 RESULTS YoY COMPARISON (€ mn) Revenues Adjusted EBITDA Adjusted Net Profit 7,885 414 997 6,873 720 366 111 476 795 2,207 82 359 2,487 240 873 498 73 200 151 3,671 485 3,046 399 9M16 9M17 9M16 9M17 9M16 9M17 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Floaters* (*) Floaters bu

  7. Slide 7: 9M 2017 Net Result

    9M 2017 NET RESULT RECONCILIATION BETWEEN ADJUSTED AND REPORTED (€ mn) Net Result 151 (32) (79) (97) (57) 9M17 Net provisions for Settlement of tax Assets 9M17 Adjusted redundancies disputes write-downs Reported SPECIAL ITEMS 7

  8. Slide 8: 9M 2017 Net Debt Evolution

    9M 2017 NET DEBT EVOLUTION (€ bn) Net Debt improvement in 3Q thanks to Cash Flow and Capital Discipline 1.45 (0.55) 0.34 1.36 0.20 (0.08) Net Debt Adj. Cash Flow Capex Δ Working Non-recurring Net Debt @Dec. 31, 2016 (Adj. N.P.+ D.&A.) Capital and items* @Sep. 30, 2017 Others (*) Non-recurring items

  9. Slide 9: Capital Structure as of September 30, 2017

    CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2017 (€ mn) Solid Capital Structure and Liquidity Position Term Loan Bonds ECA Facilities Bank Facilities Other Debt 3,479 286 Undrawn ECA Facilities (GIEK and Atradius) 1,500 Undrawn RCF 605 575 560 560 1,693 Cash and equiv. 325 75 60 60 350 255 48 35 50 64 64

  10. Slide 10: Operational and Commercial Update

    OPERATIONAL AND COMMERCIAL UPDATE

  11. Slide 11: Main Ongoing E&C Projects

    MAIN ONGOING E&C PROJECTS LEGEND  OFFSHORE  ONSHORE NORTH SEA MEDITERRANEAN AND EUROPE CASPIAN J.SVERDRUP – STATOIL – PIPELINES ZOHR - PETROBELL - SUBSEA/PIPELINES SCPX PIPELINE – BP – PIPELINES MILLER – BP - DECOMMISSIONING TAP – PIPELINES SHAZ DENIZ PH.2 – BP - FIXED FACILITIES / HYWIND SCOTLAND

  12. Slide 12: 9M 2017 Backlog

    9M 2017 BACKLOG (€ mn) 14,219 6,873 366 1,214 476 4,717 12,063 1,241 2,487 911 1,427 498 1,020 242 4,616 3,046 2,730 3,556 1,960 1,704 5,188 4,872 Backlog 9M17 9M17 Contracts Backlog @Dec. 31, 2016 Revenues Acquisition @Sep. 30, 2017 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Floate

  13. Slide 13: Backlog by Year of Execution

    BACKLOG BY YEAR OF EXECUTION (€ mn) 5,816 433 422 4,385 367 1,854 478 1,115 565 1,862 923 120 111 587 2,542 216 1,502 828 2017 2018 2019+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Floaters* 13 (*) Floaters business reported separately

  14. Slide 14: Main Recent Awards – E&C Offshore

    MAIN RECENT AWARDS – E&C OFFSHORE Zohr Field Development – Ramp up phase  Client: Petrobel (JV Eni / EGPC) Addendum of the existing Contract  Location: East Mediterranean Sea, offshore Egypt  Saipem Additional Scope: EPCI including 30” Gas Export line x 218 Km, 8” MEG Injection line x 217 Km, 4 x

  15. Slide 15: Main Recent Awards – E&C Onshore

    MAIN RECENT AWARDS – E&C ONSHORE KOC Pipelines for New Refinery Project (NRP) – Kuwait  Client: Kuwait Oil Company  Location: Kuwait  Scope of work: EPC of a system of pipelines of various diameters, for a total length of about 450 km, for crude oil and gas transportation from KOC South Tank Farm

  16. Slide 16: Update on Near Term E&C Opportunities

    UPDATE ON NEAR TERM E&C OPPORTUNITIES Subsea Fixed Facilities • Eni Zohr Ramp-up Phase - Egypt • Saudi Aramco LTA Developments – • Eni West Hub - Angola Saudi Arabia Upstream-Midstream Downstream • ADCO BAB Integrated Facilities – Abu • DUQM Refinery Program – Oman Dhabi  • KOC Pipelines for New

  17. Slide 17: Update on Drilling

    UPDATE ON DRILLING OFFSHORE DRILLING FLEET CONTRACTS Operative Stand-by Termination fee Optional period Cyprus-Maroc- Saipem 12000 TO 2022> Eni Portugal-Mozamb. Saipem 10000 Eni Egypt DEEP-WATER Scarabeo 9 JV Eni-Partner Black Sea Scarabeo 8 Eni North Sea Scarabeo 7 Eni Indonesia Scarabeo 5* - - HI

  18. Slide 18: XSight

    ™=y SAIPEM ENGINEERING c= ENERGY XSIGHT

  19. Slide 19: High Value Engineering Services

    HIGH VALUE ENGINEERING SERVICES ENHANCE Technology Licenses ENIGINEERING Field Development Planning SERVICES Concept Definition (pre-FEED) Project Definition Basic Design - PDP Front End Eng. Design (FEED) Engineering Services Late Field Life Operations Brownfield Modifications De-bottlenecking Deco

  20. Slide 20: Closing Remarks

    ™=y SAIPEM ENGINEERING c= ENERGY CLOSING REMARKS

  21. Slide 21: 2017 Guidance

    2017 GUIDANCE Metrics FY 2017 Revenues  c.€9.5bn EBITDA  c.€1bn % margin  > 10% Net Profit Adjusted  c.€200mn * CAPEX  c.€300mn Net financial position  c.€1.3bn (*) Excl. Special Items: net provisions for redundancies, tax disputes settlement, asset write downs 21

  22. Slide 22: Closing Remarks

    CLOSING REMARKS SOLID 3Q OPERATIONAL AND FINANCIAL PERFORMANCE GOOD ORDER INTAKE IN 3Q WITH VISIBILITY ON NEAR TERM COMMERCIAL TARGETS SAVINGS PROGRAM ON TRACK AND ADDITIONAL EFFICIENCY INITIATIVES UNDER ASSESSMENT IMPROVED NET DEBT GUIDANCE 22

  23. Slide 23: Appendix

    ™=y SAIPEM ENGINEERING c= ENERGY APPENDIX

  24. Slide 24: 3Q 2017 Results

    3Q 2017 RESULTS QoQ TREND (€ mn) Revenues Adjusted EBITDA Adjusted Net Profit 2,327 2,283 123 119 161 153 268 23 271 28 887 825 81 83 25 111 160 24 13 59 1,045 1,026 171 38 123 -32 2Q17 3Q17 2Q17 3Q17 2Q17 3Q17 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Floaters* (*) Floaters busine

  25. Slide 25: E&C Opportunities

    E&C OPPORTUNITIES  OFFSHORE LEGEND  ONSHORE Americas Europe/ CIS and Central Asia  BP Cassia Compression – fixed facilities  BP Shah Deniz IMR – inspection, maintenance & repair  Petrobras Libra Development – subsea  EDF Fecamp Offshore Windfarm – renewables  Eni Amoca Field – fixed facilitie

  26. Slide 26: FFF2.0 – Redundancies and Additional Savings

    FFF2.0 – REDUNDANCIES AND ADDITIONAL SAVINGS €110mn OF IDENTIFIED SAVINGS WITH ADDITIONAL EFFICIENCIES POTENTIAL REDUNDANCIES: €100mn annual savings Yearly Saving*: c.€20mn c.€100mn Yearly Provisions*: c.€60mn c.€50mn RUN RATE REDUNDANCIES: c.1,150 REDUNDANCIES TOTAL COST: Cumulative >1,100 c.€190mn

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