Saipem S.p.a. · MIL:SPM

Saipem — H1 2016 Earnings Presentation

20 slides from Saipem's earnings presentation, Jul 27, 2016

  1. Slide 1: First Half 2016 Results Presentation

    FIRST HALF 2016 RESULTS PRESENTATION 27 July 2016 mercoledì 27 luglio 2016 Saipem. Engineering Energy

  2. Slide 2: Forward-Looking Statements

    Saipem. Engineering Energy 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

  3. Slide 3: Today's Presentation

    Saipem. Engineering Energy TODAY’S PRESENTATION 1 OPENING REMARKS 2 1H 2016 RESULTS 3 BUSINESS REVIEW 4 GUIDANCE AND CLOSING REMARKS 3

  4. Slide 4: 1H 2016 Highlights

    Saipem. Engineering Energy 1H 2016 HIGHLIGHTS  Recent awards confirm resilience of our core E&C business, drilling still lagging  Solid order intake in 2Q, stabilising backlog  Positive momentum continued post 2Q: more than €2.5bn of new contracts in July  1H adjusted EBIT €324mn, strong perform

  5. Slide 5: 1H 2016 Results

    Saipem. Engineering Energy 1H 2016 RESULTS 5

  6. Slide 6: 1H 2016 Results: YoY Comparison

    Saipem. Engineering Energy 1H 2016 RESULTS YoY COMPARISON (€ mn) Revenues Adjusted EBIT Adjusted Net Profit 5,373 5,275 324 126 538 487 42 140 (479) (609) 1H15 1H16 1H15 * 1H16 ** 1H15 * 1H16 ** E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Total Adjusted EBIT * 1H15 EBIT and Net Profi

  7. Slide 7: 2Q 2016 Results: Q on Q Trend

    Saipem. Engineering Energy 2Q 2016 RESULTS Q on Q TREND (€ mn) Revenues Adjusted EBIT Adjusted Net Profit 2,840 182 63 243 2,435 244 142 63 79 61 1Q16 2Q16** 1Q16 * 2Q16** 1Q16 2Q16 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Total EBIT * 1Q16 EBIT restated for minorities 7 ** 2Q16 E

  8. Slide 8: 1H 2016 Net Debt Evolution

    Saipem. Engineering Energy 1H 2016 NET DEBT EVOLUTION (€ bn) 5.39 (3.44)* 1.95 (0.49)** 0.41 1.97 0.10 Net 1 Debt 2 Capital 3 Flow Adj. Cash 4 Capex 5 Δ Working Net6Debt @Dec. 31, 2015 Increase (Adj N.P.** + D.&A.) Capital and @June. 30, 2016 Others * Net of fees 8 ** Net Profit adjusted for write-o

  9. Slide 9: Business Review

    Saipem. Engineering Energy BUSINESS REVIEW 9

  10. Slide 10: 1H 2016 Backlog

    Saipem. Engineering Energy 1H 2016 BACKLOG (€ mn) 15,846 5,275 3,328 13,899 Backlog 1H16 1H16 Contracts Backlog @Dec. 31, 2015 Revenues Acquisition @June 30, 2016 E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore 10

  11. Slide 11: Major Awards April – July 2016 1/2

    Saipem. Engineering Energy MAJOR AWARDS APRIL – JULY 2016 1/2 TAP  Client: Trans Adriatic Pipeline AG  Location: Southern Adriatic Sea  Scope of work: EPCI for a 36” 105km offshore gas pipeline, including marine surveys, fiber optic cable and civil works at the landfalls in Albania and Italy  Ma

  12. Slide 12: Major Awards April – July 2016 2/2

    Saipem. Engineering Energy MAJOR AWARDS APRIL – JULY 2016 2/2 TANGGUH EXPANSION PROJECT Tangguh LNG process train  Client: BP  Location: Indonesia  Scope of work: Construction of an onshore LNG process train with a liquefaction capacity of 3.8 million tons per annum, utilities, offsites, an LNG j

  13. Slide 13: Backlog by Year of Execution

    Saipem. Engineering Energy BACKLOG BY YEAR OF EXECUTION (€ mn) ~6,500 ~6,400 5,114 5,228 ~3,900 3,557 2016 2017 2018+ E&C Offshore E&C Onshore Drilling Offshore Drilling Onshore Backlog estimate including post-2Q awards 13

  14. Slide 14: E&C Opportunities

    Saipem. Engineering Energy LEGEND  OFFSHORE E&C OPPORTUNITIES  ONSHORE Americas Europe/ CIS and Central Asia  ExxonMobil Liza – subsea (post 2016)  Lukoil Filanovsky Phase 2 – offshore pipelines  Big Foot TLP – fixed facilities – New  Nord stream 2 – offshore pipelines  Sable Decommissioning

  15. Slide 15: Update on Saipem - Aker Solutions Alliance

    Saipem. Engineering Energy UPDATE ON SAIPEM - AKER SOLUTIONS ALLIANCE SURF EPCI contractor leveraging on Subsea systems and products supplier leveraging engineering, assets, local content, subsea on engineering, technology and local content technologies Complementary Engineering skills allowing prop

  16. Slide 16: Update on Drilling

    Saipem. Engineering Energy UPDATE ON DRILLING OFFSHORE DRILLING FLEET CONTRACTS Committed Stand-by Termination fee New contract CLIENT LOCATION Saipem 12000 Eni Portugal Saipem 10000 Eni Worldwide DEEP-WATER Scarabeo 9 Eni Angola Scarabeo 8 Eni North Sea Scarabeo 7 Eni Indonesia Scarabeo 6 - - Scara

  17. Slide 17: Cost Optimisation Programme on Track

    Saipem. Engineering Energy COST OPTIMISATION PROGRAMME ON TRACK TARGETS Program achievements up to date 2H 2016 - 2017 Actions  Rightsizing overseas support functions (local and  Completed closure of Soyo Yard, Singapore and expat personnel) Delhi offices  Released resources in several centres in

  18. Slide 18: Guidance and Closing Remarks

    Saipem. Engineering Energy GUIDANCE AND CLOSING REMARKS 18

  19. Slide 19: Updated 2016 Guidance

    Saipem. Engineering Energy UPDATED 2016 GUIDANCE Metrics FY 2016 Revenues  ~ €10.5bn Adjusted EBIT  ~ €600mn* % margin  ~ 5.5%* Net profit adjusted  ~ €250mn* CAPEX  ~ €400mn Net financial position  ~ €1.5bn 2017 Guidance with Q3 results * Adjusted for overdue receivable write-off in Drilling

  20. Slide 20: Closing Remarks

    Saipem. Engineering Energy CLOSING REMARKS Robust set of results in 1H 2016 supported by strong E&C Offshore performance Improved order intake in E&C Offshore stabilising backlog, Drilling outlook still challenging Cost optimisation programme on track Refinancing in progress 20

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