Saipem S.p.a. · MIL:SPM

Saipem — Q1 2021 Earnings Presentation

28 slides from Saipem's earnings presentation, Apr 28, 2021

  1. Slide 1: Saipem First Quarter 2021 Results

    SAIPEM FIRST QUARTER 2021 RESULTS 28 APRIL 2021

  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: Table of Content

    TABLE OF CONTENT  01 OPENING REMARKS  02 1Q 2021 RESULTS  03 BUSINESS UPDATE  04 CLOSING REMARKS  05 APPENDIX |3

  4. Slide 4: Opening Remarks

    OPENING REMARKS

  5. Slide 5: Continuing to Navigate the Challenging Environment

    1Q 2021 OPENING REMARKS CONTINUING TO NAVIGATE THE CHALLENGING ENVIRONMENT  Business environment still conditioned by pandemic  Results reflect slower activity and some postponement in E&C  Net debt post IFRS-16 c.€1.45bn, in line with expectations  Good order intake of €1.6bn (98% of E&C “non-o

  6. Slide 6: Recent Events on Mozambique Area 1

    RECENT EVENTS ON MOZAMBIQUE AREA 1  Following recent suspension of Mozambique project activities and client press release on 26 April on force majeure, assessment is ongoing in close cooperation with the client to preserve the value of the project  While awaiting for further instructions by the cl

  7. Slide 7: 1Q 2021 Results

    1Q 2021 RESULTS

  8. Slide 8: 1Q 2021 Results: YoY Comparison

    1Q 2020 RESULTS YoY COMPARISON (€ mn – IFRS16) Revenues Adjusted EBITDA1 Adjusted Net Result1 11.0% margin 5.4% 2,172 1,618 240 (9) 88 (105) 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 |8 1 Excluding special items, details in slide n.11

  9. Slide 9: 1Q 2021 Results – E&C

    1Q 2021 RESULTS – E&C YoY COMPARISON (€ mn – IFRS16) E&C OFFSHORE E&C ONSHORE1 Revenues Adjusted EBITDA Revenues Adjusted EBITDA 826 12.8% margin 1.4% 4.7% margin 4.8% 1,089 905 557 106 51 43 8 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 • Lower activity in Asia Pacific and Middle East mainly due to Cov

  10. Slide 10: 1Q 2021 Results – Drilling

    1Q 2021 RESULTS – DRILLING YoY COMPARISON (€ mn – IFRS16) DRILLING OFFSHORE DRILLING ONSHORE Revenues Adjusted EBITDA Revenues Adjusted EBITDA 45.4% margin 28.2% 18.9% margin 19.2% 130 127 59 78 78 24 22 15 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 • Lower volumes, mainly driven by S10000, SC9 and PN8

  11. Slide 11: Net Result: Reconciliation Adjusted vs Reported

    1Q 2021 NET RESULT RECONCILIATION ADJUSTED VS REPORTED Net Result (€ mn – IFRS 16) 1Q21 Health & Safety Provision for 1Q21 Costs from Covid-19, safety first Adjusted (Covid-19)1 redundancy Reported Cost mainly related to management of pandemic and safeguarding people’s health:  Cost of personnel on

  12. Slide 12: Net Debt Evolution

    1Q 2021 NET DEBT EVOLUTION (€ bn) 1Q TREND IN LINE WITH EXPECTATIONS 0.35 1.45 1.23 0.35 0.07 1.10 0.15 0.87 0.01 Net debt IFRS 16 Net debt Cash flow Others includ. Capex Net debt IFRS 16 Net debt Dec. 31, 2020 impact Dec. 31, 2020 (Net Result1 + D&A) Δ working Mar. 31, 2021 impact Mar. 31, 2021 cap

  13. Slide 13: Solid Balance Sheet and Liquidity

    SOLID BALANCE SHEET AND LIQUIDITY NEW BOND ISSUE IMPROVES FINANCIAL FLEXIBILITY €bn Liquidity further strengthened 2.5  New €500mn 7-year fixed-rate bond issued 1.0 in March NEW BOND 0.5  Total liquidity raised to €2.5bn 1.0  Ready to manage 2022 maturity (see chart Available cash & Committed Tot

  14. Slide 14: Business Update

    BUSINESS UPDATE

  15. Slide 15: E&C Offshore 1Q Update

    E&C OFFSHORE 1Q UPDATE PROJECT SCHEDULING AND PANDEMIC WEIGHING ON RESULTS  Postponement of some activity in Middle East, due to project requirements  Phasing of existing project portfolio characterised by higher vessel idleness vs 4Q  Commercial awards delayed vs expectations  Gradual performan

  16. Slide 16: E&C Onshore Update on Key Projects

    E&C ONSHORE UPDATE ON KEY PROJECTS ONGOING COOPERATION WITH CLIENTS Projects representing c.75% of E&C onshore backlog1 Africa: Mozambique Area 1 LNG Saudi Arabia: Berri & Marjan  Site mobilization suspended due to security  Schedule extension as per client request agreed  Security risks managed

  17. Slide 17: E&C Offshore - Key Awards Year-to-Date

    E&C OFFSHORE - KEY AWARDS YEAR-TO-DATE GOOD MOMENTUM IN RENEWABLES AND GAS Courseulles-sur-Mer Offshore Wind Farm 1Q21 BACKLOG  Client: Eoliennes Offshore du Calvados SAS (EODC)  Location: Normandy, France  Scope of work: Design, construction and installation for 64 foundations bearing an equival

  18. Slide 18: Well-Diversified and Sizeable Backlog

    1Q 2021 BACKLOG WELL-DIVERSIFIED AND SIZEABLE BACKLOG CURRENT E&C BACKLOG (€ mn) 1,594 INCLUDING NON-CONSOLIDATED 22,400 1,618 175 15 22,376 78 1,588 905 78 1,360 44 1,525 5% 518 557 484 6% 18% 4% 14,009 13,279 67% 6,285 7,088 NON-OIL 78% Backlog 1Q21 1Q21 Contract Backlog RENEWABLES INFRASTRUCTURES

  19. Slide 19: Backlog Distribution by Year

    1Q 2021 BACKLOG DISTRIBUTION BY YEAR BACKLOG PROVIDES SOLID SUPPORT FOR THE MID-TERM (€ mn) 8,514 7,715 864 368 103 198 6,147 293 183 4,019 6,088 3,172 3,130 2,499 1,459 2021 2022 2023+ E&C Offshore E&C Onshore1 Drilling Offshore Drilling Onshore NON-CONSOLIDATED BACKLOG BY YEAR OF EXECUTION 2021 20

  20. Slide 20: E&C Opportunities c.€21bn

    E&C OPPORTUNITIES c.€21bn OPPORTUNITIES BY SEGMENT WELL-DIVERSIFIED PIPELINE AHEAD 11% Europe, CIS & Central Asia 6% c.€1bn c.€3.5bn 39% ‐ Pipelines ‐ Downstream ‐ Renewables & ‐ Renewables & green green 44% RENEWABLES INFRASTRUCTURES Americas Middle East & GREEN & OTHER NON-OIL c.€1.5bn c.€2.5bn c.

  21. Slide 21: Offshore Drilling Fleet

    OFFSHORE DRILLING FLEET CLIENT AREA Saipem 12000 Eni M ozambique DEEP-WATER and HARSH ENV. Saipem 10000 Eni Worldwide ULTRA Scarabeo 9 Scarabeo 8 Vår Energi Norway DEEP-W. Scarabeo 5* Eni Angola *ENGAGEMENT FOR PRODUCTION SUPPORT Perro Negro 8 Aurora Arctic Sea **LEASED VESSEL Perro Negro 7 Saudi Ar

  22. Slide 22: Onshore Drilling Fleet

    ONSHORE DRILLING FLEET FLEET @ MARCH 31, 2021: 83 RIGS AMERICAS EMEA 47 RIGS 36 RIGS UTILISATION RATE UTILISATION RATE AVERAGE1: 21% AVERAGE1: 55% UTILISATION RATE 1Q 2021 AVERAGE1: 36% 1 Simple average: # days sold / # days available for sale; till Q4 2019 weighted average, defined as # days sold w

  23. Slide 23: Closing Remarks

    CLOSING REMARKS

  24. Slide 24: Closing Remarks

    CLOSING REMARKS IMPACTS FROM RECENT EVENTS AROUND MOZAMBIQUE PROJECT ARE BEING ASSESSED CONTINUING TO NAVIGATE THE CHALLENGING ENVIRONMENT SOLID BALANCE SHEET, STRENGTHENED LIQUIDITY AND DIVERSIFIED BACKLOG SIZEABLE, DIVERSE AND EVOLVING COMMERCIAL PIPELINE 2021 YEAR OF TRANSITION |24

  25. Slide 25: Appendix

    APPENDIX

  26. Slide 26: Results – D&A, Finance Charges and Taxes

    1Q 2021 RESULTS – D&A, FINANCE CHARGES AND TAXES (€ mn – IFRS16) 157 122 Q1 2020 D&A 77 € mn 60 Q1 2021 D&A 28 32 29 20 18 15 Offshore Onshore E&C E&C Total Drilling Drilling Onshore 1 Offshore D&A 1Q 2021 € mn 27 4 31 FINANCIAL CHARGES Financing costs 2 Project hedging Finance charges costs TAXES 

  27. Slide 27: Results: QoQ Trend

    1Q 2021 RESULTS QoQ TREND (€ mn – IFRS16) Revenues Adjusted EBITDA1 Adjusted Net Result1 6.3% margin 5.4% 1,962 1,618 123 88 (58) (105) 4Q20 1Q21 4Q20 1Q21 4Q20 1Q21 1 Not including special items |27

  28. Slide 28: Results - Divisions: QoQ Trend

    1Q 2021 RESULTS - DIVISIONS QoQ TREND (€ mn – IFRS16) E&C OFFSHORE E&C ONSHORE1 Revenues Adjusted EBITDA Revenues Adjusted EBITDA 1.5% margin 1.4% 6.2% margin 4.8% 610 1,212 557 905 75 9 43 8 4Q20 1Q21 4Q20 1Q21 4Q20 1Q21 4Q20 1Q21 DRILLING OFFSHORE DRILLING ONSHORE Revenues Adjusted EBITDA Revenues

Saipem — Q1 2021 Earnings Presentation on 6ix