Saipem announce results for first half of 2021

Revenues of approximately €3.2 billion and adjusted EBITDA at a loss of €266 million.

The Saipem SpA Board of Directors, chaired by Silvia Merlo, approved, the Consolidated Half-Year Financial Report as at 30 June 2021.

Highlights of the first half-year

  • Operating results, reflect a slowdown compared to the first half of 2020, especially for the engineering and construction activities, mainly due to:
    • continued effects of the Covid-19 health crisis on operational activities, with the delays in project execution and the postponement of investment decisions in the sectors of interest
    • suspension of LNG onshore project activities in Mozambique
    • specific operational issues of an offshore wind project in the North Sea
  • Signs of improvement in drilling with an increase in demand and potential for a full utilization of the fleet
  • New contracts for approximately €4.4 billion in the half year. Consolidation of a backlog of approximately €26.2 billion (approximately 78% of the E&C portion not linked to oil), supporting performance in the medium-long term
  • Net debt post-IFRS 16 at €1.4 billion (around €1.1 billion pre-IFRS 16), slightly reduced compared with the first quarter, as a result of the accurate management of cash flows
  • Cash and cash equivalents at €2.3 billion following the 7 years €500 million fixed rate bond successfully issued in March 2021 and thanks to the significant cash availability of the consolidated companies and of the project joint ventures
  • Availability of the fully undrawn €1 billion revolving credit facility
  • Launch of transformation initiatives to ensure a new phase of sustainable growth:
    • review of the business strategy ahead of the new Strategic Plan
    • review of the operating model
    • simplification of processes
    • reduction of operating leverage

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