Slide 3 Good afternoon and welcome to our conference call to discuss our full year 2013 results. Im here with Alberto Chiarini, Saipems Chief Financial and Compliance Officer, and Gigi Caselli, our Chief Operating Officer. Today we…
Slide 4 I was appointed Chief Executive at the end of 2012. My review showed that Saipem business was affected by a lot of issues, some of which were systematic and long standing. My first priority was to understand the extent of this…
taken. Back in october, we set out how the pace of recovery is contingent on both the pace of higher margin new business awards, and, on the breakeven delivery of low- margin legacy contracts. both these factors have influenced the…
Slide 6 Turning to the details of our financial results. Compared to 2012, full year revenues went from 13.3 to 12 billion euros. The single biggest component of this drop is the more than 20% decrease in onshore E&C activity. Full…
Slide 7 We are reporting an out-turn on EBIT of 98 million euros lower than the breakeven guidance given in October, due to factors which occurred or became apparent only in the last two months of the year. This slide sets out clearly…
Slide 8 I want now to update you on the conclusion of the long-running dialogue with Consob during 2013. As we stated in our announcement on the 6th of December 2013, Consob decided to close its proceedings related to [the notice they…
Slide 9 Now I will give you some detail behind our performance on Capex and Net Debt. 2013 is the last year of high Capex as we complete our major investment plan started in 2007. In 2013 our main milestone was the successful…
Slide 10 Turning to backlog and new order intake, the overall amount of backlog of 17.5 billion euros at year-end includes the effect of the cancellation of the backlog associated with the contracts of Perro Negro 6 and the Firenze…
Slide 11 Looking now at backlog by year of execution, we are going to book 53% of the existing backlog in 2014. The value of E&Cs lower margin contracts in our backlog due for execution in 2014 today accounts for 4,9 billion. This…
Slide 13 As we start our operational update, I would like to say a few words about Drilling. It provided another year of very good financial performance. All new contracts or contract extensions have been at generally better rates…
Slide 14 Moving to the E&C business, restoring it to health is Saipems primary objective. My first task has been to de-risk existing contracts by a relentless focus on high- quality execution, and to seek improvement in the commercial…
Slide 15 Turning to Algeria and the commercial situation with Sonatrach, we have seen no substantial improvement in the relationship. We therefore decided it is in the best interests of Saipems shareholders to enter into an…
Slide 17 As already pointed out in October, the increased complexity and cost of new projects causes Oil Companies to delay contracts awards and start up even after FID. For Saipem, targeting large value contracts, this postponement…
for which we are indicating a broad EBIT guidance that is represented by range of 600 and 750 M, which lower end, the base case, is what prudently we can rely upon. 17
Slide 18 Since the outstanding bids whose outcome could impact 2014 results are so relevant for our guidance, I want to review them. Here we have just divided them by our geographical Regions and by onshore and offshore. As you can see…
Slide 19 - 2014 Guidance Looking now at slide [19], we present the full set of guidance for 2014: Revenues ranging between 12.5 and 13.6 billion euros EBIT between 600 and 750 million euros Net profit between 280 and 380 million…
Slide 21 In summary, 2013 has been year of fundamental challenges and all our efforts have been devoted to the goal of stabilising the business, which suffered from a series of significant problems. As I have pointed out, the stable…
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