Good afternoon and welcome to the Saipem conference call to discuss first half 2014 results. Im here with Gigi Caselli, Chief Operating Officer, Alberto Chiarini, Saipems Chief Financial and Compliance Officer and Salvatore Colli,…
Im pleased to say that after the good start we made in the first quarter, in terms of winning new business in line with our strict commercial criteria, we accelerated even further with a record 9.2 bn of new awards during the second…
Lets look at our financial results in slide 6, but before looking at them in detail, please note that all 2014 figures are compliant with new IFRS 10 and 11 accounting principles, governing the consolidation of joint ventures, and 2013…
in Brazil. Drillings year on year contribution to EBIT reduced, mainly due to Scarabeo 7. Finally, Net Profit for the first half came in at 136 million, showing the return to profitability as we continue to execute Saipems…
Turning to Net Debt on slide 7, at the end of June this stood at 5.1 bn, a reduction of 0.5 bn compared to the end of March. This positive swing was thanks to cash flow generated in the quarter that offset capex, and to an improvement in…
This has been a record Quarter in terms of new orders: as shown on the slide 8, we won contracts worth more than 9.2 bn, reaching at the end of the first half 13.1 bn. We have reported a good order intake across all E&C business units,…
Looking now at the current backlog by year of execution on slide 9, 24% will be booked in the second half of 2014, 36% in 2015 and 40% in 2016 and onwards. The strong level of order intake year to date has improved visibility and…
You will probably remember this slide from April this year, and we want to give you an update on the contract schedule in our Drilling business. In offshore, in terms of utilization, Im pleased to say that we are able to reconfirm that…
new contract will start from October at an improved daily rate. Statoil has now asked us to have the rig on stand-by for tree months at the lower standby day rate. So, full operation will resume in January. In Onshore Drilling, also…
Turning to the contracts won in the second quarter on slide 12. This is a record order intake, where we have won several large projects well matched to Saipems capabilities and business model. In addition, they cover all of Saipems main…
The marine activities will be performed mainly by the Saipem FDS2, and the fabrication of the risers system and the associated subsea equipment will be carried out at the Saipem Brazilian yard in Guaruj. This contract win is evidence…
Looking now at slide 13, in the Floaters business, Saipem has been awarded two contracts in West Africa by Total, for a combined total of more than 4 billion. The main contract is worth more than 3 billion, and is an EPCI for two FPSO…
It is relevant to note that a significant part of the new orders weve won this half have come from clients with whom Saipem is currently working on legacy contracts, demonstrating the strengthening and constructive nature of our…
This chart 15 illustrates the progress weve made so far this year in improving the quality of our E&C backlog, broken down between legacy low margin contracts and new contracts won on sound commercial terms. The IFRS restatement impact is…
I would like also to update you on progress made in the negotiations for outstanding claims and variation orders in relation to legacy contracts. Lets look at slide 16. In 2013 we identified, after two profit warnings, 21 critical…
Given the moving parts we have outlined in the preceding slides, we have slightly revised our guidance for FY 2014. As you may remember we decided to give a range to reflect the level of uncertainty on legacy contracts, the award of new…
Clearly the efficient execution of E&C legacy contracts also plays a part in determining EBIT for the full year. We expect Net Profit to be between 280 and 330m. Additionally, we confirm Capex for the year of 750m And, finally we have…
I would like to introduce the panorama of Saipem commercial opportunities by a market outlook update on slide 20. A recent survey of oil company expectations for E&P spending shows an anticipated 6.3% increase this year with National and…
You will remember this slide n21, illustrating the principal E&C projects for which we have tendered, and the awards of which were expected by year end. We have now updated the slide to include those contracts awarded to Saipem year to…
As we look forward beyond 2014, and as our business continues to normalise, we thought it would be helpful for shareholders to have a view of our medium term targets. If we look at slide 23, the picture we have presented here shows what…
organically continue to reduce and by the end of 2017 will be down to approximately 2 billion. 23
So in conclusion, during the first half of the year we have made further progress in the transition of Saipem towards sustained profitability. The components for a recovery are in place: disciplined new business wins; efficient management…
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