Presentation to the Financial Community 1H 2015 Consolidated Results San Donato Milanese, July 28, 2015
Presentation Outline 1. Opening Remarks: 90 days in the job 2. 1H 2015 Financial Results 3. Business Review 4. Guidance 5. Q&A 3
1. Opening Remarks: 90 days in the job 4
90 Days into the Job: a Foundation of Core Strengths Strong HSE culture and unmatched technical capabilities Global leader in the sector with a well diversified business portfolio Brand image, clients portfolio and industry…
90 Days into the Job: Main Challenges Market Oil price driving Clients capex cut and pressure on supply chain Worsening scenario in specific geographic areas/market segments Reduced visibility on new awards/delayed FIDs…
90 Days into the Job: Actions Undertaken Fit for the Future: shaping Saipem to the new oil order Overall cost saving target of 1.3 billion over 3Y Asset base rationalisation Impairment and write downs on asset for 211 million…
Fit for the Future: preliminary cost savings Preliminary Impacts (Cumulative 2015-17) Cost Reduction by Allocation 300mn Cost FTE Actions saving reduction Geographic Footprint Optimization 500 mn 5,000 450mn Complexity Reduction…
Fit for the future: asset base optimisation preliminary results Actions Dismissal of obsolete vessels with expensive running costs and rationalization of fabrication yards Area of focus Offshore Fleet: 4 Construction vessels 1…
Strategic Review Key Guidelines Cost Optimisation and Business Portfolio Process Efficiency Refocus and Relaunch Business De-Risking Technology and Innovation Evolving for a renewed leadership 10
Focus on technology and innovation Top Five priority areas SURF Technologies: New systems/solutions for risers and flowlines (including flow assurance) Heavy items subsea installation, reeling and related vessel/equipment Materials…
2. 1H 2015 Financial Results 12
1H15 Financial Results (mn ) EBIT Net Result 139 (718) (579) (211) (790) (920) 1H15 Working 1H15 1H15 1H15 Non-cash Underlying Capital Adjusted Items Reported Reported Items 13
1H15 Net Debt Evolution (bn ) 0.50 5.53 0.89 (0.16) 4.42 (0.39) 0.27 Net Debt Net Debt Dec. 31, 2014 June 30, 2015 Cash Flow Capex Working Capital Others Forex on Hedging (Underlying NI + D&A) Derivatives 15
3. Business Review 16
1H15 Backlog and new orders (mn ) 22,147 5,373 3,500 19,018 Backlog 1H15 1H15 Contracts South Stream Backlog Dec 31, 2014 Revenues Acquisition Termination Impact June 30, 2015* and Scarabeo 5 E&C Offshore E&C Onshore…
Update on Drilling Offshore Drilling fleet contracts Committed Stand-by New contract Under rolling negotiations CLIENT LOCATION Saipem 12000 Total Angola DEEP-WATER Saipem 10000 Eni Worldwide Scarabeo 9 Eni Angola Scarabeo 8…
Update on E&C business new opportunities Central Asia / Europe: NCOC Kashagan early production pipelines Lukoil Filanovsky Phase 2 fixed facilities BP Shah Deniz Ph. 2 Operational Construction Vessel - SURF Lotos Delayed Coker…
Update on E&C business new opportunities 1. Transcanada Prince Rupert Pack. 2-3: shortlisted contractor. Obtainment of permits by Client ongoing. 2. Radomiro Codelco Tomic: negotiations ongoing with Client. 3. Anadarko Onshore…
4. Guidance 22
Update on 2015 Guidance Revenues: 12 bn EBIT adjusted: (250) mn EBIT: (450) mn Net Result: (800) mn Capex: < 600 mn Net Debt: 5.0 bn (*) * Excluding impact of currency fluctuation 23
Key Takeaways Current trading and short term expectations impacted by the context Saipem is built on solid foundation of competences and values to overcome market challenges Fundamental actions have been taken to tackle immediate…
Loading...
