Good afternoon and welcome to the conference call to discuss Saipem first quarter 2014 results. Im here with Alberto Chiarini, Saipems Chief Financial and Compliance Officer and Salvatore Colli, Saipems Investor Relations. Today we…
Before we go into the detail, I would like to give you an overview of the first quarter. As you know, our management objective has been to take actions which will stabilise Saipem in order to put in place the foundations for a…
Before looking at the results in detail, I just want to draw your attention to the comparison of these numbers with those reported in Q1 2013. Especially for E&C Onshore, this is not entirely comparable since, as you recall, the Q1 2013…
equipment and resulted in damage of a portion of the pipeline being installed. A remedial action plan was implemented immediately and we have re-established safe operational conditions, which led to the installation activities being…
Turning to Net Debt, at the end of the quarter this stood at 5.56 bn, 850m higher than at the end of the fourth quarter 2013, reflecting the impact of the deterioration in working capital over the quarter. There are four major drivers…
Finally, coherently with the progress of the legacy contracts, there has been an increase in costs related to Change Orders still under negotiations of around 90 mln. There are a number of factors that give us confidence that…
Moving to the backlog and new order intake, we have had a good start to the year. During the first quarter, we have reported a good order intake across all 3 E&C business units, amounting to approximately 4 billion euros. Some 600m euro…
Looking now at the backlog by year of execution, you can see from this chart that out of the total backlog, 44% will be booked in 2014, 35% in 2015 and 21% in 2016 and onwards. In terms of the projects to be executed in 2014, we have…
starting with the Drilling business. In Offshore, in the first quarter we signed an agreement to extend Scarabeo 4 until the third quarter of 2015 at a flat day rate. As per the Scarabeo 3, at the moment we are completing the activity…
Id now like to update you on some significant news in the E&C business. During the first quarter, we were awarded the long awaited contract for the construction of the first line of the South Stream, for a total value of approximately 2…
Among the other major E&C awards in the quarter, it is worth mentioning the EPC for the Jankrik FPU for Eni, offshore Indonesia, for a total value of approximately 500 million dollars. The topside fabrication activities will be carried…
These new contracts confirm the strong commercial momentum we are seeing in the business. 13
In terms of our full year, we maintain the guidance we issued at the beginning of the year, which is as follows: Revenues of 12.5 13.6bn EBIT of 600 750m Net Profit of 280 380m Capex of 750m Net debt target of 4.2bn With respect…
2. Secondly, we have attractive commercial prospects which we are confident of converting into backlog over the course of the year. These will bring in additional down payments, further helping our working capital position. 3.…
As weve said, we are maintaining our guidance for 2014, but achieving the guidance will depend on a number of moving parts as set out on this slide, and now I will take you through them one by one.
First one is the efficient execution of the legacy contracts. This chart shows the breakdown of the E&C backlog between lower margin contracts and new contracts awarded since 2013, to be executed in both 2014 and 2015. Looking solely at…
The other two moving factors are the new order inflow and the time of execution of the new contracts. You will remember this slide from our full year results in February, illustrating the principal E&C projects up for tender whose award…
Americas and in the Middle East, where the projects still up for award play to Saipems core strengths, both from geographical and technological perspectives. Timing of award and execution of future contracts will be another important…
To sum up: we have made solid progress in the first quarter of 2014 towards stabilising the business and delivering the recovery. On the legacy contracts, we confirm our constructive on-going relationships with clients and the…
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