Q2 2024 Saipem SpA Earnings Call Transcript
Key Points
- Saipem SpA (SAPMF) recorded the highest quarterly EBITDA since Q4 2019, with a 36% year-on-year increase.
- Revenue grew by 22% year on year, reaching EUR3.4 billion, driven largely by offshore activities.
- The company generated EUR110 million of net cash flow in Q2, an acceleration from EUR68 million in Q1.
- Order intake was strong at EUR5.1 billion, with a book-to-bill ratio of 1.5 times, and the backlog stands at a record level of over EUR30 billion.
- Net debt has decreased both on a pre- and post-IFRS basis, indicating effective deleveraging and risk management strategies.
- The EBITDA margin remained at 8.8%, showing no improvement from the first quarter.
- The offshore drilling division faced downtime and startup costs, impacting overall performance.
- Temporary suspensions from Saudi Aramco affected three jack-ups, leading to a slight decrease in expected EBITDA for the second half.
- The energy carriers division reported a 0% EBITDA for Q2, impacted by provisions for the Thai oil project.
- There are ongoing challenges in the offshore wind market, with fewer bidding opportunities and higher costs affecting project economics.
Good morning. This is the Chorus Call conference operator. Welcome and thank you for joining the Saipem first half 2024 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Alessandro Puliti, CEO of Saipem. Please go ahead.
Good morning and welcome to the presentation of Saipem results for first half of 2024. I'm here with Paolo Calcagnini, our CFO; and with the rest of the top management team. I will start with the key highlights, and then Paolo will cover the financial results in more detail. I will then wrap up with my closing remarks before start in the Q&A session.
Let's start with the key highlights. I'm pleased to report that in the second quarter of 2024, Saipem recorded an acceleration on both order intake and cash flow generation. We also posted the highest quarterly EBITDA since Q4 2019.
Revenue stood at EUR3.4 billion, growing by 22% year on year and 11%
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