The following is a summary of the Saipem SpA (SAPMF) Full Year 2023 Earnings Call Transcript:

Financial Performance:

• Saipem's revenue grew by 20% YoY and 16% QoQ, largely due to offshore activity in Q4 2023.

• EBITDA rose to 91% YoY and 24% QoQ, generating a total cash flow of €91 million.

• Saipem's Q4 2023 order intake increased 10% from Q3, leading to a book-to-bill of 1.6 times.

• The 2023 operating cash flow was €586 million, and the free cash flow was €248 million, contributing to a gross debt reduction by over €200 million.

• The net income for the year amounted to €179 million, with over €900 million originating from Q4 2023.

• Saipem reported an EBITDA growth of 56% YoY, approximately €926 million, and an EBITDA margin increase from 6% to 7.8%.

• The Asset Based Services line saw a revenue increase of 21% YoY, the Offshore Drilling's revenues grew 32% YoY, and the Energy Carriers business observed a 15% YoY revenue growth.

Business Progress:

• The order intake in 2023 amounted to €18 billion, with offshore E&C projects making up two-thirds.

• The company's backlog grew by 24% YoY and was over €30 billion at the end of 2023.

• Saipem plans to distribute 30% to 40% of its cash flow as dividends, maintaining flexibility for energy transition investments.

• The company is focusing on sectors such as offshore wind, blue solutions CO2 management, and biorefineries.

• Saipem predicts an annual revenue growth of 4% to 5% from 2023 to 2027 and aims for an EBITDA margin of 12% by 2027.

• Saipem plans to expand leased vessel operations in 2024 due to high demand for offshore E&C projects.

• The company aims for further deleveraging in 2024, striving for a net-zero debt position, inclusive of IFRS liabilities.

More details: SAIPEM SPA IR

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