The following is a summary of the Saipem SpA (SAPMF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Saipem's Q1 2024 revenues increased by 18% year-on-year to €3 billion, driven by their offshore activities.

• The company achieved an EBITDA of €268 million, up 40% year-on-year.

• EBITDA margin improved to 8.8% both sequentially and year-on-year.

• Net debt continued to decrease, despite a net increase in lease liabilities of around €16 million.

• Saipem generated €221 million of operating cash flow and maintained a net cash position of €284 million on a pre-IFRS 16 basis.

• Moody's increased Saipem's credit rating by one notch to Ba2, retaining the positive outlook.

Business Progress:

• Saipem's Q1 order intake was €2 billion, in line with expectations, and end-of-quarter backlog approximated to €29 billion.

• Authorization was obtained from Exxon for the Whiptail project in Guyana, and discussions are advancing for two substantial opportunities in West Africa.

• Saipem remained steady with regards to revenues and EBITDA for the Energy Carriers division and aims for growth compared to 2023.

• The company focuses on finishing the outstanding legacy backlog, selectivity in new projects, and aims for margin recovery.

• Saipem emphasizes on cash generation to further deleverage the company and sustain future dividend distributions. The company plans to expand its fleet in line with its asset-light strategy.

• The company still plans to maintain its 2024 guidance, expecting a rise in order intake in the Middle East from the summer.

More details: SAIPEM SPA IR

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