In This Article:
-
Revenue: EUR4.4 billion in Q4 2024, a 26% year-on-year increase and 19% quarter-on-quarter growth.
-
EBITDA: EUR424 million in Q4 2024, a 48% year-on-year increase and 25% quarter-on-quarter growth.
-
EBITDA Margin: 9.6% in Q4 2024, an improvement of 40 basis points from the previous quarter.
-
Net Debt Reduction: Decreased by EUR174 million in Q4 2024.
-
Order Intake: EUR5.3 billion in Q4 2024, with a book-to-bill ratio of 1.2 times.
-
Backlog: EUR34 billion, an all-time high.
-
Free Cash Flow: EUR505 million in 2024 post-repayment of lease liabilities.
-
Group Revenue: Increased by 23% year-on-year in 2024.
-
Net Result: EUR306 million, a 71% increase from the previous year.
-
Operating Cash Flow: EUR1.61 billion in 2024, nearly doubling from 2023.
-
Asset-Based Services Revenue: EUR8.1 billion in 2024, with a 33% increase in EBITDA margin.
-
Drilling Offshore Revenue: EUR918 million, a 24% increase year-on-year.
-
Energy Carriers Revenue: EUR5.6 billion, a 10% year-on-year increase.
-
Liquidity: Exceeded EUR3 billion at the end of 2024.
-
Dividend Proposal: EUR333 million for 2025.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Saipem SpA (SAPMF) achieved its highest quarterly revenue and EBITDA since 2012, with Q4 2024 revenue at EUR4.4 billion and EBITDA at EUR424 million.
-
The company reduced its net debt by EUR174 million in Q4, achieving a net cash position even post-IFRS 16.
-
Order intake was strong at EUR5.3 billion, with a book-to-bill ratio of 1.2, primarily driven by offshore E&C projects.
-
Saipem's backlog reached an all-time high of EUR34 billion, providing strong revenue visibility for the next two years.
-
The company generated EUR505 million of free cash flow in 2024, significantly outperforming its initial guidance, allowing for a proposed dividend more than three times higher than initial indications.
Negative Points
-
Additional provisions were required for the Courseulles and Thai Oil projects, impacting financial results.
-
The onshore E&C segment faced challenges, with a focus on reducing exposure to lump-sum EPC contracts and increasing risk contracts.
-
Revenue from the drilling offshore segment is expected to decline in 2025 due to fleet size reduction.
-
The energy carriers segment had a low EBITDA margin of 0.7% for 2024, despite a 10% revenue increase.
-
Lease liabilities are expected to almost double in 2025, increasing financial commitments.
Q & A Highlights
Q: Can you provide details on the provisions for the two problem contracts and the expected cash outflow for legacy projects over the next two years? A: Paolo Calcagnini, CFO: We don't disclose specifics for individual contracts, but the provisions are our best estimates for the work remaining. The cash outflows for these projects are included in our 2025 projections, and we believe they align with our forecasts.