Saipem (SPM) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €6,418 million, up 20% year-on-year, with Q2 revenue at €3.4 billion, up 22% year-on-year and 11% quarter-on-quarter, mainly from offshore activities.

• Adjusted EBITDA for H1 2024 was €565 million, up 38% year-on-year, with Q2 EBITDA at €297 million, up 36% year-on-year and 11% quarter-on-quarter; EBITDA margin at 8.8%.

• Net result for H1 2024 was €118 million, compared to €40 million in H1 2023.

• Net cash position (pre-IFRS 16) at end of June 2024 was €394 million, with €1.3 billion available cash.

• Backlog reached €30.5 billion, with €7.1 billion in new contracts awarded and over 80% acquired since 2022.

Financial highlights

• Operating cash flow for H1 2024 was €455 million, more than triple the prior year.

• Free cash flow for H1 2024 was €271 million.

• D&A for H1 was €310 million; full-year expected at €710–720 million.

• Capital expenditure in H1 2024 was €194 million, mainly for vessel maintenance and upgrades.

• Net debt (post-IFRS 16) reduced to €148 million at end of Q2.

Outlook and guidance

• 2024 guidance confirmed, with strong backlog, commercial pipeline, and de-risked contract model supporting future revenue and margin visibility.

• Offshore E&C fleet utilization expected above 70% for 2024 and 2025.

• Full-year financial expense expected at €190–195 million; CapEx guidance at €450–460 million.

• Cash flow target for 2024 is €300 million, with H1 already ahead of pace.

• Positive margin expected for energy carriers division in H2, with mid-single-digit margin targeted over 3–4 years.