Saipem (SPM) Q3 2024 earnings summary

Executive summary

• Achieved record-high Q3 2024 order intake (€6.4B), revenue (€3.7B, +23% YoY), and EBITDA (€340M, +48% YoY), with 9M revenue at €10.13B (+21% YoY) and EBITDA at €905M (+41% YoY), driven by offshore E&C and major contract wins in the Middle East.

• Backlog reached a record €33.2B as of September 30, 2024, providing strong revenue visibility into 2025–2028 and supported by a robust commercial pipeline, especially in offshore and gas projects.

• Upgraded 2024 guidance: revenue expected above €14B, EBITDA above €1.3B, operating cash flow (post-leases) above €760M, and capex below €400M; dividend policy confirmed at 30–40% of free cash flow (post-leases).

• Net result for 9M 2024 was €206M, nearly triple YoY; net cash flow for 9M was €293M, with a pre-IFRS 16 net cash position of €509M as of September 30, 2024.

• Major Q3 contract awards included $3.0B from Aramco and $4.0B from QatarEnergy, with significant project completions and expansion into new markets.

Financial highlights

• Q3 2024 revenue: €3.7B (+23% YoY, +10% QoQ); EBITDA: €340M (+48% YoY, +14% QoQ); EBITDA margin: 9.2% (+40bps QoQ); 9M 2024 revenue: €10.13B (+21% YoY), EBITDA: €905M (+41% YoY), margin 8.9%.

• Net result for 9M 2024: €206M (vs. €79M in 2023); Q3 net result: €88M (vs. €39M in Q3 2023).

• Operating cash flow for 9M 2024: €731M (81% EBITDA conversion); net cash flow for 9M: €293M; free cash flow: €514M.

• Pre-IFRS 16 net cash position: €509M as of September 30, 2024; post-IFRS 16 net debt: €124M.

• Liquidity at September 30, 2024: €3.16B; gross debt: €2.23B; average cost of debt: 5%.

Outlook and guidance

• 2024 revenue expected above €14B, EBITDA above €1.3B, operating cash flow (post-leases) above €760M, and capex below €400M.

• Dividend policy confirmed: 30–40% of free cash flow (post-leases) to be distributed, with first dividend expected in 2025 based on 2024 results.

• Backlog provides strong revenue visibility for 2025–2026; E&C fleet fully booked for 2025–2026 and ~50% booked for 2027–2028.

• Asset Based Services accelerating, Energy Carriers progressing on legacy projects, and Drilling Offshore mitigating impact of temporary Saudi Aramco suspensions.