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.

• Net profit for 9M 2024 reached €206M (up from €79M YoY); net cash flow for 9M was €293M, with a net cash position (pre-IFRS 16) of €509M as of September 30, 2024.

• Order intake for 9M 2024 exceeded €13B, with a record-high backlog of €33.2B as of September 30, 2024, providing strong multi-year visibility.

• Upgraded 2024 guidance: revenue >€14B, EBITDA >€1.3B, free cash flow ~20% above prior guidance, and robust dividend policy confirmed.

• Major offshore E&C awards in Saudi Arabia and Qatar, successful completion of Scarborough pipeline, and entry into Namibia and Azerbaijan for exploration.

Financial highlights

• Q3 2024 revenue: €3.7B (+23% YoY, +10% QoQ); EBITDA: €340M (+48% YoY, +14% QoQ); EBITDA margin: 9.2%.

• 9M 2024 revenue: €10.13B (+21% YoY); EBITDA: €905M (+41% YoY), margin 8.9%; net result: €206M (vs. €79M YoY); operating cash flow: €731M (+>3x YoY).

• Net cash flow in Q3: €115M; 9M net cash flow: €293M; net cash position (pre-IFRS 16): €509M.

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

• Free cash flow for 9M: €514M (vs. €76M YoY); capital expenditure for 9M: €246M (+19% YoY).

Outlook and guidance

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

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

• Full fleet booked through 2026; strong demand visibility into 2027–2028, with further awards expected.

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