Saipem (SPM) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of €14.5 billion, up 23% year-on-year, with adjusted EBITDA of €1.329 billion (+44% YoY) and net result of €306 million (+70% YoY).

• Q4 2024 revenue was €4.4 billion (+26% YoY, +19% QoQ), with EBITDA of €424 million (+48% YoY, +25% QoQ), the highest quarterly EBITDA since 2012.

• Net debt (pre-IFRS 16) reduced by €467 million, ending with a net cash position of €683 million at year-end 2024.

• Order intake reached €5.3 billion in Q4 2024, with a record-high backlog of €34 billion, covering 90% of 2025 and 70% of 2026 revenues.

• Three consecutive years of exceeding guidance for revenue, EBITDA, and cash flow.

Financial highlights

• Full-year 2024 group revenue rose 23% year-on-year to €14.5 billion; adjusted EBITDA grew 44% to €1.329 billion, with margin up to 9.1% from 7.8%.

• Net result was €306 million, up 71% year-on-year; operating cash flow nearly doubled to €1.061 billion.

• Asset Based Services revenue reached €8.1 billion (+33%), EBITDA €954 million (+55%), margin 11.8%.

• Offshore Drilling revenue €918 million (+24%), EBITDA €335 million (+11%), margin 36.5%.

• Energy Carriers revenue €5.6 billion (+10%), EBITDA margin 0.7% for 2024.

Outlook and guidance

• 2025 revenue expected at ~€15 billion, EBITDA at ~€1.6 billion, with margin up over 100 bps.

• Free cash flow after lease repayments projected above €500 million in 2025; accumulated free cash flow for 2025-2028 expected to exceed €2.2 billion.

• Dividend proposal of €333 million for 2025 and at least €300 million for 2026; shareholder remuneration policy upgraded to distribute at least 40% of free cash flow post-lease repayments.

• Minimum available cash of €1 billion and gross debt reduction of €650 million by 2027 targeted.

• Strategic plan focuses on execution excellence, capitalizing on oil & gas up-cycle, new onshore E&C paradigm, and energy transition.