Q4 2024 Saipem SpA Earnings Call Transcript
Key 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.
- 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.
Good morning, this is the conference operator. Welcome and thank you for joining the Saipem full-year 2024 results and strategy update presentation. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Alessandro Puliti, CEO and General Manager. Please go ahead, sir.
Good morning and welcome to the presentation of the Saipem full year 2024 results and strategy update. I'm here with Paolo Calcagnini, our CFO, and with the rest of the top management team. I will start with the key highlights and then Paolo will cover the financial results in more detail. We will then cover our strategic update, including 2025 guidance and medium-term targets. After our presentation, there will be time for Q&A.
Let's start with the key highlights. I'm pleased to report in the fourth quarter of 2024, Saipem recorded a further acceleration on all key metrics. In Q4, we posted the highest quarterly revenue ever and the
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