The following is a summary of the Saipem SpA (SAPMF) Full Year 2023 Earnings Call Transcript:
Financial Performance:
Saipem's revenue grew by 20% YoY and 16% QoQ, largely due to offshore activity in Q4 2023.
EBITDA rose to 91% YoY and 24% QoQ, generating a total cash flow of €91 million.
Saipem's Q4 2023 order intake increased 10% from Q3, leading to a book-to-bill of 1.6 times.
The 2023 operating cash flow was €586 million, and the free cash flow was €248 million, contributing to a gross debt reduction by over €200 million.
The net income for the year amounted to €179 million, with over €900 million originating from Q4 2023.
Saipem reported an EBITDA growth of 56% YoY, approximately €926 million, and an EBITDA margin increase from 6% to 7.8%.
The Asset Based Services line saw a revenue increase of 21% YoY, the Offshore Drilling's revenues grew 32% YoY, and the Energy Carriers business observed a 15% YoY revenue growth.
Business Progress:
The order intake in 2023 amounted to €18 billion, with offshore E&C projects making up two-thirds.
The company's backlog grew by 24% YoY and was over €30 billion at the end of 2023.
Saipem plans to distribute 30% to 40% of its cash flow as dividends, maintaining flexibility for energy transition investments.
The company is focusing on sectors such as offshore wind, blue solutions CO2 management, and biorefineries.
Saipem predicts an annual revenue growth of 4% to 5% from 2023 to 2027 and aims for an EBITDA margin of 12% by 2027.
Saipem plans to expand leased vessel operations in 2024 due to high demand for offshore E&C projects.
The company aims for further deleveraging in 2024, striving for a net-zero debt position, inclusive of IFRS liabilities.
More details: SAIPEM SPA IR
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