The following is a summary of the Saipem SpA (SAPMF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Saipem's Q1 2024 revenues increased by 18% year-on-year to €3 billion, driven by their offshore activities.
The company achieved an EBITDA of €268 million, up 40% year-on-year.
EBITDA margin improved to 8.8% both sequentially and year-on-year.
Net debt continued to decrease, despite a net increase in lease liabilities of around €16 million.
Saipem generated €221 million of operating cash flow and maintained a net cash position of €284 million on a pre-IFRS 16 basis.
Moody's increased Saipem's credit rating by one notch to Ba2, retaining the positive outlook.
Business Progress:
Saipem's Q1 order intake was €2 billion, in line with expectations, and end-of-quarter backlog approximated to €29 billion.
Authorization was obtained from Exxon for the Whiptail project in Guyana, and discussions are advancing for two substantial opportunities in West Africa.
Saipem remained steady with regards to revenues and EBITDA for the Energy Carriers division and aims for growth compared to 2023.
The company focuses on finishing the outstanding legacy backlog, selectivity in new projects, and aims for margin recovery.
Saipem emphasizes on cash generation to further deleverage the company and sustain future dividend distributions. The company plans to expand its fleet in line with its asset-light strategy.
The company still plans to maintain its 2024 guidance, expecting a rise in order intake in the Middle East from the summer.
More details: SAIPEM SPA IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.