Presentation to the Financial Community. Preliminary 2010 Consolidated Results. February 2011

Transcription

1 Presentation to the Financial Community Preliminary 2010 Consolidated Results February 2011

2 Forward-Looking Statements By their nature, forward-looking statements are subject to risk and uncertainty since they are dependent on upon circumstances which should or are considered likely to occur in the future and are outside of the Company s control. These include, but are not limited to: monetary exchange and interest rate fluctuations, commodity price volatility, credit and liquidity risks, HSE risks, the levels of capital expenditure in the oil and gas industry and other sectors, political instability in areas where the Group operates, actions by competitors, success of commercial transactions, risks associated with the execution of projects (including ongoing investment projects), in addition to changes in stakeholders expectations and other changes affecting business conditions. Actual results could therefore differ materially from the forward-looking statements. The Financial Reports contain in-depth analyses of some of the aforementioned risks. Forward-looking statements are to be considered in the context of the date of their release. Saipem S.p.A. does not undertake to review, revise or correct forward-looking statements once they have been released, barring cases required by Law. Forward-looking statements neither represent nor can be considered as estimates for legal, accounting, fiscal or investment purposes. Forward-looking statements are not intended to provide assurances and/or solicit investment. 2

3 Presentation Outline FY 2010 Financial Results and Backlog Analysis Oil & Gas Industry Market Outlook Saipem Perspectives Offshore Onshore Offshore Drilling Beyond the Capex Plan 2011 Guidance Saipem 2011 & Beyond 3

4 FY 2010 Financial Results and Backlog Analysis 4

5 FY 2010 Financial Results (Mln ) Revenues EBITDA EBIT Net Profit Adjusted % on Revenues (7.0%) (29.1%) (50.7%) % on 1836 Revenues (7.8%) (28.1%) (53.6%) % on Revenues (6.0%) 59 (10.6%) (33.9%) % on Revenues (7.1%) 78 (11.3%) (34.4%) (18.7%) 832 (18.5%) 615 (14.2%) 613 (13.7%) Offshore Drilling Offshore Onshore Onshore All-time Records across the board Proposed dividend per share: 0.63 (+14.5%) 5

6 Capex FY 2010 Financial Results (Mln ) Sources and Application of Funds, Net Debt & D/E Ratio D/E = D/E = Offshore Drilling E Offshore Onshore Onshore Net Dec Outflows Application of Funds FY2010 Working Capital and Others Dividends & Shares Buyback Capex Sources of Funds FY2010 Inflows Net Dec Cash from Disposals Adjusted Cash Flow (Adjusted Net Profit + Depreciation) 6

7 FY 2010 Contract Acquisitions & Backlog (Mln ) New Contract Acquisitions Backlog Dec. 31, 09 Dec. 31, 10 Offshore Drilling Offshore Onshore Onshore All-time Record Backlog ( 20.5 Bln) 7

8 Backlog Analysis Saipem Backlog 20.5 Dec, by Client by Year of Execution 57% 4% 3% 36% 29% 13% 14% Major & Supermajor National Independent Others* (*) Mainly-downstream, Smaller and Others Offshore 44% 2011 Backlog split by Business Unit Off. On. Drilling Onshore 16% by Geo Area 17% 13% 5% 4% 18% 27% Middle East North Africa Europe America West Africa CIS Asia Pacific by Country Local Content Focus 15% 7% 5% 5% 4% 64% Algeria Angola Saudi Arabia Nigeria Kazakhstan Others 36% of present backlog in Countries where Saipem has a strong Local Content Commitment 8

9 Oil & Gas Industry Market Outlook 9

10 Oil & Gas Industry Market Outlook Bln US$ 800 Global Exploration and E&C Capex Outlook Exploration, appraisal & development of well Capex* Source: Deutsche Bank & Wood Mackenzie Jan E 2011E 2012E E&C Capex Oil&Gas Investments expected to return to record 2008 levels in 2012 (*) Excludes rig construction service Capex Bln US$ 500 Global E&C Capex Outlook -10% +4% +2% +3% Onshore Source: Deutsche Bank & Wood Mackenzie Jan E 2011E 2012E Offshore with E&C Capex underpinning the recovery Oil & Gas Industry Market Outlook turning positive 10 10

11 Saipem Perspectives - Offshore - Recent History Bln US$ Global Offshore E&C Spending - -7% -9% Bln Saipem Offshore Backlog - +16% +2% 100 Source: DB & Wood Mackenzie Jan E Saipem: resilient in tough times Outlook - Global Offshore E&C Spending Forecast - Bln US$ % +3% 100 Source: DB & Wood Mackenzie Jan E 2011E 2012E Spending hot themes DW & Extreme Frontier Ultra-DW Pipelines Developments 2011: first mild signals of a recovery expected to occur steadily in 2012 FDS 2 Usan Field Development Location: Nigeria SoW: EPIC URF Walker Ridge Export Pipeline Location: US GOM SoW: 220 Km Ø 24 oil pipeline New Assets already contributing to Backlog and Execution CastorOne Prepared for strong momentum in Deep/Ultra- deepwater Development and Extreme Pipelines Offshore Resilient, Disciplined through Recession, Poised to exploit Market Recovery 11

12 Saipem Perspectives - Onshore - Recent History Bln US$ Global Onshore E&C Spending - -12% +11% Bln Saipem Onshore Backlog - -13% +31% 200 Source: DB 100 & Wood Mackenzie 0 Jan E Backlog Quality & Quantity increased in complex market Outlook - Global Onshore E&C Spending Forecast - Bln US$ Source: DB 100 & Wood Mackenzie 0 Jan Iraq +2% -1% 2010E 2011E 2012E Spending hot themes NOCs LNG Market expected to stabilize on peak level since 2010 recovery E-P-C Model Continuous Improvement Flexibility & Cost Effectiveness Project-to-Project learning loops Improve Efficiency Reduce Risk Saipem diversified business lines and presence in key onshore markets exploiting positive market across Business Segments and Geographic Areas Gradual Revenue and Margin Improvement Onshore Exploiting Strong Market with Unique Industrial Model 12 12

13 Saipem Perspectives - Offshore Drilling - Recent History Utilisation Rate Saipem Fleet 100% Floaters >3000ft. 100% Floaters <3000ft. 100% Jackup* VS Worldwide Fleet 90% 90% 90% 80% Source: ODS Petrodata Rigs under contract, marketed utilisation 80% % % * All J-UP <400 ft, excluding Workover-only Niche Fleet outperforms the market Outlook Floaters >3000ft. Floaters <3000ft. Jackup* Dayrates Worldwide Market Forecast (Average) Source: ODS Petrodata US$x1000/dd E 2012E US$x1000/dd E 2012E US$x1000/dd E 2012E * All J-UP <400 ft, excluding Workover-only 6 Floaters >3000ft. 3 Floaters <3000ft. 6 Jackup* % of Saipem Capacity Currently contracted 2011 = 100% 2012 = 92% 2011 = 94% 2012 = 67% Benefiting from Long-Term Contracting Policy: Dayrates locked-in compare well with market trend 2011 = 67% 2012 = 18% Imminent Capacity availability to exploit Improving Dayrates 13

14 Beyond the Capex Plan 14

15 Saipem : Growth - without stressing Balance Sheet Saipem recent Sound Growth Bln Bln Bln % - Revenues - +6% +2% +8% +25% 14.2% 15.5% Net Profit Adjusted - +25% -EBITDA - +11% +15% EBITDA margin +1% +13% Robust results based on Strong Industrial Model 16.5%...while funding a massive Capex Plan In Service Caspian Fleet LandRigs FPSO: Vitòria Gimboa Perro Negro TAD To Be Delivered FDS 2 Karimun Yard Saipem Castoro 7 Scarabeo 8 Scarabeo 9 CastorOne Capex ~ 8 Bln (including 11E) FPSO: Aquila 2 maintaining Financial Discipline D/E = ,417 Net ,848 5,070 Application of Funds Capex Dividends 813 DD&A N.I. Sources of Funds Cash Flow Divestments Dec, Dec, : Net Debt increase < 2 Bln Gearing still below parity D/E =0.80 3,263 Net Capex Plan largely funded by solid cash flow generation 15

16 2011 Guidance Revenues: +5% EBITDA: +10% Net Profit Adjusted: +5% (including the impact of additional ~ 100 Mln depreciation and increased financial charges) Capex: ~ 1 Bln 16

17 Saipem 2011 & Beyond: poised for a further solid growth Encouraging Market Outlook 2011 Capex Target : 1 Bln 2011 & Beyond From Maintenance Capex to preserve quality: ~ 400 Mln per year Sustained Cash Flow Generation further reinforced by Enlarged Fleet, dominated by Powerful Distinctive Assets Generating Resources for De-leveraging Future Opportunities: New Local Content Potential - examples: Brazil, Iraq Technology to tackle future Frontiers - examples: Ultra-DW, Arctic Potential New FPSO investment 17

18 End of Presentation 18