Presentation to the Financial Community. First Half 2011 Results

Transcription

1 Presentation to the Financial Community First Half 2011 Results July 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 1H 2011 Financial Results and Backlog Analysis Oil & Gas Industry Trends - Saipem Preparedness Trend 1: LNG Growth Saipem Preparedness : Saipem-Chiyoda Co-operation Trend 2: Larger, More Sophisticated Projects Saipem Preparedness : New Integrated E&C Business Unit Trend 3: Larger, Tougher Challenges Saipem Preparedness : More Powerful, High Quality Assets Recent Events - Saipem Responsiveness MENA Turmoil Saipem Resilience in traditional Local Content Countries 2011 Guidance Confirmed 3

4 Presentation to the Financial Community - First Half 2011 Results 1H 2011 Financial Results and Backlog Analysis 4

5 1H 2011 Financial Results (Mln ) Revenues EBITDA EBIT Net Profit % on Revenues (16.0%) (7.6%) (27.7%) (52.6%) % on Revenues (16.8%) (8.6%) (31.1%) (53.1%) % on Revenues (11.6%) (6.9%) (10.8%) (34.1%) % on Revenues (11.8%) (8.0%) (12.5%) (27.5%) (18.4%) 436 (18.4%) 298 (13.8%) 322 (13.6%) 1H H H H H H H H 2011 Drilling 1H Record Results 5

6 1H 2011 Financial Results Capex 25 (Mln ) Sources and Application of Funds, Net Debt & D/E Ratio D/E = D/E = H H E Net Application of Funds 1H 11 Sources of Funds 1H 11 Net 11 Drilling Outflows Working Capital and Others Dividends & Shares Buyback Inflows Cash Flow (Net Profit +Depreciation) Capex 6

7 1H 2011 Contract Acquisitions & Backlog (Mln ) Contract Acquisitions Backlog H H 2011 Dec., June, Drilling 7

8 Backlog Analysis Saipem Backlog June, % by Client 6% 2% by Geo Area 35% Major & Supermajor National Independent Others 13% 15% 11% 8% 18% 4% 31% Middle East Europe America North Africa West Africa Asia Pacific CIS by Year of Execution 41% by Country Local Content Focus 12% Off. On. Drilling Saudi Arabia Angola Canada Others 23% 21% 15% 2011 Backlog split by Business Unit 10% 5% 4% 3% 3% 37% of present backlog in Countries where Saipem has a strong Local Content 63% Commitment Algeria Nigeria Kazakhstan

9 Presentation to the Financial Community - First Half 2011 Results Market Trends - Saipem Preparedness 9

10 Oil & Gas Industry Trends: 1. LNG Growth LNG Market-expected boom: Expected increase in natural gas and LNG consumption due to combined effect of: impact of Fukushima disaster on Nuclear Energy dependence expected energy demand increase Mln US$ LNG Capex spent on Top 330 projects - tripling E - Expected LNG FLNG Developments 60,000 50,000 40,000 Middle East Latin America YAMAL LNG (Novatek) Russia 30,000 20,000 10, Europe Asia-Pacific Africa BRASS LNG Nigeria MASELA FLNG (INPEX) Indonesia ARROW LNG QLD, Australia E 2012E 2013E 2014E 2015E Source: Goldman Sachs, June 2011 PETROBRAS FLNG Brazil BROWSE LNG Western Australia 10

11 Saipem Preparedness : 1. Saipem-Chiyoda Co-operation Saipem and Chiyoda to collaborate on an exclusive basis (integrated JV) to develop: LNG and Gas Treatment projects Upstream projects on a case-by-case basis Complementary skills: Chiyoda: impressive track record in LNG liquefaction (Main contractor for 15 of the 47 LNG projects currently in operation) Saipem: outstanding Engineering/Project Management and Execution capabilities key success-factors for Large projects Saipem: strong Local Presence in Key oil & gas Markets First achievement: Chiyoda & Saipem together with CB&I Lummus Global currently carrying out Browse LNG Competitive FEED in Western Australia 11

12 Oil & Gas Industry Trends: 2. Larger, More Sophisticated Projects Increased Size and Complexity of Projects Projects: Larger, More Sophisticated, Increased Engineering Content Environment: Harsher, More Remote, More Extreme & Projects: Overlapping Technology & Execution Capacity NOCs Increasing Influence spreading from to Client Requirements & Contracting Strategies: Less Differentiation 12

13 Saipem Preparedness : 2. New Integrated E&C Business Unit and Business Units merged into a New Single Fully-Integrated E&C Business Unit: Impressive Integrated Services Available Across-the-board : 1st Class Engineering Large Capacity Proven Execution Knowhow Powerful Hi-Tech global Fleet Local Content distinctiveness Targeting even the most challenging and technologically advanced projects, offshore and onshore Superior capabilities for harsh, remote and difficult environments Emphasis on maximizing local presence and content E&C vs Reported Separately given different Margin and Capital Employed 13

14 Oil & Gas Industry Trends: 3. Larger, Tougher Challenges shifting more and more towards Frontier developments Arctic Drivers: Hi-potential from Unexplored/Undeveloped areas LARGE TRUNKLINES PROJECTS Stokman Oil reserves discovered each year in giant fields (Top 330 projects) The bulk of new discoveries in Frontier Areas MM bbl 12,000 South Stream GALSI Australian Trunklines 9,000 Frontier 6,000 3, Source: Goldman Sachs, June 2011 Frontier Traditional Traditional DW & Ultra DW: Drivers: Brazil pre-salt ultra-deepwater frontier West Africa and GoM large deepwater projects recovery Extreme Pipelines (Longer, Larger, Deeper, Colder) Drivers: Increase in gas demand New gas-to-market routes 14

15 Saipem Preparedness : 3. More Powerful, High Quality Assets To face the challenges of the future Saipem Scarabeo 8 Scarabeo 9 FDS 2 CastorOne E&C New Assets Most Recent Awards: FDS 2 Liwan 3-1 Field Deepwater EPCI - Husky Oil - China Guara & Lula-Northeast gas export pipelines EPCI - Petrobras - Brazil CastorOne Walker Ridge export pipeline 24 x 220Km -Amberjack Pipeline Company -US GOM Deepwater June, Bln of which 66% from New Assets 66% 34% DW Backlog from New Assets Other DW Backlog *DW: E&C + Drilling 15

16 Recent events: Saipem Responsiveness MENA Turmoil - Saipem Resilience in traditional Local Content Countries Saipem presence in MENA: Solid Order Inflow in 1H 2011: Egypt: Burullus Gas Company - West Delta Deep Marine Concession new subsea developments Saudi Arabia: - Saudi Aramco - Al Wasit Gas Program - Saudi Aramco - charter of 4 onshore rigs (3 rigs for 4 years; 1 rig for 1 year) In times of uncertainty, Local Content commitment is more Sustainable, Less Risky Business environment getting back to normality 16

17 2011 Guidance Confirmed CONFIRMED 2011 April 2011 Revenues: +8% EBITDA: +12% Net Profit Adjusted: +8% (including the impact of additional ~ 100 Mln depreciation and increased financial charges) Capex: ~ 1.1 Bln 17