Saipem reported diminishing losses in its full-year results, after a year marred by lossmaking wind contracts and the departure of its CEO.
The Italian engineering giant (MI:SPM) posted a pre-tax loss of €162m for full-year 2022, or €209m net – a far cry from the €2.4 billion lost in 2021.
Revenues grew by more than 50% on 2021 to €9.9bn, almost one-third of which was generated in Q4. This included major work won with Qatargas at North Field, ExxonMobil off Guyana and Petrobel at the Zohr field.
The group booked about €14bn in contracts through 2022, €6bn of which came in Q4 and almost entirely in its offshore business, which includes engineering and construction and offshore drilling.
Shares rose on the news during early trading Tuesday, though slid back to prior levels by mid morning.
The results mark the beginnings of a possible turnaround for the firm, after a surprise profit warning a year ago sent shares to their lowest since 1992.
Despite a rescue plan and a €2bn capital raise, diminished confidence in the company’s plans prompted a stock plunge and later forced the resignation of chief executive Francesco Caio last summer, who was shortly replaced by industry veteran Alessandro Puliti.
Meanwhile Tuesday’s update also saw reports of solid progress on the sale of its onshore drilling division to KCA Deutag.
Units in Saudi Arabia, the Congo, the UAE and Morocco have been sold, with activities in Kuwait transferred in January 2023. The remaining businesses in the Americas, Kazakhstan, and Romania will be transferred within the first half of 2023, it said.
Looking to 2023, the company forecasts revenues of over €11bn, breakeven cash flow and capex of around €450 million, including capital to prepare new leased vessels to meet “growing demand” from clients.
Commenting on the results Mr Puliti stated: “Besides the obvious satisfaction for the economic and financial results of 2022, I believe it is essential to highlight that reaching these results was possible thanks to the efforts of over 30,000 colleagues in 70 countries all over the world.
“Their contribution shows the wealth of skills, abilities and focus on the result that represents Saipem’s culture. To them goes my first and personal thanks.”
Total backlog as of December 31 amounted to €24bn, of which €10bn is slated to be executed in 2023.
Meanwhile, continued restructuring efforts and the creation of a new offshore wind division this month will also change how the company reports on its business lines.
Its current four lines will be condensed to three from this quarter, comprised of: asset-based services, to include offshore engineering, construction and offshore wind; offshore drilling; and energy carriers, which will include the onshore E&C, sustainable infrastructures, and robotics.
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