Saipem Spa

Good morning, this is the Coruscall Conference operator. Welcome and thank you for joining the SIPEM first half 2026 results. As a reminder, all participants are in listen-only mode and after the presentation there will be an opportunity At this time I would like to turn the conference over to Mr. Alessandro Puliti, CEO of Saipem. Please go ahead, sir.

Thank you and good morning. Thank you for joining the presentation of Saipem first half 2026 results. I'm here in Milan today with our CFO Paolo Calcagnini and with the other members of the top management team. The agenda for this session is the following. I will start with an overview of the key operational and financial highlights of the quarter. Paolo will then deep dive on the financial performance and I will conclude the presentation with few closing remarks. We will then open the floor to your questions. Let me begin with the key highlights of the second quarter. Saipem reported revenue of 3.8 billion euro in Q2, representing a growth of 8% quarter on quarter and 3% year on year. Despite the conflict in the Gulf, we made strong progress on all our projects, recording 1.2 billion euro revenue in the Middle East. We list project execution was robust, we suffered extra cost of 70 million euro because of the conflict. This impacted our profitability, especially in the asset-based services. Adjusted EBITDA in the second quarter stood at 402 million euro, representing a margin of 10.5%. Without these extra costs, we would have posted the second highest EBITDA since 2022. We are currently discussing with our clients about these extra costs and we think we will be able to recover a good portion of them. Notwithstanding the disruption brought by the conflict, our cash flow conversion keeps on improving. In the second quarter, we generated 189 million euro of free cash flow, bringing the overall cash generation in the first Our commercial activity has recently accelerated, leading to an order intake of 4.1 billion euros in Q2, corresponding to a book-to-bill of 1.1 times. We expect our order intake to accelerate even further in the second half. as already demonstrated by the 2.3 billion euro awards already announced in the month of July. Our revenue booking in the second quarter is consistent with the growth profile of the last four years and it represents the highest level recorded in Q2 ever. Coming to EBITDA, in Q2, we booked 402 million euro, reflecting the extra cost generated by the conflict. Also, as already mentioned, even considering this extra cost, our operating cash flow remains very robust in Q2 at 449 million euro, representing the second highest level of quarterly cash flow ever. The strong cash flow generation is a further demonstration of the continuous improvement achieved by Saipem in terms of conversion of EBITDA into cash. Let's now move to the order intake in Q2 and our... ...their intake of 5.7 billion euro for the first half of the year. Considering the 2.3 billion euros of award already signed in the month of July, We already reached a cumulative order intake of around 8 billion euro higher than when we achieved in the first nine months of 2025. We can confidently say that for 2026 we are on track to exceed the order intake achieved in 2025 also in the light of the various commercial discussions we are having with clients. Just to give you a bit more color, commercial discussions are relatively broad-based and revolve around projects in Latin America, Africa, Middle East and Far East. Let's now look at the recent order intake in the offshore ENC. The most recent award was signed with ENI in the Ivory Coast for the third development phase of Balene, located in water depths up to 1,300 meters. In addition, Azul Energy has awarded us the Greater Page development in Angola, which represents one of the most significant ultra-deepwater projects in sub-Saharan Africa, at a depth up to 2,000 meters.

The Bay Lane and the Page projects will