Saipem expects to close 2021 with a loss of more than a third of the share capital

Specifying that the Board of Directors, chaired by Silvia Merlo, met over the weekend to examine the scenarios resulting from the work in progress by the management for the preparation of the consolidated results before the 31st December 2021, Saipem explained that "the backlog review initiated by the management in anticipation of the final balance of the results of the trend of the orders acquired in recent years, highlights, due to the persistence of the context of the pandemic, the current and prospective increase in raw material costs, and of logistics, a significant deterioration in margins full-life economic of some E&C projects Onshore and Offshore wind with consequent effect, in application of international accounting standards, on economic results saipem's consolidated products'.

Illustrating the latest forecasts made, Saipem has specified whereas the preliminary estimates deriving from the activities of preparation of the preliminary consolidated results for 2021 still in course highlight, compared to the outlook communicated to the market on 28 October 2021: Consolidated adjusted EBITDA for the second half of 2021 a reduction of about one billion euros compared to the outlook of Positive consolidated adjusted EBITDA, reduction entirely traceable: to the backlog review for E&C Onshore projects for which the increase in costs for materials and logistics is, depending on the types of contracts, only partially recoverable, and to the recent additional difficulties of projects offshore wind, where impacts from critical supplies are combined with revision of estimates of execution times and costs. Contraction of consolidated revenues for the second half of 2021 of 4.5 billion euros to €3.5 billion. The forecast of rising lifetime costs the entire amount shown above leads to a decrease in margins of projects which, as a result of the application of the principles international accountants, is also reflected in a reduction in Revenues. Considering also lower volumes for reimbursable costs (without effect on EBITDA) and the slowdown in the progress of some orders for the protracted pandemic, revenues consolidated for the second half of 2021 are expected to reach 3.5 billion of euros, compared to the outlook of about 4.5 billion euros. Capex for about 0.16 billion euros, compared to the outlook of about 0.25 billions of euros for the second half of 2021. It results instead in improvement in the net financial position at the end of 2021, equal to about 1.5 billion euros compared to the outlook of about 1.7 billions of euros'.

"As a result of the above represented - continues the Saipem note - Saipem's 2021 statutory financial statements are expected to close with losses of more than one third of the capital social, integrating the conditions provided for by art. 2446 of the code civil. The occurrence of these conditions may determine, after the expiry of the contractual terms (where applicable), and unless specific waivers are obtained from bank counterparties, the onset of their right to accelerate the expiry of some outstanding loans in favour of the Saipem group. Per Saipem has initiated preliminary contacts with these bank counterparties in order to treat in advance the potential effects on financing contracts resulting from the occurrence of the case referred to in art. 2446 of the code civil. Saipem has also initiated preliminary contacts with the shareholders exercising joint control over the company, ENI Spa and CDP Industria Spa, in order to verify their willingness to participate in a timely and adequate financial manoeuvre'.