ANNUAL REPORT
2023
MISSION
We have pledged to work alongside our clients and transform their strategies and projects into safe, competitive,
sustainable infrastructures, plants and processes. We will accompany them along their path towards energy and
ecological transition and support their journey towards Net Zero.
VALUES
We value creative talent. We look after people and the environment and are committed to building relationships of
trust. We encourage an appreciation of diversity and we promote inclusivity.
ESEF (European Single Electronic Format) requirements
This report has not been prepared in accordance with the EU Delegated Regulation 2019/815 (ESEF Regulation),
implementing the Transparency Directive. The Annual Report in ESEF format (only in Italian language) is published in the
specific section of the Company’s website (www.saipem.com, Quarterly Results and Documentation) and is available at
the centralised storage mechanism authorised by Consob “eMarket STORAGE” (www.emarketstorage.com).
Disclaimer
By their nature, forward-looking statements are subject to risk and uncertainty since they are dependent upon
circumstances which should or are considered likely to occur in the future and are outside of the Group’s control.
These include, but are not limited to: exchange and interest rate fluctuations, commodity price volatility, credit and
liquidity risks, HSE risks, the levels of capital expenditure in the oil 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 pandemic risks, our procurement chain and 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 and data are to be considered in
the context of the date of their release.
COUNTRIES IN WHICH SAIPEM OPERATES
EUROPE
Albania, Austria, Belgium, Bulgaria, Cyprus, Denmark, France, Germany, Greece, Italy, Jersey, Luxembourg,
Netherlands, Norway, Poland, Portugal, Romania, Serbia, Spain, Sweden, Switzerland, Turkey, United Kingdom
AMERICAS
Argentina, Barbados, Bolivia, Brazil, Canada, Chile, Colombia, Ecuador, Guyana, Mexico, Peru, Suriname, Trinidad
& Tobago, United States, Uruguay, Venezuela
CIS
Azerbaijan, Kazakhstan, Russia
AFRICA
Algeria, Angola, Congo, Côte d'Ivoire, Egypt, Equatorial Guinea, Gabon, Ghana, Libya, Mauritania, Morocco,
Mozambique, Nigeria, Senegal, South Africa, Tanzania, Tunisia
MIDDLE EAST
Bahrain, Iraq, Israel, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates
FAR EAST AND OCEANIA
Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Myanmar, Singapore, South Korea, Thailand,
Vietnam
BOARD OF DIRECTORS AND STATUTORY AUDITORS OF SAIPEM SpA
BOARD OF DIRECTORS1
Chairman
Silvia Merlo
BOARD OF STATUTORY AUDITORS2
Chairman
Giovanni Fiori
CEO - General Manager
Alessandro Puliti3
Directors
Roberto Diacetti, Alessandra Ferone,
Patrizia Michela Giangualano, Davide Manunta4,
Marco Reggiani, Paul Schapira, Paola Tagliavini
INDEPENDENT AUDITORS
KPMG SpA5
Statutory Auditors
Antonella Fratalocchi
Ottavio De Marco
Alternate Statutory Auditors
Maria Francesca Talamonti
Raffaella Annamaria Pagani
(1) Appointed by the Shareholders’ Meeting on April 30, 2021, for financial years 2021, 2022 and 2023, and in any case up to the date of the
Shareholders’ Meeting which will be called to approve the financial statements as at December 31, 2023.
(2) Appointed by the Shareholders’ Meeting on May 3, 2023, for three years, its mandate expiring at the Shareholders’ Meeting convened to approve
the financial statements as at December 31, 2025.
(3) Pursuant to Article 2386 of the Italian Civil Code, the Shareholders’ Meeting on May 3, 2023, appointed Alessandro Puliti as member of the Board
of Directors, his mandate expiring together with those of the current Directors, i.e., at the Shareholders’ Meeting convened to approve the financial
statements as at December 31, 2023. On May 3, 2023, the Board of Directors confirmed Alessandro Puliti, already General Manager of the Company,
as Chief Executive Officer.
(4) Pursuant to Article 2386 of the Italian Civil Code, the Shareholders’ Meeting on May 3, 2023, appointed Davide Manunta as member of the Board of
Directors, his mandate expiring together with those of the current Directors, i.e., at the Shareholders’ Meeting convened to approve the financial
statements as at December 31, 2023.
(5) The Shareholders’ Meeting of May 3, 2018, resolved to appoint KPMG SpA as the independent auditors from 2019 to 2027.
ANNUAL REPORT
2023
Letter to the Shareholders
Structure of the Saipem Group
Directors’ Report
Saipem SpA share performance
Operating Review
Organisational structure
Organisational structure: reporting
Continuing and Discontinued operations and non-current assets held for sale
Market conditions
New contracts and backlog
Capital expenditure
Asset Based Services and Offshore Wind
Asset Based Services
Offshore Wind
Energy Carriers, Sustainable Infrastructure and Robotics & Industrialized Solutions
Energy Carriers
Sustainable Infrastructures
Robotics & Industrialized Solutions
Offshore Drilling
Financial and economic results
Operating results
Balance sheet and financial position
Reclassified statement of cash flows
Key profit and financial indicators
Research and development
Human resources
Digital, ICT Services
Governance
Risk management
Additional information
Reconciliation of reclassified statement of financial position, income statement
and statement of cash flows with the mandatory templates
Glossary
Consolidated Non-Financial Statement
Consolidated financial statements
Statement of financial position
Notes to the consolidated financial statements
Information regarding censure by Consob pursuant to Article 154-ter, subsection 7,
of Legislative Decree No. 58/1998 and the notice from the Consob offices dated April 6, 2018
Management’s certification
Independent Auditors’ Report
2
5
10
12
12
12
12
13
13
14
16
17
20
23
23
27
27
29
31
31
36
39
40
42
50
54
57
58
72
75
77
82
206
214
317
321
322
Ordinary Shareholders’ Meeting of May 14, 2024
Notice of the Shareholders’ Meeting was published on the Company website and an excerpt was published in the daily
newspaper “Il Sole 24 Ore” on April 4, 2024.
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SAIPEM ANNUAL REPORT 2023
LETTER TO THE SHAREHOLDERS
Dear Shareholders,
upon completion of the capital increase (July 2022) which allowed the Group to strengthen its capital and financial
structure and taking into account the success of the issue of the convertible bond (September 2022), we
continued our commitment to create real and sustainable value for our stakeholders. We started from good
economic and financial results, and improved reliability, security and reputation of our projects by investing in low
environmental
impact technologies for sustainable business, as well as developing ethical values and
competences of our people, expanding our responsibilities on social, local development and environmental
issues, and consolidating our role as facilitator of the ecological and energy transition.
2023 results exceeded the expectations of the Strategic Plan, showing a continuous growth of revenue and
margins during the year, a good flow generation, and a significant improvement in the financial situation. The net
profit of €179 million at the close of the year and the amount of new orders, around €18 billion, testify to the
Group’s recovered competitiveness.
Saipem renewed the strategic lines presented in February 2023, confirming the Group’s improvement in
performance and its ability to benefit fully from the favourable situation of the market. The 2024-2027 Strategic
Plan entails an increase in economic and financial objectives and a diversification of supply in favour of the
low/zero carbon segment for energy transition.
The 2024-2027 Strategic Plan is based on fundamental pillars, such as (i) excellence in the execution of the €30
billion order backlog with a higher integration of skills and optimisation of asset use, and (ii) the “One Saipem”
approach, with the ability to implement integrated onshore/offshore projects, which will constitute around 20% of
forecasted pan revenue, associated to (iii) operational flexibility, also thanks to a vessel management strategy
based on a capital-light approach aimed at maximising operational flexibility and financial discipline without
neglecting (iv) innovation and energy transition solutions with a commercial focus on consolidated technologies
such as Offshore Wind, CCUS (Carbon Capture Utilization and Storage), green and blue hydrogen, ammonia and
subsea robotics, in addition to research and development of new groundbreaking technologies in the low/zero
carbon sector. The Board of Directors also approved a dividend policy that includes the payment of the dividend
in 2025 on the results expected in 2024. The return to dividend for stakeholders supported by the forecast of a
significant cash flow generation, with a 30-40% payout ratio on Free Cash Flow (after rent).
2023 results
The acquisition of new orders, revenue and significantly growing margins confirm the improvement of the Group’s
operational performance. 2023 closed with revenue of €11,874 million, up around 20% compared to 2022.
Adjusted EBITDA in 2023 was positive for €926 million (€595 million in 2022), thanks to contributions from
Offshore Engineering & Construction and Drilling, while the net profit amounted to €179 million (loss of €209
million in 2022).
The capital expenditure in 2023 amounted to €482 million (€523 million in 2022), including the purchase of the
jack-up Sea Lion 7 (now Perro Negro 10).
The net financial position pre-IFRS 16 at the end of 2023 is positive for €216 million, improving from the €56
million at the end of 2022 thanks to the strict discipline in working capital management. The net financial position
including the IFRS 16 lease liability of €477 million was a negative €261 million (negative €264 million at the end of
2022).
Acquisitions of new contracts amounted to €17,659 million, an increase of around 40% compared to 2022, also
thanks to the significant acquisition of the Hail & Ghasha contract for Adnoc in the Middle East, awarded in the last
quarter of 2023; the project is a concrete expression of Saipem’s ability to carry out large integrated
onshore/offshore projects for its clients. The backlog at the end of 2023 stood at €29,802 million, of which over
70% from Offshore business projects, both Engineering & Construction and Drilling.
Towards a sustainable business
The Sustainability Plan “Our journey to a sustainable business”, approved by the Board of Directors for the period
2024-2027, is fully integrated into the company’s strategic business guidelines and is based on three pillars:
climate change mitigation and environmental protection; the centrality of people; value creation.
The Group developed for the second consecutive year the four-year structured Sustainability Plan, which
showcases consistency and suitability of the objectives defined in a complex and articulated strategy aiming at
\ 2
LETTER TO THE SHAREHOLDERS
creating value for all our stakeholders, as well as the relevant company performance on environmental and social
impacts through a voluntary sustainability reporting and the mandatory Consolidated Non-Financial Statement.
Saipem’s eighteenth sustainability report 2023, structured around the Sustainability Plan’s strategic areas, is no
longer just the moment of synthesis of all that the past year entailed in terms of initiatives and results; instead, it
also presents a concrete vision of our future with precise objectives, indicators and targets to measure their
achievement, as well as responsibilities and resources allocated.
The phase of uncertainty that still characterises the market and our reference sectors, seen through the lens of
the energy and ecological transition, has not abated. The criticality of certain geopolitical aspects and conflicts in
progress in various parts of the world, the resulting social upheavals, the value chain issues, also concerning the
supply of certain strategic raw materials, and the challenges that new technological frontiers are posing to all
actors, define scenarios that need careful analysis and monitoring, and sense of responsibility. Markets are
ever-changing by nature, more so in the current context of instability. Thereby, primary players like Saipem must
be aware of the elements and trends that characterise them in order to identify and make the most appropriate
long-term strategic decisions to achieve their objectives, also contributing to the achievement of their clients’
ones and in general creating sustainable value.
Within the organisation and expectations of an
like Saipem, committed to developing
infrastructures in the energy and transportation sectors in various areas of the world, sustainability entails three
key components.
Firstly occupational safety, which in 2023, was characterised by very positive results in all reference indicators, an
unprecedented achievement for the company. In particular, the Total Recordable Injury Frequency Rate (TRIFR)
stood at 0.32%, down 26% compared to the previous year. The results confirm the adequacy of the procedures
and the effectiveness of the actions implemented. Despite this, unfortunately, events were recorded that involved
our personnel and subcontractors, among which there was a fatality in Saudi Arabia. We deem this unacceptable,
thus not only we launched new training initiatives and are advancing with the “Leadership in Health & Safety”
cultural strengthening programme, guided by our LHS Foundation, but we also strongly reiterated within our
organisation that our goal of “We Want Zero” for accidents is a top priority. To help us in the achievement of this
objective and strengthen the aspects of safety and prevention, we are also focusing our attention on new
technological solutions, such as the video analytics technology that we have recently implemented in Saudi
Arabia, which through Artificial Intelligence can detect hazardous situations in real time, while in compliance with
privacy issues, by utilising devices available at our worksites. A very effective solution which we intend to extend
progressively to our projects and onboard our vessels.
industrial entity
Our commitment to social aspects, both direct and indirect, is the second component of sustainability. This
includes human and labour rights, and our contribution to the local development of the countries in which we
operate, a contribution that we can quantify in terms of job creation, economic impact and human capital
development.
The last component is the ability to direct our business actions towards solutions that allow our clients and
suppliers to tackle their carbon impact and wider ecological footprint and sustainable development.
The COP28 on climate conference in Dubai, despite the long and complex path still ahead to achieve the carbon
neutrality objectives set with the Paris agreements, made some progress which is quite indicative of the efforts
needed for a fairer and more sustainable energy future.
In this perspective, Saipem’s decision a few years back to launch its own “Net Zero Programme” with measurable
goals for reducing its carbon footprint in the short, medium and long term across our carbon footprint has proven
far-sighted. The programme includes a structured and periodic plan of initiatives regarding energy efficiency and
renewable energy applications on board our vessels and, more broadly, serving our operational activities.
Moreover, since 2023, a CO2 parallel “offsetting” programme of investments has been unfolding, aimed at
protecting forests, biodiversity and ecosystems, and generating value for community. The vision underlying the
programme is to represent a benchmark in quality and reliability for clients who need solutions for decarbonisation
of their productive assets, even in sectors different from ours. In this complex and dynamic scenario, we are in fact
committed to seize this business opportunity providing our contribution and not only qualifying ourselves as a
responsible industrial organisation willing to challenge its own climate impact and to implement a sustainable
business model. During the COP28 event Saipem was recognised with the “Energy Transition Changemaker”
award for its innovative plant developed at St. Félicien, Canada, by applying the “CO2 Solutions by Saipem”
proprietary technology, based on enzymatic solution for CO2 capture and reuse applicable to “hard to abate”
industrial sectors. This significant recognition attests the role and contribution that our company can provide in
the field of decarbonisation.
\ 3
SAIPEM ANNUAL REPORT 2023
This comprehensive strategy combines ambition, transparency, flexibility and a virtuous and ethical collaborative
approach; these are elements which will allow us to reach the sustainable success of the company and of all
stakeholders who will join us on this journey.
Market scenario
The current situation of the market is characterised by a positive cycle in the traditional Oil&Gas sector and by a
growing need to access secure and sustainable energy sources on a global level.
In line with the COP28 agreements, Saipem will continue to play a leading role in supporting its clients in the
energy transition. The Company can rely on a strong position in the execution of both offshore and onshore
projects and has gained significant experience in the offshore wind sector through the years. In addition to the
energy transition, Saipem is also active in the construction of sustainable infrastructures (such as high-speed rail)
and can boast extensive experience in the fertilizer industry. Through its proven experience and the related
competence portfolio, Saipem is ready to support its clients in this path.
March 12, 2024
On behalf of the Board of Directors
The Chairman
Silvia Merlo
The Chief Executive Officer-General Manager
Alessandro Puliti
\ 4
STRUCTURE OF THE SAIPEM GROUP
StructurE
of the Saipem group
(subsidiaries)
\ 5
\ 6
\ 7
DIRECTORS’ REPORT
SAIPEM ANNUAL REPORT 2023
SAIPEM SpA
SHARE PERFORMANCE
After a 2022 strongly affected by high market volatility, investors benefited from positive market performance,
also in light of a positive macroeconomic environment in terms of growth and moderation of the level of inflation.
In 2023, Saipem’s share price increased by 30%, a performance substantially aligned with that of the FTSE MIB
(+28%) and of the Stoxx 600 Oil & Gas index (+27%), comprised of a basket of European Oil&Gas and energy
companies.
Saipem shares closed the first trading day of the year at €1.18 per share, reaching the first half high on March 1 at
€1.53 per share. This growth was driven, in addition to the positive phase in the markets, by a series of positive
news items including: the award in January of two offshore contracts totalling around $900 million in Brazil and
Norway; the signing in February of two new credit lines for a total of €860 million, which enabled the Group to
further strengthen its financial structure and liquidity; also in February, the signing of a commercial collaboration
agreement with Seaway7 in the segment of offshore wind projects on fixed foundations and the presentation of
the financial results for the fourth quarter of 2022; and lastly, the announcement in March of the award of a new
offshore drilling contract in the Ivory Coast.
Subsequently, the share price fell sharply, in line with the market, due to the collapse of Silicon Valley Bank and
Credit Suisse’s difficulties, bottoming the year-low of €1.14 on March 15. It then, it resumed a rapid upward trend,
which brought it back to values close to the peak of the first semester (€1.50 on April 13), within a few weeks.
In May and June, the share went through a new downward phase, mainly driven by fears of a slowdown in the
Chinese economy, which reflected in a fall in the prices of energy stocks. In particular, there was a sharp drop in
the price of oil at the end of May, and Saipem’s share reached the price of €1.28 at the end of the half year.
Key Stock Exchange indices and figures
(€ million)
Share capital
No. of ordinary shares
No. of savings shares
Market capitalisation
Gross dividend per share:
- ordinary shares
- savings shares
Price/earnings ratio per share:
(1)
- ordinary shares
- savings shares
Price/cash flow (*) ratio per share: (1)
- ordinary shares
- savings shares
Adjusted price/earnings ratio per share:
- ordinary shares
- savings shares
Adjusted price/cash flow
(€)
(€)
(€)
(€)
(€)
(€)
(€)
(€)
(€)
(*) ratio per
- ordinary shares
- savings shares
(€)
(€)
(*) Cash flow: net profit plus depreciation and amortisation.
(1) Figures pertain to the consolidated financial statements.
Dec. 31, 2019
Dec. 31, 2020
2,191,384,693 2,191,384,693
1,010,966,841 1,010,966,841
10,598
2,235
10,598
4,408
Dec. 31, 2022
Dec. 31, 2021
2,191,384,693
501,669,791
1,010,966,841 1,995,557,732
1,059
2,255
10,598
1,871
0.01
0.01
367.32
3,538.42
6.28
60.49
26.71
257.34
5.64
54.30
-
-
-
-
16.31
332.07
-
-
6.92
54.30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17.35
1,181.98
-
-
12.39
844.27
Dec. 31, 2023
501,669,791
1,995,557,732
1,059
2,934
-
-
5.00
16.39
986.63
4.35
262.03
16.39
986.63
4.35
262.03
During the second half of 2023, the value of Saipem’s share increased again, also thanks to the positive financial
results for the second and third quarters of 2023 and the award of various offshore contracts in Europe, North Africa,
Latin America, and the Middle East. In particular, at the beginning of October 2023 the award of a contract for ADNOC
was announced for a project in the Arab Emirates, for a total of $4.1 billion (Hail & Ghasha), which resulted in a
significant increase in the order backlog.
\ 10
SAIPEM SpA SHARE PERFORMANCE
At the end of August 2023, Saipem successfully issued an equity-linked bond for €500 million, maturing in 2029.
The issue allowed the Group to diversify its sources of finance and reduce the debt costs, thanks to a 2.875%
coupon. The issue was well received by investors, with a strong interest. Moreover, on the day of the issue
(September 11, 2023) Saipem’s share reached its 2023 peak at €1.62.
The share closed 2023 at €1.47, and Saipem’s market capitalisation sits at around €2.9 billion. Around 10 billion
shares were exchanged during the year, with a daily average of 40 million. The countervalue of the trades was
around €14 billion, compared to €6.5 billion in the first half of 2022.
With regards to savings shares, convertible at par in ordinary shares, at the end of December 2023 they amounted
to 1,059 and their value was €88.5, with a 15% increase compared to the beginning of the year. Exchanges on
savings shares remain very limited.
Details of performance during the reporting period are presented below.
Listing on the Milan Stock Exchange
(€)
Ordinary shares:
- maximum
- minimum
- average
- end of the period
Savings shares:
- maximum
- minimum
- average
- end of the period
The figures have been restated following the reverse stock split and the share capital increase.
2019
2020
2021
2022
2023
12.63
8.23
10.76
10.93
442.00
400.00
414.18
420.00
11.28
3.42
5.93
5.54
6.66
4.34
5.30
4.63
450.00
420.00
433.65
450.00
360.00
418.44
450.00
370.00
5.12
0.58
2.00
1.13
350.00
72.50
136.68
77.00
1.62
1.14
1.40
1.47
88.50
77.00
79.30
88.50
For comparison purposes, all historic prices in the table and graph have been adjusted following the two reverse
stock splits completed in the first half of 2022 linked to the capital increase.
The values shown in the table are not to be considered, for the periods of reference, as indicators of return on
equity investment, mainly due to the capital increase on a right offering completed in July 2022.
\ 11
SAIPEM ANNUAL REPORT 2023
OPERATING REVIEW
Organisational structure
Starting from January 14, 2022, the Company changed its organisational configuration based on four distinct
business areas, consistent with the new organisational model, which entails the following:
≥ the organisational and geographical centralisation of staff structures, aimed at achieving higher efficiency levels;
≥ the introduction of a central business department to manage the order intake and customer interaction within a
“One Saipem” perspective, while ensuring the optimised management of regional and local structures on a
global scale;
≥ the integration of project control and project risk management processes within the Chief Financial Officer
operating area, raising the level of sensitivity in risk analysis and management over the entire life cycle of
projects.
To complete the new organisation, in February 2023 the Company established a new business line, Offshore
Wind, adding to the four business lines established in January 2022; the current organisational structure is as
follows: Asset Based Services, Energy Carriers, Robotics & Industrialized Solutions, Sustainable Infrastructures,
and Offshore Wind.
The business lines, each with different dynamics, goals, and skills aimed at the technical and financial
development of the offers and the management of projects in the execution phase, as well as being centres of
excellence in technology and engineering, globally recognised by our clients, were structured as follows to
manage the Group’s portfolio;
≥ Asset Based Services - it aggregates businesses based on Saipem’s asset portfolio, which includes Drilling, Sea
Trunklines, Transportation & Installation, Subsea Development, as well as the management of vessels and yards
serving the Group’s businesses;
≥ Energy Carriers - evolution of Saipem’s systems with a strong technological content, great attention to new
energy carriers and circularity; it brings together the E&C business of “one-of-a-kind” Onshore and Offshore
projects, enhancing the extent, depth, and quality of our technical and management skill portfolio;
≥ Robotics & Industrialized Solutions - answering the new needs of the energy sector, it integrates the technical
operational skills dedicated to the development, engineering, and execution of modular, repeatable, and
scalable systems, as well as the monitoring and maintenance services based on digital technologies;
≥ Sustainable Infrastructures - to seize the opportunities of a sector that has become strategic in the energy
transition ecosystem, which will hopefully by accelerated by the Italian Recovery Fund;
≥ Offshore Wind - to consolidate Saipem’s role in the offshore wind sector through the unified management and
development of the business, with regards to the new opportunities to be pursued in the reference markets.
Organisational structure: reporting
Following the establishment of the new organisation, the information to the market, starting from the first quarter
of 2023, in accordance with the provisions of IFRS 8 is prepared following the reporting segments below:
≥ Asset Based Services, which includes the Offshore Engineering & Construction and Offshore Wind activities;
≥ Offshore Drilling; and
≥ Energy Carriers, which includes the Onshore Engineering & Construction, Sustainable Infrastructures, and
Robotics & Industrialized Solutions.
The sectors clustered in the reporting segments above have similar economic characteristics; moreover, the new
Offshore Wind, Sustainable Infrastructures, and Robotics & Industrialized Solutions sectors are not, at present, so
significant that they deserve separate reporting, in accordance with IFRS 8. Given its relevance and economic
characteristics, the Offshore Drilling sector will be reported separately, as usual.
Continuing and Discontinued operations and non-current assets held for sale
The Onshore Drilling (DRON) business was marked as “Discounted operation”; during 2022, the activities in Saudi
Arabia, Congo, United Arab Emirates, and Morocco were transferred, and during the first half of 2023 also the
activities in Kuwait and Latin America; exception was made for the activities in Argentina, which will be transferred,
together with those in Kazakhstan and Romania, within the first quarter of 2024.
\ 12
OPERATING REVIEW
Market conditions
The current context is characterised by a positive cycle in Saipem’s reference markets, in particular Oil&Gas,
driven by the need to access safe and sustainable energy sources. In 2023, according to the International
Monetary Fund, the global economy grew by 3.0% compared to 2022 driven by India’s strong growth (+6.3% in
2023), as well as the emerging Asian countries, which was able to offset a slowdown in some advanced
economies, in particular the Euro area. This trend has become apparent despite the fact that some relevant
factors weighing on the global scenario, such as the escalation on the geopolitical instability burdened by the
emergence of the Israeli-Palestinian crisis and the protracted conflict in the Ukraine, as well as the persistence of
high rates of inflation, although decreasing compared to the previous year and expected in further decrease.
The energy sector was one of the most impacted by the 2020-2022 crisis, yet in 2023 it progressively
consolidated the recovery started in the previous years, supported by an increasing focus on security of energy
supply. This dynamic has encouraged the growth of demand for traditional energy sources such as oil and gas,
and developed in a stable market context, with Brent crude oil settled around $80 a barrel. Overall, the signals that
have emerged over the course of the year have progressively resulted in a further increase in investments in the
Oil&Gas sectors, now stably above pre-COVID levels. The abovementioned growth was recorded in all
geographical areas, with a particular intensity in Africa and South America. Supporting the trend, in addition to
2023 inflation dynamics, are the investments in energy infrastructures as a supply risk mitigation strategy, in
particular in some geographical areas such as Europe, which are continuing to diversify their energy sources.
The main oil companies moved in this direction, including through merger and acquisition processes, in order to
guarantee a growing offer of fossil sources. On one hand, they carried out a strategy aimed at maintaining the
solidity of their financial framework, while on the other they continued the process of diversification of their
investment portfolio in the context of energy transition. Thereby, they responded to growing market pressures
and targets for reducing CO2 emissions.
With regards to renewable energy sources, in particular offshore wind, in 2023 the market showed signs of
slowdown in terms of new contract allocations as a result of several factors, among others the increase of
material and service cost, and high interest rates. Despite the above dynamics resulting in the cancellation or
suspension of some projects under development, the prospects of this market remain positive in the medium and
long term driven by the growing need for clean energy.
New contracts and backlog
New order acquisitions during 2023 amounted to €17,659 million (€12,941 million in 2022).
Of the total acquisitions, 66% related to the Asset Based Services business, 27% to the Energy Carriers business,
and 7% to Offshore Drilling.
New contracts to be carried out abroad made up 93% of the total; contracts awarded by Eni Group companies
were 11% of the overall figure. Orders awarded to Saipem SpA amounted to 57% of the total. Orders awarded to
non-consolidated companies amounted to €211 million; total acquisitions amounted to €17,870 million.
\ 13
SAIPEM ANNUAL REPORT 2023
Saipem Group - Contracts awarded in the year ending on December 31
(€ million)
Saipem SpA
Group companies
Total
Asset Based Services
Energy Carriers
Offshore Drilling
Total
Italy
Outside Italy
Total
Eni Group
Third parties
Total
2023
2022
Amount
10,093
7,566
17,659
11,643
4,784
1,232
17,659
1,148
16,511
17,659
1,909
15,750
17,659
%
57
43
100
66
27
7
100
7
93
100
11
89
100
Amount
5,634
7,307
12,941
8,341
2,901
1,699
12,941
733
12,208
12,941
2,924
10,017
12,941
%
44
56
100
65
22
13
100
6
94
100
23
77
100
The backlog as of December 31, 2023 amounted to €29,802 million (€24,017 million as of December 31 ,2022);
€16,285 million for Asset Based Services, €11,534 million for Energy Carriers, and €1,983 million for Offshore
Drilling.
The breakdown of the backlog by sector is as follows: 54% in the Asset Based Services sector, 39% in the Energy
Carriers sector, and 7% in Offshore Drilling.
95% of orders were on behalf of overseas customers, while orders from Eni Group companies represented 5% of
the overall backlog. The parent company Saipem SpA accounted for 46% of the total backlog.
The backlog including non-consolidated companies was €29,892 million (€24,376 million as of December 31,
2022).
Saipem Group - Backlog as of December 31
(€ million)
Saipem SpA
Group companies
Total
Asset Based Services
Energy Carriers
Offshore Drilling
Total
Italy
Outside Italy
Total
Eni Group
Third parties
Total
Capital expenditure
2023
2022
Amount
13,849
15,953
29,802
16,285
11,534
1,983
29,802
1,433
28,369
29,802
1,445
28,357
29,802
%
46
54
100
54
39
7
100
5
95
100
5
95
100
Amount
7,186
16,831
24,017
10,756
11,767
1,494
24,017
982
23,035
24,017
2,210
21,807
24,017
%
30
70
100
45
49
6
100
4
96
100
9
91
100
The capital expenditure in 2023, including the purchase of the jack-up Sea Lion 7 (now Perro Negro 10),
amounted to €482 million (€523 million in 2022), and was as follows:
≥ for Asset Based Services €258 million: extraordinary maintenance and reinforcement works related to Saipem
7000 vessel, and maintenance and upgrading works on existing vessels, in particular pipe-laying vessel
Castorone and vessel FDS 2;
≥ for Energy Carriers €22 million: purchase and maintenance of equipment;
≥ for Offshore Drilling €202 million: in addition to the abovementioned purchase of the jack-up Sea Lion,
maintenance and upgrading works on the semi-submersible Scarabeo 9, and upgrading of leased jack-ups
Perro Negro 12 and Perro Negro 13 destined to operations in the Middle East on contracts already in backlog.
\ 14
To summarise, capital expenditure in 2023 was as follows:
Investments
(€ million)
Saipem SpA
Other group companies
Total
Asset Based Services
Energy Carriers
Offshore Drilling
Total
OPERATING REVIEW
2023
26
456
482
258
22
202
482
2022
29
494
523
117
56
350
523
Details of capital expenditure for the singol business units are provided in the following paragraphs.
\ 15
SAIPEM ANNUAL REPORT 2023
ASSET BASED SERVICEs
AND OFFSHORE WIND
Company information
The Offshore Wind segment was spun off from the Offshore Engineering & Construction Division and merged into
the new Offshore Wind business line, while the remaining projects were merged into the Asset Based Services
business line; comments on the projects that are managed by the new business line managers are shown
separately below: Asset Based Services and Offshore Wind. The two business lines share the same market
conditions, the same assets, vessels and yards of manufacture, and the resources to carry the business out are
the same. Specifically, the fleet of vessels is managed in a unified and integrated manner by the Company, taking
into account the requirements, operating locations, intervention schedules and contractual obligations of the
orders in execution referring (indistinctly) to both Asset Based Services and Offshore Wind.
General overview
The Business Line Asset Based Services operates in the Offshore sector with a portfolio of skills, assets, and
services that allows coverage of a wide range of project types, including development of subsea fields, pipelaying
(including large diameters), and installation and lifting of offshore structures. The services offered by the Business
Line cover the entire “life of the field” chain, from customer care in the pre-final investment decision phase to the
development of the investment. They include engineering, implementation, installation, maintenance, and
modification activities, and ultimately, the decommissioning phase.
The service mentioned above are offered with complementary features, thanks to a fleet that can operate under
complex operational and environmental conditions, to a network of construction yards and logistics bases in
Nigeria, Angola, Brazil, Indonesia, Guyana, Italy, the United States, and Saudi Arabia; and decades of engineering
and project management skills derived from experience in the sector. In particular, as of December 31, 2023, the
fleet includes 21 vessels, 17 of which are owned by Saipem and 4 are owned by third parties and managed by
Saipem. Among the main vessels are: the Saipem 7000, used for heavy lifting and decommissioning; the
pipe-laying vessel Castorone, used for laying large-diameter pipes; the FDS and FDS 2, used for the development
of subsea fields; the Saipem Constellation, used for field development activities thanks to its lifting and pipe-laying
capabilities for reel-lay of rigid and flexible pipelines; the Saipem Endeavour, used for pipe-laying and lifting.
As mentioned in the previous paragraph, the fleet and management facilities of Asset Based Services also provide
support to the Offshore Wind business line for renewable energy activities. The Business Line, in order to optimise
its production processes, pays special attention to technological innovations, automation and digitalisation.
Activities in the Offshore segment are pursued organisationally through one single structures, aimed at the SURF
segment (Subsea, Umbilicals, Risers, Flowlines) and one at Offshore Facilities and Pipeline, with the support of an
Asset function dedicated to the management of ships, yards, and business line bases, including the Offshore
Drilling fleet with the aim of creating synergies.
Market conditions
In the Oil&Gas market in general we are witnessing, already visible from 2021, a recovery of capital expenditures in
Upstream in both deep water and shallow water, with relevant initiatives in the different segments: SURF (Subsea
field developments), Trunkline (subsea pipelines for intra-well and onshore oil and gas transportation) and
Conventional (offshore platforms and related production and processing facilities). Expectations of recovery of
demand in the short to medium term are already materialising in terms of commercial activity and contract
acquisition.
Specifically, as far as the conventional market is concerned, we can confirm the resilience of the Middle Eastern
shallow-water market. Saudi Arabia is proceeding with its oil production-related developments, with a significant
push also towards the development of non-conventional natural gas fields. Qatar continues to pursue its goal of
further growth as a natural gas exporter, including through its own offshore gas fields (such as the North Field) to
support increased liquefied natural gas production capacity. The United Arab Emirates is also moving forward with
several initiatives, aimed at meeting domestic needs of natural gas requirements for power generation. The
conventional market is also experiencing increasing interest from operators in the North and West African areas
where various developments, especially gas-related, are being pursued at different stages of progress.
Linked to gas developments, the export and transportation pipeline (Trunkline) market has always been patchy,
occasionally featuring projects of considerable size. While some initiatives in Asia-Pacific still have uncertain lead
times, several gas transportation infrastructure developments are emerging in the Mediterranean Sea that look
promising, even in light of the current geopolitical situation.
\ 16
OPERATING REVIEW
The market for subsea developments, which has been among those that have suffered the most in the recent
past and has seen several high-risk or less profitable projects delayed or cancelled, is resuming activities while
also seeking strategies to reduce costs. Over the past year there have been strong signs of recovery, mainly in
Brazil and the Gulf of Mexico, but also in Northern Europe, especially Norway, thanks to the incentives introduced
by governments to counteract the effects of the crisis. In Guyana, developments are proceeding at full speed, and
there are also signs of imminent recovery in the African market, especially in West Africa, with countries such as
Angola, Ivory Coast, Nigeria, and Congo anticipating major developments given the success of recent exploration
campaigns.
Supported by the considerable interest of investors and operators, the offshore wind market continues its growth
in terms of installed capacity, despite the critical issues that have emerged relating to the reduced availability of
strategic assets and the difficulties of the supply chain to meet development expectations. These dynamics led to
a slowdown in allocations during 2023, however commercial and executive activities are expected to increase, in
line with the plan scenario, mainly in Europe and to a lesser extent in Asia-Pacific and the United States.
Technological developments, partnerships, and robust capital inflows are expected to support the growth of this
segment, both in the fixed and floating arena, in the near future and in the long term.
Capital expenditure
Investment activities carried out during 2023 focused on the execution of works aimed at class reinstatement,
adaptation of vessels to international regulations and specific requests of projects in the portfolio and clients.
Among the vessels involved in the activities described above were mainly the Saipem 7000, the FDS 2 and the
Castorone pipe-laying vessel. Activities were also carried out to prepare and schedule maintenance and
retrofitting work that will be carried out in 2024.
Asset Based Services
Orders intake
The most significant contracts awarded during 2023 included the following:
≥ for ADNOC, the project aimed at developing the resources of the Hail and Ghasha natural gas fields, located
offshore Abu Dhabi in the United Arab Emirates. The job includes the engineering, procurement and
construction (EPC) of four drilling stations and a processing plant to be built on artificial islands, as well as
various offshore structures and over 300 kilometres of subsea pipelines. The project clearly shows Saipem's
ability to execute large integrated onshore and offshore projects for its clients. In the case of Hail and Ghasha,
the offshore component is worth approximately 45% of the total (in terms of backlog);
≥ for OMV Petrom, the Neptum Gas Development project in the Black Sea, Romania, which involves the
engineering, procurement, construction and installation (EPCIC) of a gas processing platform at a depth of
approximately 100 metres; the development of three subsea fields; a gas pipeline approximately 160 kilometres
long; and an fibre-optic cable from the platform in shallow water up to the coast of Romania;
≥ for Mellitah Oil & Gas BV Libyan Branch, as part of the Bouri Gas Utilisation Project, a contract to revamp
platforms and facilities in the Bouri field, which lies in deep water between 145 and 183 metres off the Libyan
coast. The contract includes the engineering, procurement, fabrication, installation and commissioning of a gas
recovery module weighing approximately 5,000-tonne on the existing DP4 facility, together with the pipelaying
connecting the DP3, DP4 and Sabratha platforms;
≥ for ExxonMobil Guyana, the authorisation was received to go ahead with the final phase of the project for the
development of the Uaru oil field in the Stabroek block, offshore Guyana, at a depth of around 2,000 metres. The
subject of the contract includes the design, fabrication, and installation of submarine structures, risers, flowlines
and umbilicals for a large subsea production plant. The operations are being carried out using its flagship
vessels FDS 2 and Saipem Constellation;
≥ for Saudi Aramco, in Saudi Arabia, again under the Long Term Agreement (LTA), the contract covering the
engineering, procurement, construction and installation (EPCI) of the topside of an offshore platform and the
associated subsea system of flexible piping, umbilicals and cables;
≥ for Saudi Aramco, under the current Long Term Agreement (LTA), a project involving the engineering,
procurement, construction and installation of five platforms and related subsea pipelines, flowlines and cables in
the Marjan field, offshore of Saudi Arabia, with an entirely on-site fabrication scheme;
≥ for Equinor, the Raia project in Brazil, located approximately 200 kilometres offshore in the state of Rio de
Janeiro; the scope of work includes the transport and offshore installation of a subsea pipeline for gas
exportation and associated facilities, and horizontal drilling activities for the coastal landing. The Castorone
pipe-laying vessel will be employed for the installation;
≥ for Turkish Petroleum OTC, the second phase of the Sakarya FEED and EPCI project involving the engineering,
procurement, construction and installation of a pipeline to be installed at a depth of 2,200 metres in the Turkish
waters of the Black Sea. The offshore operations will begin in the summer of 2024 and will be conducted by
Saipem’s flagship vessel Castorone;
\ 17
SAIPEM ANNUAL REPORT 2023
≥ for Eni Côte d'Ivoire, the Baleine Phase 2 project for the oil and gas field bearing the same name located 1,200
metres offshore Côte d'Ivoire. The scope of work involves the engineering, procurement, construction and
installation of approximately 20 kilometres of rigid lines, 10 kilometres of flexible jumpers and risers, and 15
kilometres of umbilicals connected to a dedicated floating unit;
≥ for TotalEnergies, in partnership with Aker Solutions do Brasil, the development project of LAPA Southwest
(LAPA SW), a deep-water oil field in the Santos basin, in the South Atlantic. The scope of work includes
engineering, procurement, construction and installation (EPCI) of underwater umbilicals, risers and flowlines
(SURF), as well as submarine production systems;
≥ for Azule Energy, the Agogo Full Field Development project, a deep-water greenfield development located
approximately 180 kilometres offshore of Angola. The contract includes the engineering, procurement,
construction and installation (EPCI) of rigid pipe-in-pipe flowlines with associated subsea structures;
≥ for Equinor, the Irpa Pipeline in the Norwegian Sea, which consists of the installation of an 80 km pipe-in-pipe
line connecting the Irpa field submarine production model to the existing Aasta Hansteen platform;
≥ for Snam Rete Gas, a contract for the construction of facilities for the new storage and regasification vessel
(FRSU) to be located in the Adriatic Sea off Ravenna, Italy. The project includes the engineering, procurement,
construction, and installation of an offshore structure, connected to the existing one, for the berthing and
mooring of the FRSU vessel, to be connected to the mainland via a pipeline measuring 8.5-kilometre-long
offshore and 2.6 kilometres onshore, and a parallel fibre-optic cable;
≥ for Gascade Gastrasport Gmbh, a contract for the transport and installation of the Ostsee Anbindungsleitung
gas pipeline in the Pomeranian Bay, north-eastern Germany, which includes the transport and installation of a
gas line of approximately 50 kilometres from the Lubmin site in northern Germany on the Baltic Sea to the port
of Mukran on the east coast of the island of Rügen, as well as the construction of landings;
≥ for ExxonMobil Guyana, the project for the development of the Whiptail oil field in the Stabroek block, offshore
Guyana, at a depth of around 2,000 metres. The subject of the contract includes the design, fabrication, and
installation of submarine structures, risers, flowlines and umbilicals for a large subsea production plant. The
operations are being carried out using the state-of-the-art ships FDS 2, Constellation and Castorone;
≥ for EnQuest Heather Ltd, the contract for the decommissioning of the Thistle A platform, located in the British
sector of the North Sea, approximately 510 kilometres north-east of Aberdeen and at a depth of 162 metres.
Saipem’s activities consist of the engineering, preparation, removal and disposal of the jacket and topsides, with
possible extension to further subsea structures. Work will be carried out by the Saipem 7000.
Work performed
Below are the main projects that were underway or were completed during 2023.
America
In Guyana, for ExxonMobil:
≥ work has been completed for the Payara project, which included the engineering, procurement, fabrication, and
installation of risers, umbilicals, flowlines, well connections, and associated facilities for the development of the
Payara and Pacora fields. The 2023 campaign was carried out using the Saipem Constellation;
≥ engineering and procurement activities continued on the Yellowtail project, the purpose of which is to install
umbilicals, risers, and flowlines; installation activities are scheduled for 2024 using the vessels FDS 2 and
Saipem Constellation;
≥ work began on the Uaru project, which involves the design, fabrication and installation of subsea structures,
risers, flowlines and umbilicals for a subsea production facility; the installation work is scheduled to take place in
subsequent years using the vessels FDS 2, Saipem Constellation and Castorone.
Engineering activities proceeded in the Gulf of Mexico for Chevron for the JSM-4 project, the scope includes the
engineering, transportation, and installation of two modules (a generation module and a water injection module)
onto the client’s existing/operating FPU facility.
In Brazil:
≥ for Petrobras:
• the installation activities continued for the Buzios 5 project, the aim of which includes procurement,
installation of Steel Lazy Wave Risers (SLWR), umbilicals, manifolds, flowlines, well
fabrication, and
connections, and related facilities for the development of the Buzios field; the project used the vessel FDS;
• work has begun on the execution of the SURF EPCI Buzios 7 project, which includes the engineering,
procurement, construction, and installation of the SLWR and the corresponding interconnecting flowlines
between the subsea wells and the FPSO unit, as well as the associated service lines and control umbilicals. In
addition, Saipem will be responsible for the supply and installation of the FPSO unit's anchors and its
attachment to the reservoir. The installation activities are planned to begin in 2024 with the vessel FDS;
Again, in Brazil, for Totalenergies, work started on the Lapa Southwest project, aimed at the engineering,
procurement, construction and installation of subsea umbilicals, risers and flowlines, as well as subsea production
systems.
\ 18
OPERATING REVIEW
In Argentina, for Total, the activities relating to the Fenix project continued with the laying of a 37 km pipe; the
operational activities were carried out during the second half of 2023 using the pipe-laying vessel Castorone.
North Sea
In Great Britain, for EnQuest:
≥ work began on the Thistle project relating to the decommissioning of the Thistle A platform, located
approximately 510 kilometres north-east of Aberdeen and at a depth of 162 metres; the work includes the
engineering, preparation, removal and disposal of the jacket and topsides, with possible extension to further
subsea structures, and will be carried out by Saipem 7000;
≥ work began on the Heather project relating to the decommissioning of the existing infrastructure at the Heather
oil field, located approximately 460 kilometres north-east of Aberdeen; the work involves the engineering,
preparation, removal and disposal of the upper jacket of the Heather platform using the Saipem 7000.
In Norway, for Equinor, work started on the Irpa project for the installation of an 80 km pipe-in-pipe pipeline that
will connect the subsea production facilities of the Irpa field to the existing Aasta Hansteen platform; the
installation operations are scheduled for 2025 and will be carried out by the vessel Castorone.
In Germany, for Gascade, work started on the Ostsee project for the transport and laying of a gas line of
approximately 50 kilometres and the construction of the associated landings using the pipe-laying ship Castoro
10.
Mediterranean and Black Sea
In Egypt, for Petrobel, work continued on the Zohr project for the transportation and installation of high and
low-voltage umbilicals and various subsea structures; during the year the installation work was carried out using
the vessel Normand Maximus.
In Greece, for Gastrade, the work continued for the Alexsandroupolis project, which will be carried out in 2023
using the vessel Castoro 10. Saipem’s work includes the engineering, procurement, construction of a subsea
system, a mooring system and a pipeline network to connect an FSRU to the national gas transmission network.
In Italy, for Eni, the work continued under the Cassiopea project for the transportation and installation of a rigid
pipeline, umbilicals and flexible lines, and the construction of a shore approach; the installation work was carried
out using the vessels Castoro 10 and Castorone.
Also in Italy, work started for Snam Rete Gas on the FSRU Ravenna project. The activities include the engineering,
procurement, construction, and installation of a new offshore structure, connected to an existing one, for the
berthing and mooring of a FRSU vessel, to be connected to the mainland via a pipeline measuring 8.5-kilometre-
long offshore and 2.6 kilometres onshore, and a parallel fibre-optic cable.
In Turkey, for Turkish Petroleum, work began on the Sakarya 2 project, which involves the execution of a FEED, as
well as the engineering, procurement, construction and installation of a 175-km long pipeline at a depth of 2,200
metres; the installation operations are scheduled to start during 2024 using the vessel Castorone.
In Romania, for OMV Petrom, the Neptum project has started, which involves the engineering, procurement,
construction and installation (EPCIC) of a gas processing platform at a depth of approximately 100 metres; the
development of three subsea fields (at a depth between 100 and 1,000 metres); a gas pipeline approximately 160
kilometres long; and an fibre-optic cable from the platform up to the coast. The gas processing platform will be
built at the Group's sites in Italy and Indonesia.
Africa
In Angola, for Azule Energy:
≥ the engineering and procurement work started for the Agogo Full Field project for the construction and
installation (EPCI) of rigid pipe-in-pipe flowlines with associated subsea structures; the installation work is
scheduled for 2024;
≥ work continued on the Quiluma and Maboqueiro WP5A project for the EPC-based construction of a jacket
and deck and the execution of the related hook-up and commissioning.
In Mauritania and Senegal, for BP, work continued on the Tortue project, the scope of which includes the
engineering, procurement, fabrication, installation, hook-up, and commissioning of a breakwater, the associated
jetty, and a raised platform for the transport of gas, the hook-up of an FPSO and an FLNG at the Greater Tortue
Ahmeyim complex; the structures were built in the Karimun yard.
In Libya, on behalf of Mellitah Oil & Gas, work started on the Bouri Gas Utilisation project which includes the
engineering, procurement, fabrication, installation and commissioning of a gas recovery module weighing
approximately 5,000-tonne on the existing offshore DP4 facility, together with the 28-km long pipelaying
connecting the DP3, DP4 and Sabratha platforms.
\ 19
SAIPEM ANNUAL REPORT 2023
In the Ivory Coast, for Eni, work continued on the Baleine SURF phase 1 project for the development of the field of
the same name; the installation work was started in the first half of 2023 with the involvement of the vessel FDS 2.
Activities related to the Baleine phase 2 project were also started during the year. The scope of work involves the
engineering, procurement, construction and installation (EPCI) of approximately 2 kilometres of rigid lines, 20
kilometres of flexible jumpers and risers, and 10 kilometres of umbilicals connected to a dedicated floating unit.
Installation work will be carried out from 2024.
Middle East
In Saudi Arabia, for Saudi Aramco, activities continued under the Long Term Agreement signed with the client.
The activities carried out during the year mainly involved the deployment of the Dehe, Saipem Endeavour and
Bautino vessels.
Work was also completed on the KJO crude oil pipeline project awarded by Aramco Gulf Operations Co and
Kuwait Gulf Oil Co, which included the engineering, construction, offshore installation and commissioning of a new
crude oil pipeline.
In Qatar, for Qatargas:
≥ work continued on the North Field Production Sustainability (NFPS) EPCOL project, which involves the
engineering, procurement, construction and installation of subsea and onshore pipelines, jackets and wellhead
platforms, as well as the related support activities; the fabrication activities involved the Karimun yard, while the
operational phase at sea was carried out by the vessel Dehe;
≥ work continued for the North Field Production Sustainability (NFPS) EPC 2 project, which involves the
engineering, procurement, fabrication, and installation of two offshore natural gas compressor stations to
support the production in the North Field, including two of the largest compression platforms on steel jackets
ever built, interconnection bridges, accommodation modules, and interface modules.
In the United Arab Emirates, activities on the Hail and Ghasha project were started on behalf of ADNOC. The job
includes the engineering, procurement and construction (EPC) of four drilling stations and a processing plant to be
built on artificial islands, as well as various offshore structures and over 300 kilometres of subsea pipelines.
Installation activities are planned in 2025.
Caspian Sea
In Azerbaijan:
≥ for BP, the ACE project was completed; while the work continued on the Shah Deniz - Call-off 007 project;
≥ for Total and Bos Shelf, activities continued on the Absheron URF (for the engineering, procurement,
construction and installation of pipelines and umbilical systems) and Absheron T&I (jacket and platform
installation activities) projects.
Australia
≥ for Chevron, preparatory work continued on the Jansz-lo project, which includes the transport and installation
of a subsea compressor station, manifold, field control station, as well as umbilicals and other facilities. The
offshore activities will be conducted in two phases. The operational activities will start from 2024;
≥ for Woodside, work continued for the Scarborough project, which includes the laying of a 400 km large-
diameter pipeline; operations have involved the Saipem vessels Endeavour and Castorone.
Offshore Wind
Work performed
Below are the main projects that were underway or were completed during 2023.
In the United Kingdom:
≥ for Neart na Gaoithe, as part of the NnG Offshore Windfarm project, all installation activities were completed
within the scope of the project, which included the engineering, procurement, construction and installation of 54
steel jackets for the same number of wind turbines, two steel jackets for offshore electrical substations, as well
as the transport and installation of the associated topsides. The client is currently taking over the installation. All
jackets were designed at Saipem's engineering centres in the UK and Italy and manufactured at Saipem-owned
sites in Karimun, Indonesia, and Arbatax, Italy. The installation of the deep foundation was completed in late
summer 2023 by the Saipem 3000, while the Saipem 7000 completed the drilling and offshore installation of the
jackets, further consolidating Saipem's track record in offshore wind operations in the North Sea;
≥ on behalf of Subsea 7, as part of the Seagreen project, the vessel Saipem 7000 completed the scope of the
work with the installation of the 114 WTG jackets planned;
≥ on behalf of Dogger Bank Offshore Wind Farms, the EPC contract for two OSS jackets was completed. The
scope of the work scheduled for 2023 relating to the installation of two jackets and one of the two topsides was
completed. The second topside will be installed in April 2024 as established in the contract.
\ 20
OPERATING REVIEW
In France, for Eoliennes Offshore du Calvados (EDF Renewables, Enbridge Inc and WPD Offshore), Courseulles
project, the fabrication of 64 monopiles planned to support the wind turbine generators (WTG) was completed,
and the fabrication of the transition structures (monopile-WTG) is nearing completion; the construction of the
seabed drilling machine, an activity required for the installation of the foundation monopiles, is also underway. The
construction of the seabed drilling rig, a necessary activity for the installation of the foundation monopiles, is
currently in the final assembly and testing phase. The end of 2023 saw the beginning of the mobilisation of the
vessel, chartered by a third party.
\ 21
SAIPEM ANNUAL REPORT 2023
Vessels owned as of December 31, 2023
Saipem 7000
Self-propelled, semi-submersible, dynamically positioned crane and pipelay vessel
capable of lifting structures of up to 14,000 tonnes and J-laying pipelines at depths of up
to 3,000 metres.
Saipem Constellation Dynamically positioned vessel for the reel-lay of rigid and flexible pipelines
in
ultra-deepwater depths. It is equipped with a 3,000 tonnes crane and a laying tower (800
tonnes capacity) equipped with two tensioners each with a 400 tonnes capacity.
Dynamically positioned vessel utilised for the development of deep-water fields at
depths of over 2,000 metres. Capable of launching pipes of up to 22” in diameter in J-lay
configuration, able to lay quadruple joint pipes (52-metre strings) with a holding capacity
of up to 750 tonnes and a crane with lifting capacity of up to 600 tonnes.
Dynamically positioned vessel used for the development of deep-water fields; it has a
J-lay tower with a holding capacity of up to 2,000 tonnes; capable of launching pipes with
a maximum diameter of 36”; able to lay quadruple joint pipes (52-metre strings) at depths
of up to 3,000 metres. Also capable of operating in S-lay mode with a crane with a lifting
capacity of up to 1,000 tonnes.
Dynamically positioned pipe-laying vessel operating in S-lay mode with an S-lay stern
stinger of over 120 metres consisting of three sections for shallow and deep-water
operations, a tensioning capacity of up to 750 tonnes, pipelay capability of up to 60
inches, onboard manufacturing facilities for double and triple joints and pipe storage
capacity in cargo holds.
Monohull, self-propelled, dynamically positioned lifting vessel, with drilling tower, capable
of laying flexible pipes and umbilicals in waters up to 2,200 metres deep and lifting heavy
loads of up to 2,200 tonnes.
Barge for lifting heavy loads and laying pipes (in S-lay mode), suitable for launching
single- or double-joint pipes of up to 60” in diameter for shallow and deepwater
operations, with a tensioning capacity of up to 260 tonnes, equipped with a floating
launch ramp composed of three sections for deep-water operations, a mini ramp with
adjustable structure for shallow-water operations, and a rotating crane with a 1,100
tonne capacity.
Trench/pipelay barge capable of burying pipes of up to 60” diameter in shallow waters.
Barge capable of laying pipes of up to 40” diameter in ultra-shallow waters of a minimum
depth of 1.4 metres.
Shallow water post trenching and backfilling barge.
Heavy-duty cargo barge.
Cargo barge.
Cargo barge.
Launch cargo barge, for structures of up to 30,000 tonnes.
Launch cargo barge, for structures of up to 20,000 tonnes.
Cargo barge.
Cargo barge.
Dynamically positioned vessel for laying pipes and lifting heavy loads of up to 5,000
tonnes, capable of deep-water installations up to depths of 3,000 metres and laying
pipes with a tensioning capacity of up to 600 tonnes in S-lay mode.
Dynamic positioning vessel for laying umbilicals and flexible lines up to a depth of 3,000
metres equipped with a crane with a retention capacity of up to 900 tonnes and a vertical
tower with a tensioning capacity of 550 tonnes and the possibility of laying rigid pipelines.
Jack-up for the
installation of wind turbines at sea equipped with a
1,500-tonne crane and an on-board storage area of approximately 3,500 square metres
capable of operating at depths of up to 90 metres and accommodating up to 90 people
on board.
Support vessel for the execution of offshore projects with a transport capacity of 7,000
tonnes, equipped with ROV hangar, moon pool, 100-tonne support crane and 125-tonne
subsea equipment tower.
lifting and
Main leased vessels as of December 31, 2023
Dehe
Saipem FDS
Saipem FDS 2
Castorone
Saipem 3000
Saipem Endeavour
Castoro 10
Castoro 12
Bautino 1
Castoro XI
Castoro 14
S43
S44
S45
S46
S47
Normand Maximus
Vol au Vent
Skandi Acergy
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OPERATING REVIEW
ENERGY CARRIERS, SUSTAINABLE
INFRASTRUCTURES AND ROBOTICS
& INDUSTRIALIZED SOLUTIONS
Company information
The Sustainable Infrastructure segment was spun off from the Onshore Engineering & Construction Division and
was merged into the new Sustainable Infrastructures Business Line, while the remaining projects were merged
into the Energy Carriers Business Line. Moreover, to responds to the new demands of the energy sector, some
projects and activities have merged into the new Robotics & Industrialized Solutions Business Line, which
integrates technical and operational skills for the development, engineering and execution of modular, repeatable,
scalable systems, as well as monitoring and maintenance services based on digital technologies. So, comments
on the projects that are managed in the three Business Lines are shown separately below: Energy Carriers,
Sustainable Infrastructures and Robotics & Industrialized Solutions.
General overview
The Saipem Group’s Onshore Engineering & Construction is focused on the execution of large-scale projects with
a high degree of complexity in terms of engineering, technology, and operations, with a strong bias towards
challenging projects in difficult environments and remote areas.
Saipem enjoys a worldwide leading position, providing a complete range of integrated basic and detailed
engineering, procurement, project management and construction services, principally to the Oil&Gas, complex
civil and marine infrastructure and environmental markets.
In the Sustainable Infrastructure segment, the Saipem Group is mainly active in the design and construction of
complex infrastructure projects, especially in the transport sector, such as railway lines and in particular High
Speed/High-Capacity lines. These are complex works in terms of engineering and construction requiring an
increasing implementation of innovative digital and technological solutions capable of guaranteeing resilience and
energy efficiency, and which meet the requirements of the European taxonomy (DNSH principle “Do Not
Significant Harm”), the classification system for environmentally sustainable economic activities, capable of
meeting the Sustainable Development Goals (SDGs) included in the United Nations 2030 Agenda.
Energy Carriers
Market conditions
The onshore reference market recorded a significant increase in activity in 2023 compared to 2022, particularly in
the upstream (e.g., floaters) and midstream (LNG and regasification) segments. Growth spanned across all
geographical areas, except for Russia, with particular visibility in the Saipem Group's main areas of interest, such
as the Middle East, Africa, Europe and Asia.
In terms of the ongoing activities in the various markets, the relevance of the midstream and downstream
segments strengthened, with several significant developments in the gas monetisation and fertiliser sectors in the
Americas, Africa, the Middle East and Europe, and in the upstream and petrochemical sectors in the Middle East
and Asia. The LNG market, even following the Russia-Ukraine conflict, shows the relaunch of initiatives in the
Middle East and in Africa, primary sources for gas supply alternative to Russian gas. Similarly, pipeline activities
have resumed in all geographical areas, particularly Europe and the Middle East, Saipem's main areas of interest. In
the upstream segment, following the sharp slowdown in the last two years, signs of strong recovery in the Arab
Emirates and Saudi Arabia are now visible. In the floaters segment, significant volumes are confirmed in Latin
America and Africa.
As far as renewables and green technologies in general (hydrogen, biofuels, biochemistry, and CO2 capture) are
concerned, the visibility of projects in Europe, North Africa, the Middle East, and Asia is increasing.
Capital expenditure
Capital expenditure in 2023 in the Energy Carriers business line mainly related to the acquisition and maintenance
of equipment.
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SAIPEM ANNUAL REPORT 2023
Orders intake
The most significant new contracts in 2023 are detailed below:
≥ for Eni Congo, for the conversion of the semi-submersible drilling unit Scarabeo 5 into a separation and
upgrading plant (Floating Production Unit - FPU). The FPU is a semi-submersible production platform that
receives fluids produced by riser platforms on wellheads, separates gas from liquids and upgrades it to power
the nearby floating unit with liquefied natural gas;
≥ for Adnoc, the project aimed at developing the resources of the Hail and Ghasha natural gas fields, located
offshore Abu Dhabi in the United Arab Emirates. The job includes the engineering, procurement and
construction (EPC) of four drilling stations and a processing plant to be built on artificial islands, as well as
various offshore structures and over 300 kilometres of subsea pipelines. The project clearly shows Saipem's
ability to execute large integrated onshore and offshore projects for its clients. In the case of Hail and Ghasha,
the offshore component is worth approximately 55% of the total (in terms of backlog).
Work performed
The biggest and most important projects under way or completed during 2023 were as follows.
In Saudi Arabia:
≥ for Saudi Aramco:
• the Hawiyah Gas Plant Expansion project for the expansion of the Hawiyah gas treatment plant located in
the south-eastern part of the Arabian Peninsula has been completed; it is currently in operation and the
warranty period is ongoing;
• on both EPC contracts (Package 1 & 2) for the Jazan Integrated Gasification Combined Cycle project
(gasification plant combined with a power cycle for electricity generation), the warranty period was concluded,
following the previous achievement of Final Mechanical Completion. The removal and demob of offices and
accommodations for both the EPC contracts was completed;
• the Khurais EPC project, which involved the extension of the onshore production centres of the Khurais,
Mazajili, Abu Jifan, Ain Dar and Shedgum fields, has completed its guarantee period and has received the final
release from Saudi Aramco;
• the commissioning stage was completed for the South Gas Compression Plants Pipeline Project related
to the development of the Haradh Gas Plant (HdGP) located in the east of the country. The project involves
the review of the detailed engineering developed by the client, the procurement of all materials except for the
carbon steel line pipe, lined plant lines and related valves supplied by the client, as well as construction,
pre-commissioning and commissioning assistance; project completion was published on social media and in
oil&gas international magazines;
• for the Marjan project, an EPC contract for the execution of "Package 10" of the development programme for
the same field, which includes gas treatment trains, sulfur recovery, and tail gas treatment, has completed the
engineering
operations,
foundations/underground works,
installation of static equipment/tanks and process carpentry were
completed. Currently, paving and building completion activities are in an advanced stage, while the installation
of pipes and electro-instrumentation, insulation and pre-commissioning are ongoing;
activities. With
and material
to worksite
procurement
regards
• for the Berri project, an EPC contract to increase the capacity of the homonymous field through the
construction of new facilities in Abu Ali and Khursaniyah; engineering activities have been substantially
completed; civil construction, installation of metal structures and equipment are underway on site, and tank
assembly activities have begun. Electrical instrumental activities have been started at the Abu Ali island site;
• for the Jafurah project, which includes the execution based on an EPC Lump Sum of approximately 800 km
of various types of pipelines and features within the development programme for the Jafurah gas field located
on the border between Saudi Arabia and Qatar, the engineering and material procurement activities have
essentially been completed, and currently, the manufacturing and delivery activities to the site are ongoing.
With regards to construction, pipe laying activities are ongoing and civil activities for ground works have
started;
≥ for Petro Rabigh (joint venture between Saudi Aramco and Sumitomo Chemical), the additional works related to
the Utilities and Offsite Facilities package have been completed and the plant is operational.
In Kuwait:
≥ for Kuwait Oil Co (KOC), for the Feed Pipelines for New Refinery project, the construction, pre-commissioning
and commissioning of the plants were completed. The crude-in of products to the new refinery has been
completed, as well as the commissioning of all the systems. The handover of works to the client is at completion
stage, while the warranty period is starting. The contract includes engineering, procurement, construction, and
commissioning activities related to the development of the new connection lines and related pumping and
measurement station of the new Al Zour refinery located in south Kuwait;
≥ for Kuwait Integrated Petroleum Industries Co (KIPIC), for the Al-Zour Refinery the construction and partial
handover to the client have been completed for the various units included in the contract. The project
encompasses design, procurement, construction, pre-commissioning, and assistance during commissioning
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OPERATING REVIEW
tests, start-up, and checks on the performance of tanks, related road works, buildings, pipelines, piping support
frames, water works and control systems for the Al-Zour refinery.
In Iraq, for Exxon on West Qurna I project, the construction work was completed during the shutdown of the
facility, and the warranty period has started. The project
infield engineering,
pre-fabrication, and construction relating to some tie-ins to existing plants owned by Bassra Oil Co.
involves the execution of
In Oman, for OQ8 (joint venture between OQ and Kuwait Petroleum International), for the Duqm Refinery Package
3 project, the engineering, procurement and construction activities have been completed, and the commissioning
of the storage and export bulk material (pet-coke and sulphur) portions are in the completion phase for handover
to the client.
In Israel, for Haifa Group on the Ammonia Plant project, engineering and procurement activities are being
completed. After starting the civil/mechanical construction activities, the works on site were slowed down due to
the events of October 7, 2023 related to the conflict between the State of Israel and Hamas. In agreement with the
client, work is continuing as much as possible under the circumstances. The contract entails the construction of
an ammonia unit in the Mishor Rotem site.
In the United Arab Emirates:
≥ for ADNOC Sour Gas, a subsidiary of Abu Dhabi National Oil Co (ADNOC), construction activities for the
expansion and upgrade of the Shah facility relating to WP1 and WP2 have been completed, and the work
relating to WP3 was completed for the Optimum Shah Gas Expansion (OSGE) & Gas Gathering project. The
contract entails the expansion and strengthening of the already operating Shah plant;
≥ for ADNOC, engineering and procurement activities have started on the recently awarded contract relating to
the “Offshore” package of the Hail and Ghasha Development Project, in joint venture with National Petroleum
Construction Company (NPCC). The project aimed at developing the resources of the Hail and Ghasha natural
gas fields, located offshore Abu Dhabi in the United Arab Emirates. The scope of work for the Energy Carriers
Business Line includes engineering, procurement and construction (EPC) of four drilling centres and a treatment
facility to be built on artificial islands.
In Indonesia, for BP Berau Ltd, in joint venture with PT. Tripatra Engineers and Constructors, PT. Tripatra
Engineering, PT Chiyoda International Indonesia, Chiyoda Corp and PT Suluh Ardhi Engineering, for the Tangguh
LNG Expansion project, the commissioning and handover activities have been completed for the third LNG train
and LNG jetty and related infrastructure at the Tangguh, Papua site. Production was started by the client.
In Thailand:
≥ for PTT LNG Co Ltd (PTTLNG), in joint venture with CTCI Corp, the PAC (Provisional Acceptance Certificate) has
been formalised for the Nong Fab LNG project, which involved the construction of a regasification terminal,
including storage tanks and jetty for LNG imports. All start-up and performance test activities on the plant were
completed are the warranty period has started;
≥ for Thai Oil, in joint venture with Petrofac International (UAE) Llc and Samsung Engineering Co Ltd, the Clean
Fuel project is in progress, involving the construction and start-up of new units within the Sriracha refinery.
Design and procurement activities are substantially complete, with the last equipment being shipped. All
modules have been delivered. Prefabrication of piping is ongoing for the remaining quantities, as is the
execution onsite of civil works, building, completion of underground works and installation of metal structures.
Welding of piping in ongoing in the areas along the critical path.
In Australia, for Perdaman Chemical and Fertilizers Pty Ltd, in joint venture with local company Clough (part of
Webuild group), engineering, procurement and construction activities have started for the construction of the urea
production plant named Burrup Urea Project. The project includes the EPC Lump Sum construction of a plant
that will have a production capacity equal to 6,200 tons/day of urea at full capacity. The project stands out for its
high levels of energy efficiency and degree of modularisation. Following the Notice To Proceed of April 21, 2023,
the project achieved the following significant results: 30% Model Reviews and Hazop were carried out, Proprietary
Equipment and Long Lead Items and the first take off were purchased to support the contract for the execution of
the modules in yard; the first subcontracts for construction activities were assigned.
In Nigeria:
≥ for Dangote Fertilizer, Commercial and Performance Tests were performed for both trains of the Dangote
project separately, for the new ammonia and urea production complex. Preparatory activities for the global
performance test of the plant have been completed, with the two streams in parallel. The contract includes
engineering, procurement, construction supervision and commissioning of two twin production streams and
related utilities located at the Lekki Free Trade Zone, Lagos State;
≥ for Nigeria LNG Ltd (NLNG), for the EPC LNG Bonny Train 7 contract, in joint venture with Daewoo and Chiyoda
Corp, engineering, procurement and construction activities are ongoing. The project involves the construction
of a double natural gas liquefaction plant, as well as all the necessary utilities and port facilities for export, for the
expansion of the existing LNG plant at Finima on Bonny Island. In particular, the last half year saw the completion
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SAIPEM ANNUAL REPORT 2023
of the field construction activities, TCF and MOF (Marine Offloading Facilities) - Jetty 2 for the docking of ocean
ships. The first oceanic vessel docked in August 2023. The marine works for the construction of Jetty 3 are
ongoing, as well as prefabrication and mechanical assembly activities.
In Mozambique, for Total Energies E&P Mozambique Area 1 Ltda (which acquired the Anadarko interests during
2019 for the Mozambique LNG project), in a joint venture with McDermott Italia Srl and Mirai Engineering Italy Srl,
Saipem is developing the LNG plant project consisting of the construction of two natural gas liquefaction trains,
as well as all necessary infrastructure, storage tanks and port facilities for export. However, on instruction from the
client TotalEnergies, the project has been on hold since spring 2021, due to a series of armed attacks in the town
of Palma. Despite evacuating the site, Saipem has continued to manage a residual part of the project activities
outside the country, that have not been suspended. Saipem has also been cooperating and maintaining contact
with the client to implement measures both to preserve the value of the project, but above all to ensure the
prompt resumption of work as soon as conditions required by Total Energies have been restored, including
securing the safety of the area.
In Angola:
≥ for Solenova (JV between Sonangol and Eni), the PAC (Provisional Acceptance Certificate) has been formalised
for the solar power plant interconnected to the National Grid. From June, the O&M phase with a duration of 24
months was started, in line with the contractual obligations;
≥ for Azule Energy (Eni & BP JV), the engineering and procurement activities continue, as well as the construction
work for the Quiluma and Maboqueiro project for the Onshore Gas Treatment Plant, which involves the
construction of a grass roots plant for gas treatment and compression in the northern region of the country. In
particular, TCFs were completed at the site, and civil and mechanical works are ongoing.
Floaters and Operation & Maintenance
The biggest and most important FPSO projects under way or completed during 2023 were as follows.
The following vessels owned by Saipem operated in 2023 in the “Leased FPSO” segment:
≥ the FPSO Cidade de Vitória, carried out operations for Petrobras as part of a fifteen-year contract finishing in
early 2024, focused on the second phase of development of the Golfinho field, situated off the coast of Brazil at
a water depth of 1,400 metres. For the first half of the year, the FPSO has remained in shut-down for system
adaptation works, returning operational at the beginning of June and operating under the control of Saipem until
the sale in November to BW Energy, who bought for Petrobras the rights to develop the Golfinho field on which
the FPSO is operating;
≥ the FPSO Gimboa carried out operations for Sonangol P&P under a contract for the development of the
Gimboa field, located in Block 4/05 offshore Angola, at a water depth of 700 metres. The vessel is sized for the
production, treatment, storage of 60,000 barrels/day.
At the end of 2023, the only vessel owned by Saipem in the FPSO segment is Gimboa.
In Mozambique, for Coral FLNG SA (JV of Eni and other partners), maintenance (O&M) services are underway on
Coral's FLNG unit, as part of the eight-year (plus one optional) contract.
In Angola, for Total, the operations and maintenance services (O&M) of the FPSOs Kaombo Norte and Kaombo
Sul continue, for a total seven-year period, plus an additional seven optional years.
It should be noted that upon completion of the alteration and refurbishment activities for the FPSO Firenze
renamed Baleine, in the last quarter of 2023 operation and maintenance works have started on the FPSO for Eni
related to the relevant contract. The duration of said works was extended from 10 to 15 weeks upon the signing of
the contract amendment in December.
In Russia, the only residual activity is the commercial negotiation in progress related to the closing of the Arctic
LNG 2 GBS project (in JV with Ronesans - Arctic LNG 2 client - scope of work: EPC), the works for which were
suspended, in full compliance with EU regulations. With regards to the Arctic LNG 2 - Topsides project, in joint
venture with Technip and NIPI, the event can be considered definitively closed since the deed of sale of the
participation shares was signed by Technip and Saipem to Nipigas at the end of April.
In the United Arab Emirates, in the Dubai Dry Dock, for Eni Côte d’Ivoire Ltd, restructuring and transformation
activities were completed in fast-track mode on the FPSO Firenze, renamed Baleine. The FPSO was towed to the
Baleine oil field in the Ivory Coast, where the mooring, fitting and connection to the production wells work was
completed, and production started. The unit will operate for the upcoming 15 years offshore the Ivory Coast.
In Brazil, for Petróleo Brasileiro (Petrobras), in a joint venture with Hanwha Offshore (previously named Daewoo
Shipbuilding & Marine Engineering (DSME)), engineering, procurement and construction activities are ongoing on
\ 26
OPERATING REVIEW
the P-79 project, for the construction of a floating production and storage unit (FPSO) for the development of the
Búzios offshore field in Brazil, made in three yards (two in the Far East and one in Brazil).
In Congo, for Eni Congo, engineering, procurement and construction activities are ongoing for the Eni Congo
LNG/Scarabeo 5 Conversion project. The project involves the reconversion of Scarabeo 5 into a floating unit for
the separation and compression of gas produced in offshore fields. Currently, the vessel is located in the CIMC
yard in China for conversion works.
Sustainable Infrastructures
Market conditions
In the Sustainable Infrastructure sector, Saipem is focusing its activities mainly on the initiatives in Italy included in
the National Recovery and Resilience Plan and in the list of strategic works for the development of sustainable
mobility, also thanks to the vast experience accumulated over the years in Italy as the leader of the consortia
formed for the construction of the Milan-Bologna and Milan-Verona High Speed/High Capacity railway lines.
The Infrastructure segment in Italy confirms, also from a short and medium-term perspective, the positive signals
related to the large investments resulting from the National Recovery and Resilience Plan, which is expected to
facilitate further developments in the railway and sustainable mobility sector also in the long term.
Orders intake
The most significant contracts awarded during 2023 included the following:
≥ for Rete Ferroviaria Italiana (RFI, Gruppo FS Italiane). The work involves the construction of a new railway line of
approximately 7 kilometres underground with two parallel tunnels, on average about 20 metres deep,
completed with two terminal sections above ground, to the north between the stations of Firenze Castello and
Firenze Rifredi, and to the south near the station of Firenze Campo di Marte;
≥ for Rete Ferroviaria Italiana, a contract to double the Piadena-Modena railway track, in Italy. The scope of work
includes the engineering, procurement and construction of 35 kilometres of railway line, including 4 viaducts, 4
stations, 26 kilometres on embankments, 13 bridges, laying rails, technological facilities;
≥ for Rete Ferroviaria Italiana, a contract for the Verona Est railway junction, in Italy. The scope of work includes the
engineering, procurement and construction of a railway junction encompassing 3.6 kilometres of High
Speed/High-Capacity line, 4.2 kilometres of new rails for the historic line, 3.6 kilometres of freight railway line.
Work performed
The biggest and most important projects under way during 2023 were as follows.
In Italy, for Rete Ferroviaria Italiana as part of the CEPAV 2 Consortium, for the High-Speed Brescia Est-Verona
project, construction activities are in progress along the whole section. Work began in January for the
construction of the second section of the Lonato tunnel, located on the critical path of the section, with
completion expected in the first months of 2024. Works related to the railway superstructure tender were
delivered, while the tender for the award of noise barriers was finalised. Project progress is around 60%.
Still in Italy, for Rete Ferroviaria Italiana (RFI) for the project Florence high-speed railway link and annexed
Belfiore station, excavation works in the station and the mechanized excavation of the first section of the tunnel
using the tunnelling boring machine (TBM) received from RFI in mid-June are ongoing. Meanwhile, design and
preparatory activities are ongoing for the two minor projects recently awarded, for the construction to be carried
out in the second half of 2024.
Robotics & Industrialized Solutions
Market conditions
The reference markets of the Robotics & Industrialized Solutions Business Line are mainly characterised by
underwater robotics services and clean technologies to support the energy transition, with particular reference to
the capture of carbon dioxide emissions, hydrogen and the chemical recycling of plastics. The Business Line
offers modularised and industrialized solutions enabling a wide range of new clients who need to reduce their
carbon footprint, even outside the traditional perimeter of the Group.
As far as the CCUS market is concerned, the Business Line focuses in particular on the European context, thanks
to a mature regulatory framework capable of favouring the development of new initiatives. Public funding to
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SAIPEM ANNUAL REPORT 2023
support these initiatives is growing strongly both in Europe (Norway and the UK, in particular) and in the United
States. Furthermore, the value of the emission allowance traded on the ETS market (Emission Trading System)
remained at high values throughout the first half of the year (€80-100 per ton of CO2). This parameter, which has
grown considerably in recent years, is characterised as an enabling factor for investments in the context of
emission capture. In addition, the recent European directives issued under the Fit for 55 programme (referring to
the 55% emissions reduction target by 2030) are bringing new industrial sectors, such as the maritime sector, into
the allowances market.
In the field of hydrogen, during 2023 in Europe there will be significant volumes of loans to support the market,
such as the Innovation Fund which has among its objectives that of reducing the impact in terms of emissions in
the so-called hard-to-abate, such as steel, cement, chemical and refining industries. In this context, hydrogen
constitutes a transversal and innovative system, capable of promoting emission-free electrification. There are also
several large-scale investments outside Europe, such as in Oman, and the implementation of supporting policies
in countries such as India and Japan.
Particular attention is paid to the developments of the chemical recycling of plastics market, driven by new and
increasingly stringent regulatory frameworks, as well as by a growing attention towards a less impactful
production of plastics to support the circularity of the industry.
Like the new energy transition sectors, the Business Line's commitment continues also in traditional markets,
constantly looking for solutions to reduce its carbon footprint and to achieve higher levels of efficiency. In this
context, Saipem offers its clients the use of advanced autonomous robotic solutions for underwater inspections,
capable of significantly reducing consumption and emissions compared to traditional technologies. The
geographical areas of greatest interest are those of South America (Brazil) and Northern Europe (Norway).
The defence of the environment and of critical structures, especially those underwater, remain in the spotlight;
these markets became more relevant due to the recent developments in the energy transition and the evolution
of the geopolitical situation.
Orders intake
The most important contract award of 2023 concerns the Petrobras contract for the development and testing of
an autonomous underwater inspection robotic solution, which will be based on Saipem’s fleet of underwater
drones, starting from the Flatfish AUV (Autonomous Underwater Vehicle), as well as the qualification of related
autonomous drone-based services, enabling future inspection contract options offshore Brazil.
This contract marks a further milestone for Saipem’s innovative underwater robotics programme and for the
global scale utilisation of subsea drones in offshore projects throughout the entire value chain, and it allows to
extend to the Technology Readiness Level 7 achieved on Saipem’s fleet of subsea drones to the new features.
Work performed
The largest and most significant project underway in 2023 relates to the contract for Equinor, as part of the Njord
contract which provides for the use of Hydrone-R, a drone for underwater operations, and the ROV Hydrone-W, an
all-electric remote-controlled underwater robot, at Njord Field, offshore Norway. Hydrone-R has begun the period
of operational permanence on the seabed and after an extensive test campaign, Saipem has obtained the
approval from Equinor to begin inspection activities and underwater operations, opening a new era in the
management of underwater activities in a safer, cheaper and less environmentally impactful way.
\ 28
OFFSHORE DRILLING
General overview
OPERATING REVIEW
As of December 2023, Saipem’s Offshore Drilling fleet includes 15 vessels, divided as follows: six ultra deep
water/deep-water units for operations at depths of up to 3,600 metres (drillships Saipem 12000, Saipem 10000,
Santorini and Deep Value Driller; the semisubmersibles Scarabeo 8 and Scarabeo 9), eight high-specification
jack-ups for operations at depths of up to 400 feet (Perro Negro 7, Perro Negro 8, Pioneer, Sea Lion 7, Perro
Negro 9, Perro Negro 11, Perro Negro 12 and Perro Negro 13) and one standard jack-up for operations at depths
of up to 150 feet (Perro Negro 4). Among the abovementioned drilling rigs, the following are owned by third parties:
the jack-ups Pioneer, Perro Negro 9, Perro Negro 11, Perro Negro 12 and Perro Negro 13, and the drillship Deep
Value Driller.
The changes to the fleet compared to the previous year are stated below:
≥ following the signing of lease contracts in 2022, during the first half of the year the jack-ups Perro Negro 12 and
Perro Negro 13 were delivered to Saipem; both vessels, after completion of preparatory work, are intended for
operations in Saudi Arabia under contracts already acquired;
≥ additionally, in January, an agreement was finalised for the lease of the seventh-generation drillship, Deep Value
Driller. The rig was delivered to Saipem in September to be utilised in a project in West Africa that had already
been secured;
≥ in October, the semisubmersible Scarabeo 5 was sold. The rig is destined to be converted to non-drilling
operations for a project awarded to the Energy Carriers business line;
≥ lastly, in November, Saipem exercised the option to purchase the jack-up Sea Lion 7 under the terms and
conditions of the lease contract signed in 2019; the rig will be renamed Perro Negro 10 in 2024.
During the year, the Offshore Drilling fleet operated in Italy, Norway, Egypt (on the Red Sea side and Mediterranean
Sea side), West Africa (Angola and Ivory Coast), Mexico, Saudi Arabia, and United States.
Market conditions
In line with the previous year, 2023 began in a climate of general market recovery, as reflected in particular by the
growing trend of daily rates of new contracts assigned by clients. This was further confirmed by a change in
approach by clients, with some of them ready to consider assigning medium-long term contracts in order to
ensure the availability of vessels and equipment suited to their needs.
The market recovery was also supported by the oil price trend. Throughout the year, quotations were above the
$70-75/barrel threshold, with fluctuations even above $85-90/barrel at different times during the year.
As a result of the scenario described above, utilisations have continued to rise compared to the previous year,
particularly in the ultra-deep-water segment, which is approaching full occupancy in the main regional markets. In
line with previous years, clients’ preference for technologically advanced vessels was again confirmed.
The withdrawal of the drilling rigs from the market, already decreasing in 2022, has been inevitably slowed down
and was limited to four vessels during the year, with only two cases of withdrawal due to excessive age (the others
were converted into non-drilling units).
The recovery phase of the market also had an impact on the reactivation of the rigs under construction ordered
during the previous boom period and later abandoned in construction yards during the crisis; their number (just
under 40), while constantly decreasing, remains relevant. Their progressive entry into the market will likely have a
significant impact of the offer in the medium term.
Orders intake
The most significant contracts awarded during 2023 included the following:
≥ for Eni, a contract for the construction of eleven firm wells and a further five optional wells in the Ivory Coast
using the seventh-generation drillship Deep Value Driller; operations started in October;
≥ for Eni, the award of a two-year contract for the use of the seventh-generation drillship Santorini for worldwide
operations;
≥ for Aramco, the ten-year extension of the lease for the jack-up Perro Negro 7 for works in Saudi Arabia;
≥ for Burullus Gas Co, a contract for the construction of three firm wells and a further three optional wells in Egypt
using the sixth-generation semisubmersible Scarabeo 9; operations are scheduled to start in the first quarter of
the 2024, as soon as extraordinary maintenance and class reinstatement;
≥ for Eni, the extension through the exercise of various contractual options for activities in Egypt using the drillship
Saipem 10000.
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SAIPEM ANNUAL REPORT 2023
Capital expenditure
During the year, activities have been carried out aimed at the refurbishment and adaptation of vessels to comply
with the international regulations and the requirements of clients. Among the rigs involved in the maintenance and
adaptation activities required by clients, were in particular the jack-ups Perro Negro 12, Perro Negro 13, and the
semisubmersible Scarabeo 9.
Work performed
During the first half of the year, the fleet was used as follows:
≥ ultra-deep water/deep-water units: drillship Saipem 12000 completed operations for Eni in the offshore area of
the Ivory Coast in June, then it was used in Angola for Azule Energy for a contract already in backlog; drillship
Saipem 10000 continued to operate in Egypt for Eni until September, then it was transferred to Italy to be used
for the Cassiopea project, also for Eni and already in backlog; drillship Santorini continued to operate in the
United States for Eni until August, then it was transferred to Egypt to start operations for Petrobel; drillship Deep
Value Driller started operations in the Ivory Coast in October on a contract already in backlog for Eni; the
semisubmersible Scarabeo 9 completed the execution of a project in Angola for Eni and was taken to the
shipyard for maintenance in October, in order to start new work in 2024; semisubmersible Scarabeo 8 operated
for AkerBP in Norway on a contract already in backlog; semisubmersible Scarabeo 5 completed operations on
a project for Eni in Angola, then was sold to third parties as previously mentioned;
≥ high specification jack-ups: the Perro Negro 7, Perro Negro 8, Sea Lion 7 and Perro Negro 9 units continued
to operate for Saudi Aramco in the Saudi Arabian offshore area; the Perro Negro 11 unit also commenced
operations during the year under a previously acquired multi-year contract with Saudi Aramco; the Perro Negro
12 and Perro Negro 13 units were delivered to Saipem during the first half of the year and were used for
preparatory work for the start of operations on the contracts with Saudi Aramco already in backlog; the Pioneer
unit continued to operate for Eni in Mexico;
≥ standard jack-ups: Perro Negro 4 continued to operate in the Red Sea for Petrobel.
(No. of days)
Utilisation of vessels
The main vessel utilisation in 2023 was as follows:
Vessel
Semisubmersible platform Scarabeo 5 (1)
Semisubmersible platform Scarabeo 8 (2)
Semisubmersible platform Scarabeo 9 (2)
Drillship Saipem 10000
Drillship Saipem 12000
Drillship Santorini
Drillship Deep Value Driller (3) (*)
Jack-up Perro Negro 4
Jack-up Perro Negro 7
Jack-up Perro Negro 8
Jack-up Sea Lion 7 (Perro Negro 10) (4)
Jack-up PioneerJindal (*)
Jack-up Perro Negro 9 (2) (*)
Jack-up Perro Negro 11 (2) (*)
Jack-up Perro Negro 12 (3) (*)
Jack-up Perro Negro 13 (3) (*)
December 31, 2023
under contract
36
361
285
365
365
365
83
365
365
365
284
365
261
255
idle
4
80
32
81
104
110
304
217
(1) Upon completion of operations, the unit was sold to third parties in October 2023.
(2) On non-operational days, unit subject to maintenance and preparation work for a new contract.
(3) Unit acquired through a lease contract and delivered to Saipem during the year; on non-operational days, unit subject to preparation work for the start of operations.
(4) Leased unit acquired in November; on non-operational days, unit subject to maintenance.
(*) Leased vessel.
\ 30
FINANCIAL AND ECONOMIC
RESULTS
FINANCIAL AND ECONOMIC RESULTS
Macroeconomic scenario
The current market framework confirms recovery trend in Saipem’s reference markets, in line with the expected
growth in terms of macroeconomic indicators and overall energy demand. However, the persistence of some
instability factors throughout 2023, including the outbreak of the Israeli-Palestinian crisis, the ongoing conflict in
Ukraine, and the presence of high inflation rates, has increased the risk of global economic instability. This has
necessitated further attention from the Management in formulating accounting estimates and significant
judgments. As a result, certain areas of the financial statements, also related to the increased uncertainty in
estimates, may be affected by recent macroeconomic events and circumstances.
As regards the trend in oil and natural gas prices, the Company believes that short-term volatility in these prices
may have a limited impact on the Group's results given the nature of Saipem's activities, which are characterised
by multi-year contracts with execution times of several years, depending on the complexity of the project. In the
longer term, there remains a prospect of improvement in the external environment, supported by the multi-year
growth cycle that the Oil&Gas market is experiencing and by the consolidation of opportunities in the field of
energy transition and clean technologies.
Regarding Saipem projects involving activities on Russian territory and/or with Russian clients, there are no
remaining activities, and the related contractual relationships with clients have been concluded and are currently
in the process of formalization in full compliance with EU regulations.
The Company confirms that it operates in full compliance with the provisions established by European and
national institutions with respect to the Russian Federation.
It is noted that there are neither activities managed by Saipem nor personnel in the Ukrainian territories affected
by the conflict.
The Strategic Plan 2024-2027, in line with previous plans, does not foresee the acquisition of new contracts in
Russia.
As for the activities in Israel, it should be noted that Saipem has a contract for the construction of an Ammonia
unit, as part of the Ammonia Plant project on behalf of the Haifa Group, at the Mishor Rotem site, whose
engineering and procurement activities are nearing completion. After starting the civil/mechanical construction
activities, the works on site were slowed down due to the events of October 7, 2023 related to the conflict
between the State of Israel and Hamas. In agreement with the client, work is continuing as much as possible under
the circumstances.
Operating results
As already commented in paragraph “Organisational structure: reporting”, the information to the market, starting
from the first quarter of 2023, in accordance with the provisions of IFRS 8 is prepared following the reporting
segments below:
≥ Asset Based Services, which includes Offshore Engineering & Construction and Offshore Wind activities;
≥ Offshore Drilling; and
≥ Energy Carriers, which includes the Onshore Engineering & Construction, Sustainable Infrastructures, and
Robotics & Industrialized Solutions.
The sectors clustered in the reporting segments above have similar economic characteristics; moreover, the new
Offshore Wind, Sustainable Infrastructures, and Robotics & Industrialized Solutions sectors are not, at present, so
significant that they deserve separate reporting, in accordance with IFRS 8. Given its relevance and economic
characteristics, the Offshore Drilling sector will be reported separately, as usual.
The results restated based on the new reporting are broadly in line with the data released to the market in 2022; in
any case, for the purpose of a more complete understanding of the effects of the re-aggregation, the data on
revenues, EBITDA and adjusted EBIT for the year 2022, relating to the two sectors subject to re-aggregation, are
reported at the end of this section.
\ 31
SAIPEM ANNUAL REPORT 2023
Saipem Group - Income statement (*)
(€ million)
Core business revenue
Other revenue and income
Purchases, services and other costs
Net reversals of impairment losses (impairment losses) on trade receivables
and other assets
Personnel expenses
Gross operating margin (EBITDA)
Depreciation, amortisation and impairment losses
Operating result (EBIT)
Net financial income (expense)
Net financial income (expense) on equity investments
Pre-tax profit (loss)
Income taxes
Profit (loss) before non-controlling interests
Profit (loss) attributable to non-controlling interests
Profit (loss) for the year - Continuing operations
Profit (loss) for the year - Discontinued operations
Profit (loss) for the year
Year 2023
11,874
Year 2022
9,980
% Ch.
19.0
23
(9,236)
1
(1,736)
926
(489)
437
(167)
60
330
(145)
185
-
185
(6)
179
9
(7,822)
32
(1,656)
543
(445)
98
(195)
(65)
(162)
(153)
(315)
-
(315)
106
(209)
70.5
n.s.
n.s.
n.s.
n.s.
n.s.
n.s.
(*) The results of the Onshore Drilling segment being divested, have been recognised as Discontinued operations in accordance with the criteria set out in IFRS 5.
Revenues and associated profit levels are not consistent over time, as they are influenced not only by market performance but also by climatic conditions and individual project
schedules in the Engineering & Construction sector, and by contract expiry and renegotiation timing in the Drilling sector.
The core business revenue during 2023 amounted to €11,874 million.
Gross operating margin (EBITDA) is €926 million. Depreciation, amortisation and impairment losses on property,
plant and equipment and intangible assets totalled €489 million.
The operating result (EBIT) achieved in 2023 is a €437 million profit.
The main variations relating to the income statement items above are detailed below in the analysis by segment.
The net financial income (charges) balance is negative at €167 million, decreasing by €28 million, due to lower
interest and commissions and higher income from available funds. In particular, it should be noted that the 2022
balance was impacted by interest and fees related to the capital increase transaction.
Net gains (losses) on equity investments was positive for €60 million, a growth compared to the corresponding
period of 2022 thanks to this year’s results of contracts performed by companies measured using the equity
method, which were negative last year.
Pre-tax profit amounted to a profit of €330 million. Income taxes amounted to €145 million, compared to €153
million in 2022, due, inter alia, to a refund of a tax dispute.
The Continuing operations net income shows a profit of €185 million (loss of €315 million in 2022). In 2023, the
Onshore Drilling discontinued operations business recorded revenue of €99 million and negative EBITDA of €6
million; as a result, the result from discontinued operations was a loss of €6 million compared to a profit of €106
million in the same period of 2022, which benefited from the capital gain from the positive difference between the
sale price and the carrying value in the accounts of the discontinued Onshore Drilling business.
The net income shows a profit of €179 million (loss of €209 million in 2022).
\ 32
Saipem Group - Adjustment income statement
(€ million)
Core business revenue
Other revenue and income
Purchases, services and other costs
Net reversals of impairment losses (impairment losses) on trade receivables
and other assets
Personnel and related expenses
Adjusted gross operating margin (EBITDA)
Depreciation, amortisation and impairment losses
Adjusted operating result (EBIT)
Net financial income (expense)
Net financial income (expense) on equity investments
Adjusted pre-tax result
Income taxes
Adjusted profit (loss) before non-controlling interests
Profit (loss) attributable to non-controlling interests
Adjusted net profit (loss) for the year - Continuing operations
Adjusted net profit (loss) for the year - Discontinued operations
Adjusted net profit (loss) for the year
FINANCIAL AND ECONOMIC RESULTS
Year 2023
11,874
23
(9,236)
Year 2022
9,980
9
(7,798)
% Ch.
19.0
1
(1,736)
926
(489)
437
(167)
60
330
(145)
185
-
185
(6)
179
32
(1,628)
595
(445)
150
(195)
(65)
(110)
(153)
(263)
-
(263)
124
(139)
55.6
n.s.
n.s.
n.s.
n.s.
n.s.
n.s.
Revenues and associated profit levels are not consistent over time, as they are influenced not only by market performance but also by climatic conditions and individual project
schedules in the Engineering & Construction sector, and by contract expiry and renegotiation timing in the Drilling sector.
In the 2023 financial year, no non-recurring charges were recorded; consequently, the net result from continuing
operations aligns with the adjusted net result, amounting to €185 million. In the corresponding period of 2022, the
net result from continuing operations showed a loss of €315 million, which included charges related to the health
emergency and restructuring totalling €52 million against the adjusted net result. The impact of non-recurring
expenses is shown below.
(€ million)
Operating result (EBIT)
Impairment/write-down and restructuring expenses
Adjusted operating result (EBIT)
(€ million)
Profit (loss) for the period
Impairment/write-down and restructuring expenses
Adjusted profit (loss) for the period
Adjusted EBIT reconciliation - 2022 EBIT
(€ million)
Adjusted EBIT
Restructuring expenses (1)
Impairment losses of current assets (1)
Costs for COVID-19 healthcare emergency (1)
Total special items
EBIT
(1) Total of €52 million: reconciliation of adjusted EBITDA of €595 million with EBITDA of €543 million.
Year 2023
437
-
437
Year 2023
185
-
185
Year 2022
98
52
150
Year 2022
(315)
52
(263)
Asset Based
Services
100
5
(12)
23
16
84
Energy
Carriers
(52)
29
-
4
33
(85)
Offshore
Drilling
102
2
-
1
3
99
Total
150
36
(12)
28
52
98
\ 33
SAIPEM ANNUAL REPORT 2023
Adjusted operating profit and costs by function
(€ million)
Core business revenue
Production costs
Idle costs
Trade receivables
Costs for research and development
Other operating income (expenses)
General expenses
Adjusted operating result (EBIT)
Year 2023
11,874
(11,032)
(108)
(124)
(32)
19
(160)
437
Year 2022
9,980
(9,447)
(108)
(115)
(31)
4
(133)
150
% Ch.
19.0
n.s.
The Saipem Group achieved in 2023 a core business revenue of €11,874 million, an increase of €1,894 million a
significant growth compared to 2022.
Production costs – which include direct costs of sales and depreciation of the vessels and equipment used – were
in total €11,032 million, an increase of €1,585 million compared to 2022, consistent with the higher volumes.
Idle costs are €108 million, in line with 2022. Selling expenses, equal to €124 million, were slightly higher than the
amount recorded in the corresponding period of 2022, as well as the research and development expenses
recognised as operating costs, amounting to €32 million. General expenses, amounting to €160 million were
higher than those incurred in 2022, mainly as a result of cost incurred to transfer to the new headquarters of
Parent Company Saipem SpA and the temporary coexistence of costs of both office buildings.
Asset Based Services
(€ million)
Core business revenue
Cost of sales
Adjusted gross operating profit (EBITDA)
Depreciation and amortisation
Adjusted operating profit (EBIT)
Impairment losses and restructuring expenses
Operating result (EBIT)
Year 2023
6,069
(5,455)
614
(313)
301
-
301
Year 2022
5,026
(4,612)
414
(314)
100
(16)
84
Revenues in 2023 amounted to €6,069 million, and show an increase of 20.8% compared to the corresponding
period of 2022, mainly attributable to higher volumes in the Latin America, Sub-Saharan Africa, the Middle East
and Italy. The cost of sales, amounting to €5,455 million, increased in line with the higher volumes.
Adjusted gross operating profit (EBITDA) for 2023 was positive for €614 million, equal to 10.1% of revenues
compared to the €414 million in the corresponding period of 2022, equal to 8.2% of revenues.
Depreciation and amortisation amounting to €313 million is in line with 2022.
The 2023 operating result (EBIT) is a €301 million profit.
Energy Carriers
(€ million)
Core business revenue
Cost of sales
Adjusted gross operating profit (EBITDA)
Depreciation and amortisation
Adjusted operating profit (EBIT)
Impairment losses and restructuring expenses
Operating result (EBIT)
Year 2023
5,062
(5,051)
Year 2022
4,389
(4,382)
11
(53)
(42)
-
(42)
7
(59)
(52)
(33)
(85)
Revenues for 2023 amounted to €5,062 million and show an increase of 15.3% compared to the corresponding
period of 2022, as an effect of the higher volumes in the Sub-Saharan Africa, Latin America, and Middle East.
The cost of sales, equal to €5,051 million, has increased by to 15.3% compared to 2022, consistent with the
higher volumes.
Adjusted gross operating profit (EBITDA) in 2023 is positive for €11 million, equal to 0.2% of revenues slightly
higher than the corresponding period of 2022.
Depreciation and amortisation amounted to €53 million, down €6 million compared to the corresponding period of
2022, mainly due to the suspension of depreciation of the FPSO Cidade de Vitória sold in November 2023.
The operating result (EBIT) in 2023 was a loss of €42 million.
\ 34
Offshore Drilling
(€ million)
Core business revenue
Cost of sales
Adjusted gross operating profit (EBITDA)
Depreciation and amortisation
Adjusted operating profit (EBIT)
Impairment losses and restructuring expenses
Operating result (EBIT)
FINANCIAL AND ECONOMIC RESULTS
Year 2023
743
(442)
301
(123)
178
-
178
Year 2022
565
(391)
174
(72)
102
(3)
99
Revenues for 2023 amounted to €743 million, up 31.5% compared to the corresponding period of 2022. This is
due to a favourable market environment, with increasing daily rates and the increased contribution of the semi-
submersible platform Scarabeo 8 and the jack-up Perro Negro 8 which have worked to full capacity during the
period, as well as for the contribution of the drillship Deep Value Driller and the jack-up Perro Negro 11 which
starting their operations 2023. The cost of sales, equal to €442 million, was higher compared to the same period
of 2022, due to the new vessels becoming operational.
Adjusted gross operating profit (EBITDA) for 2023 amounted to €301 million, equal to 40.5% of revenues,
compared to €174 million in the corresponding period of 2022, equal to 30.8%, mainly attributable to better
market conditions with increasing daily rates compared to the corresponding period of 2022 and thanks to the
contribution of the new vessels.
Depreciation and amortisation amounted to €123 million, up €51 million compared to the corresponding period of
2022, when some vessels were idle for extraordinary maintenance, as well as the contribution during the period of
the drillship Santorini purchased at the end of 2022.
The operating result (EBIT) in 2023 was a profit of €178 million.
Below are the results adjusted on the basis of the new report.
Impact of reorganisation - 2022 data reported
(€ million)
Year 2022
First half
2022
Offshore E&C
2,072 Core business revenue
166 Adjusted gross operating profit (EBITDA)
16 Adjusted operating result (EBIT)
Onshore E&C
863 Core business revenue
10 Adjusted gross operating profit (EBITDA)
(5) Adjusted operating result (EBIT)
Impact of reorganisation - 2022 data reported
First half
2022
Asset Based Services
2,024 Core business revenue
164 Adjusted gross operating profit (EBITDA)
16 Adjusted operating result (EBIT)
Energy Carriers
1,874 Core business revenue
13 Adjusted gross operating profit (EBITDA)
(18) Adjusted operating result (EBIT)
(€ million)
Year 2022
5,127
420
105
4,288
1
(57)
5,026
414
100
4,389
7
(52)
\ 35
SAIPEM ANNUAL REPORT 2023
Balance sheet and financial position
Saipem Group - Reclassified consolidated statement of financial position (1)
The reclassified consolidated statement of financial position aggregates asset and liability amounts from the
statutory statement of financial position by function, under three basic areas: operating, investing and financing.
The management believes that the proposed schedule provides useful information for investors because it allows
to identify the sources of financial resources (own and borrowed funds) and their use in fixed assets and working
capital.
(€ million)
Property, plant and equipment
Right-of-use of leased activities
Net intangible assets
- Asset Based Services
- Energy Carriers
- Drilling
Equity investments
Non-current assets
Net current assets
Provisions for employee benefits
Net assets held for sale
Net capital employed
Equity
Non-controlling interests
Net financial debt pre-IFRS 16 lease liabilities
Lease liabilities
Net financial debt
Funding
Leverage before IFRS 16 (net borrowing/equity
+ non-controlling interests)
Leverage post-IFRS 16 (net borrowing/equity
+ non-controlling interests)
Number of shares issued and outstanding
Dec. 31, 2023
Dec. 31, 2022
2,635
501
918
2,960
428
666
4,054
162
4,216
(1,366)
(193)
-
2,657
2,394
2
(216)
477
261
2,657
(0.09)
2,459
519
850
2,879
258
691
3,828
128
3,956
(1,589)
(183)
166
2,350
2,068
18
(56)
320
264
2,350
(0.03)
0.11
1,995,558,791
0.13
1,995,558,791
(1) For reconciliation with mandatory templates see “Reconciliation of reclassified balance sheets used in the management report with the mandatory financial statements” on page
75.
Management uses the reclassified statement of financial position to calculate key ratios such as the Return On
Average Capital Employed (ROACE) and leverage (used to indicate the robustness of the group’s capital
structure).
Non-current assets as of December 31, 2023, stood at €4,216 million, an increase of €260 million compared to
December 31, 2022. The change derives from capital expenditure for €483 million, from the increase in the final
value of the right-of-use of lease assets for €312 million, from amortisation for €489 million, from divestments and
scrapping for €68 million, from positive variation of equity investments for €107 million including dividends for €69
million.
Net current assets have increased by €223 million, going from a negative balance of €1,589 million as of
December 31, 2022, to a negative balance of €1,366 million as of December 31, 2023. The increase is due to the
change in the provisions for risks and charges for €329 million, primarily due to the use of provision for losses on
contracts set aside following the backlog review in 2021.
Provisions for employee benefits amounted to €193 million, up €10 million compared to December 31, 2022
related to the effect of provisions for the period.
As of December 31, 2023, the net assets (liabilities) held for sale amount to zero, representing a decrease
compared to December 31, 2022, due to the divestment of the Onshore Drilling operation initiated in 2022. This
transaction involved the transfer of assets in Kuwait and Latin America, excluding those in Argentina.
In light if the above, the net capital employed increased by €307 million, standing at €2,657 million as of
December 31, 2023 compared to €2,350 million as of December 31, 2022.
Equity, including non-controlling interests, amounts to €2,396 million as of December 31, 2023, an increase of
€310 million compared to December 31, 2022. The increase is attributable to the net profit of €179 million for the
period, the positive effect of the change in the fair value measurement of foreign exchange and commodity
hedging derivatives amounting to €95 million, and the positive effect of the recording of the conversion reserve
for the issuance of convertible bonds on non-controlling interests for €80 million, offset by the negative effect of
\ 36
FINANCIAL AND ECONOMIC RESULTS
the change in third-party capital and reserves of €13 million; this was due to the transfer of the shareholding in the
company ER SAI Caspian Contractor Llc and the negative effect on the net equity due to the exchange
differences of financial statements in currencies other than the euro for €31 million.
The pre-IFRS 16 net financial position as of December 31, 2023 was a positive €216 million, including the
positive impact of €72 million from the bond issue. The net financial position including the IFRS 16 lease liability of
€477 million was a negative €261 million.
As of December 31, 2023, gross debt pre-IFRS 16 lease liability effects amounted to €2,393 million, liquidity to
€2,609 million of which €1,323 million is available cash.
Analyses of net financial debt
(€ million)
Non-current financial assets
Non-current bank loans and borrowings
Non-current bonds and other financial liabilities
Net medium/long-term debt
Cash and cash equivalents
Financial assets measured at fair value through OCI
Other current financial assets
Current bank loans and borrowings
Current bonds and other financial liabilities
Net short-term debt (liquid funds)
Net financial debt (liquid funds) pre-IFRS 16
Net current lease liabilities
Net non-current lease liabilities
Net financial debt (liquid funds)
Dec. 31, 2023
Dec. 31, 2022
(1)
374
1,794
(2,167)
(2,136)
(86)
(386)
159
66
(2,383)
(216)
201
276
261
(65)
234
1,495
(1,664)
(2,052)
(75)
(494)
288
613
(1,720)
(56)
113
207
264
Cash and cash equivalents include: (i) cash and cash equivalents of €660 million in current accounts of projects
executed in partnership or joint venture; (ii) cash and cash equivalents of €151 million in current accounts
denominated in currencies subject to movement and/or convertibility restrictions; (iii) cash and cash equivalents
amounting to €3 million in current accounts frozen or subject to restrictions for a total of €814 million.
For information on the net financial debt required by Consob, Notice No. 5/21 of April 29, 2021, please see Note
25 “Analysis of the net financial debt” of the consolidated financial statements.
Statement of comprehensive income
(€ million)
Profit (loss) for the year
Other items of comprehensive income
Items that will not be reclassified subsequently to profit or loss:
- re-measurement of defined benefit plans for employees
- change in fair value of equity investments measured at fair value through OCI
- share of other comprehensive income of equity-accounted investments
relating to re-measurement of defined benefit plans
- income tax relating to items that will not be reclassified
Items that may be reclassified subsequently to profit or loss:
- change in the fair value of cash flow hedges
- change in the fair value of financial assets, other than equity investments,
measured at fair value through OCI
- exchange differences arising from the conversion into euro of financial statements
currencies other than the euro
- income tax relating to items that may be reclassified
Other items of comprehensive income
Comprehensive income (loss) for the year
Attributable to:
- owners of the parent
- non-controlling interests
2023
179
(8)
(10)
-
(1)
3
66
124
3
(31)
(30)
58
237
238
(1)
2022
(209)
30
40
-
-
(10)
(4)
(52)
(5)
35
18
26
(183)
(185)
2
\ 37
SAIPEM ANNUAL REPORT 2023
Equity including non-controlling interests
(€ million)
Equity including non-controlling interest as of January 1, 2023
Comprehensive result for the year
Dividends distributed to Saipem shareholders
Dividends distributed by other subsidiaries
Sale (re-purchase) of treasury shares net of fair value of the stock-based incentive plans
Change of non-controlling interests
Share capital increase net of charges
Change in convertible bond option reserve
Other changes
Total changes
Equity including non-controlling interest as of December 31, 2023
Attributable to:
- owners of the parent
- non-controlling interests
2,086
237
6
(13)
80
310
2,396
2,394
2
Reconciliation of Saipem SpA's shareholders' equity and profit for the year
with the consolidated figures
Equity
Profit (loss) for the year
(€ million)
As per the financial statements of Saipem SpA
Surplus of the net assets of the financial statements including
the results for the year, compared to the carrying values
of participations in consolidated companies
Consolidation adjustments, net of tax effect, for:
- difference between purchase price
and corresponding book net worth
- elimination of unrealised intra group profits (losses)
- other corrections
Total equity
Non-controlling interests
As per consolidated financial statements
Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
(256)
2,148
2,395
107
(518)
(556)
36
225
694
(163)
(12)
2,396
(2)
2,394
717
(191)
(32)
2,086
(18)
2,068
(23)
25
34
179
-
179
(3)
23
(198)
(209)
-
(209)
The item “Other adjustments” mainly includes the impact of: (i) consolidated entries aiming to align the profit
margins of contracts affecting more than one Group company, the individual progress of which may not have
uniform economic/temporal development synchronised to the progress of the consolidated contract;
(ii) consolidated entries to reflect and align any impairments deriving from impairment tests.
\ 38
FINANCIAL AND ECONOMIC RESULTS
Reclassified statement of cash flows (1)
Saipem’s reclassified statement of cash flows derives from the statutory statement of cash flows. It enables
investors to understand the link existing between changes in cash and cash equivalents (deriving from the
statutory statement of cash flows) and in net financial debt (deriving from the reclassified statement of cash flows)
that occurred between the beginning and the end of the period. The measure enabling such a link is represented
by the free cash flows, i.e. the surplus or cash deficit remaining after the financing of investments. The free cash
flow closes alternatively on: (i) changes in cash and cash equivalents for the period by adding/deducting cash
flows relating to financial
loan assets/loans and borrowings), to
repayments for lease liabilities, equity (dividends paid, net repurchase of treasury shares, capital contributions) and
the effect of changes in the consolidation scope and of exchange differences on cash and cash equivalents, or
(ii) changes in net financial debt for the period by adding/deducting cash flows relating to equity, and the effect of
repayments of lease liabilities and of changes in the consolidation scope and of exchange differences on net
financial debt.
liabilities/assets (issuance/repayment of
(€ million)
Group’s profit (loss) for the year - Continuing operations
Group’s profit (loss) for the year - Discontinued operations
Result of the year of other shareholders
for adjustment:
Depreciation, amortisation and other non-monetary items
Net (gains) losses on disposals of assets
Dividends, interest and income taxes
Cash flows generated by operating activities before changes in working capital
Changes in working capital related to operations
Dividends received, income taxes paid, interest paid and received
Net cash flows from operating activities - Continuing operations
Net cash flows from operating activities - Discontinued operations
Cash flows from operating activities
Capital expenditure - Continuing operations
Capital expenditure - Discontinued operations
Investments in equity, consolidated subsidiaries and business units
Disposals and partial sales of consolidated equity, business units and property,
plant and equipment
Other changes related to financing activities
Free cash flows
Net change in receivables and securities held for non-operating purposes
Changes in short and long-term loans and borrowings
Repayments of lease liabilities
Sale (buy-back) of treasury shares
Cash flow from capital and reserves
Net change in convertible bonds
Changes in consolidation and exchange differences on cash and cash equivalents
NET CASH FLOWS FOR THE YEAR
Free cash flows
Repayments of lease liabilities
Sale (buy-back) of treasury shares
Cash flow from capital and reserves
Net change in convertible bonds
Exchange differences on net debt and other changes
CHANGE IN NET DEBT PRE-LEASE LIABILITIES
Effect of first-time adoption of IFRS 16
Financing/closing for the period
Repayments of lease liabilities
Exchange differences and other variations
Change in lease liabilities
CHANGE IN NET FINANCIAL DEBT
2023
185
(6)
-
413
34
252
884
(134)
(164)
586
-
586
(482)
-
(1)
145
-
248
16
(235)
(119)
-
-
72
(45)
84
248
(119)
-
-
72
(41)
160
-
(286)
119
10
157
3
2022
(315)
106
-
375
(121)
287
226
(624)
(244)
(523)
46
(477)
(523)
(27)
-
503
-
(524)
52
(919)
(128)
-
1,918
-
21
420
(524)
(128)
-
1,918
-
13
1,279
-
(124)
128
(6)
(2)
1,277
(1) For reconciliation with mandatory templates see “Reconciliation of reclassified balance sheets used in the management report with the mandatory financial statements” on page
75.
\ 39
SAIPEM ANNUAL REPORT 2023
The net cash flows from operating activities - Continuing operations positive for €586 million, net of the
negative cash flow from net capital expenditure and investments in equity consolidate subsidiaries of €483 million,
and the positive cash flow from divestments and partial disposals of consolidated participations, business units
and tangible assets of €145 million, generated a positive free cash flows of €248 million.
Repayments of lease liabilities generated a negative effect of €119 million. Exchange differences and other
changes on net debt produced a negative effect of €41 million.
Therefore, there was a positive change in net debt pre-lease liabilities of €160 million.
The change in lease liabilities generated an overall negative effect of €157 million, due to the net negative effect
of new financing and contract closure for €286 million in the period, to the repayments of lease liabilities for €119
million, and exchange rate differences and other changes for a total of €10 million.
Cash flows generated by operating activities before changes in working capital - Continuing operations,
positive for €884 million, results from:
≥ the net profit for the semester amounting to €185 million;
≥ depreciation, amortisation and impairment of tangible and intangible assets and right-of-use assets leasing for
€489 million, the negative valuation of equity investments using the equity method amounting to €107 million,
the negative change in provisions for employee benefits amounting to €6 million and exchange rate differences
and other negative changes for a total of €25 million;
≥ from net financial expense of €107 million and income taxes of €145 million.
The negative change in working capital related to operations, for €134 million, was due to the dynamics of financial
cash flows of backlog review projects under execution.
Dividends received, income taxes paid, interest paid and received during 2023 were negative for €164 million and
were mainly related to dividends received, income taxes paid net of tax credits and to interest paid.
Key profit and financial indicators
Return On Average Capital Employed (ROACE)
Return On Average Capital Employed is calculated as the ratio between adjusted profit (loss) for the period before
non-controlling interest, less net financial expense after deducting the related tax effect and net average capital
employed. The tax rate applied to financial expense is 24%, as per the applicable tax legislation.
Return On Average Operating Capital (ROACE)
To calculate the Return On Average Operating Capital, the average capital employed is netted of investments in
progress that did not contribute to profit for the year.
No significant investment in progress in the two periods compared were identified.
Profit (loss) for the year
Exclusion of net financial expense (net of tax effects)
Unlevered profit (loss) for the year
Net capital employed:
- at the beginning of the period
- at the end of the period
Average net capital employed
ROACE
ROACE operative
Net financial debt and leverage
Dec. 31, 2023
179
167
306
Dec. 31, 2022
(209)
195
(61)
2,350
2,657
2,504
12.22
12.22
1,892
2,350
2,121
(2.88)
(2.88)
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
(%)
(%)
Saipem management uses leverage ratios to assess the soundness and efficiency of the Group’s capital structure
in terms of an optimal mix between net borrowings and equity, and to carry out benchmark analyses against
industry standards. Leverage is a measure of a company’s level of indebtedness, calculated as the ratio between
net borrowings and equity, including non-controlling interests.
Leverage pre-IFRS 16
Leverage post-IFRS 16
\ 40
Dec. 31, 2023
(0.09)
0.11
Dec. 31, 2022
(0.03)
0.13
FINANCIAL AND ECONOMIC RESULTS
Non-GAAP measures
This section provides the alternative performance indicators that, although not required by IFRS (non-GAAP
measures), are used in the “Directors’ Report”.
Such indicators are disclosed to enhance the user’s understanding of the Group’s performance and are not
intended to be considered as a substitute for IFRS measures.
Specifically, the non-GAAP measures used in the Directors’ Report are as follows:
≥ EBIT (Earnings Before Interest and Taxes): is an alternative widely used performance indicator for cash flow
calculations of company and represents the operating result before financial expenses and taxes;
≥ EBITDA (Earnings Before Interests, Taxes, Depreciation & Amortisation) or gross operating margin: is an
alternative performance indicator relating to operating performance, calculated by adding depreciation and
amortisation to operating profit;
≥ adjusted EBIT (Earnings Before Interest and Taxes) or earnings before financial income (expenses): this is an
alternative performance indicator widely used in the calculation of cash flows for company and represents the
operating result before financial expenses and taxes net of special items;
≥ adjusted EBITDA (Earnings Before Interests, Taxes, Depreciation & Amortisation) or adjusted gross operating
margin: is an alternative performance indicator related to operating performance, calculated by adding
depreciation and amortisation net of special items to the operating result;
≥ cash flow: this indicator is given by the sum of net result plus amortisation and depreciation;
≥ capital expenditure: this indicator is calculated by excluding equity investments from total investments;
≥ gross operating margin: a useful measure for evaluating the operating performance of the Group as a whole and
of the individual business segments, in addition to operating result. The gross operating margin is an
intermediate measure, which is calculated by adding depreciation and amortisation to operating profit;
≥ non-current assets: the sum of net property, plant and equipment net intangible assets and equity investments;
≥ net working capital: includes working capital and provisions for risks and charges;
≥ net invested capital: this is the sum of non-current assets, working capital and the provision for employee
benefits;
≥ funding: this is the sum of equity, non-controlling interest and net debt;
≥ special items: they represent: (i) not-recurring events or transactions; (ii) events or transactions that are not
representative of normal business activities;
≥ net debt: this is calculated as financial debt less cash and cash equivalents, securities and other financial assets
not used in operating activities.
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SAIPEM ANNUAL REPORT 2023
RESEARCH AND DEVELOPMENT
We have always focused on technological innovation and are currently dedicated to leading the way in the energy
transition through increasingly digitalised tools, technologies and processes that prioritise environmental
sustainability from the outset while also strengthening our competitive position in the Oil&Gas industry.
Just in this respect, the first part of the report is devoted to Oil&Gas business innovation activities while the
second part is dedicated to the energy transition.
As regards the offshore Oil&Gas initiatives. most of the innovation activities are now grouped under the Asset
Based Services business line.
Efficiency is the key word from several points of view in offshore field developments: energy efficiency which is
now one of the most important targets in order to minimise carbon emissions, and also project execution
efficiency, which is requiring, in offshore and deepwater, a significant number of innovations.
The challenge for new technologies is to decrease the carbon footprint while remaining in areas where the
technical and economic challenges are still evolving with more and more demanding criteria. In this perspective,
Saipem is developing and delivering new and reliable technologies in different complementary areas, offering a set
of solutions to optimise the development and the decarbonisation of offshore fields.
Concerning Pipe laying activities, a very important milestone has been reached concerning the Integrated
Acoustic Unit (IAU) equipment that obtained the Statement of Qualified Technology from DNV (the well-known
certification institution) for the installation of 30”-36” and 42”-48” diameter pipelines. The IAU allows inspection of
potential damages in pipelines in real time during the laying process, notably out-of-roundness, buckles and
dents, water intrusion and identification and localisation of obstacles in the pipe.
Additionally, the development of a first version of the Hands-Free Lifting Beam for automatic transfer of pipeline
section from supply vessel to pipelay vessel is proceeding to hit the deployment on executive projects.
As regards Pipelines Technologies, the key factors are high performance and reliability of operations in
combination with assuring at the same time very high product and service quality. Saipem is making continuous
hardware and software improvements on its proprietary welding technologies, such as the Saipem Welding
System (SWS), Submerged Arc Welding (SAW) and SPRINT internal plasma remelting technology in order to
maintain and increase operational effectiveness and extend the working capabilities of the equipment. Notably, by
leveraging proprietary technologies and unique competences across the engineering value chain Saipem can
customise solutions to client needs and to our lay vessels to keep the competitive edge while meeting high quality
standards. This is made possible thanks to a highly committed R&D force that guarantee a top-notch fit-for-
purpose set of packaged solutions. This, both in SURF (Subsea Umbilicals, Risers & Flowlines) and more
conventional sectors.
In addition, qualification tests for innovative welding and field joint coating procedures and materials, for pipelines
transporting fluids with high Hydrogen content, are successfully continuing. These tests will support Saipem
readiness for construction of commercial pipelines transporting a variety of fluids e.g. Hydrogen-natural gas
mixtures or pure Hydrogen and of course more conventional challenging fluids. In that respect, Saipem is actively
involved in the consolidation and standardisation of the new DNV recommended practice, together with over 30
major players.
Concerning SURF products, a great focus has been put on the DEH (Direct Electric Heating) PiP (Pipe-in-Pipe), a
critical asset to guarantee the best flow assurance. Qualification tests have successfully started in 2022 with the
aim of having this technology qualified according to the TRL 4 of the API scale for commercial application within
the end of 2024 under the certification of DNV; electrical insulation has already been qualified. The patented
aluminum liner was the object of a successful qualification test, the purpose of which was to outline the most
appropriate fabrication process to our yards and industrialise it. Several case studies have been run on behalf of
clients (TotalEnergies, Shell and Exxon). Great efforts have been also dedicated to the introduction of plastic liners
for water injection lines, where pull-out and scale 1:1 pressure test have been successfully completed, closing the
qualification of High-Pressure End Connectors for static pipeline application. A concept has also been developed
and proof tested in partnership with TotalEnergies for the extension of plastic liners to production lines. The
special design features to address plastic liner deformation, in case of pipeline depressurisation, have been
addressed by numerical studies, and a first proof-of-concept has been manufactured and tested.
As regards technology development for SURF projects, the plastic wedges, that improve the laying performance
of PiP by 20%, have been qualified successfully onboard FDS 2 in May, paving the way towards first use on
projects, with improved safety and laying performances. Under the guidance of Petrobras, new Metal Lined Pipe
material has been qualified as alternate to Cladded CRA (Corrosion-Resistant Alloy) for corrosion sensitive
pipelines. Additionally, we are working on developing mid-term solutions to improve the laying performance of
continuous buoyancy on Steel Lazy Wave Riser. Finally, Saipem has positively concluded a test campaign to
\ 42
RESEARCH AND DEVELOPMENT
demonstrate the feasibility to use raw sea water (instead of fresh water) bringing environmental and economic
performance to our projects in 2023 (saved more than 1,500 m3 of fresh water also with a significant economic
saving).
The Offshore Drilling business has completed the development of a tool to improve the quality of wells leveraging
artificial intelligence. The tool aims at supporting the drillers in detecting those signals that allow the well engineer
to maximise well quality. The system has been developed and tested on past project data, and currently running
on the vessels of the fleet.
From subsea side, given the strong feedback coming from customers and government agencies, the
technological feasibility of using electric BOPs (Blow-Out Preventers) and riserless sea drilling operation is also
being evaluated.
In addition, a system to track all the tubular material running in the well and present onboard has been developed
to have a real time situation and better plan the phases of the well. The system will reduce maintenance cost and
environmental footprint by reducing unnecessary demobilisation. A pilot test will be carried out onboard Scarabeo
8 in 2024.
As regards the Robotics & Industrialized Solutions business line several activities are ongoing.
Subsea Factory
Saipem is developing the “Subsea Factory Solutions” industrial platform. This is a new approach to bring process
treatment directly on the seabed, close to the injection wells, by reducing the costs associated to risers and
flowlines, the significant costs for additional treatment modules installation on existing topsides and frees up
valuable space for production or reduces the size of the new topside facilities, also allowing a significant reduction
of emissions by simplification of the overall architecture.
This development fits with the “All-Electric” vision for fields, made of subsea infrastructures connected only by
electric lines and optical fibres, in place of complex and expensive electro-hydraulic umbilicals which are typically
used to deliver control fluid for subsea hydraulic actuators, chemicals and subsea pumps barrier fluid. Within this
framework, the subsea factory solutions are the key enablers of brownfields development projects whenever
congested topside or long tiebacks are concerned.
The qualification of the SPRINGS™ process for water desulfation and injection (co-owned with TotalEnergies and
Veolia) has been successfully completed. The industrialisation of its all-electric subsystems is also close to its
completion, pending final tests. Such subsystems have been industrialised with the intention to form the building
blocks for the whole Subsea Factory products portfolio. Thanks to the process qualification and to the
industrialisation, the technology maturity has progressed, and recognised by operators, to a stage sufficient for
being included in conceptual studies for new field developments.
The FLUIDEEP™ technology for subsea storage and injection of chemicals is also at an advanced stage of
industrialisation and the final qualification tests are currently ongoing. Saipem has completed a study with a client
for the utilisation of SPRINGS™ combined with the subsea produced water separation (Spoolsep™) and
subsequent treatment, demonstrating a reduction not only of the global cost but also on the CO2 emissions, when
compared to a conventional field development scheme.
Saipem has also recently presented SUBGAS, a subsea gas dehydration and dew pointing unit to overcome the
flow assurance issues and unlock long subsea Gas tiebacks. SUBGAS avails of the qualified oil and gas separator
Vertical Multipipe™ which was previously developed and qualified through multiple Joint Industry Projects (JIPs)
for deepwater applications.
“Life-of-Field”
Saipem is developing an integrated Digital Twin approach for subsea critical component design and servicing, by
incorporating new technologies such as the “RIser Monitoring System” for enhanced Life-of-Field. These
technologies, including their evolutions (e.g., fiber optics monitoring), have been successfully qualified and are
going to be deployed in Buzios 5 and Buzios 7 projects.
Regarding subsea remediation services for diver and deepwater diverless applications, Saipem has successfully
qualified and obtained a third party (DNV) certification for a mechanical end connector ("Seal & Grip") to allow to
replace damaged pipe sections with pipe spools, being the only connector that adopts a full metal-to-metal seal
to guarantee permanent repairs of clad and sour service pipelines. Saipem is also qualifying a novel pipeline and
spool diverless deepwater repair technology based on Fibre‐Reinforced Polymer composite wrapping. Process
development and wrapping tape material qualification are ongoing for deep water and high temperature cases.
Subsea robotics
The use of advanced underwater robotics solutions, capable of performing complex
inspection tasks
automatically and with no subsea human presence, represents a cutting-edge technology in the field of
unmanned underwater interventions. We aim to be a key player in this transformation, using some of the more
innovative and disruptive subsea robotics solutions in the offshore market.
Such drones will be able to perform complex navigation tasks, automatically adapting to environmental conditions
and newly acquired inspection data, all of which require advanced control and communications techniques
informed by Artificial Intelligence.
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SAIPEM ANNUAL REPORT 2023
The development of the Hydrone subsea robotic platform is more and more focusing on our Hydrone-R, Hydrone-
W and FlatFish solutions:
≥ the first Hydrone-R vehicle was delivered to Equinor as part of the first ever “Life of Field” contract for an
Underwater Intervention Drone, covering 10 years of service in the Equinor “Njord” field off the coast of
Trondheim. This Hydrone-R prototype, complete with automatic docking features, was developed and fully
tested, including remote controllability and is now in operations on Njord field for continuous inspection and
maintenance activities. At present, the system achieved the significant result of 167 days of continuous dive.
≥ Hydrone-W is a work-class full-electric remotely operated vehicle (ROV) equipped with a revolutionary
powertrain and power management system that minimises energy consumption during operations. It is
designed to operate from both manned and unmanned platforms controlled from land. Its industrialisation is
also ongoing as a dedicated investment. Delivery of the first prototype is expected within 2024.
≥ FlatFish is our underwater drone, conceived to perform complex, autonomous subsea asset inspections without
vessel support. This robot can be launched from a topside facility or reside on the seabed inside a subsea ROV
garage. FlatFish will significantly reduce the CO2 footprint of this type of operation by more than 90% and
decrease manning requirements by approximately 70%, offering clients a more cost-effective solution. The
development of the "FlatFish", winner in May 2023 of the Spotlight on New Technology award at the Offshore
Technology Conference (OTC) (as already Hydrone-R in 2021), is also at an advanced stage: after a first
extensive test programme, carried out in Trieste Playground, for the complete testing of all autonomous tasks
and inspection functions, the system has been mobilised for a deep-water test campaign offshore Brazil in the
context of an awarded contract with Shell and Petrobras. The offshore campaign has been recently completed
with successful testing and finalisation of all system capabilities in fully operational environment. In this frame,
Saipem has been awarded a contract by Petrobras for the development and testing of an autonomous subsea
inspection robotic solution, which will be based on Saipem’s fleet of underwater drones, starting from the
FlatFish, as well as the qualification of related autonomous drone-based services, enabling future inspection
contract options offshore Brazil. This contract marks a further milestone for Saipem’s innovative underwater
robotics programme and for the global scale utilisation of subsea drones in offshore projects throughout the
entire value chain, and it allows to extend to the new features the maturity (Technology Readiness Level 7)
achieved on Saipem’s fleet of subsea drones.
We are also collaborating with WSense to develop subsea intelligent nodes that can communicate using
through-water links to create a distributed network of acquisition nodes integrated with our underwater robotics.
This technology could be applied to traditional Oil&Gas scenarios like monitoring asset integrity or for new fields
like monitoring underwater CO2 storage.
We are also part of the “AIPlan4EU” Horizon 2020 programme, working on creating Artificial Intelligence software
for automatic mission planning, to be used on our Hydrone platform. Additionally, we are actively contributing to
the Subsea Wireless Group (SWiG), a Joint Industry Project aimed at standardising through-water communication.
Finally, the potential of these subsea technologies within the offshore domain is vast, both for Oil&Gas
developments, as well as for the renewables market segment and even in non-energy sectors.
In particular, in the “New Energy” context, the use of FlatFish for subsea inspection and maintenance activities of
the offshore wind farms is an attractive solution with high potential in the improvement of the value chain. As
offshore wind farm installations require periodic and long-lasting inspections activities, subsea resident drones,
with the ability to accomplish inspection missions in complete autonomy, represent a step-change solution with
multiple benefits
in terms of safety, operational de-risking, environmental sustainability, cost efficiency,
digitalisation.
In the defence field, we are continuing to work on developing the Rescue and Intervention Deployable Assets for
the vessel SDO-SuRS (Special & Diving Operations - Submarine Rescue Ship) for the rescue of submariners
continued in collaboration with Drass. Saipem was selected by Marina Militare Italiana (the Italian Navy) for the
development of the new generation equipment. The rescue and intervention system integrates a latest generation
of work-class ROV, acting as a carrier for navigation and control, with a rescue capsule bringing submariners back
to the surface, through a controlled habitat, in total safety. Saipem is also working with the Intermarine shipyard for
the launch and recovery system of underwater drones from the Uncrewed Surface Vessel (USV) for mine
countermeasures operation, within the new mine hunting ship development programme of Marina Militare Italiana.
Saipem has been recently awarded for a PNRM project (National Plan for Military Research) dedicated to the
development of an innovative subsea robotics system (Hydrone-D) for mine countermeasures and other defence
activities (ASW and seabed warfare).
The Energy Carriers business line continues to pursue the monetisation of natural gas with focus on the
consolidation and development of processes and technologies aimed at achieving the decarbonisation targets,
complying with the energy transition path. In this context, a long-term plan has been defined and related activities
are in progress to keep the proprietary technologies at the highest level of competitiveness.
Relevant to the fertilizers production (“Snamprogetti™ Urea Technology”), the ongoing activities include:
≥ continuing to enlarge our portfolio of high-end solutions with the introduction of the Snamprogetti SuperCups™
trays, for urea reactor, which drastically increase the mixing efficiency of the reactant phases, thus boosting the
conversion rate of urea synthesis aiming to significantly reduce the energy footprint of urea production and its
CO2 emissions; several new and “revamped” facilities are adopting the SuperCups technology and a research
\ 44
RESEARCH AND DEVELOPMENT
programme to develop the second generation of SuperCups is on-going, with the aim of further increasing the
efficiency;
≥ improving resistance to corrosion and cost reduction through the development of novel construction materials.
In this respect, Saipem and Tubacex Innovación have recently developed together a new grade SuperDuplex
material for application in the High-Pressure section of Urea plants. The new material has been developed for
use with traditional construction technique, as well as additive manufacturing; it has been already tested in an
industrial environment and is ready for commercial deployment;
≥ the conceptual design of blue ammonia facility has been completed as part of the Barents Blue Ammonia
Project pre-FEED activities. The integration of ammonia process with the required utilities & offsites has
demonstrated that, by proper optimisation, it is possible to achieve 99% of carbon capture rate for the overall
complex; in addition, a deep modularisation study demonstrated the feasibility of a highly modularised approach
which can facilitate the deployment of large blue hydrogen/ammonia projects. Currently, a huge number of
commercial initiatives is ongoing for blue hydrogen/ammonia, moving from early development to Front-End
Engineering;
≥ also, the number of green ammonia production, ammonia pipelines and ammonia terminals initiatives currently
pursued by Saipem is increasing, allowing Saipem to be at the forefront of the expected massive deployment of
low-carbon ammonia market. Low-carbon ammonia is considered a suitable energy vector, both as a primary
source of energy and indirectly as hydrogen carrier. In this regard, Saipem is currently evaluating the technical
and economic feasibility of large-scale ammonia cracking, the technology enabling the entire value chain of
ammonia as hydrogen carrier;
≥ Saipem is supporting a major energy player in the development of a Partial Catalytic Oxidation technology,
aimed at decarbonising Hydrogen and derivatives production;
≥ an innovative solution for Wastewater Treatment in Ammonia-Urea complexes, the SPELL technology, has been
developed by a cooperation with Purammon Ltd. The technology is able to remove nitrogen and organic
contaminants through a novel electrochemical process, in compliance with the most stringent environmental
regulations. To support the technology demonstration towards the final customers, a mobile containerised
demo plant, with max capacity equal to 2 m3/h has been built and exercised. Such asset will be easily moved to
different clients’ facilities through a plug & play approach to demonstrate the electrochemical technology
capabilities.
Efforts in the LNG (Liquefied Natural Gas) field are ongoing, also to define proprietary schemes for small-scale
natural gas liquefaction and LNG regasification facilities, which can become a flexible way also for supporting
sustainable mobility in the near future. The proprietary Liqueflex™ and Liqueflex™ N2 technologies for the
liquefaction of natural gas, have been just devised for small and mid-scale plants, to suit the current market
scenario requiring quick time to market solutions. Various innovative solutions have also been patented by
Saipem to increase the profitability of either new-built or existing LNG regasification terminals, by recovering cold
energy from LNG to minimise the terminals power consumption and CO2 emissions. The business line is also
supporting the final customers in the evaluation of possible solutions targeting greener LNG facilities to further
lower carbon emissions in large scale LNG plants.
In association with the LNG technology, Saipem patented a Telescopic Joint named “CASS”, consisting in a joint
with an innovative design that absorb pipe’s thermal contraction in cryogenic application avoiding piping loops,
with a consistent optimsation of pipeline routing and related construction costs and plant capex reduction. The
innovative joint exploits the principle of telescopic movements, replacing expansion loops and it is applicable to
cryogenic pipes but also on hot application. Saipem has further developed the solution and is in the process of
completing a DNV certification for the joint. Next step in the technology development will be the installation in an
operation plant upon entering in a collaboration agreement with concerned operators.
In relation to High Octane technologies, the identification and investigation of new possible configurations, for
etherification unit to reduce energy intensity of the entire process from acquisition to execution.
As previously mentioned, the second part of this report describes the activities regarding energy transition. In the
medium term, targeting progressive decarbonisation of energy and overall CO2 emissions reduction, also in the
Hard to Abate sectors, we are pursuing several initiatives that reflect four main pillars:
1. Decarbonisation of Carbon-Intensive Industries (“hard to abate”). We aim to continue to produce energy and
products using fossil fuels while significantly reducing their associated climate-altering emissions. This applies
not only to the Oil&Gas industry but also to other energy-intensive industries, such as steel, paper mills and
cement.
2. Renewables. We are particularly oriented towards several offshore renewable energy sources, mainly offshore
wind but also floating solar; their systemic integration might allow more independence of the intermittent
character of most of renewables, possibly also through the production of hydrogen.
3. Hydrogen. We see it both as a low-carbon chemical intermediate and as an energy carrier that can gradually
replace natural gas, particularly in those applications that are difficult to electrify.
4. Low Carbon Fuels, biomass conversion and circular economy. We are committed to adopting new models that
aim to create value and protect the environment by improving the management of resources, eliminating
waste through better design, and maximising the circulation of products.
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SAIPEM ANNUAL REPORT 2023
Decarbonisation of Carbon-Intensive Industries
Carbon is a key ingredient of fossil fuels, both in the Oil&Gas realm and in industries, such as steel production,
where it is a main component of any kinds of steels; in the meantime, it is also important to decarbonise other
“hard to abate” sectors, such as cement production, as well as paper mills, waste treatment plants, etc., whose
decarbonisation represents an important challenge for the achievement of carbon neutrality targets.
Although CO2 cannot be totally eliminated, it is important to find the best way to manage it.
Our company has a strong background in Carbon Capture, Utilisation & Storage (CCUS) thanks to capture
process technology, experience in pipeline transportation of fluids over long distances, conversion of CO2 into
chemicals and offshore drilling for CO2 injection. We are making diversified efforts to assist our clients in reaching
their decarbonisation goals and creating a more sustainable industrial model.
We have extensive experience in all commercial technologies related to CO2 capture, thanks to our vast
knowledge in the ammonia/urea production process and in refineries, including the gasification of tar residues. At
confirm of this, in April 2023, Saipem and Mitsubishi Heavy Industries (“MHI”) have signed an agreement that allows
Saipem to use MHI's proven technologies for post-combustion CO2 capture in the implementation of large-scale
projects.
Additionally, Saipem and Valmet, a Finland-based leading global developer and supplier of process technologies,
automation and services, have signed a Memorandum of Understanding (MoU) just to develop joint solutions to
decarbonise the hard-to-abate industries. The companies will collaborate to offer effective solutions combining
Saipem’s technologies for CO2 management with the heat recovery and flue gas treatment units engineered and
produced by Valmet for the pulp, paper and energy segments, thus bringing integrated and flexible options to their
customers in both existing and new facilities.
Additionally, we keep developing our own “CO2 Solutions by Saipem” technology, whereas the related industrial
solution is already offered in the market, which aims to reduce the cost and environmental impact of capturing
CO2 from combustion processes. This technology uses an absorption process with a carbonate solution
enhanced by a proprietary enzyme that can operate in process conditions. We have already tested this
technology on a large scale at a demonstration plant (30 tonnes per day) in operation in Québec.
We are also collaborating with Novozymes, a leading biotech company specialised in enzyme production and
optimisation, to secure the enzyme supply chain.
Lastly, we completed the industrialisation of Bluenzime™, a modularised system for post-combustion carbon
capture that uses our CO2 Solutions technology, in order to provide our clients with a compact and effective
solution that can be brought quickly to the market. The first industrialised product is Bluenzyme™ 200, with a
nominal capture capacity of 200 tonnes of CO2 per day. Bluenzyme™ is a plug-and-play system designed for
different industrial sectors including Oil&Gas and hard-to-abate sectors; the product is applied to post-
combustion emissions from new or existing plants.
Finally, the company’s CO2 capture project located in Saint-Félicien in Canada has been awarded during COP28
as Energy Transition Changemaker, the initiative to foster collaboration and share knowledge amongst the private
sector in implementing innovative and scalable decarbonisation projects that can help accelerate the energy
transition. The Saint-Félicien plant is connected to a greenhouse that by April 2024 will utilise the captured CO2 for
enhancing agricultural yields, demonstrating a circular approach.
The EU-funded “ACCSESS” innovation project
We are also actively participating in the ongoing EU-funded innovation project “ACCSESS”, started in 2021 and
involving 18 European partners in the frame of the Horizon 2020 programme. ACCSESS is demonstrating the
capture of CO2 from flue gases coming from several hard-to-abate industries such as pulp and paper, cement
production and waste-to-energy, and cross-border CO2 transport solutions linking CO2 sources in inland Europe
and the Baltics to the North Sea.
In 2022, a 2-tonne-per-day pilot plant, previously designed to be operated with amine solvent, was modified to
operate with our CO2 Solutions technology, which was identified as the leading technology of the ACCSESS
project. The pilot plant has been successfully operated with our technology in the waste-to-energy plant Hafslund
Oslo Celsio in Klemetsrud, marking the first important milestone of the ACCSESS project. After the completion of
testing in Klemetsrud, the pilot has been moved to the Technology Centre Mongstad to be integrated with a
Rotating Packed Bed (RPB) absorber unit, developed by Prospin and constructed by Proceler. Preliminary runs
have demonstrated stable operations well satisfying target performance. This represents the next stage of
development of our CO2 Solutions technology. In 2024, we will conduct CO2 capture test campaigns at the Stora
Enso kraft pulp mill in Skutskär, Sweden, and at the Heidelberg Cement kiln in Górażdże, Poland.
In 2023, we also successfully applied to the Horizon Europe call for the project “COREu”, which has been accepted
by the European Committee and in December 2023 the related Grant Agreement has been signed.
COREu project, always coordinated by Sintef, starting in 2024 is the largest Research and Innovation project ever
funded by a European programme and aims to demonstrate key technologies for the entire CCS value chain,
supporting the development of CCS routes linking emitters with storage sites in Central Eastern Europe.
Our scope in this project is significative both by contributing to enhance models for the safe design and operation
of CO2 transport networks and by supporting safe and long-term storage for the injected CO2.
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RESEARCH AND DEVELOPMENT
In terms of CO2-reuse, we are actively identifying all possible technologies to support our clients with potential
CO2 reuse options, particularly in areas where infrastructure for CO2 collection and transport to storage is not
available (see also the low carbon fuels section).
We are also working to further improve our knowledge and capabilities in CO2 transportation. After having
developed the FEED for the offshore pipeline of the Northern Lights project, we have collaborated with the
University of Ancona (Italy) to assess the impacts of CO2 impurities in pipeline flow assurance and review leak
detection methods for onshore transportation. We have started R&D works funded by Exxon to study the detailed
readiness levels of all the subsea components involved in CO2 subsea transportation systems from shore to wells.
We continue to study the applicability of polymeric material in pipeline systems, thanks to our participation in the
European funded project “CO2 EPOC”, an R&D project carried out by the Norwegian company SINTEF and
promoted by Equinor & Total. Furthermore, our associated Norwegian company Moss Maritime is in the
preliminary design stage for a liquefied CO2 vessel to collect and store CO2 from various industrial sources.
Other decarbonisation services
To help our clients meet their Net-Zero emission targets, we have also created specialised decarbonisation
services that address both the emissions generated directly by the client’s facilities and those throughout its
supply chain:
≥ EmiRed™ is a solution to find the best tech to reduce greenhouse gases in greenfield or brownfield industrial
plants. It is both a method and a digital tool resulting from our engineering experience and tech innovation.
EmiRed™ calculates a plant's life cycle’s direct and indirect costs and emissions from the design stage, allowing
for a quick comparison of different decarbonisation scenarios such as energy efficiency, carbon capture,
renewables, fuel switching, and methane reduction. EmiRed™ follows the GHG Protocol and is certified by
Bureau Veritas, a global leader in assessing QHSE-SA (Quality, Health, Safety, Environment and Social
Accountability) risks. It is applicable throughout the whole Energy’s industry sector, onshore and offshore;
≥ LCA (Life Cycle Assessment) evaluations, based on the ISO 14040 and ISO 14044 standards, enable reliable,
transparent and quantitative assessment of potential environmental impacts of projects, products, processes
and integrated systems.
Renewables
Saipem keeps investing in the offshore renewable market for both bottom-fixed and floating solutions.
Regarding bottom fixed solutions, Saipem achieved key milestones by completing the installation campaigns for
the Seagreen, Formosa, Fecamp and St. Brieuc projects, and advanced in the development of a new modular
concept for midwater depths (50-80 m) and wind turbines up to 20 MW extending the portfolio of products
Saipem can offer in this segment.
Saipem is also participating to a JIP on early age cycling of grouted connection coordinated by DNV.
In floating wind, we advanced the development of two concepts, the STAR1 semi-sub and the Hexafloat™,
pendulum design, to provide the most tailored solution to the market.
In 2021, we added the STAR1 semi-submersible technology to our floating offshore wind technology portfolio.
This is a centred-turbine floater with 3 external columns connected to the central one by submerged pontoon. In
2023, Saipem has completed the design and structural optimisation of STAR1 for large-scale future commercial
turbines of 15 MW with the aim to reduce structures weight and fabrication costs to improve competitiveness of
floating wind vs. bottom-fixed offshore wind.
Innovative connections between columns and structural
arrangements have also been investigated and validated for harsh sea conditions.
The other technology
is HexaFloat™, a pendular floating wind solution for deep water, connecting a
semi-submersible floater to a submerged counterweight with synthetic tendons. This allows the development of
floating offshore wind turbines in areas with strong winds that are too deep for traditional fixed foundations. In
consequence of the current market trends, its development, advanced till to a level of TRL 5, has been for the
moment slowed waiting for more mature times for its full exploitation.
After having carried out the “Floatech” project, granted by the EU Horizon 2020 programme, in 2023, we
successfully applied to the Horizon Europe call with the project “Floatfarm”, which has been accepted by the
European Committee and in December 2023 the Grant Agreement has been signed. The project aims to
significantly advance the maturity and competitiveness of floating offshore wind technology and we will have the
occasion to further improve the maturity of STAR1.
In addition to these developments, Saipem is pursuing a significant effort to industrialise its calculation chain
aiming at designing efficiently floating wind structures, with integration of complex interfaces among key
designing tools. On the other hand, the optimisation of the fabrication sequence has been another key focus
which has led to the kick-off in 2023 of a JIP named RECIF, with support from ADEME and CORIMER (French R&D
Council of sea industrials), whose objective is the development of specific fabrication optimisation blocks.
Saipem is also involved in the development of floating substations in partnership with Siemens Energy, developing
a concept design for a 500 MW high voltage alternating current floating electrical substation. A typical floating
substation design has been completed and a Statement of Feasibility by DNV has been issued on the design
developed. Floating substation design has been further improved in 2023 to optimise costs and minimise risks for
these new and complex projects, from design to fabrication and installation.
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SAIPEM ANNUAL REPORT 2023
In the renewables area, the Company is also developing further initiatives:
≥ in partnership with Equinor, a new concept of “Offshore Floating Solar Park”, developed by Moss Maritime, for
applications also under severe wave conditions; together with Sintef the two companies have performed tests
on a scaled floating solar model. Pilot project started in 2023 with a deployment offshore in early 2024;
≥ as regards geothermal, potential opportunities in both the fields of unconventional geothermal systems and
offshore geothermal are being evaluated; collaborations with reference research centres are being defined as
well as discussions with possible strategic partners;
≥ evaluation of all the possibilities of an environmentally sustainable recovery of critical and strategic minerals,
fundamental for both clean energy and digital transitions, is under development; processes scenarios involving
the transfer of technological skills from Oil&Gas are being investigated.
Hydrogen
Saipem can design, size and execute industrial plants using green and blue hydrogen technologies for industrial
sectors, either the conventional ones based on Hydrogen both as a chemical intermediate and for hard-to-abate
sectors where electrification is not feasible, and as energy carrier for heavy duty vehicles, rail and maritime
transportation. In general, hydrogen technologies also address the need for a resilient energy system that can
integrate variable renewable sources and ensure flexibility and supply security. Saipem provides industrial
solutions such as large-scale electrolyser plants for hybrid industrial applications, including those defined by the
low carbon ammonia, as previously reported, and green hydrogen valley projects.
In November 2023, the entry of Sosteneo (Generali Investments) into Alboran Hydrogen Brindisi Srl alongside
Edison (the major industrial shareholder) and Saipem represents a key step in the development of Italy's largest
Hydrogen Valley. The Puglia Green Hydrogen Valley project will accelerate the adoption of green hydrogen in the
national energy mix, helping Italy and Europe reach their climate neutrality targets by 2050.
The Puglia Green Hydrogen Valley project aims to build two green hydrogen production plants in Italy, in Brindisi,
and Taranto for a total capacity of 160 MW and powered by renewable electricity provided by dedicated 260 MW
photovoltaic plants, as well as by the electric grid via green power purchase agreement. The two plants will
produce up to 260 million cubic metres of renewable hydrogen per year and 190,000 tonnes of CO2 emissions
reduction. The produced green hydrogen will be transported to end users through a repurposed pure hydrogen
pipeline and new connecting ancillary gas network, contributing to the decarbonisation of the nearby industrial
sites of Brindisi (incl. petrochemical industry and power stations) and Taranto (incl. energy intensive industries
such as a big steel-making plant and refineries), combining several H2 applications into an integrated H2
ecosystem.
The project has been submitted to IPCEI (Important Projects of Common European Interest) funding; in December
2023, Saipem, together with its Partners, finalised the lasting two years process of requests for information from
EU DG Comp and the Italian MIMIT Ministry.
In synergy with CO2 capture green hydrogen is an enabler in the value chains of green chemicals and e-fuels, and
several projects and initiatives are ongoing mainly in Europe, USA and Australia with capacities ranging from 50 to
500 MW. With the purpose to address the market and drive demand, Saipem has signed an MoU with a major
electrolysis technology provider of both alkaline and PEM technologies, and an internal industrialisation project for
a 100 MW green hydrogen package is nearly to be finalised.
In the infrastructure sector, Saipem is also heavily involved in the development of onshore and offshore pipeline
readiness for pure hydrogen and hydrogen/natural gas blending and is conducting studies in Mediterranean and
North Sea areas. Several initiatives are underway, such as Fluxys Project NH3 pipeline transport feasibility study
(Belgian TSO), Nordion-GasGrid feasibility study for a new pure hydrogen pipeline. Saipem has obtained the
Approval
in Principle statement from RINA with reference to Saipem's methodology for evaluating the
performance of metallic materials and related welds for the construction of subsea pipelines for hydrogen
transport. Moreover, Saipem is involved in the design of ship liquefied hydrogen transportation vessels through
Moss Maritime, that has won an Approval in Principle from DNV for a liquefied hydrogen (LH2) containment system
design.
Low Carbon Fuels, biomass conversion and circular economy
The energy landscape drives Saipem to look with increasing interest at the technologies of Low Carbon emission
production, and liquid (biofuels, ammonia, and synthetic hydrocarbon liquids) or gaseous (biogas, hydrogen,
synthetic methane and bio-methane). While low-emission fuels currently meet today a small percentage of global
energy demand, they will be key to decarbonise long-distance transportation and parts of heavy industry.
In this frame Saipem is involved through a cooperation agreement with Versalis to promote PROESA® technology
used to produce sustainable bioethanol and chemicals from lignocellulosic biomass. In addition, Saipem is
involved into different commercial initiatives for the production of synthetic fuels, as an e-methane, e-SAF
(Sustainable Aviation Fuels), e-naphtha, and e-methanol, assessing the technology and evaluating the associated
technology risks and opportunities. A FEED contract is under development for a e-methane plant production in
North Europe. About this project:
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RESEARCH AND DEVELOPMENT
≥ over 10,000 TPA of e-methane, using green H2 and CO2 captured from the flue gas generated by an existing
power facility;
≥ renewable fuel used to decarbonise heavy-duty transport, replacing fossil fuels and reducing the associated
CO2 emissions;
≥ carbon capture unit based on our CO2 Solutions by Saipem technology.
Others projects of synthetic fuels production are ready to start within 2024. At the same time, Saipem continues
to study and analyse markets and global technology landscape for biomass conversion technologies in terms of:
≥ gasification for the production of Syngas;
≥ anaerobic digestion and purification for biomethane production;
≥ pyrolysis and hydrothermal liquefaction for bio-oils production.
Saipem also carries out projects for the refinery conversion, in particular for the production of renewable diesel
and SAF from waste oils, also in addition to energy crops not in conflict with the food chain. In these plans Saipem
is generally involved as contractor, also supporting the customers in the technological consolidation.
As far as the circular economy is concerned, the ability to develop innovative solutions for sustainably treating
plastic waste and turning it into valuable products is becoming increasingly crucial. To this scope, we are
promoting circular economy models for plastic waste and exploring potential partnerships with waste sorting
companies, technology providers and final off-takers to build comprehensive chemical recycling plants and
improve our offering.
We signed in 2022 an MoU with Quantafuel ASA to collaborate in the industrialisation and construction of
chemical recycling plants for waste plastics using Quantafuel’s technology. This allows us to market and construct
industrial plants specialised in pyrolysis, which turns solid plastic waste into liquid or gaseous products that can be
reused as chemical raw materials for plastic recycling or fuel.
In the field of plastic depolymerisation. Saipem and Garbo, an Italian chemical company, have signed an
agreement to support the industrialisation, development and commercialisation on a global scale of a new
technology for PET (Poly-Ethylene-Terephthalate) recycling. The technology, named ChemPET, is Garbo’s
proprietary technology which chemically recycles PET-rich waste producing the intermediate ester of the
traditional PET synthesis, from fossil based raw materials, to be used to produce cRPET (chemically recycled PET),
with the same properties and applications of virgin PET. The agreement also provides for Saipem and Garbo to
collaborate on a demonstration scale of a PET-rich waste chemical recycling plant in Italy.
Novel Innovation methodologies
Saipem, in collaboration with the Politecnico di Milano, has developed a first of kind approach to identify, assess,
and manage technological risks
in complex projects. This methodology adds to the “TechInnoValue”
methodology, always developed with the Politecnico to track and measure the value generated by technology
innovation inside the executed projects, in relation to the sustainable development of the business and in line with
the Company’s ESG objectives.
Intellectual property
Within the complete framework of technology innovation activities, Saipem filed 19 new patent applications in
2023.
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SAIPEM ANNUAL REPORT 2023
HUMAN RESOURCES
Quality
In the definition and governance of the Quality Management System, the main activities performed in 2023 are
described below.
≥ management and maintenance of the corporate Quality certifications (ISO 9001), which were transferred from
Technischer Überwachungsverein (TUV) to Det Norske Veritas (DNV);
≥ drafting of the Group Quality Policy aiming to further centralise the characteristic steering, coordination and
control activities in the current organization;
≥ update of the Group Quality Plan 2023 containing the quality improvement initiatives that are complementary to
the performance of the routine activities provided for in the referred standards;
≥ celebration of the World Quality Week 2023 (November 6-10) through:
• dissemination of institutional messages, videos from top managers and organisation of dedicated meetings;
• participation as a testimonial at the meeting organised by Eni in Rome, to highlight the value of Quality as a key
driver of change and operational excellence;
≥ continuing optimisation and formalisation of Quality Assurance and Quality Control processes, in line with the
current organisational model. In this area we point out the redefinition of the following sub-processes:
• Quality Management Review and Quality Plan;
• Process Performance Indicators (PPI);
• Non conformity;
• Return of Experience (REX) and Lessons Learned (LL);
• Cost of Non-Quality (CoNQ) and Quality Investigation;
• Customer Satisfaction;
• Method for estimating Quality resources for project execution during the bid phase;
• Drafting of new group criteria for the pipe tracking system process;
≥ the identification of innovative digital solutions aimed at simplifying the management of Quality Assurance and
Quality Control processes. Some examples include:
• cost/benefit analysis for extending the application of computed radiography to other projects, in relation to
clients’ requests;
• the application of module 1 of the Request for Inspection (RFI) & Quality Check tool on Bonny T7 Site project,
which aims to streamline the management of quality inspections and related certificates on site;
• the digitisation of the Audit Management process;
• development (using internal resources) of a Proof of Concept for the integration of the Saipem Quality Control
tool (PCOS) and the 3D model representation software (Autodesk Forge), for the automatic visual
representation of certification progress;
≥ rationalisation of the scope of supply for the services made available by technical standards at Group level,
through analysis of usage statistics with redefinition of perimeters optimised for drawing 2024 contracts;
≥ overall analysis of the Project Quality and Quality Control professional family, coordinating the contribution of
the various functions of each related structure, and drafting the technical skills development plan responding to
the corporate needs;
≥ organisation of the HSEQ Synergy master’s in “HSEQ Management systems in energy transition and
digitalisation for sustainable development”, in partnership with QuInn consortium, aimed at accompanying
students in a training path through six sections dedicated to the world of energy, the principles of the culture of
health, safety, environment and quality (HSEQ), of project management, sustainability and digital culture. At the
end of the training experience, students will carry out project work in Saipem.
Human Resources Management
In a changing work environment, the ability to be flexible is becoming crucial to being able to compete more
effectively in the labour market.
In 2023, Saipem continued to alternate presence in the office with agile working in Italy and France, aiming to
strengthen behaviour and approaches that promote work-life balance and empower its staff.
This included taking management actions seeking to maximise operational flexibility and the effectiveness of
business processes through the combined use of technology and digitalisation.
Saipem’s corporate relaunch, initiated in 2022, includes investments in key skills to maintain a high level of
corporate know-how. Firstly, an intensive recruitment and retention plan was launched for key resources,
especially for Saipem India Projects Ltd, Saipem SpA and Saipem SA, which was approved and initiated in early
2023.
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HUMAN RESOURCES
Measures were also taken to retain critical competencies for Saipem and action was taken on the motivation and
level of engagement of expatriate staff with the introduction of more flexible tools and policies to support
international assignments, in order to be able to offer a market-competitive expatriate package. To this end, the
Total Cash Allowance was introduced in the UAE and Qatar, areas that are particularly important for the company
operations, both in current and prospective terms, in order to offer expatriates a more flexible solution.
As evidence of the extent to which key competencies are an enabling factor in addressing the current renewal
phase, Saipem has joined the New Skills Fund, promoted by the Ministry of Labour and Social Policies under the
National Recovery and Resilience Plan (NRRP), which enabled the provision of 450 training classes on crucial
topics for Saipem, such as Digital and Green Transformation, aimed at an audience of over 3,000 Saipem
employees over the period between July and September 2023 for a total of around 230,000 hours of training.
In addition, during 2023 the HR process re-engineering programme continued, also through the implementation of
the new Human Capital Management System, which thanks to integrated and optimised data management, places
the Employee Experience at the heart of the HR processes.
In the last quarter of 2023, the first wave of Core HR, Learning, Performance and Skills Evaluation modules release
was finalised.
In order to support HR structures of Saipem SpA, of its branches and subsidiaries in understanding and adopting
the new method of process management, an important campaign was programmed and implemented, which
included communication, change management, and training delivered locally by project team members.
During the last two months of 2023, activities were also started to define two more modules relating to recruiting
processes, workforce planning, development and compensation, which will be concluded within 2024.
Finally, in line with the Strategic Plan, aimed at achieving a business model more focused on the Company’s core
markets and activities, and in order to facilitate the pursuit of the objectives of financial and capital strengthening,
the sale of Saipem’s onshore drilling business to KCA Deutag (KCAD) continued during 2023. As part of the
transaction, the operations in Kuwait were sold in early 2023 and the release of local and international personnel
to South America was completed. The remaining onshore drilling activities are expected to be transferred in 2024.
Moreover, in 2023 the sale of Sofresid Engineering SA and Società ERSAI Caspian Contractor Llc was finalised.
(units)
Asset Based Services
Energy Carriers
Offshore Drilling
Onshore Drilling
Staff positions
Total
Italian personnel
Other nationalities
Total
Italian personnel on open-ended contract
Italian personnel on fixed-term contract
Total
(units)
No. of employees
No. of engineers
Compensation
Average workforce
Average workforce
13,974
10,965
2,515
542
1,112
29,108
5,347
23,761
29,108
5,316
31
5,347
14,200
10,450
2,105
3,643
996
31,394
5,496
25,898
31,394
5,478
18
5,496
Dec. 31, 2023
28,756
5,689
Dec. 31, 2022
29,529
5,499
The 2023 Remuneration Policy establishes remuneration tools aimed at supporting the strategic path undertaken
by Saipem to achieve the important goals of the current Strategic Plan and promote the corporate mission and
values.
The Policy has been designed in accordance with the governance model adopted and in compliance with the
provisions of the Consolidated Finance Act, the Consob Issuers’ Regulation and the Corporate Governance Code,
with the aim of aligning the management’s interests with those of the shareholders and all the stakeholders, and
creating sustainable value in the medium-long term. It is also aimed at improving engagement, consolidating
commitment and ensuring talent retention, in order to guarantee the best execution of existing projects and those
that will be acquired. Finally, the actions taken are increasingly aimed at ensuring enforcement of the principle of
Equal Pay for Equal Work, with the aim of reducing the wage gap between men and women. This commitment was
certified for the first time in 2023 as Saipem was included in Bloomberg's Gender Equality Index (GEI), an
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SAIPEM ANNUAL REPORT 2023
internationally accredited index for measuring gender equality in listed companies with over one-billion-dollar
market capitalisation.
The Policy Guidelines for 2023 envisage a new Short-Term Variable Incentive Plan for the three-year period
2023-2025 and the reintroduction of the share-based Long-Term Variable Incentive Plan for the three-year
period 2023-2025.
The new Short-Term Variable Incentive Plan is monetary in nature and, with a view to focusing on improving the
Company’s financial and capital structure, envisages an entry gate based on Saipem’s Adjusted Net Financial
Position at the end of 2023.
The 2023-2025 Long-Term Variable Incentive Plan is share-based and has been structured to strengthen
management participation in business risk and maximise effort to improve company performance. The variable
remuneration structure established is linked to operating and financial targets consistent with the Strategic Plan,
as well as the 2023 priorities, and includes a significant and increasing weight of the ESG component in both
plans. In particular, ESG indicators have been identified in line with the Saipem’s Sustainability Plan, by identifying
quantitative and measurable objectives relating to Safety, Environment, Diversity & Inclusion, Anticorruption,
Business Integrity and People Management.
During 2023, the deployment of the 2023 corporate targets relating to the Variable Short-Term Incentive Plans
has been carried out according to a top-down logic on the entire managerial population, and a process of
verification and monitoring of such objectives was implemented.
The 2023 Remuneration Policy is described in detail in the first section of the “2023 Report on Remuneration
Policy and Compensation Paid” and was approved by the Board of Directors of Saipem on March 14, 2023. It was
subsequently submitted for a binding vote by the Shareholders’ Meeting on May 3, 2023, receiving a 97.75% vote
in favour.
Following the assessment of the company’s objectives and of management performance, the Company
recognised the 2022 Short Term Variable Incentive as required by the Remuneration Policy, proceeding to the
payment of 60% of the incentive and approving a deferral of the remaining 40% over a two-year period; the actual
amount to be paid will be calculated on the basis of the average trading price of Saipem’s share over the deferral
period.
With regards to the Long-Term Variable Incentive, in light of the failure to reach the minimum performance
indicator threshold, the 2019-2021 Long Term Incentive Plan with reference to the 2020 allocation was not
carried out.
In July 2023, the co-investment period has expired for Senior Managers with Strategic
Responsibilities with regards to the 2018 allocation of the 2016-2018 Long-Term Incentive Plan, whose shares
had been allocated by 75% in 2021.
As stated in the Guidelines of the 2023 Remuneration Policy, Saipem has also started the first allocation of the
2023-2025 share-based Long-Term Incentive Plan aimed at managerial resources. The Plan entails the free
allocation of ordinary shares of Saipem SpA (performance share) provided the achievement of specific
performance indicators, measured at the end of the three-year reference period on the basis of two business
goals (cumulative EBITDA Adjusted over the three years and average adjusted ROAIC), of an objective linked to
the development of Saipem’s share (Total Shareholder Return) compared to a Peer Group made of competitor
companies (relating to Engineering & Construction and Drilling businesses) and ESG objectives.
The macro-economic scenario at global level is characterised in 2023 by an increase in the inflation rate in most
economies, as well as in energy and commodity prices due to the conflict in Ukraine, compounded by the
numerous impacts of the energy transition on the Oil&Gas sector. The guidelines and tools of the 2023
Remuneration Policy were aimed at rewarding the commitment made by staff that ensure the achievement of the
corporate objectives in such a challenging context, and at overcoming the stringent selectivity of the previous
policy, applied as a result of the action taken to strengthen the financial assets and the major cost reduction
programme that characterised 2022.
For 2023, year in which Saipem saw a strengthening in its competitive positioning in various geographical areas
and the acquisition of new important orders, the Remuneration Policy for the non-managerial population was
aimed at resource retention, with particular regards to strategic resources within specific projects, young talents
and people with crucial skills. Initiatives to promote gender equality in terms of remuneration and alignment of
remuneration with trends in local markets have also been carried out, also through new compensation tools aimed
at guaranteeing flexibility and timeliness in recognising contributions, as well as ensuring greater competitiveness
in remuneration compared to the market.
Moreover, in order to improve retention rates, Saipem is consolidating its remuneration offer in terms of a Total
Reward, preparing guidelines at group level in the management of benefits and welfare, expanding and integrating
the services offered to ensure a growing balance between corporate goals and engagement and employee
welfare.
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Cyber Security
Cyber attacks are a growing concern in a fragile global economy, as highlighted by the World Economic Forum
Annual Meeting 2023. Cyber Security is thereby a key pillar in the Security Function.
The risk related to Cyber Security issues, while showing a constantly increasing trend for the reference sector, is
considered stable in light of the means implemented and constantly integrated to protect the corporate
perimeter, which guarantee the absence of critical incidents since 2018.
Maintaining the ISO/IEC 27001 standard certification for the “cyber security event monitoring and incident
management” activities has become one of the key evaluation elements considered in the composition of the
Dow Jones Sustainability Index.
The cyber risk & information leakage is stable.
Saipem recorded “0” critical incidents and limited cases (6) of malware infection on isolated workstations (laptop)
during the third quarter of 2023; the events, both alone and as a whole, have not impacted other corporate
systems, and the devices were cleaned without further consequence.
Immediate threats are mitigated through strong security and governance protocols. In the last years, Saipem
adopted an integrated approach to physical and cyber security, implementing a cyber security model that
followed the guidelines set by the National Cybersecurity and Data Protection Framework (FNCS) and by the EU
Network and Information Security (NIS) directive.(cid:1)
In 2022, the information security and data management programme were launched with a three-year duration,
which was composed of the following projects.(cid:1)
≥ Identity Management & Access Governance: development of a governance (IAG) platform that ensures periodic
checks on accounts and user profiles and identifies violations and the potential consequences;
≥ Data Governance: development of protections to ensure the correct management of corporate data. The
solution must ensure the correct application of rules and standards in the creation/filing/access/use/sharing of
corporate data;
≥ Encrypted Traffic Protection: identification and implementation of a solution for protecting user access to the
internet under any connection conditions and safeguarding company data assets;
≥ Network Segmentation: development of the internal protection of the company data centre infrastructure. The
objective is to progressively reduce the attack surface to limit the spread of threats or malware within the
network;
≥ Operational Technology Security: enforcement of the requirements established by Saipem for the
implementation of industrial control systems;
≥ Privileged Access Management: consolidating and improving of a privileged access management solution for
the centralised monitoring of violations/anomalies.
A new vendor management tool is being implemented, which entails a list of minimum requirements to be met
digitally by all suppliers.
By operating globally in the offshore drilling business, Saipem must also fulfil obligations under the 2017
Resolution MSC.428 (98) “Maritime Cyber Risk Management in Safety Management Systems” by the International
Maritime Organization (IMO), effective as of January 1, 2021. The resolution provides that the assessment of the IT
risk should be among the objectives of the ISM (Information Security Management) Code, taking into account that
the aforementioned risk could impact the safety of the vessel, the personnel and the environment.(cid:1)
A cyber risk assessment process was thereby implemented onboard vessels, which is an integral part of the
onboard Safety Management System - SMS.(cid:1)
The action plan for cyber security is as follows.
≥ BIA (Business Impact Analysis) conclusion on business process applications (Supply Chain, Project Execution,
Project Acquisition, in addition to those in the Compliance 262 perimeter), in order to identify critical systems
with a view on operational continuity. An extension of the analysis perimeter is programmed for 2024;
≥ cyber risk analysis on critical applications identified by the BIA (2024);
≥ launch of phishing campaigns on employee population, with a view to raising staff awareness of the most
common cyber threats;
≥ with the formalisation of the CISO (Chief Information Security Officer) role, Saipem’s Corporate Security
Manager continues to keep operational relations with the main institutional references (ACN, DIS, CNAIPIC), as
well as the CISO Community of Cassa Depositi e Prestiti and the Security representatives of client companies;
≥ maintaining the ISO 27001 certification for the Detection & Response perimeter.
The correct functioning of Saipem’s Security Model is constantly monitored, and the Security function performs
internal technical audits on peripheral enterprise security functions, down to project level, in order to verify
compliance to instructions and security guidelines.
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SAIPEM ANNUAL REPORT 2023
DIGITAL, ICT SERVICES
The cost rationalisation and investment optimisation in the Digital and ICT Services area continued in 2023. This
directional approach is aimed at ensuring a balanced evolutionary roadmap that is economically and financially
sustainable but capable of supporting the business. In this global context, the company’s effort has been
maximised in order to ensure the development and adoption of digital solutions and the maintenance of adequate
ICT service levels.
To support these management guidelines, in 2023 Saipem:
≥ confirmed the evolutionary guidelines of the 2021 digital programme, which focus mostly on improving the
efficiency of the work processes.
≥ an ambitious competitiveness programme was launched, which also involved the digital and ICT area, with the
objectives, inter alia, to redesign the digital agenda and roadmap in order to align them with Saipem’s new
strategy and to enable the full integration of the digital needs of staff functions with the relevant vertical
business functions.
≥ confirmed specific goals at company level in order to promote the digital transformation process.
With regards to the main projects launched we have:
≥ confirmed and maintained a continual rate of transformation for all initiatives that relate, as a whole, to
Engineering, Procurement and Construction (EPC Integration) processes, which is key for our core business.
≥ continued to develop and industrialise the technological components supporting the digital transformation of
our assets.
≥ developed and started production of several digital solutions supporting the staff functions (e.g., HSE, Vendor
Management, HR Services, Corporate Procurement, etc.), allowing the move to our new management centre
and the new way of working remotely.
The EPCI Integration development area is dedicated to the centralisation and standardisation of data from
“vertical” systems dedicated to individual functions and the integration of work processes, within the EPCI
projects.
The EPCI integration is comprised of two main complementary initiatives.
The first is the “EPiC” visualisation and collaboration platform, where support continues to be provided for the
adoption of already industrialised applications, with a particular focus on the implementation of corrections and
new features requested by stakeholders. New versions of applications for Supply Chain, Management of Changes,
Vendor Document Management and AWP (Advanced Work Package) are being released to projects. The
development and integration phase has started for a Digital Control Tower, as well as the extension of some
existing processes for use with joint venture partners.
The second is the development of the “EPC digital platform”, aimed at standardising and integrating plant
engineering and materials management processes into the supply chain and construction processes. This
initiative is still in its development phase and complete process tests should be completed by the second quarter
of 2024.
Moreover, for the Installation/Offshore Construction phase, the development continued on the Offshore Vessel
Simulator, which was implemented also on the vessel Castorone to support operations on project Scarborough,
as well as on the Vessel Reporting System (VRS) 2.0 and Pipeline Productivity Tool (PPT) 2.0 – both tools for
monitoring and analysing offshore productivity – whose release into production is expected in the first half of
2024.
In the digitalisation of our assets, the program for standardising ICT infrastructures and digital architectures, which
aims to converge digital and ICT resources towards a unified architectural design and performance capability,
initiated at the beginning of 2023, has been completed. This will allow Saipem to adopt all the digital solutions
under development, as well as new solutions, both market standard and tailored to the specific requirements of
the operations, for its assets. It will also enable a common architectural design for all the solutions for the assets,
ensuring greater efficiency and better cost control, both during development and during the adoption and
management of service levels.
During 2023 we improved and continued to implement our own IoT and Data Platform, taking into account the
vertical solutions already existing in our technology portfolio. At the same time, we have started the digital
modernisation plan of our fleet and the planning of future technological solutions that will be able to transform the
classic processes of asset management, improving their exploitation through greater use of decisions driven by
data and by implemented algorithms (e.g., predictive maintenance, remote assistance, operational dashboards).
The paradigm on which this programme of activities is based is to increase levels of governance over the data
generated by our managed assets, using advance analytics techniques to support decision-making and efficiency
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DIGITAL, ICT SERVICES
recovery in operations (e.g., fuel management) and sustainability (e.g., greenhouse gas emissions-GHG), on which
we intend to measure our transition plan toward Net Zero goals.
The digital platform consists of a cloud component for the centralised collection and processing of all data
coming from our assets, which are equipped with an “Edge Computing” component installed on board in order to
optimise the computational capacity and data transmission in suboptimal conditions.
To date, this component is reported to be installed aboard the following assets: Scarabeo 9, Saipem 7000,
Castorone, Saipem 10000, FDS, Pioneer, Sea Lion 7, Perro Negro 9, Perro Negro 7, FDS 2, Saipem 12000,
Santorini, Scarabeo 8, Saipem Endeavour, DeHe, Castoro X, Castoro XII. The implementation is currently
underway, respectively, of an industrialisation programme to upgrade some of its sub-components and connect
the data acquisition module to critical data sources, and of a process to identify high-value IOT data and
technologies, enabling them to be enhanced with relevant information and made available for use by the business.
In this context we were able to achieve a greater level of centrality and control of our data, which gave us the
opportunity to start a path to define Saipem's new Data Governance. This path includes, simultaneously, a stream
of initiatives in the area of Data Culture.
As of December 2023, digital solutions addressing the following application areas are reaching completion for the
Asset Based Services business line.
≥ Anomaly detection, as the first step in the planned process for the implementation of the predictive
maintenance,
≥ Fuel Consumption Monitoring,
≥ Digitalisation of ship logs,
≥ Digitalisation of management of change asset processes,
≥ Rig drilling simulator.
Moreover, initiatives have also been launched to assess the use of digital and autonomous mobile platforms in
worksites and the use of smart wearables.
Another stream aimed at strengthening onboard security management has been initiated and progressed, with
the gradual rollout of the e-permit to work for operations on our naval assets. Comprehensive coverage of the full
fleet is expected in 2024, as well as extending the use to land yards. Additional remote assistance and
telemedicine solutions have also been tested and proposed, increasing flexibility in terms of offshore presence.
Other developments have been implemented on the first offshore drilling assets to better monitor daily activities
and facilitate the document management system, and new solutions have also been adopted for managing the
structural integrity of vessels and optimising maintenance operations.
Scouting is underway for high-value technologies and use cases for the adoption of additive manufacturing in the
spare parts procurement processes.
An assessment has been initiated of HSE technologies for improving on-board safety, such as Smart DPI/PPE.
In the Corporate area, we have initiated and, in several cases, completed and in the process of adoption several
digital initiatives, including the following.
≥ an analysis underway aimed at consolidating processes on a smaller number of software platforms, with the aim
of reducing the company’s application portfolio.
≥ a series of activities started for the automation and optimisation of processes.
≥ programme of activities aimed at improving both the native and non-native project-based Cost Control Model
was finalised, in order to improve both the quality and reliability of managed data flows and the reporting
methods to the relevant business functions.
≥ in Project Control, the integrations with business project data were finalised, which will allow for real-time
dashboards to monitor the cash flow.
≥ completion of the construction of a portal for the digitalisation of accounting books.
≥ the construction of dedicated platforms for staff functions is nearing completion (e.g., Sustainability, HSE,
Vendor Feedback, Insurance, Legal, etc.).
≥ extended the functions of the cloud tool, already adopted, to support the NLP search of documents with
integration of Sharepoint and Opentext D2.
≥ adopted smart working 2.0 and collaboration management tools.
≥ completed the digitalisation of the new Santa Giulia office building and collection of all useful data for the
optimisation of use in terms of both emissions and occupancy.
≥ a project for the introduction of a new and more advanced personnel management platform is in its advanced
stage, which will allow the centralisation of processes currently fragmented over a series of other applications
that will be consequently discontinued.
≥ dematerialisation of selected internal authorisation flows.
≥ adopted a portal dedicated to digital issues and new chatbot-type communication channel (Saipup).
≥ launched a tool to support financial type control systems (e.g., 231).
≥ a modernisation and renovation of the company portal (intranet) was started.
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SAIPEM ANNUAL REPORT 2023
≥ evolving enterprise architecture activities to support integrations between different technologies, solutions, and
data.
Activities of development, test and adoption of various initiatives in several different areas are underway, including
the following.
≥ People Engagement (e.g., a new intranet portal, new platform for human resource management, etc.).
≥ solution platform to support the new headquarters and new way of working (e.g., optimised energy
management, on-line booking of workstations and meeting rooms, hoteling, etc.).
≥ digitalisation of information flows in finance and document archives.
≥ digitalisation and more efficient procurement processes for low-value materials.
It is worth noting that, in the complex market context, it has been possible to ensure the continuity of digital
transformation initiatives and to learn about and appreciate new ways of working remotely.
The path of evolution and technological transformation id ongoing, aiming to rationalise and modernise its ICT
assets (e.g., applications, platforms, architectures, and data infrastructures); this initiative is understood as a key
enabler of the digital programme focusing on data valorisation.
In particular, new container management tools both in cloud and on-board vessels (Kubernetes) were taken to
production, and the adoption of the new low-code methodology was consolidated. Focus was placed on Machine
Learning and DevOps topics. The initial tests have been conducted for the enterprise use of the new chatbot
technologies integrated with artificial intelligence (ChatGPT and CoPilot).
The studies at the base of the activity of data sources cataloguing, governance and support to independent
consumption (self-service) of data for analysis purpose were completed.
New initiatives have been started in the infrastructural area as regards the tools for optimising and managing
centralised infrastructures, with which numerous areas of technical analysis were covered for correct analysis,
configuration, and management of IT systems.
With regards to cyber security, the multi-year programme of initiatives aiming to improve corporate security was
launched. Six project streams were identified for the management of digital identities, the protection of Internet
browsing even when carried out outside the company perimeter, the security of OT systems on our vessels, the
segmentation of the communication network, the governance and classification of non-structured data, and the
management of privileged users.
Governance activities and compliance and security processes were all carried out successfully according to
schedule during the year.
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GOVERNANCE
GOVERNANCE
Saìpem SpA adopts a traditional administration and control model which consists of:
≥ the Board of Directors, a central body in the corporate governance system, which is entrusted with the
management of the Company and which plays a fundamental guiding role, also for the achievement of
sustainable development objectives, as well as a central role in internal control and risk management;
≥ the Board of Auditors, dealing with supervision and control;
≥ the Shareholders' Meeting, as the corporate entity that conveys the will of the company through resolutions
adopted in accordance with the law and the Articles of Association. The Shareholders' Meeting also constitutes
the institutional meeting point between the Company's management and the shareholders. It is up to the
Shareholders' Meeting to appoint the Board of Directors and its Chairman for a period of maximum three
financial years.
Taking into account the recommendations and principles of the Corporate Governance Code, with a resolution
passed on May 18, 2021, the Board of Directors has set up the following internal committees with inquiry,
proposal and advisory functions: the Remuneration and Appointments Committee, the Control and Risk
Committee, the Related Parties Committee and the Sustainability, Scenarios and Governance Committee.
The Board of Directors and each Committee have their own rules governing, specifically, their set-up, tasks, and
operation.
Saipem's governance system is based on international best practices on the subject and, in particular, on the
principles included in the Corporate Governance Code – adhered to by the Company on December 17, 2020 – as
well as the applicable provisions included in the regulatory framework issued by the National Commission for
Companies and the Stock Exchange (Consob).
The “Corporate Governance and Shareholding Structure Report” 2023 (hereinafter the “Report”) provides a
general and complete framework of the corporate governance system adopted by Saipem SpA. The Report,
drafted pursuant to Article 123-bis of the Italian Consolidated Law on Finance (TUF) is a stand-alone document
approved by the Board of Directors on March 12, 2024, and published on the Company's website
www.saipem.com under the "Governance" section.
The Report was drafted in accordance with the criteria contained in the "Format for Corporate Governance and
Shareholding Structure Report - X Edition (January 2022)" of Borsa Italiana SpA. It ensures to provide, in
accordance with the peculiarities of the business and corporate purposes, correct, exhaustive and effective
information, as required by the market.
The Report illustrates the Company's profile and the principles it is based on, information on its shareholding
structure and its adherence to the principles mentioned in the Corporate Governance Code. It also includes the
main governance practices, as well as a summary of the main considerations that emerged from the analysis and
discussion of the annual letter of the Chairman of the Italian Corporate Governance Committee sent to all Italian
listed companies on December 18, 2023, containing the "2023 Report on the evolution of corporate governance
of listed companies - 11th report on the application of the Corporate Governance Code" and recommendations
for 2024.
The Report includes a detailed description of how the administration and control bodies and their committees are
structured and function, also in the light of the diversity policies adopted by Saipem and equal access to the
administration and control bodies of listed companies. It also includes an explanation of the roles, responsibilities
and competencies assigned to the Company's administration and control bodies. The Report also illustrates the
main characteristics of the internal control and risk management system.
It also acknowledges the adoption by Saipem SpA of: (i) the Management System Guideline on "Transactions with
Related Parties and Persons of Interest", which establishes the principles and rules to which Saipem SpA and its
subsidiaries must adhere in order to ensure the transparency and substantive and procedural fairness of
transactions with related parties and persons of interest, directors and statutory auditors and senior managers
with strategic responsibilities (SMSR) of Saipem, carried out by Saipem or its subsidiaries; (ii) the Management
System Guideline "Market Abuse", which establishes the principles and rules to which Saipem SpA and its
subsidiaries must adhere in the management within the Saipem Group and in the external communication of
corporate documents and information concerning Saipem. This is particularly relevant for material information and
inside information, the drawing, keeping and updating of Registers of persons who have access to the
aforementioned
identification of relevant persons and the procedures for
communicating transactions carried out, also through third parties, on shares issued by Saipem or on other
financial instruments connected to these shares; (iii) the policy(cid:1)for managing the dialogue with shareholders and
other stakeholders, in line with Recommendation No. 3 of the Corporate Governance Code, taking into account
the engagement policies adopted by institutional investors and asset managers.
The above guidelines are available on Saipem's website.
The criteria applied for determining the remuneration of Directors are illustrated in the “Report on Remuneration
Policy and Compensation Paid 2024”, drafted in accordance with Article 123-ter of Italian Legislative Decree
No. 58/1998 and Article 84-quater of the Consob Issuers Regulation published in the “Governance” section of
Saipem’s website.
information, as well as the
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SAIPEM ANNUAL REPORT 2023
RISK MANAGEMENT
Saipem implements and maintains an adequate system of internal control and risk management, comprising of
instruments, organisational structures, and procedures designed to safeguard Group assets and ensure the
effectiveness and efficiency of processes, reliable financial reporting, as well as compliance with laws and
regulations, the Articles of Association and Group procedures. To this end, Saipem has adopted and developed
over time a Risk Management model that constitutes an integral part of its internal control and risk management
system. The aim of this model is to obtain an organic and overall vision of the main risks for the Group that may
impact strategic and management objectives, ensuring greater consistency of methodologies and supporting
tools and a strengthening of sharing and awareness, at all levels, of the fact that an adequate identification,
assessment, and risk management may have a positive impact on the achievement of objectives and on the
Group’s value.
The structure of the Group’s internal control system, which is an integral part of the organisational and
management model, assigns specific roles to the Group’s management bodies, compliance committees, control
bodies, group management and all personnel. It is based on the principles contained in the Code of Ethics and the
Corporate Governance Code, as well as on applicable legislation, the “CoSO Report” and national and international
best practices.
Additional information on the internal control system and risk management, including details concerning its
architecture, instruments, and design, as well as the roles, responsibilities and duties of its key actors, is contained
in the document “Corporate Governance and Shareholding Structure Report 2023”.
The Integrated Risk Management model identifies, assesses and analyses risks and their integration with project
risks that are identified, updated and managed by the relevant departments, for the purpose of an overall
representation of corporate exposure and critical issues detected, contributing to the analysis of the corporate
risk profile.
Risk assessment is conducted by management through risk assessment sessions, namely meetings and
workshops coordinated by the "Integrated Risk Management and Compliance" function, held on a semi-annual
basis. In particular, it is carried out for business and staff areas and strategically relevant subsidiaries, identified
based on economic, financial and qualitative parameters. Risk assessment is aimed at identifying the risk events
that could impact Saipem’s strategic and management objectives, taking into account the changes in the
business and organisation model and Group procedures, developments in the external environment (specifically,
industry and competitors.
political, economic, social, technological and
Furthermore, Saipem has developed a process to monitor the Group’s main risks on a quarterly basis through
specific monitoring indicators which measure the evolution of risk and related mitigation activities.
legal aspects) and the relevant
Saipem is exposed to strategic, operational, and external risk factors that may be associated with both business
activities and the sector in which it operates. The occurrence of such events could have negative effects on the
Group’s business and operations and on its financial position, performance, and cash flow. Moreover, in light of the
materiality analysis carried out by the Sustainability function, a strong focus is placed on ESG (Environment Social
Governance) topics, whose risk assessment is thereby integrated in the overall evaluations.
For climate-related risks in particular, a quantitative assessment of the size (in financial terms) over the planning is
then performed, in accordance with the recommendations of the Task Force on Climate Related Financial
Disclosure (TCFD).
The risks related to climate change, to which Saipem's activities are inherently exposed, can be classified into the
following categories.
≥ physical risks, i.e., risks arising from physically observable climatic phenomena (e.g., flooding of plants,
production sites and construction sites, damage incurred due to extreme meteorological conditions, as well as
worsening weather and sea conditions in the offshore operating areas);
≥ transition risks, i.e., risks arising from the transition phase that aims at reducing emissions and thus mitigating
the effects of climate change. These risks are classified into: (i) technological risks, in terms of insufficient
effectiveness in implementing the most efficient applicable technologies with impacts on operating costs in the
execution of projects and on the potential acquisition of projects related to the use of new technologies;
(ii) regulatory risks, related to the issuance of laws and regulations to which we must promptly adapt and which
may lead to increased operating costs; (iii) market risks, in terms of reduced availability of the bank guarantees
necessary for bidding and project execution.
More information can be found in the specific section of the "Non-Financial Consolidated Statement".
With regards to the current geopolitical context, characterised by multiple conflicts, the following should be noted:
≥ in relation to Saipem projects that envisaged operations in Russia and/or with Russian clients, there are no
residual activities and the related contractual relationships with clients have been completed and are currently
being formalised in full compliance with EU regulations. The Strategic Plan does not foresee acquiring new
contracts in Russia;
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RISK MANAGEMENT
≥ regarding activities on Israeli territory, Saipem evacuated its personnel following the attacks on October 7,
2023, and has subsequently resumed activities, guaranteeing security measures appropriate to the context.
With regards to the attacks and boarding attempts on commercial vessels in transit to/from the Suez Canal, the
Company highlights that all its offshore activities are far from the interested area.
Although the Group’s supply chain does not include strategic and/or critical direct suppliers in the territories
affected by the conflict, Saipem’s operations may be impacted by a worsening in the geopolitical scenario.
Saipem adopted specific tools to monitor and prevent impacts on the supply chain due to availability and volatility
of commodity prices, services and inflation, and to include reasoned price adjustment formulas in the estimation
stage. However, the extent of the impact on the supply, both on current and future projects, will depend on the
duration and development of the conflicts, especially complex and dynamic due to the many actors involved.
Considering the current macroeconomic environment, influenced by the combination of the abovementioned
geopolitical effects, inflation and rising interest rates, it is also reported that the revenues and, consequently, the
Company’s margins, both for lump-sum contracts and drilling services, could vary with respect to the estimated
amounts due to: (i) variations in the cost of raw materials (e.g. steel, copper, fuels, etc.) and services (e.g. labour
costs, logistics, etc.); (ii) worsening of geopolitical conditions (including wars or civil unrest); (iii) delays in the
process of negotiating new contracts and possible cancellation of commercial initiatives relating to future
projects, as well as the cancellation or deferral of on-going projects; (iv) delays and difficulties in obtaining
recognition of contractual compensation for the cancellation or deferral of these contracts; (v) pressure from
clients to renegotiate existing conditions; (vi) delays and difficulties in renewing, before the expiry date and on
economically advantageous terms, the existing charter contracts relating to the offshore drilling fleet.
The possible worsening, compared to what was forecast, of the overall economic situation could lead the Group
to make impairment losses on the assets subject to impairment testing, with significant negative effects on its
economic, financial and asset situation.
The following are the main risk factors identified, analysed, assessed and managed by management. In preparing
the consolidated financial statements, these risks were evaluated and, where necessary, the possible liability was
provided for in an appropriate provision. See the “Notes to the consolidated financial statements” for information
on liabilities for risks provided for and the section “Guarantees, commitments and risks - Legal proceedings” in the
“Notes to the consolidated financial statements” for the most significant legal proceedings.
List of risks
1. Financial risks
2. Country risk
3. Biological/pandemic risk
4. Risks related to the supply chain
5. Cyber risks
6. Strategic risks and project acquisition risks
7. Project execution risks
8. IT risks
9. Risks associated with legal proceedings (legal, administrative, tax and labour)
10. Risks related to asset management
11. Risks related to human resources
12. HSE risks
13. Risks associated with client contract management
14. Compliance risks
1. Financial risks
Description and impact
The liquidity risk is constantly monitored, since the Group’s business is exposed to the risk of incurring
inappropriate and inconsistent cash flows and profit margins (also in relation to the assumption of early repayment
of debts) compared to cash outflows and debt costs, resulting in an impact on the economic result in case the
company is forced to incur additional costs to meet its commitments or, as an extreme consequence, a situation
of insolvency that puts at risk the company’s going concern.
In addition, the volatility of market conditions and the instability of the macroeconomic-geopolitical scenario could
lead to a deterioration of the financial position of clients and partners involved in the execution of projects. Saipem
is therefore exposed to the credit risk arising from the possibility of default by a trading counterparty, i.e., the risk
of delayed and/or non-payment, and of having to meet part or all of the financial obligations of partners.
These dynamics could have significant negative effects on the Group's cash flows; they could cause the
deterioration of net working capital and the economic-financial situation, and lead to a worsening of the reputation
in the industry of reference and in the financial markets.
Lastly, the Group is exposed to risks relating the availability of bank guarantees needed to submit offers and
execute projects, which could affect both Saipem and the partners with which it cooperates to execute said
projects.
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SAIPEM ANNUAL REPORT 2023
Mitigation
The management, control, and reporting of the financial risks are based on the Financial Risk Policy, issued at
corporate level with the aim of standardising and coordinating the Group’s policies. Specifically, financial risks are
controlled through the periodic calculation of several Key Risk Indicators (KRI) which are subject to specific
attention thresholds periodically updated according to the evolution of the market in which the Group operates.
The control activities established by the Financial Risk Policy also include escalation procedure to be followed if
the risk thresholds set by the KRIs are exceeded. The main financial risks identified, monitored, and actively
managed by Saipem are further detailed in Note 3 “Accounting policies - Financial risk management” in the Notes
to the Consolidated Financial Statements.(cid:1)
Additionally, from the negotiation phase onwards, the Company discusses with clients conditions that protect it
from a financial exposure standpoint (for example, contractual advances, negotiation of performance bonds) and
monitors its contracts (for example, through stringent procedures for obtaining the necessary certifications to
proceed with billing, or through constant monitoring and reporting to the client of all contractual or project
execution variations) in order to maintain positive or neutral cash flows. During project execution, the fluctuation of
net working capital is constantly monitored with the continuous involvement of top management.
The management is also constantly engaged in monitoring the evolution of the financial markets and in
strengthening and increasing partnerships with financial and insurance institutions, included local ones, to mitigate
risks and increase guarantees.
2. Country risk
Description and impact
Saipem carries out a significant part of its activities in the Middle East, Sub-Saharan Africa and Latin America,
regions characterised by a low degree of stability from the political, social and economic point of view.
Developments in the political framework, economic crises, internal social unrest and conflicts with other countries,
increase in the risk of terrorist attacks may could expose the Group and its human and material assets to potential
damage, as well as temporarily or permanently impair its ability to operate under economically advantageous
conditions and require specific organisational and management measures to ensure, where possible in
compliance with Company policies, in order to continue the activities under way in conditions different from those
originally planned. Such continuity plans could lead to cost overruns and delays and, consequently, to a negative
impact on the margins of projects carried out in critical countries.
The invasion of Ukraine by Russia first, and the conflict in the Middle East now, have caused uncertainties,
tensions and criticalities along the supply chain and in the energy policies set by Western countries. Although the
developments and future impacts are uncertain and difficult to evaluate, the intensifying of hostilities, geopolitical
tensions and commercial war, including the imposition of increasing international economic sanctions, are
inevitably causing negative repercussions on the global, international and Italian economies, on the performance
of financial markets, and on the Company’s sector of activity. A rapid and unexpected worsening of risk scenarios,
both onshore and offshore, may affect operations and cause interruptions in the supply chain, with negative
consequences on the Group’s operational continuity.
Other risks related to the activities in those operating areas include: (i) lack of a stable legislation and uncertainty
on the protection of the rights of the foreign company in case of breach of contract by private entities or State
entities, including risk of expropriation and nationalisation; (ii) detrimental development or application of laws,
regulations, unilateral contractual changes that result in the impairment of assets, forced divestments and
expropriations; (iii) various restrictions on construction, drilling, import and export activities; (iv) increases in the
taxation applicable; (v) internal social conflicts that may lead to acts of sabotage, attacks, violence and similar
situations; (vi) acts of terrorism, vandalism or piracy; (vii) lack of or limited insurance cover for country risk, war risk
and terrorist attacks (with particular reference to onshore operations), in an insurance market undergoing a “hard
market” phase.
Saipem uses agencies that provide security services in the countries in which it operates, and although it carefully
selects suppliers and conducts regular training and oversight activities, these agencies may still expose the Group
to risks related to the violation of human rights in the performance of security services assigned to them.
Mitigation
Saipem is committed to constantly and closely monitoring political, social, and economic developments, terrorist
threats arising in the countries where it operates or it plans to invest, both through specialised Group resources
and through providers of security services and information analyses. In particular, during the year, the
Israeli-Palestinian conflict was monitored, as well as the development of other open fronts (Russia/Ukraine,
China/Taiwan) and of the political, social and economic context of its countries of interest (Mozambique, Nigeria,
Venezuela/Guyana, etc.).
Saipem values the exposure to the aforementioned risks through an articulate security model based on the
principles of prevention, precaution, protection, information, promotion, and participation, with the objective of
reducing risks deriving from the actions of natural or legal persons who expose the Group and its assets (people,
goods, and reputation) to potential damage. In particular, each country in which Saipem operates is monitored
specifically to assess the situation from a security and socioeconomic point of view, in coordination with the Crisis
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RISK MANAGEMENT
Unit of the Ministry of Foreign Affairs, in order to verify the adequacy of the Security Model also in relation to
supply chain topics.
In cases where the ability to operate in the country is temporarily compromised due to political or social instability,
demobilisation from the site is evaluated to protect personnel and corporate assets; as soon as favourable
conditions are restored, resumption of ordinary activities is planned, in order to limit the interruption to operations,
yet always in full compliance of safety.
Saipem constantly monitors the changes in and compliance with various types of regulations also in order to
minimise the impacts due to its operating activities in all countries of interest. Moreover, for adequate corporate
risk management, Saipem has adopted the principles and guidelines provided by the international standard ISO
31000 as a reference.
The Group conducts regular audits of agencies providing security services and organises specific training
activities in order to avoid and prevent human rights violations. Moreover, in order to mitigate the risks generated
by the relationships with subjects operating in the same areas, Saipem adopts a system of engagement with its
local stakeholders, with the goal of maintaining dialogue, consolidating relationships, and creating shared value,
especially through active participation in the socio-economic development of the areas in which its project
activities are carried out. Saipem pays utmost attention to industrial relations in the countries in which it operates,
strengthening communication with staff and trade unions and reaching/renewing specific agreements with the
social partners involved.
With regard to international sanctions, Saipem continuously monitors the potential impacts resulting from
restrictive measures adopted by the European Union and/or non-European entities, both against Russia and other
countries subject to sanctions. These may include: (i) financial sector sanctions, aimed at limiting access to major
capital markets; (ii) energy sector sanctions, imposing prohibitions on selling, providing, transferring, or exporting,
directly or indirectly, goods and essential technologies used in the energy sector; and (iii) technological sector
sanctions, imposing restrictions on the export of dual-use goods and technologies (civil/military), as well as
restrictions on the export of certain goods and technologies capable of contributing to the technological
strengthening of the defence and security sector.
3. Biological/pandemic risk
Description and impact
The Group operates in countries where biological agents are present that are potentially harmful to the health of
people exposed to them. The situation very much varies and changes over time: in many of the countries where
Saipem operates or intends to operate, there have been more or less extensive epidemic outbreaks of both
diseases already present in the area and imported diseases. The Group’s personnel are therefore potentially
exposed to infectious diseases when carrying out their activities.
Over the past three years, the epidemiological scenario has been further complicated by the spread of the
COVID-19 pandemic. During 2023, the global context showed a decreasing trend of cases both in general, and
relating to those with severe symptoms. The end of the state of emergency has allowed the return to an infection
management that does not require extraordinary measures; however, the continued circulation of SARS-COV 2
virus exposes to an increased probability of mutations, making the virus a public health threat as stated by the
World Health Organization.
Possible outbreaks of infectious diseases, including those linked to climate change and the growing invasion of
natural habitat by mankind, could represent a significant risk both in terms of impacts on staff health and possible
indirect impacts on the Group's financial results and assets: interruptions, slowdowns and cost increases in
project execution and postponement of investment decisions in the affected sectors, disruptions in the supply
chain, delay in client payments, increased risk of litigation (e.g. related to commercial contracts, labour and
insurance matters) and complexity of resource turnover due to quarantines and travel restrictions.
Mitigation
Through epidemiological analysis on open sources and data collection on the ground, Saipem is committed to
constantly and punctually monitor the occurrence and evolution of all infectious diseases in the countries of
interest and to implement timely measures to prevent and respond to outbreaks.
The company runs numerous awareness-raising campaigns among its staff in order to increase risk awareness
and knowledge of the most effective prevention measures. Regular hygiene and health inspections are carried out
at the operating sites and personal protective equipment and vaccine and chemoprophylaxis measures are made
available to the workforce. Control programmes of vector-borne disease are in place at all risk sites. Occupational
medicine protocols and the travel medicine service are an effective system for protecting the health of workers,
and medical evacuation contracts are a guarantee for the safe evacuation of infected patients.
4. Risks related to the supply chain
Description and impact
Saipem is exposed to the risk associated with commodity price volatility – i.e., changes in the cost of raw materials
such as steel, nickel, copper, fuel, etc. – but also of goods and services used in the execution of projects. The
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supply dynamic is characterised by a strong tension on the commodity market, mainly due to an imbalance in the
relationship between supply and demand and a strong inflationary drive, compounded by speculative and
arbitrage actions in the markets. Materials and goods purchased by the Group require transport and warehousing
services in order to reach the operating sites and they too may be subject to delays, limitations on availability
and/or price increases, especially in times of high demand and in the case of sudden interruptions of the supply
chain. Moreover, orders to suppliers during project execution may be revised due to changes in the scope of work,
date of completion and delivery (delays and/or accelerations), and unforeseen updates to local regulations,
resulting in change orders and claims to Saipem.
The Group may not be able to pass on or share the price increases caused by the aforementioned dynamics with
its clients.
Recovery in post-pandemic markets, together with the uncertainty generated by the current geopolitical situation,
has also resulted in the congestion of some productive sectors; suppliers are finding it difficult to respond to
requests in terms of raw material availability, production capacity and delivery times and, in some cases, have
become more selective with regard to the initiatives to be pursued as they are unable to enter into contractual
commitments with long-term valid quotations. Saipem could therefore run the risk of being unable to source from
supply chain operators the materials, goods and services needed to execute the projects and negotiate prices,
commercial terms, and delivery times compatible with the needs of the projects.
Finally, Saipem works with a large number of suppliers and subcontractors, spread across different geographies
and with different levels of experience, in some cases selected to meet local content requirements by clients.
Their performance may in some cases be inadequate with respect to project requirements, resulting in additional
costs related to the need to implement plans to meet the client’s expectations and possibly causing delays in
project implementation and delivery.
Therefore, these supply chain risks could lead to longer times and higher costs, a deterioration of business
relations with clients and changes in the financial results, with a negative impact on Saipem’s performance.
Mitigation
In order to prevent and mitigate the risks of unavailability and price variability of goods, materials and services,
Saipem monitors the impacts on individual projects, in terms of continuity, prices and timing of supplies and
suppliers' production capacity, establishing an ongoing dialogue with them. When the conditions are right, the
Group defines project-based commercial agreements with suppliers (e.g. pre-agreements, strategic agreements
to ensure production spaces already in the offer phase, etc.) to ensure execution on time and on budget or,
alternatively, it agrees with suppliers on price change formulas that can then be accepted in full or in part by its
clients. Additionally, already in the quotation phase, Saipem uses specific tools to monitor and mitigate supply
chain impacts related to commodity availability and price volatility, services, and inflation, including reasoned price
adjustment formulas.
Lastly, the Company has implemented a structured qualification and selection system geared towards working
with reliable suppliers and subcontractors with an established reputation. The performance of suppliers and
subcontractors is also constantly monitored and subject to feedback at all stages of the contractual relationship,
in order to pursue continuous improvement of the procurement process and project execution through updated
Bidder Vendor Lists.
5. Cyber risks
Description and impact
In its activities in offices, at operational sites, and on vessels, Saipem uses a large number of IT tools of various
kinds. Due to a general increase in digitalisation processes, the use of private networks in remote work introduced
to contain the COVID-19 pandemic, the constant rise in cyber threats, and the ever-increasing availability of
attack tools leveraging Artificial Intelligence (AI), the Group's computer systems are increasingly exposed to
potential cyberattacks. These cyber attacks could jeopardise business continuity and damage Information
Technology (IT) and Operational Technology (OT) systems, as well as result in the loss and/or theft of data and
information (including confidential information), causing major effects on business processes and financial,
operational, and reputational impacts, particularly on clients. The misuse of AI systems by malicious actors may
amplify the negative effects related to cyberattacks through malwares and phishing, for example. The supply chain
is especially targeted, since its vulnerability are exploited to penetrate the defensive measures implemented by
companies.
Furthermore, following the increase in the global cyber threat as a result of the conflict in Ukraine, the Group has
experienced, right from the commercial stage, increasing demands from clients for specific cyber security
requirements, the availability of which could therefore affect Saipem's competitiveness level. The aforementioned
requirements are applicable also to suppliers and subcontractors involved in operating activities. A delay in the
compliance with the stringent cyber security requirements demanded by clients and/or authorities (such as the
National Cyber Security Agency) could result in the loss of future business opportunities and potential
interruptions of projects and activities in the execution phase.
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Mitigation
Saipem has implemented measures of governance, response, and monitoring of cyberattacks, as well as
compliance processes carried out through the involvement of specialised internal and external personnel and of
advanced IT security technologies. Saipem has adopted a cyber security model and follows procedures and
protocols based on industry best practices and integrated international standards to meet clients' security
requirements (more information can be found in the section “Digital, ICT Services”). In addition, Saipem
implemented a series of actions aimed at strengthening threat detection and cyber incident response activities by
adopting a platform capable of providing an external and independent assessment of the Group's cyber security
maturity level. To mitigate the vulnerability of the supply chain, a supplier assessment model is being adopted,
based on precise cyber security requirements.
Saipem ensures a constant assessment of cyber risk both for Information Technology (IT) and Operational
Technology (OT) and considers the human factor to be one of the main risk factors for an IT system. For this
purpose, it has developed and implemented a cyber awareness plan aimed at increasing the employees’ level of
preparedness and awareness. In addition, Saipem considers continuous collaboration with key public and private
stakeholders to be of paramount importance.
During 2021, the Group obtained the ISO/IEC 27001 certification, for “Cyber security events monitoring and
incidents management”. This important goal confirms the validity of the model Saipem adopted for Cyber
Detection & Response activities, which makes it possible to proceed in a structured manner in the ongoing
improvement of the Company’s security system.
In compliance with IMO Resolution MSC.428 (98), Saipem introduced a cyber risk assessment model on board the
fleet's vessels, as an integral part of the safety management system, appointing a Cyber Security Officer for each
unit. Cyber attack drills were also performed on board the vessels, according to scenarios and models which are
an integral part of Saipem SpA's emergency and crisis management system.
With regards to Artificial Intelligence (AI), during 2023 a multidisciplinary work group has been set up to: (i) monitor
the regulatory evolution at European and Italian level (e.g., AI Act being implemented by European institutions);
(ii) regulate the adoption of such technologies in the European market; (iii) analyse emergent risks and assess
potential impacts of the implementation of said tools/projects within the Group. Finally, several audits were carried
out with Internal Audit, on the entire Cyber Security process, as well as on the infrastructure and the cloud, with
assessments carried out by Microsoft, in continuity with others done in the past by clients to ascertain
compliance with contractual cyber security requirements.
6. Strategic risks and project acquisition risks
Description and impact
In defining its strategic guidelines, Saipem assesses macroeconomic, geopolitical, and industrial scenarios, their
technological developments, trends in demand in the relevant sectors, also in light of the requests it receives from
its clients, and the evolution of the competitive framework within the reference market. The reference market is
also defined by the various mergers and acquisitions, the creation of joint ventures and alliances on a local or
international level, of a strategic or commercial nature, and the continuous development and commercialisation of
patents and licences by competitors for innovative solutions (frequent, for example, in the area of energy
transition and decarbonisation). Therefore, Saipem is exposed to various kinds of risks, linked to its strategic
positioning (in relation to competitive positioning vs. market trend), both in conventional services in the energy
sector, particularly Oil&Gas, and Infrastructure, and in services related to the energy transition, whose weight is
less significant in the short term, but whose trend shows an increasing weight in the medium and long term.
With regards to the current situation of the market, the total demand for services is visibly influenced by factors
deriving both from existing conflicts, which could generate more unpredictable fluctuations in energy demand and
supply volumes, and in the price of oil and natural gas, and from pre-existing dynamics. These include: (i) the global
energy supply/demand balance; (ii) OPEC’s ability and willingness to establish and maintain certain oil extraction
levels, as well as the production forecast of OPEC countries; (iii) the possible return of exports from Iran; (iv) the
overall context of the raw material market, that may impact the general economy and the oil and gas demand;
(v) market volatility, as well as environmental policies and legislations; (vi) the growing tendency to choose
alternative and renewable energy sources. It should also be noted that the price trend of raw materials such as oil
and natural gas is highly volatile and unpredictable for various reasons, which are often interconnected and/or
interdependent
in demand,
technological evolution, energy transition, etc.).
All the above mentioned influences the investment policies of the main clients in the oil sector, exposing Saipem
to: (i) delays in the negotiation process and possible non award of commercial initiatives relating to future projects;
(ii) cancellation and suspension of projects already under way (whether EPCI Lump Sum or Drilling and value added
engineering services contracts); (iii) delays and difficulties in obtaining payment of contractual penalties provided
for to indemnify the Company against the cancellation and suspension of such contracts; (iv) strengthening of the
level of aggression in commercial strategies by competitors; (v) delays and difficulties in obtaining change orders
for the scope of work requested by the client and executed by Saipem; (vi) delays and difficulties by the clients in
renewing contracts for the offshore drilling fleet prior to the expiry thereof and under economically advantageous
terms and conditions; (vii) claims and arbitration and international disputes in the most significant cases.
Inadequate forecasts of the evolution of these scenarios, as well as the incorrect or delayed implementation of
(such as, for example, economic, geopolitical and social factors, changes
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SAIPEM ANNUAL REPORT 2023
the identified strategies, may expose the Company to the risk of not being able to implement its Strategic Plan,
both in terms of the volume of new acquisitions and related margins, and in terms of revenues and margins of the
existing portfolio.
The current scenarios in the field of energy transition involve a gradual shift towards greater use of renewable
energy sources, with a lower climate-altering impact than the ones now in use. The achievement of these
objectives is mainly based on the development and use of a range of new technologies in areas such as
renewable energy, the decarbonisation of various industrial sectors (e.g. agriculture, steel and cement production,
transport), energy efficiency and the circular economy. Saipem believes that the use of these innovative solutions
in building new energy infrastructures and reducing carbon emissions is expected to create a significant market
that is of particular interest.
The ability to compete in the new energy transition markets will depend on the achievement of adequate
competitive positioning, which can be developed through a number of key factors: (i) creation of new commercial
relationships with companies in the field of renewable energy sources and clean technology; (ii) ability to manage
new types of projects and clients, different from the traditional ones; (iii) meeting a specific track record in the new
markets; and (iv) development of a targeted technology portfolio.
Should the Company be unable to adequately update the technology and assets at its disposal with the aim of
aligning the offer of its services with the needs of the market, it may have to modify or reduce its strategic
objectives, with a subsequent negative effect on its activities, prospects, and economic, financial and asset
situation.
Mitigation
To monitor the trend of demand, Saipem makes use of a capillary organisational structure to cover the areas of
interest, and of companies specialised in providing periodic analyses and estimates on relevant market segment
trends and on macroeconomic, geopolitical, and technological developments. Furthermore, the Company created
the Sustainability, Scenarios and Governance Committee, which is responsible for assisting the Board of Directors
in its review and development of scenarios in order to prepare strategies, based on the analysis of the relevant
issues for long-term value generation and the corporate governance of the Company and the Group.
To ensure a strengthening of its competitive positioning, the Group always strives to create valuable relations with
its clients and guide them through the developments of the global energy scenario, while respecting the values
and professional ethics of Saipem. The organisational structure responds to this objective through four distinct
business lines: (i) “asset-centric” (to capture the moment of recovery in the Oil&Gas market); (ii) “offshore wind” (for
offshore wind plants); (iii) “energy carriers” (for the low-carbon design or reconversion of complex plants)
(iv) “sustainable infrastructures” (for growth in a sector that has become strategic in the new ecosystem of the
energy transition and sustainable mobility); and (v) “robotics & industrialized solutions” (for the development of
modular, repeatable, scalable plants and monitoring and maintenance services based on digital technologies). To
this regard, the strategy defined for the four years is characterised by the presence of a dual approach. On one
hand it focuses on traditional sectors where Saipem can boast a more effective competitive positioning
(construction and offshore drilling), while on the other hand, in the medium and long term, it aims to expand the
portfolio of clients and geographic markets and grow in sectors with a higher technology component linked to the
energy transition and defence, such as: (i) rigs for renewable sources (in particular, wind, solar); (ii) CO2 capture
projects; (iii) production of green hydrogen and its derivatives (e.g., green ammonia, methanol); (iv) plastics
recycling; (v) construction of high-speed railway lines; (vi) subsea robotics; (vii) high value engineering services in
the energy industry in general (including renewable energy).
The management focuses also on the commercial opportunities with a global perspective on the reference
markets, adopting diversification criteria between various clients in the sector (International Oil Company, National
Oil Company, Independent and Utility).
Saipem works constantly on the research and development of technologies aimed at increasing energy efficiency
in operations and in the decarbonisation of energy, continuing its investigation into new technological frontiers
(more information can be found in the section “Research and development”); among those, the proprietary CO2
capture technology should be highlighted.
Saipem is supported by agencies specialised in analysing the technological evolution of the reference market
sectors and prospective solutions that may be required by clients. The Group signs agreements with companies
that develop technological solutions in the energy industry and other sectors (i.e. the digitisation sector), with
universities and research centres, also considering strategic agreements (such as joint ventures and alliances) in
order to exploit market opportunities. In addition to the constant engagement in studying and possibly developing
technological agreements with various partners in terms of technologies and licences in the energy sector,
Saipem develops innovative technological solutions and patents internally through research and development
projects with its own resources, as well as through cooperation with other organisations.
Regarding energy transition, the fight against climate change is at the heart of Saipem’s agenda. It represents one
of today’s greatest challenges for the energy sector and for society as a whole, so much so that it is considered a
crucial part of Saipem’s business model.
The strategy for fighting climate change is based firstly on the scenario analyses in 2050, drafted to identify the
macro-trends and key drivers in the energy sector in terms of service demand, technologies, policies, legislation,
socio-political aspects, etc., and in order to understand how these will affect Saipem’s business as a whole. These
scenarios are updated at least annually, and the results are presented to the Board of Directors and the top
management in order to be developed into strategic guidelines.
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Saipem’s strategy for climate change includes a significant commitment to reducing dependence on fossil fuels,
offering clients increasingly sustainable solutions which aim to be the closest to zero in climate-altering emissions,
investing in renewable technologies and diversifying its activities; in this regard, as a global service provider,
Saipem has taken the important role of enabler of the transition from an economy based on fossil fuels to a
“decarbonised” economy. In the fight against climate change, Saipem wants to reduce its business dependence
on fossil fuels with a new two-pillar strategy: becoming a key partner in the decarbonisation of clients and key
players of its value chain, extending the offer to industries with a lower environmental impact, and improving its
assets and operations efficiency to reduce GHG emissions. Therefore, Saipem has, for some time, implemented a
programme of constant updating of its skills and renewal of its assets, with a view to speeding and facilitating its
entry into the field of energy transition, a growing sector that sees all the great international players increasingly
focused on the issues of sustainability, climate change, and reduction of environmental impacts.
For this purpose, Saipem communicated to the market its emission targets defined for the medium-long term,
announcing a reduction by 50% of the total emissions of GHG Scope 1 and Scope 2 by 2035 (compared to the
2018 baseline). In relation to Scope 2, the Net-Zero goal should be reached by 2025. Regarding Scope 3
emissions (i.e., indirectly associated with Saipem value-chain activities), Saipem wants to have a key role in
supporting and stimulating all the players in the chain, from clients to suppliers, in an organic and synergic
decarbonisation process. More details can be found on the company’s website in section “Sustainability”.
7. Project execution risks
Description and impact
Saipem operates mainly in the highly competitive services sector for the energy and infrastructure industry,
creating complex works and projects for its clients.
The award of contracts is preceded by a tender phase during which Saipem prepares execution schemes, timing
and quotation; the preparation of the quotation and the determination of the price are the result of a detailed and
timely estimation exercise which includes appropriate risk assessments through the use of contingency.
During the multi-year execution of the project, actual costs might differ from estimated amounts due to external
factor (e.g., interruptions in the supply chain of goods and services, geopolitical context in the country, etc.) and to
changes in the execution programmes due in turn to operational, technical and/or technological complexities.
These factors could lead to additional costs, delays in execution, non-recognition or delayed recognition of
revenues resulting in a reduction of originally estimated margins and a worsening of collections and financial
exposure, with a potential additional reputation damage for the Group.
Mitigation
In order to achieve business results and increase management efficiency and effectiveness, Saipem has started
to improve and rationalise its processes and activities, for example the strengthening of estimation processes,
control and risk management.
In order to improve project management both in the offer stage and in the execution stage, interventions have
been carried out for: (i) the dematerialisation and digitisation of some engineering, procurement and construction
processes; (ii) a greater centralisation of some strategic/relevant activities; (iii) the increase of synergies and
diffusion of lessons learned between the executive centres.
These initiatives were accompanied by a new organisational model based on distinct business lines characterised
by different dynamics, objectives and competencies: (i) “asset-centric” (based on a rigorous discipline of
optimisation of drilling, naval assets, and manufacturing bases, and focused on key geographies and clients);
(ii) “offshore wind” (for the bidding, design and execution activities of offshore wind power plants); (iii) “energy
carriers” (for the design of complex plants or their low-carbon reconversion with an increasing focus on the best
risk/return balance and with greater attention to margins); (iv) “sustainable infrastructures” (for the construction of
strategic infrastructure in the new ecosystem of energy transition and sustainable mobility); and (v) “robotics
& industrialized solutions” (for the development of modular, repeatable, scalable plants and monitoring and
maintenance services based on digital technologies).
8. IT risks
Description and impact
The Group’s operation depends significantly on the use of technologies, assets, patents, and licences it holds, and
of IT systems developed through the years. In particular, Saipem considers the technological and digital
component to be particularly relevant for projects in the Robotics & Industrialized Solutions line of business,
focused on innovative products linked to emerging energy transition and robotics markets.
Given the rapid and constant technological evolution in these areas, the failure to take advantage of the
opportunities linked to the digitalisation and transformation of operational processes and activities (e.g.,
automation) and the failure to adopt innovative IT solutions could jeopardise the Company's technological, cultural
and renewal development and consequently negatively impact the achievement of its short- or long-term
objectives (more information is available in the specific “Digital, ICT Services” section).
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Mitigation
The Company has launched several initiatives aimed at achieving a better efficiency and effectiveness and
particular emphasis has been placed on the rationalisation of business processes and on the progressive cultural,
technological, and digital change. Specifically, initiatives aimed at the dematerialisation and digitalisation of
activities continue.
Saipem is engaged in the implementation phase of the project of digital transformation through an agenda with
several objectives, including rendering the ICT services more efficient, developing a new people management
system, spreading digital awareness, and adopting new technologies, including Artificial Intelligence.
Saipem has also set up various ICT business initiatives focused on the progressive digitalisation and automation
of business work processes and the enhancement of data and information assets. To this end, a shared data
model and a data governance methodology based on the Common Data Environment (CDE) methodology have
been implemented and will be progressively extended on a collaborative technology platform.
9. Risks associated with legal proceedings (legal, administrative,
tax and labour)
Description and impact
In the ordinary course of operations, the Group may take part in disputes which, if not resolved by negotiation, may
result in judicial or arbitral proceedings, including lengthy ones that require significant resources, costs and legal
expenses.
The Group is currently a party to civil, criminal, administrative and tax proceedings in Italy and abroad. The estimate
of expenses that could reasonably be expected and the amount of provisional funds are based on information
available at the date of approval of the financial statements or interim financial statements, but may be subject to
updates and revisions, including significant revisions of estimates as legal proceedings progress.
Any unfavourable outcome of disputes for the Group – in particular, those with greater media impact – or new
disputes (regardless of the outcome) could result in significant repercussion on the Group’s reputation, with a
subsequent negative effect on activities, prospects, and the economic, financial and capital situation of the Group.
Given the intrinsic and unavoidable risk that characterises legal proceedings, while the Group has carried out the
necessary assessments, including on the basis of applicable reporting standards, it is not possible to exclude the
possibility that the Group might in future have to face payments for damages not covered by the provision for
legal proceedings, or which are covered insufficiently, or which are uninsured, or which are of an amount greater
than the maximum sum that may have been insured. Furthermore, in relation to legal proceedings brought by the
Company, should it not be possible to settle the disputes by means of negotiation, the Company may have to bear
further costs associated with the lengthy court hearings. In addition, the progress of legal and tax proceedings
exposes to potential impacts on its image and reputation in the mass media or with clients and partners.
Changes in national tax regimes, tax incentives, rulings with tax authorities, international financial treaties and, in
addition, risks related to their application and interpretation in the countries where the Group companies operate,
exposing Saipem to tax-related risks which could result in disputes in some of those countries (especially in the
economies more exposed to the deterioration of oil prices on the international market).
Mitigation
In order to maximise the mitigation of these risks, Saipem not only implements actions aiming to constantly
strengthen its internal control system, but also makes use of specialised external consultants who assist the
Company in judicial, civil, tax or administrative proceedings. Furthermore, the Board of Directors of Saipem
monitors the evolution of the main legal proceedings in an active and continuous manner.
Saipem constantly monitors both the changes in and compliance with tax regulations, also in order to minimise
the impacts due to its operating activities in all countries of interest through internal resources and tax
consultants.
10. Risks related to asset management
Description and impact
In order to execute EPCI projects, drilling services and other services in the energy industry, the Group has
numerous assets (specialised vessels, drilling rigs, FPSOs, equipment, fabrication yards and logistics bases). Any
operational performance of these assets that is lower than expected (e.g., due to delayed maintenance,
inadequate planning of asset availability windows with respect to the needs of existing and future projects, etc.)
could jeopardise the performance of activities, with negative effects on the time and cost of projects being
executed and on customer relations.
In addition, should the Company be unable to guarantee the operational performance and/or availability of assets,
it may have to adjust its targets, with consequent impacts on its business, prospects, reputation, as well as its
economic, asset, and financial situation.
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Mitigation
Saipem is constantly engaged in maintaining, updating, and renewing its assets with the aim, in order to carry out
its business, of adapting its service offering to the current and future needs of the market.
Should proprietary assets not be suitable and/or available to meet project needs, Saipem makes use of third-party
vessels under “Long Term Charter”/”Bare Boat” type contracts and external production yards to ensure that
activities can be carried out and the objectives of the four-year plan can be achieved.
11. Risks related to human resources
Description and impact
The Group relies to a significant degree on the professional contribution of key management personnel and highly
specialised individuals. Key management personnel means “Senior Managers with strategic responsibilities”
(further information can be found in the specific detail section of the “Corporate Governance and Shareholding
Structure Report 2023”). Highly specialised individuals, on the other hand, means resources that, on the basis of
their skills and experience, are vital to the execution of projects and to the growth and development of Saipem.
The Group’s ability to attract, motivate, and retain qualified resources in all functions and geographic areas
represents a crucial success factor. The deterioration of such factor would expose Saipem to the risk of losing
resources with a relevant know-how, with a subsequent medium-long term negative effect on activities, prospect,
and the economic, financial and capital situation.
Furthermore, working on international markets, the development of future strategies will depend significantly on
the Company’s ability to attract and retain highly qualified and competent personnel with a high level of diversity in
terms of age, nationality, and gender. Finally, frequent changes in the labour laws of many of the countries in which
it operates expose Saipem to various kinds of risks in the management of human resources, due to the volatility
and uncertainty of local regulations as the uncertainty of the law in these countries may cause internal
inefficiencies and litigation.
Mitigation
Saipem is committed to investing in gender, nationality, and generational balance, encouraging the development
and growth of younger resources, as well as motivating and retaining the most experienced resources, in order to
ensure the protection of the distinctive and strategic skills through several different initiatives. In this regard,
specific initiatives focused on the promotion and dissemination of an inclusive culture were launched in
partnership with the associations “Valore D” and “Parks - Liberi e Uguali”. In 2023, Saipem was included in the
Gender Equality Index (GEI), an internationally accredited index for measuring gender equality in listed companies,
and obtained the certification for gender equality by the Norwegian institution Det Norske Veritas.
Furthermore, the aim of the Remuneration Policy, whose primary tools and objectives are defined in the Report on
Remuneration Policy and Compensation Paid 2023, is to attract, motivate, and retain high-profile professional and
managerial resources, and align management’s interests with the aim of creating value for shareholders in the
medium-long term.
Saipem has adopted a skill-based innovative model for the management of human capital with the aim of better
directing energies and professional figures to the areas in need and ensuring greater flexibility in the development
of personal and professional skills at all levels.
Therefore, the expansion of the Group into different business lines is accompanied by plans to employ and train
management and technical personnel, both international and local, with a wide range of skills, as well as job
rotation programmes.
Saipem also oversees the international labour markets both through its network of local structures in all countries
where it operates and through the Swiss company Global Project Services AG, which guarantees the recruitment
of international personnel worldwide.
As defined in the Code of Ethics, in full compliance with applicable legal and contractual provisions, Saipem
undertakes to offer equal opportunities to all its employees, making sure that each of them receives a fair
statutory and wage treatment based on merit and expertise, without discrimination of any kind. Additionally, the
Group monitors the legislative developments relating to personnel management in all the countries in which it
operates or is interested in entering, availing itself of labour law consultants.
12. HSE risks
Description and impact
Saipem's activities may potentially expose it to accidents, which may cause negative impacts on the health and
safety of people and the environment. Saipem’s activities are subject to the laws and regulations for the
protection of the environment, and on health and safety, at both Italian and international level. Despite the
Company's best efforts, the risk of incidents that are detrimental to people's health and to the environment cannot
be completely ruled out.
Such events could lead to criminal and/or civil penalties against those responsible and, in some cases, to
violations of safety and environmental regulations, also pursuant to the Italian Legislative Decree No. 231/2001.
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This would lead to costs arising from the fulfilment of obligations under environmental, health and safety laws and
regulations, leading to costs related to sanctions, not to mention the impact on its image and reputation.
Besides, in order to execute EPCI projects, drilling services and other services in the energy industry, the Group
owns numerous assets that are subject to both normal operating risks and catastrophic risks related to weather
events and/or natural disasters, which may cause impacts on the safety of people and the environment. The risks
connected with ordinary operations can be caused by: (i) mistaken or inadequate execution of manoeuvres and
work sequences that lead to damage for assets or facilities; (ii) mistaken or inadequate ordinary and/or
extraordinary maintenance. Despite the fact that Saipem has specific know-how and competencies constantly
kept up to date, that it has implemented internal procedures for the execution of its operations, and regularly
carries out maintenance work on its assets in order to monitor their quality and level of reliability, it is not possible
to fully exclude the occurrence of incidents.
Mitigation
With reference to these risks, Saipem has developed an HSE (Health, Safety and Environment) management
system which is in line with the requirements of laws in force and with international standards ISO 45001 for health
and safety in the workplace and ISO 14001 for environmental management, and for which Saipem has obtained
certification for the whole Group. Specifically, HSE risk management is based on the principles of prevention,
protection, awareness, promotion, and participation; its aim is to guarantee the workers’ health and safety and to
protect the environment and the general well-being of the community.
Regarding the risks related to the safety and health of people, Saipem has introduced a series of specific
mitigation initiatives, among which the following are noteworthy:
≥ the continuing and renewed implementation of the “Leadership in Health & Safety” (LiHS) programme, integrated
within the “human factor” principles, which aims to strengthen the Company's health and safety culture;
≥ various campaigns, such as: “Life Saving Rules” which focuses on raising awareness on dangerous activities and
actions to be taken by each individual to protect themselves and others; “Dropped Objects Prevention”, the
campaigns “We Want Zero”, “Keep Your Hands Safe” (KYHS) and “Work Safe - No Regrets”, focused on
combating accidents related to work at height in response to a negative trend in related incidents, and the “Fire
Prevention Campaign”. Also ongoing is “Choose Life”, a training programme that aims at strengthening
leadership and increasing awareness on health and well-being issues, with the objective of encouraging people
to choose a healthier lifestyle. The programme addresses three main health risks: cardiovascular diseases,
malaria and sexually transmitted diseases. Recently, the mental health topic was added, which is one of the main
issues of interest for our industry; the first psychological support accessible in the metaverse, available freely
and anonymously for employees;
≥ pilot projects for the application of innovative digital technologies and Artificial Intelligence in the HSE field;
≥ the “Safety Step Up” programme and “step-change” actions for a continuous improvement of performance in
terms of safety at work, in particular regarding the prevention of serious accidents and high-potential events
through the adoption of advanced technologies, as well as through monitoring of best practices and
technologies in the HSE field available on the market;
≥ The progressive implementation of the electronic work permit to work (E-Permit to Work) on the entire fleet, to
strengthen safety management onboard.
≥ the development of advanced Occupational Medicine and Health Surveillance activities, as well as the extension
of telemedicine services (teleradiology, telecardiology and teledermatology).
Regarding the risks associated with safeguarding the environment, a structured system of prevention,
management, and response to spills was developed.
Regarding the risks related to environmental protection, various specific mitigation initiatives are ongoing, among
which the following are noteworthy:
≥ measures to eliminate the risk of spills (e.g., substitution of hazardous substances with eco-friendly substances,
mapping of areas at greatest risk of spills and identification of appropriate prevention measures) and, if this
happens, measures and actions to be implemented to prevent them from spreading;
≥ the identification of asset-specific maintenance programmes aimed at preventing fluid leaks;
≥ various campaigns, for instance “WED World Environment Day”, aimed at promoting and raising employees'
awareness on issues related to the environment, biodiversity and the efficient and sustainable management of
all natural resources in general;
≥ initiatives focusing on the environmental awareness through various activities, such as the corporate waste
collection volunteer event at the Cassinis Park during the “European Week for Waste Reduction”.
In addition, Saipem promotes initiatives aimed at saving water and managing water risk, for example the creation
of the Water Management Plan.
Lastly, for the mitigation of the risks related to asset management, Saipem incurs significant expenses for the
maintenance of assets it owns and has developed various prevention initiatives, among which we highlight the
implementation of the Asset Integrity Management System, a system that provides for the systematic
management of critical elements, the identification of Key Performance Indicators and the creation of task
familiarisation cards for managing the development of personnel assigned to specific roles or the use of critical
equipment. Specifically, with regard to all vessels in the fleet, Saipem periodically renews certifications issued by
the appropriate classification bodies and by flag state authorities following the inspections that the classification
bodies perform on group vessels. In addition, the vessels, based on the technical characteristics and the type of
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RISK MANAGEMENT
each ship, must meet the requirements of applicable international maritime law and laws regulating the Oil&Gas
industry.
13. Risks associated with client contract management
Description and impact
In the execution phase of EPC Lump-Sum Turnkey projects, there may be changes to the contractually agreed
work that result in additional costs related to the changes requested by the client (change orders) and/or higher
costs incurred for reasons attributable to the client (claims). Saipem and its clients cooperate to find agreements
on the additional fees that satisfy both parties to avoid compromising the correct performance of works and
delaying the completion of the project. Saipem runs the risk that delays and difficulties in reaching agreement and
in the recognition of compensation related to change orders and claims may be a source of delay in payment and
cause a deterioration of project margins. Moreover, should Saipem and the client fail to agree on additional fees,
the Group could be involved in disputes that could even result in judicial or arbitration proceedings and cause a
deterioration in client relations and loss of future business opportunities.
Mitigation
Saipem is constantly striving to maintain solid and positive relations with its clients and, in order to mitigate these
risks, it performs checks on standard contractual terms to protect itself in each jurisdiction of reference,
(sanctions) and
negotiating clauses with clients to protect them also against possible geopolitical
macroeconomic (commodity price increases) risks. In addition, Saipem has launched various initiatives aimed at
improving efficiency and effectiveness both in the contract negotiation phase, on the basis of a risk appetite
defined and approved by the Board of Directors, and in the process of preparing the documentation supporting
the claim and change order request, for a more timely communication of deviations from contractually agreed
work.
Saipem actively participates in industry associations that promote the development and updating of contractual
schemes aimed at optimising the balancing of risks, an activity that is particularly relevant with reference to the
renewable energy business characterised by technological innovations and non-standardised contractual
schemes currently on the market.
14. Compliance risks
Description and impact
Although Saipem conducts its business with loyalty, fairness, transparency, integrity and in full compliance with
laws and regulations, it has adopted and constantly updated in Group companies an Internal Control and Risk
Management System (SCIGR), a Code of Ethics and a Model pursuant to Italian Legislative Decree No. 231/2001,
as well as an organisational, management and control model with reference to Group companies with offices in
foreign countries, and carries out periodic audits, conducts contrary to company procedures and regulations or
unlawful acts may occur that could have negative effects on the economic and financial situation and reputation.
In addition, during its activities, the Group operates in countries with a high percentage of fraud and corruption,
and relies on subcontractors and suppliers who may engage in fraudulent conduct in coordination with employees
to the detriment of the Company.
Saipem is also exposed to risks related to the protection of information and know-how as, when performing its
activities the Company relies on information, data and know-how of a sensitive nature, access to which and
dissemination by unauthorised employees or third parties may lead to fraud or illegal activities, with consequent
damage.
Lastly, it cannot be excluded that non-compliance issues or the incorrect application of the European Data
Protection Regulation (GDPR) may occur within the Group, which could result in the application of sanctions to the
detriment of Saipem.
Mitigation
Saipem has developed an “Anti-corruption Compliance Programme”, a detailed system of regulations and
controls for the purpose of preventing corruption, in line with international best practices and with the principle of
“zero tolerance” expressed in the Code of Ethics. In particular, the “Anti-Corruption Compliance Programme” is
dynamic and is constantly focused on the evolution of the national and international regulatory framework and of
best practices.
In addition, Saipem’s Code of Ethics (included in Model 231) establishes that “corruption practices, illegitimate
favours, collusion, solicitation, [occurring] directly and/or through third parties for personal and career advantages
for oneself or others, are without exception prohibited”.
In order to facilitate the submission of reports, the Group makes various communication channels available to
employees and stakeholders, including, but not limited to, ordinary mail, yellow boxes, dedicated e-mail boxes,
communication tools on the intranet/internet sites of Saipem SpA and its subsidiaries and a dedicated information
channel, overseen by the Compliance Committee (a board whose autonomy and independence are guaranteed
by its acknowledged position in the context of the company’s organisational structure and by the necessary
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SAIPEM ANNUAL REPORT 2023
requisites of independence, honourability, and professionalism of its members), through which it is possible to
report any problems related to the internal control system, financial reporting, corporate administrative liability,
fraud, or other topics (i.e. violations of the Code of Ethics, mobbing, theft, personnel security, etc.).
Saipem periodically performs general audits also using external consultants, considering fraud indicators and red
flags, in addition to those specific on suspected offences.
Furthermore, over the years, Saipem has developed a management system that has received the International
Standard ISO 37001 - Anti-Corruption Management Systems certification. This is an important safeguard in the
prevention of and fight against corruption, as it defines the requirements and provides a guideline to help
organisations prevent, detect, and respond to corruption and comply with anti-corruption legislation and any other
voluntary commitments applicable to their activities.
Saipem is aware that the first step for the development of an effective strategy against corruption is to know all
the available tools for the prevention of corrupt behaviour.
In this regard, Saipem personnel are engaged in training activities related to the Organisation, Management, and
Control Model and Anti-Corruption regulations. Moreover, in order to mitigate and prevent risks related to possible
unethical behaviour by suppliers and subcontractors, Saipem uses various tools, audits and training programmes
and requires suppliers, subcontractors and partners to read and accept Model 231, including the Code of Ethics.
For the management of risks related to the leak of confidential information, it should be noted that Saipem makes
use of IT security technologies and procedures to mitigate this exposure (more information is available in the
specific “Digital, ICT Services” section). Saipem has also adopted principles and rules to be followed by the Group
in its internal management and external communication of corporate documents and information, with particular
reference to inside information (more information is available in the specific section within the “Corporate
Governance and Shareholding Structure Report 2023”).
Lastly, beginning in April 2018 Saipem developed an ad hoc Privacy Organisation Model aimed at guaranteeing
compliance with the European directive on data protection (General Data Protection Regulation - GDPR). The
model was updated in December 2022 with a view to continuous improvement and reinforcement of safeguards
for the protection of personal data.
Transfer of risks to the insurance market
The general guidelines applicable in terms of insurance risk transfer for the Saipem Group are revised annually.
Based on such guidelines, the Insurance function defines and implements the insurance programme, with the
objective of protecting the employees, the assets and the consequences of the civil liability of the Saipem Group
and covering certain of the risks associated to the execution of contracts with clients (mainly the construction
risks).
The insurance programme also aims at maximising the cost-benefit ratio for the Group, by considering the current
conditions of the insurance market (capacity, coverage limits and cost) and by utilising the captive reinsurance
company Sigurd R(cid:2)ck AG for the management of selected risks (low intensity/medium frequency).
As the insurance market, as well as the markets of the Group, are constantly evolving, it is not possible to
guarantee that all the risks are covered by the insurance programme. Furthermore, the volatility of the insurance
market makes it impossible to guarantee the stability in the mid-term of the rates, terms and conditions of the
insurance programme.
Saipem makes a distinction between the insurance policies applying indifferently across all the business lines to
cover the entire portfolio (the “corporate insurance policies”) and the insurance policies taken out for the specific
needs of a particular project (the “Specific-to-project Policies”).
Corporate insurance policies
The corporate insurance programme includes the following:
Worker’s Compensation insurance offering protection to Saipem employees in compliance with the specific
regulations in force in the countries where the Group operates.
Property Damage package
≥ “Hull and Machinery” insurance covering Saipem fleet on an all-risks basis including war risks;
≥ “Construction Equipment” insurance covering Saipem onshore and offshore construction equipment on an
all-risks basis;
≥ “Cargo” insurance covering the equipment/goods which Saipem is liable for during transport.
≥ “Offices and Yards” insurance covering building, offices, yards owned or leased by the Group.
Liability coverages
≥ “Protection & Indemnity (P&I)” insurance covering Saipem liabilities arising out of the navigation and/or
operations of its vessels. Saipem fleet is entered into a P&I Club that is part of the International Group of P&I
Club;
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RISK MANAGEMENT
≥ “Comprehensive General Liability (CGL)” insurance covering Saipem liabilities arising out of Saipem’s operations
whether onshore or offshore (always in difference of conditions and/or difference of limits of the P&I coverage
which is primary to the CGL). This policy is also extended to cover Saipem Group Employer’s liability;
≥ “Directors & Officers (D&O)” policy providing financial protection for Saipem managers against the consequence
of actual or alleged “wrongful acts” when acting in the scope of their managerial duties. The D&O policy covers
the defence costs as well as the financial losses;
≥ “Cyber Insurance Protection” covers both property damage and liabilities which might arise out of a
cyber-attack against Saipem information and operating systems.
Specific-to-Project policies
The size and the nature of the projects which Saipem is engaged in makes it impossible to cover related
construction risks (risks of loss of or damage to the Works to be delivered) under open and permanent policies.
These risks are subject to “specific-to-project” policies commonly referred to as “Construction All Risks (CAR)”
policies. In most cases, these policies are provided by the Principal (the client). Alternatively, they fall under Saipem
obligations. In any case, Saipem checks that the policy is suitable for the purpose of the project and in line with the
market standards. These policies cover all the phases of the project from the engineering to the construction,
installation and commissioning and are extended to also cover the warranty period attaching to the project.
\ 71
SAIPEM ANNUAL REPORT 2023
ADDITIONAL INFORMATION
2023-2025 Long-Term Variable Incentive Plan
On May 3, 2023, the Shareholders' Meeting approved the adoption of the 2023-2025 Long-Term Variable
Incentive Plan (the “Plan”), which includes the award of Saipem ordinary shares, free-of-charge, subject to the
achievement of performance targets. The Plan was approved under the terms and conditions illustrated in the
Information Document, prepared in accordance with Article 114-bis of the Consolidated Law on Finance and
Article 84-bis, paragraph 2 of Consob Regulation No. 11971/1999, which has been made available to the public
within the terms and according to the procedures provided for by the regulations in force, and on the Company’s
website.
Authorisation to buy-back treasury shares for the allocation
to the 2023-2025 Long-Term Variable Incentive Plan
On May 3, 2023, the Shareholders' Meeting approved the proposal to authorise the buy-back of treasury shares
for a period of eighteen months from the date of the Shareholders' Meeting resolution, up to a maximum of
37,000,000 ordinary shares and, in any case, up to the overall maximum amount of €59,300,000, for the 2023
allocation of the 2023-2025 Long-Term Variable Incentive Plan, under the terms and conditions described in the
Board of Directors' Explanatory Report on this item of the meeting agenda, made available to the public within the
terms and according to the procedures provided for by the regulations in force, and on the Company's website.
Tender offer relating to the notes representing the bong
Saipem SpA together with its subsidiary Saipem Finance International BV, hereby announce the final results of a
tender offer
launched by Saipem Finance to the holders of the outstanding bonds representing the
"€500,000,000 2.625 per cent. Notes due 7 January 2025” issued by the Offeror and admitted to trading on the
Euro MTF of the Luxembourg Stock Exchange (the “Notes”) for cash up to an aggregate principal amount of
€200,000,000. The Offer was launched on November 20, 2023. The expiration deadline was set at 5:00 p.m. (CET)
on November 24, 2023, the Offeror announces that the Final Acceptance Amount in respect of the Notes is equal
to €120,095,000 and that no Pro-Ration Factor is to be applied to the validly made offers of Notes.
Equity linked-bonds
On December 13, 2023, the Extraordinary Shareholders' Meeting of Saipem SpA, held today, authorised the
convertibility into ordinary shares of the Company of the equity-linked bonds issued on September 11, 2023 and
due in September 2029, with a nominal amount of €500 million.
Collaboration agreements
Saipem and Garbo, an Italian chemical company, have signed an agreement to support the industrialisation,
development and international commercialisation on a global scale of a new technology for plastic recycling.
The technology, named ChemPET,
is Garbo’s proprietary depolymerisation technology which converts
polyethylene terephthalate plastic waste, commonly known as PET, into new, high-quality PET and, therefore, of
high value for the chemical and food industries. The agreement also provides for Saipem and Garbo to collaborate
on the construction on an industrial scale of the first chemical plastic recycling plant in Italy, located in Cerano in
the province of Novara.
Saipem and Mitsubishi Heavy Industries (“MHI”) have signed an agreement for post-combustion carbon capture. It
is a General License Agreement enabling Saipem to deploy Mitsubishi Heavy
Industries’ advanced
post-combustion CO2 capture technologies in the execution of large-scale projects. These technologies are “KM
CDR Process™” and “Advanced KM CDR Process™” jointly developed with The Kansai Electric Power Co Inc.
Saipem and Valmet, a Finland-based leading global developer and supplier of process technologies, automation
and services, have signed a Memorandum of Understanding (MoU) to develop joint solutions to decarbonise the
industrial sectors that face significant challenges in reducing their greenhouse gas emissions, also known as
hard-to-abate industries.
\ 72
ADDITIONAL INFORMATION
Regulation on Markets
Article 15 (formerly Article 36) of Consob Regulation on Markets (adopted with Resolution No. 20249
of December 28, 2017): conditions for the listing of shares of companies
with control over companies established and regulated under the law of non-EU countries
With regard to the published regulations setting out conditions for the listing of shares of companies with control
over companies established and regulated under the law of non-EU countries and that are deemed to be of
material significance in relation to the consolidated financial statements:
i. as of December 31, 2023, the regulatory requirements of Article 15 of the Market Regulation apply to the
following subsidiaries:
≥ Global Petroprojects Services AG;
≥ PT Saipem Indonesia;
≥ Saimexicana SA de Cv;
≥ Saipem America Inc;
≥ Saipem Contracting Nigeria Ltd;
≥ Saipem do Brasil Serviçõs de Petroleo Ltda;
≥ Saipem Drilling Norway AS;
≥ Saipem Guyana Inc;
≥ Saipem India Projects Private Ltd;
≥ Saipem Ltd;
≥ Saipem Misr for Petroleum Services (S.A.E.);
≥ Saipem Singapore Pte Ltd;
≥ Saudi Arabian Saipem Ltd;
≥ Sigurd Rück AG;
≥ Snamprogetti Engineering & Contracting Co Ltd;
≥ Snamprogetti Saudi Arabia Co Ltd Llc;
≥ Saipem Australia Pty Ltd;
ii. procedures designed to ensure full compliance with the aforementioned regulations have been adopted.
Business outlook
Saipem has updated its strategic guidelines presented in February 2023, confirming the progressive improvement
of the Group's performance and its ability to fully exploit the favourable market context. Economic and financial
targets have consequently been revised.
Specifically, with reference to the year 2024, the Company expects:
≥ revenue of €12.7-13.3 billion;
≥ EBITDA margin of approx 10%;
≥ operating Cash Flow (net of lease payments) amounting to €740-780 million;
≥ capex equal to approximately €440-480 million.
Events after the reporting period
Physical Settlement Notice
On January 8, 2024, Saipem SpA delivered today the Physical Settlement Notice to all bondholders of the
equity-linked bonds named “€500,000,000 Senior Unsecured Guaranteed Equity-linked bonds due 2029”. In
accordance with the Physical Settlement Notice, the bondholders shall be granted the right, effective from
January 26, 2024, to convert the bonds into ordinary shares of the Company according to the terms and
conditions of the bonds.
Launch of the buy-back programme for Saipem ordinary shares to service
the 2023-2025 Variable Long-Term Incentive Plan
On January 15, 2024, Saipem SpA has launched the buy-back programme for the Company’s ordinary shares,
pursuant to Article 5 of EU Regulation No. 596/2014, as subsequently amended, concerning a maximum number
of 29,500,000 shares to service the 2023 allocation of the Company's 2023-2025 Long-Term Variable Incentive
Plan. As of January 29, 2024, 22,500,000 treasury shares have been purchased for a total consideration of
€32,933,508 (weighted average price 1.4637).
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SAIPEM ANNUAL REPORT 2023
Incident on Castorone vessel
On January 30, 2024, Saipem confirms that early this morning an incident occurred on the Castorone pipelay
vessel off the waters of Australia during normal pipelaying operations. The incident did not cause injuries to
personnel and localised damage to the trunkline was sustained which will be remediated. Castorone vessel did not
sustain any major damages. As of February 13, 2024, the Australian Commonwealth regulator NOPSEMA (National
Offshore Petroleum Safety and Environmental Management Authority) has confirmed today it is satisfied that the
Castorone vessel may resume pipelay operations.
Authorisation to buy-back treasury shares for the 2024 allocation
of the 2023-2025 Long-Term Variable Incentive Plan
Following the proposal of the Remuneration and Nomination Committee, the Board of Directors resolved to
submit to the Shareholders' Meeting a proposal for authorisation of the buy-back of treasury shares up to a
maximum of 31,900,000 ordinary shares, and in any case, up to the overall maximum amount of €77,500,000, for
the 2024 allocation of the 2023-2025 Long-Term Variable Incentive Plan approved by the General Shareholders’
Meeting on May 3, 2023. On the same date, the Company holds 22,898,649 treasury shares, equal to 1.15% of
the share capital, earmarked for the implementation of the long-term incentive plans approved in previous years.
Additional information
In compliance with the provisions of Article 2364 of the Italian Civil Code and Article 11 of the Company’s Articles
of Association, the Board of Directors resolved to call the Annual General Shareholders’ Meeting within 180 days
from the end of the annual reporting period, as Saipem SpA is required to prepare consolidated financial
statement.(cid:1)
Under Article 20 of the Articles of Association, pursuant to Article 2365, second paragraph of the Italian Civil
Code, the Board of Directors of Saipem SpA is responsible for amending the Articles of Association to comply
with legislative provisions.
Particularry, on January 3, 2024, has been updated the Article 5 of the Articles of Association of Saipem SpA
following the registration at the Companies’ Register of the resolution taken by the Extraordinary Shareholders’
Meeting of December 13, 2023, authorising the convertibility of the equity-linked bonds named “€500,000,000
Senior Unsecured Guaranteed Equity-Linked Bonds due 2029” and the increase in the share capital, in divisible
form, excluding Shareholders pre-emption rights pursuant to Article 2441, paragraph 5 of the Italian Civil Code, to
be used to convert the aforementioned bonds through the issue of Saipem SpA ordinary shares.
In addition, on March 7, 2024, has been updated the Article 6 of the Articles of Association of Saipem SpA,
following the recalculation of privileges enjoyed by Savings Shares, resulting from the Shares Reverse Splits
resolved upon by the Board of Directors on June 8, 2022 (executing the Shareholders’ Meeting resolution of May
17, 2022) and by the Shareholders’ Meeting on April 28, 2017.
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RECONCILIATION OF RECLASSIFIED BALANCE SHEETS USED IN THE MANAGEMENT REPORT WITH THE MANDATORY FINANCIAL STATEMENTS
Reconciliation of reclassified balance sheets used
in the management report with the mandatory financial statements
Reclassified statement of financial position
(€ million)
Dec. 31, 2023
Dec. 31, 2022
Reclassified statement of financial position
(where not explicitly stated, the component is obtained from the mandatory template)
A) Net property, plant and equipment
Note 15 - Property, plant and equipment
B) Net intangible assets
Note 16 - Intangible assets
C) Right-of-use of lease assets
Note 17 - Right-of-use of lease assets
D) Equity investments
Note 18 - Equity investments
Reclassified from F) - provisions for losses of investees
E) Working capital
Note 9 - Other current financial assets
Reclassified to M) - loan assets not related to operations
Note 10 - Trade receivables and other assets
Note 11 - Inventories
Note 12 - Contract assets
Note 13 - Current and non-current income tax assets
Note 13 - Other current income tax assets
Note 14 - Other current assets
Note 20 - Other non-current assets
Note 19 - Deferred tax assets
Note 21 - Trade payables and other liabilities
Note 22 - Contract liabilities
Note 13 - Current and non-current tax liabilities
Note 13 - Other current tax liabilities
Note 23 - Other current liabilities
Note 28 - Other non-current liabilities
Note 19 - Deferred tax liabilities
F) Provisions for risks and charges
Note 26 - Provisions for risks and charges
Reclassified to D) - provisions for losses of investees
G) Provisions for employee benefits
Note 27 - Provisions for employee benefits
H) Assets held for sale
Note 30 - Discontinued operations and liabilities directly related to
assets held for sale
EMPLOYED CAPITAL, NET
I)
Equity
Note 31 - Equity
L) Non-controlling interests
Note 31 - Equity
M) Net financial debt pre-lease liabilities
Note 7 - Cash and cash equivalents
Note 8 - Financial assets measured at fair value through OCI
Note 9 - Other non-current financial assets
Note 24 - Current financial liabilities
Note 24 - Non-current financial liabilities
Note 24 - Current portion of non-current financial liabilities
Reclassified from E) - financial receivables for non-operating purposes
(Note 9)
N) Lease liabilities
Note 17 - Net lease liabilities
O) Net financial debt
FUNDING
Partial values
from
mandatory
template
2.960
666
428
211
(49)
387
(386)
2.441
256
1.925
390
146
244
52
257
(2.944)
(3.088)
(94)
(192)
(33)
(3)
(6)
(767)
49
(193)
-
-
2.394
2
(2.136)
(86)
(1)
97
2.168
128
(386)
477
Partial values
from
mandatory
template
Values from
reclassified
template
2.960
Values from
reclassified
template
2,879
666
428
162
2,879
691
258
229
(101)
691
258
128
(648)
(542)
495
(494)
2,182
211
1,860
318
141
272
30
345
(2,907)
(2,613)
(109)
(161)
(107)
(2)
(3)
(1,148)
101
(183)
166
2,068
18
(2,052)
(75)
(65)
159
1,729
742
(494)
320
(718)
(193)
2.657
2.394
2
(216)
477
261
2.657
(1,047)
(183)
166
2,350
2,068
18
(56)
320
264
2,350
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SAIPEM ANNUAL REPORT 2023
Reclassified income statement
The reclassified income statement differs from the mandatory template solely for the following reclassification:
≥ the items "other revenues and income" (€22 million), relating to “reimbursements for services that are not part of
core operations” (€1 million), have been recorded as reductions to the corresponding cost items in the
reclassified income statement;
≥ the items “financial income” (€672 million), “financial expense” (-€765 million) and “derivatives” (-€74 million),
which are indicated separately in the mandatory template, are stated under the item “net financial expense”
(-€167 million) in the reclassified income statement;
≥ the item “other operating income (expense)” (€5 million), which is indicated separately under the statutory
scheme, is stated under the item “purchases, services and other costs”;
≥ the item “net income (charges) from investment” (€60 million), which is indicated separately under the statutory
scheme “share of profit (loss) of equity-accounted investees” (€107 million) and “other gains (losses) from equity
investments stated under the item“ (-€47 million).
All other items are unchanged.
Items of the reclassified statement of cash flows
The reclassified statement of cash flows differs from the mandatory template solely for the following
reclassifications:
≥ the items “depreciation and amortisation” (€460 million), “valuation effect using the equity method” (-€107
million), “change in employee benefit provision” (€6 million) and “net impairment losses (reversals of impairment
losses) on property, plant and equipment, intangible assets, and Right-of-Use assets” (€29 million), shown
separately and included in the net cash flow from operating activities in the statutory scheme, are shown net
under “depreciation, amortisation and other non-cash items” (€413 million);
≥ the items “income taxes” (€145 million), “interest expense” (€161 million) and “interest income” (-€54 million),
indicated separately and included in cash flows from working capital in the mandatory template, are shown net
under the item “dividends, interests and taxes” (€252 million);
≥ the items regarding “trade receivables” (-€261 million), changes in “inventories” (-€45 million), “provisions for risk
and charges” (-€324 million), “trade payables” (€20 million), “other contract assets and liabilities” (€463 million)
and “other assets and liabilities” (€13 million), indicated separately and included in cash flows from working
capital in the mandatory template, are shown net under the item “changes in working capital related to
operations” (-€134 million);
≥ the items “dividends received” (€69 million), “interests received” (€51 million), “income taxes paid net of refunds
of tax credits” (-€134 million) and “interest paid” (-€150 million), indicated separately and included in cash flows
generated by operating activities in the mandatory template, are shown net under the item “dividends received,
income taxes paid and interest paid and received” (-€164 million);
≥ the items relating to capital expenditures in “property, plant and equipment” (-€472 million) and “intangible
assets” (-€10 million), indicated separately and included in cash flows from investing activities in the mandatory
template, are shown net under the item “capital expenditure” (-€482 million);
≥ the items relating to disposal in “property, plant and equipment” (€58 million), “out-of-scope of entity and
business unit” (€63 million) and “equity investments” (€24 million), indicated separately and included in cash
flows of disposal, are shown net under the item “disposals and partial sales of consolidated equity, business
units” (€145 million);
≥ the items “increase in non-current loans and borrowings” (€1.867 million), “increase (decrease) in current loans
and borrowings” (-€60 million) and “decrease in non-current loans and borrowings” (-€2.042 million), indicated
separately and included in net cash flows from financing activities in the mandatory template, are shown net
under the item “changes in current and non-current loans and borrowings” (-235 million).
All other items are unchanged.
\ 76
GLOSSARY
GLOSSARY
Financial terms
≥ Adjusted EBIT operating result net of special items.
≥ Adjusted EBITDA gross operating margin net of special items.
≥ Beta coefficient that defines the measure of the systematic risk of a financial asset, i.e., the trend of an asset’s
return in line with changes in the reference market. The beta is defined as the ratio between the probability of
the expected return of a specific asset with the expected market return, and the variance of the market return.
≥ CGU Cash Generating Unit refers to, as part of the execution of the impairment test, the smallest identifiable
group of assets that generates cash inflows or outflows, deriving from the continuous use of assets, largely
independent of the cash inflows or outflows from other assets or groups of assets.
≥ EBIT earnings before interest and tax.
≥ EBITDA earnings before interest, taxes, depreciation and amortisation.
≥ Headroom (Impairment Loss) positive (or negative) excess of the recoverable amount of a CGU over the
carrying amount of that unit.
≥ IFRS International Financial Reporting Standards issued by the IASB (International Accounting Standards Board)
and endorsed by the European Commission. They comprise International Financial Reporting Standards (IFRS),
International Accounting Standards (IAS), and the interpretations issued by the International Financial Reporting
Interpretation Committee (IFRIC) and the Standing Interpretations Committee (SIC) adopted by the IASB.
The name International Financial Reporting Standards (IFRS) has been adopted by the IASB for standards issued
after May 2003. Standards issued before May 2003 have maintained the denomination IAS.
≥ KRI (Key Risk Indicator) key risk indicator as a metric to measure the likelihood that the combined possibility of
an event and its consequences will exceed the organisation's risk appetite and have a profoundly negative
impact on the organisation's ability to succeed.
≥ Leverage measures a company’s level of indebtedness, calculated as the ratio between net financial debt and
equity including non-controlling interests.
≥ Long-Only funds active long-only equity managers have strategies characterised by being able to realise a
gain only if the underlying market rises: if the latter falls, they can only limit their losses through a reduction in
exposure and optimal (but not always feasible) stock selection.
≥ OCI (Other Comprehensive Income) items of income and expense (including reclassification adjustments) that
are not recognised in profit or loss as required or permitted by IFRSs.
≥ Receivables “in bonis” total amount of receivables of a commercial nature, not expired or past due by no more
than twelve months, towards clients deemed solvent.
≥ ROACE (Return on Average Capital Employed) calculated as the ratio between net result before non-controlling
interests, plus net financial expense on net financial position the related tax effect and net average capital
employed.
≥ Special items items of income arising from events or transactions that are non-recurring or that are not
considered to be representative of the ordinary course of business.
≥ WACC Weighted Average Cost of Capital calculated as a weighted average of the cost of the group’s debt
capital and the cost of risk capital, defined on the basis of the Capital Asset Pricing Model (CAPM) methodology,
consistent with the specific risk of Saipem’s business, measured by the beta of the Saipem share.
≥ Write-off cancellation or reduction of the value of an asset.
Operational terms
≥ Buckle detection system that utilises electromagnetic waves during pipe laying in order to flag if the pipes laid
on the bottom have collapsed or are deformed in any way.
≥ Bundles, bundles of cables.
≥ Carbon Capture and Storage technology which enables the carbon present in gaseous effluents from
hydrocarbon combustion and treatment plants to be captured and stored over long periods of time in
underground geological formations, thus reducing or eliminating carbon dioxide emissions into the atmosphere.
≥ Central Processing Facility production unit performing the first transformation of crude oil or natural gas.
≥ Cold stacked an inactive plant with skeleton crew and maintenance.
≥ Commissioning series of processes and procedures undertaken in order to start operations of a gas pipeline,
associated plants and equipment.
≥ Concrete coating reinforced concrete coating for subsea pipelines in order to ballast and protect them from
damage and corrosion.
≥ Conventional waters, water depths of up to 500 metres.
≥ Cracking chemical-physical process, typically employed in dedicated refinery plants, whose objective is to
break down the heavy hydrocarbon molecules obtained from primary distillation into lighter fractions.
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SAIPEM ANNUAL REPORT 2023
≥ Debottlenecking removal of obstacles (in rigs/fields) which leads to higher production.
≥ Deck area of a vessel or platform where process plants, equipment, accommodation modules and drilling units
are located.
≥ Decommissioning a process undertaken in order to wind down the operations of a gas pipeline and its
associated plant and equipment. It is performed at the end of the useful life of the plant or vessel following an
incident, for technical or financial reasons, for safety or environmental reasons.
≥ Deep waters water depths of over 500 metres.
≥ Downstream all operations that follow exploration and production operations in the oil sector.
≥ Drillship vessel capable of self-propulsion, designed to carry out drilling operations in deep waters.
≥ Dry-tree wellhead located above the water on a floating production platform.
≥ Dynamically Positioned Heavy Lifting Vessel a vessel equipped with a heavy-lift crane capable of maintaining
a defined position with respect to a certain reference system with high precision by means of thrusters
(propellers), thereby counteracting the force of the wind, sea, currents, etc.
≥ EPC (Engineering, Procurement, Construction) a type of contract typical of the Onshore Engineering
& Construction segment, comprising the provision of engineering services, procurement of materials and
construction. The term “turnkey” means when a plant is provided to customer ready for use, so already
operational.
≥ EPCI (Engineering, Procurement, Construction, Installation) type of contract typical of the Offshore Engineering
& Construction segment, which relates to the realisation of a complex project where the global or main
contractor (usually a construction company or a consortium) provides the engineering services, procurement of
installation and
materials, construction of
commissioning/preparatory activities for the start-up of operations.
≥ Fabrication yard yard at which offshore structures are fabricated.
≥ Facilities auxiliary services, structures and installations required to support the main systems.
≥ Farm out awarding of the contract by the client to another entity for a fixed period of time.
≥ FDS (Field Development Ship) combined vessel, dynamically positioned, multi-purpose crane and subsea
the system and
infrastructure,
transport
to site,
its
pipeline laying capability.
≥ FEED (Front-End Engineering and Design) basic engineering and preliminary activities carried out before
beginning a complex project to evaluate its technical aspects and enable an initial estimate of the investment
required.
≥ Field Engineer on-site engineer
≥ Flare tall metal structure used to burn off gas produced by oil/gas separation in oil fields when it is not possible
to utilise it on site or ship it elsewhere.
≥ FLNG Floating Liquefied Natural Gas unit used for the treatment, liquefaction and storage of gas which is
subsequently transferred onto vessels for transportation to end-use markets.
≥ Floatover type of module
lifting operations.
A specialised vessel transporting the module uses a ballast system to position itself directly above the location
where the module is to be installed. Once the module is in contact with the supports, the vessel disconnects,
and the module is subsequently secured to the support structure.
installation on offshore platforms that does not require
≥ Flowline pipeline used to connect individual wells to a manifold or to gathering and processing facilities.
≥ FPSO vessel Floating Production, Storage and Offloading system comprising a large tanker equipped with a
high-capacity production facility. This system, moored at the bow to maintain a geo-stationary position, is
effectively a temporarily fixed platform that uses risers to connect the subsea wellheads to the on-board
processing, storage and offloading systems.
≥ FPU Floating Production Unit.
≥ FSHR (Free Standing Hybrid Risers) system consisting of a vertical steel pipe (“riser”), which is kept under
tension by a floating module position near the water whose buoyancy, ensures stability. A flexible pipe (jumper)
connects the upper part of the riser to the Floating Production Unit (FPU), while the riser is anchored to the sea
bottom by means of an anchoring system. A rigid pipe (riser base jumper) connects the lower part of the FSHR
to the Pipeline End Terminations (PLETs).
≥ FSRU (Floating Storage Regasification Unit) a floating terminal in which liquefied natural gas is stored and then
re-gasified before being transported by pipeline.
≥ Gas export line pipeline for carrying gas from the subsea reservoirs to the mainland.
≥ Grass Root Refinery a refinery that is built from scratch with a planned capacity.
≥ Hydrocracker installation in which large hydrocarbon molecules are broken down into smaller ones.
≥ Hydrotesting operation involving high pressure (higher than operational pressure) water being pumped into a
pipeline to ensure that it is devoid of defects.
≥ Hydrotreating refining process aimed at improving the characteristics of oil fractions.
≥ Ice Class classification that indicates the additional level of upgrading and other criteria that make a ship
seaworthy to sail in sea ice.
≥ International Oil Companies privately-owned, typically publicly traded, oil companies engaged in various fields
of the upstream and/or downstream oil industry.
≥ Jacket platform underside structure fixed to the seabed using piles.
≥ Jack-up mobile self-lifting unit comprising a hull and retractable legs used for offshore drilling operations.
≥ J-laying method of pipe laying that utilises an almost vertical launch ramp, making the pipe configuration
resemble the letter “J”. This type of pipe laying is suitable for deep waters.
\ 78
GLOSSARY
≥ Lay-up a laid-up vessel whereby its class certification validity is suspended.
≥ Leased FPSO (Floating Production, Storage and Offloading) vessel for which a lease contract is in place
between a client/lessee (Oil Company) and a contractor/lessor, whereby the lessee (client/Oil Company) makes
lease payments to the lessor for use of the vessel for a specific period of time. At the end of the lease term, the
lessee has the option to purchase the FPSO.
≥ LNG (Liquefied Natural Gas), which is obtained at atmospheric pressure by cooling the natural gas down to -160
°C. It is turned to liquid form for ease of transport from its extraction location to where it will then be transformed
and used. A tonne of LNG is equivalent to 1,500 cubic metres of gas.
≥ Local Content policy whereby a group develops local capabilities, transfers its technical and managerial
know-how and enhances the local labour market and businesses through its own business activities.
≥ LPG (Liquefied Petroleum Gas) produced in refineries through the fractionation of crude oil and subsequent
processes, liquid petroleum gas exists in a gaseous state at ambient temperatures and atmospheric pressure
but changes to a liquid state under moderate pressure at ambient temperatures, thus enabling large quantities
to be stored in easy-to-handle metal pressure vessels.
≥ LTI Lost Time Injury. An LTI is any work-related injury that renders the injured person temporarily unable to
perform any regular job or restricted work on any day/shift after the day or shift on which the injury occurred.
≥ Marginal fields oil fields with scarce exploitable resources or that are recording a drop in production, so it is
sought to extend their use via low risk, cost effective technologies.
≥ Midstream sector comprising all those activities relating to the construction and management of the oil
transport infrastructure.
≥ Moon pool an opening in the hull of a drillship for equipment to be lowered through.
≥ Mooring buoy offshore mooring system.
≥ Multipipe subsea gas/liquid gravity separation system using a series of small diameter vertical separators
operating in parallel (for deep water application).
≥ National Oil Companies State-owned/controlled companies engaged
in oil exploration, production,
transportation and conversion.
≥ NDT Non-Destructive Testing. A series of inspections and tests used to detect structural defects conducted
using methods that do not alter the material under inspection.
≥ NDT Phased Array non-destructive testing method that employs ultrasound to detect structural or welding
defects.
≥ Offshore/Onshore the term offshore indicates a portion of open sea, and, by extension, the activities carried
out in this area, while onshore refers to land operations.
≥ Oil Services Industry industrial sector that provides services and/or products to the National or International
Oil Companies engaged in oil exploration, production, transportation and conversion.
≥ Open Book Estimate (OBE) type of contract where the lump-sum fee for the project (usually for turnkey or EPC
projects) is agreed on with the client, with complete transparency, after the contract has been signed and during
an advanced stage of the base engineering, on the basis of an overall project cost estimate.
≥ Pig piece of equipment used to clean, descale and survey a pipeline internally.
≥ Piggyback pipeline small-diameter pipeline, fixed to a larger pipeline, used to transport a product other than
that of the main line.
≥ Pile long and heavy steel pylon driven into the seabed. A system of piles is used as the foundation for anchoring
a fixed platform or other offshore structures.
≥ Pipe-in-pipe subsea pipeline system comprising 2 coaxial pipes, used to transport hot fluids (Oil&Gas).
The internal pipe has the function of transporting the fluid. The space between the two pipes is insulated to
reduce heat exchange with the external environment. The external pipe provides mechanical protection from
the pressure of the water.
≥ Pipe-in-pipe forged end forged end of a coaxial double pipe.
≥ Pipelayer vessel used for subsea pipe laying.
≥ Pipeline pipes and auxiliary equipment used principally for transporting crude oil, oil products and natural gas to
the point of delivery.
≥ Pipe Tracking System (PTS) an electronic system used to ensure the full traceability of the components of
subsea pipes installed on a project.
≥ Piping and Instrumentation Diagram (P&ID) diagram showing all plant equipment, piping and instrumentation
with associated shut-down and safety valves.
≥ Pre Assembled Rack (PAR) pipeline support beams.
≥ Pre-commissioning phase comprising pipeline clean-out and drying.
≥ Pre-drilling template support structure for a drilling platform.
≥ Pre-Salt layer geological formation present on the continental shelves offshore Brazil and Africa.
≥ Pre-Travel Counselling health and medical advice for anyone required to travel, providing them with adequate
information on the specific risks in the country of destination and the relevant preventive measures to be taken.
≥ Pulling minor operations on oil wells due to maintenance or marginal replacements.
≥ QHSE Quality, Health, Safety, Environment.
≥ Rig drilling installation comprising the derrick, the drill deck (which supports the derrick), and ancillary
installations that enable the descent, ascent and rotation of the drill unit, as well as mud extraction.
≥ Riser manifold connecting the subsea wellhead to the surface.
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SAIPEM ANNUAL REPORT 2023
≥ ROV (Remotely Operated Vehicle) unmanned vehicle, piloted and powered via umbilical, used for subsea
surveys and operations.
≥ Shale gas unconventional gas extracted from shale deposits.
≥ Shale oil non-conventional oil obtained from bituminous shale.
≥ Shallow water sees Conventional waters.
≥ Sick Building Syndrome a cluster of symptoms in people working in a specific workplace. The exact causes of
the syndrome are not known but the presence of volatile organic compounds, formaldehyde, moulds and dust
mites are thought to be contributing factors.
≥ S-laying method of pipe laying that utilises the elastic properties of steel, making the pipe configuration
resemble the letter “S”, with one end on the seabed and the other under tension on-board the ship.
This configuration is suited to medium to shallow-water pipe laying.
≥ Slug catcher equipment for the purification of gas.
≥ Smart stacking when rig is left idle to reduce operational costs and a preservation programme is put in place.
≥ Sour water, water containing dissolved pollutants.
≥ Spar floating production system, anchored to the seabed by means of a semi-rigid mooring system, comprising
a vertical cylindrical hull supporting the platform structure.
≥ Spare capacity relationship between crude oil production and production capacity, i. e. quantity of oil which is
not currently needed to meet demand.
≥ Spool connection between a subsea pipeline and the platform riser, or between the ends of two pipelines.
≥ Spoolsep unit used to separate water from oil as part of the crude oil treatment process.
≥ Stripping process through which volatile compounds are removed from the liquid solution or the solid mass in
which they have been diluted.
≥ Subsea processing operations performed in offshore oil and/or natural gas field developments, especially
relating to the equipment and technology employed for the extraction, treatment and transportation of oil or gas
below sea level.
≥ Subsea tiebacks lines connecting new oil fields with existing fixed or floating facilities.
≥ Subsea treatment a new process for the development of marginal fields. The system involves the injection and
treatment of seawater directly on the seabed.
≥ SURF (Subsea, Umbilical, Risers, Flowlines) facilities, pipelines and equipment connecting the well or subsea
system to a floating unit.
≥ Tandem Offloading method used for the transfer of liquids (oil or LNG) between two offshore units in a line via
aerial, floating or subsea lines (unlike side-by-side offloading, where the two units are positioned next to each
other).
≥ Tar sands mixture of clay, sand, mud, water and bitumen. The tar is made up primarily of high molecular weight
hydrocarbons and can be transformed into various petroleum products.
≥ Template rigid and modular subsea structure where the oilfield well-heads are located.
≥ Tender Assisted Drilling unit (TAD) an offshore platform complete with drilling tower, connected to a drilling
support tender vessel housing all necessary ancillary infrastructures.
≥ Tendons pulling cables used on tension leg platforms to ensure platform stability during operations.
≥ Tension Leg Platform (TLP) fixed-type floating platform held in position by a system of tendons and anchored
to ballast caissons located on the seabed. These platforms are used in ultra-deep waters.
≥ Termination for Convenience the right to unilaterally terminate the contract at any time provided they pay the
agreed termination fee to do so (cd. “termination fee”).
≥ Tie-in connection between a production line and a subsea wellhead or simply a connection between two
pipeline sections.
≥ Tight oil, oil “trapped” in liquid form deep below the earth’s surface in low permeability rock formations, which it
is difficult to extract using conventional methods.
≥ Topside portion of a platform above the jacket.
≥ Train series of units that achieve a complex refining, petrochemical, liquefaction or natural gas regasification
process. A plant can be made up of one or more trains of equal capacity operating in parallel.
≥ Trenching burying of offshore or onshore pipelines.
≥ Trunkline oil pipeline connecting large storage facilities to the production facilities, refineries and/or onshore
terminals.
≥ Umbilical flexible connecting sheath, containing flexible pipes and cables.
≥ Upstream relating to exploration and production operations.
≥ Vacuum second stage of oil distillation.
≥ Warm Stacking idle plant, but one ready to resume operations in the event that a new contract is acquired.
Personnel are at full strength and ordinary maintenance is normally carried out.
≥ Wellhead fixed structure separating the well from the outside environment.
≥ WHB (Wellhead Barge) vessel equipped for drilling, workover and production (partial or total) operations,
connected to process and/or storage plants.
≥ Workover major maintenance operation on a well or replacement of subsea equipment used to transport the oil
to the surface.
\ 80
GLOSSARY
Other terms
≥ CCUS (Carbon Capture, Utilization and Storage) covers all the solutions making it possible to reduce or fully
eliminate from the atmosphere greenhouse gas emissions of polluting treatment plants.
≥ ESG (Environmental Social Governance) refers to the consideration of the operations of a company in relation of
its interactions with the environment and territory, community and company management.
≥ ESMA European Securities and Markets Authority.
≥ OECD (Organisation for Economic Co-operation and Development) composed of thirty-five developed
countries having in common a democratic system of government and a free market economy.
≥ OPEC Organization of the Petroleum Exporting Countries.
\ 81
GRI 2-3
GRI 2-5
GRI 2-12
GRI 2-13
GRI 2-14
SAIPEM ANNUAL REPORT 2023
Consolidated
Non-Financial Statement
in accordance with Italian Legislative Decree No. 254 of December 30, 2016
This document constitutes the “Consolidated Non-Financial Statement” (hereinafter NFS) of the Saipem
Group (hereinafter Group, Saipem, Company) as of December 31, 2023.
The NFS is the report drafted by Saipem to meet the requirements laid down in Articles 3 and 4 of Italian
Legislative Decree No. 254/2016, the Italian transposition of European Directive 2014/95/EU. As laid down in
Article 5 of Italian Legislative Decree No. 254/2016, the NFS is a separate report within the “Directors’
Report”, marked by a specific wording to ensure it is clearly identified.
This document reports on the management of non-financial aspects, the Group's policies, its activities, risks
and related management methods, the main results and impacts generated in the year in terms of indicators
and trend analysis regarding issues indicated by the regulation, namely environmental, social, personnel-
related, human rights issues, as well as the fight against active and passive corruption. The document also
integrates Saipem’s commitment to concretely implementing the relative European Commission guidelines,
in order to provide stakeholders with increasingly useful, complete and transparent non-financial information
to understand the business of the Company.
Methodology, principles and reporting criteria
The NFS is drawn up in accordance with Global Reporting Initiative (GRI) Standards, used as reporting
standards in accordance with the Legislative Decree No. 254/2016 (see the “GRI Content Index” section).
The sector standard GRI 11 “Oil and gas sector 2021” is also applied as main business activity, also taken
into account for the determination of material themes and information reported.
In order to guarantee transparency in relation to the Company performance and facilitate the comparability
of the data and information provided to stakeholders, the document also considered the indications
provided by the Sustainability Accounting Standards Board (SASB) for the identification and publication of
the information deemed most significant for creating long-term value for the sector. Considering the
diversified operational activities of the Group, the document refers to SASB standards in two different
sectors: 1) Extractives & Minerals processing sector - Oil&Gas - Services; 2) Infrastructure sector -
Engineering & Construction services.
Saipem renewed its commitment to disclosure for the fifth consecutive year, following recommendations by
the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board, integrating
them in the NFS document.
The information given in the NFS refers to the topics provided for in the decree, to material topics identified
and the relative indicators, which reflect the relevant economic, environmental and social impacts of the
organisation or which could substantially influence the assessments and decisions of the Group’s
stakeholders. The materiality analysis, updated annually with the direct involvement of the Company’s
stakeholder representatives, has led to the definition of the contents to be reported. In addition to the
material topics, in this document Saipem reports on the additional matters addressed in the Sustainability
Plan (Cybersecurity) and indicated by the GRI 11 “Oil and gas sector 2021” Sector Standard (Public Policy
and Responsible Taxation Practices).
The NFS refers to other sections of the “Directors’ Report” and the “Corporate Governance and
Shareholding Structure Report” with regard to the content dealt with in detail therein and in turn it contains
information that fulfils the obligations referred to in the first and second paragraphs of Article 2428 of the
Italian Civil Code, limited to the analysis of information on staff and the environment. Moreover, the “Report
on the Remuneration Policy and Compensation Paid” provides further details on the ESG objectives included
in the long-term variable remuneration of Directors, Statutory Auditors and Managers with Group Strategic
Responsibilities.
Information on the Company, activities and countries of operation are included in the section “Company
profile and key operations” of the present document and in the “Directors’ Report”.
The NFS is drafted by the Sustainability Reporting function of Saipem SpA, in cooperation with all Saipem
SpA functions, companies, operational projects and sites of the Group in charge of the various topics
discussed.
Saipem's sustainability reporting system is based on specific procedures that define roles, responsibilities,
tasks, information flows and validation process. In addition, the Company avails of specific IT systems to
make the process as efficient, automatic, robust and integrated as possible.
\ 82
CONSOLIDATED NON-FINANCIAL STATEMENT
The NFS was approved by the Board of Directors of Saipem SpA on March 12, 2024 and published on the
website within the timeframe provided by the legislation.
The preparation of the document reports on the wider context of sustainability in which the Company
operates, in terms of value chain, of future scenarios, and of sustainable development targets at a global
level. The document aims at providing Company’s stakeholders with complete information, balanced against
expectations, timely and comparable over time and within the sector, as well as accurate and reliable; this is
possible through dedicated information collection and management tools and a specific internal control
system.
The method of representation of qualitative and quantitative information was chosen in order to provide a
document immediately clear and understandable. With reference to the data of 2021 and 2022 reported in
this document, there are no changes compared to what was previously published. The section entitled “GRI
content Index” contains details of the performance indicators reported in accordance with the adopted
guidelines.
With regard to the security of data and information managed by the Company, not exclusively for the
purposes of this document, Saipem has adopted security measures to ensure that all technical applications
and infrastructure are completely integrated with the security systems for protection against cyber security
threats, which also provide additional guarantees for the reporting systems.
The performance indicators were collected yearly and the reporting is carried out over the three years
2021-2023, unless otherwise specified. The information and quantitative data collection process has been
organised in such a way as to guarantee comparability over the data and analysis of the trends over a three-
year period, in order to enable correct interpretation of the information and a full overview for all the
stakeholders interested in the evolution of Saipem’s performance. Any changes in the collection methods
from the previous year are suitably indicated in the document.
Saipem developed an articulate reporting and disclosure system to respond to stakeholders from different
categories and geographical areas. Saipem has also voluntarily published the annual Sustainability Report
since 2006. The document is available on the institutional website, along with other issue-specific
documents, which we refer the reader to where necessary. Moreover, since 2016 the Company has
published a Statement which describes the measures adopted to ensure, as required by the United Kingdom
“Modern Slavery Act 2015 - Section 54”, that there are no forms of modern slavery, forced labour or human
trafficking within the Company or in its supply chain. Voluntarily, the Statement considers the activities of the
whole Saipem Group and not only the companies operating in the United Kingdom.
The NFS is subject to specific conformity approval by an independent auditor, unique with respect to the
review of the Financial Report, which in a specific and separate report expresses its certification of the
conformity of the information provided pursuant to Article 3, section 10 of Legislative Decree No. 254/2016
and of the “Global Reporting Initiative Sustainability Reporting Standards” (“GRI Standards”), identified as
reporting standards. The limited assurance did not apply the directives provided by the SASB and
information required by EU Regulation 2020/852 on EU Taxonomy as reported in section “Sustainable
activities according to the European Taxonomy”, "Saipem's Net Zero programme" and in Annex I. The revision
is carried out according to the procedures indicated in the section “Independent Auditors’ Report” of this
document. The Shareholders’ Meeting of May 3, 2018, resolved to appoint KPMG SpA as the independent
auditors from 2019 to 2027.
This limited review does not extend to information relating to "financial materiality”
Materiality analysis and content definition
The NFS reports on the areas laid down in the Legislative Decree No. 254/2016 deemed to be significant and
relevant according to a process that considers the specific activities of Saipem and the interests of all
categories of Company stakeholders, as described below. As established by the GRI Standards and in
accordance with Saipem procedures, the Company implements a consultation process and analysis on
material topics every year. This is aimed at identifying and giving priority to the sustainability aspects of its
business that could substantially influence the assessments and decisions of its stakeholders which are
considered most significant for the Company itself. The analysis is carried out with the direct involvement of
representatives from all the main stakeholder categories (including employees), the Company’s management
and the Board of Directors.
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SAIPEM ANNUAL REPORT 2023
The determination of impact materiality was carried out in accordance with the provisions of the 2021 GRI
Standards. On a voluntary basis, the Group carried out a preliminary determination of financial materiality, in
advance of the application that will take place in 2024 of the "double materiality" envisaged by the CSRD and
illustrated in this paragraph:
≥ the impact perspective evaluates the relevance of sustainability issues in terms of impacts on the
economy, the environment and people, including those on human rights, connected to Company
operations and to the upstream and downstream value chain. Regarding actual impacts, the relevance is
assessed based on the severity of the impact, while for potential negative impacts the severity and
likelihood of the impact are assessed. As regards potential positive impacts, magnitude and likelihood are
assessed;
≥ the financial perspective evaluates the sustainability aspects that generate risks or opportunities that
have or can reasonably be expected to have a significant influence on the development of the Company,
on its financial position, economic result, on financial flows, on access to financing or the cost of capital in
the short-, medium- or long-term.
The analysis took into account Saipem’s business, the evolution of its business model and strategy, and the
operational and sustainability context in order to update the list of ESG topics relating to the Company’s
business. Based on assessments of standards and regulatory developments, both mandatory and optional,
on reference sector’s benchmarks and on emerging topics on a global level, the Company involved a wide
selection of stakeholders in the prioritisation of a selection of topics on the basis of their impact, as
assessed by them.
Also in 2023, the materiality analysis integrated, through artificial intelligence, insights from:
≥ sustainability and financial reports of 18 clients, 28 competitors and 12 utilities;
≥ analysis of 3,783 mandatory initiatives and 1,802 voluntary initiatives;
≥ more than 3,800 articles.
Subsequently, some categories of stakeholders were involved.
Materiality view
Financial materiality
Impact materiality
TOTAL RESPONDENTS
Type of stakeholder
Board of Directors
Senior Managers
Financial community
Clients
Employees
Vendors
Local communities representatives
Business associations
No. of respondents
7
275
27
20
978
22
5
4
1,342
A detailed representation of the main impacts determined by Saipem’s operations and their significance can
be found in table “Material topics and impacts”. The present document details the management of the
aforementioned impacts through a representation of management systems and performances reached in
the Company’s operations.
Finally, the materiality analysis is based on a calculation model that gives scores to the different components
of the survey and allows to draw up a list of topics with a gradient score. Topics identified as "material" for the
year include those with a higher rating. The new material topics that emerged are biodiversity, waste
recovery & reduction, the transition to a circular economy, non-hazardous waste management and employee
wellbeing. Compared to the material topics identified in 2022, net of the update on the terminology of the
topics, the management of data privacy and Cybersecurity were not found to be material in 2023 (topic
however included in the NFS as it is present in the Sustainability Plan).
The final results were shared preliminarily with the Sustainability, Scenarios and Governance Committee and
with the Control and Risk Committee, and validated during the meeting of December 18, 2023 by the Board
of Directors, whose members participated in the materiality analysis.
The topics that emerged from the materiality analysis also become the basis for the update of the Saipem
Sustainability Plan, which is taken into consideration for the definition of the four-year strategic plan and of
the Company targets and provide useful elements for the integrated risk management process.
\ 84
The following table represents the material topics that arose during the 2023 consultation and were
integrated with the relating commitments of the Company, based on Vision, Mission, corporate Policies and
Management System Guidelines.
CONSOLIDATED NON-FINANCIAL STATEMENT
Material topics
First level
Climate change GHG emissions; energy; air
Material topics
Second level
emissions; transition to
renewable energy; climate
change risk management;
alternative fuels
Biodiversity
Biodiversity
Water
Water
Accidents and
spills
Spills; accidents in operations
and assets
Waste
Non-hazardous waste
management; waste recovery
& reduction; transition to a
circular economy
Community
development
Community development
Human rights Human rights; security
practices
Labour rights
Labour rights; supply chain
management
Safe workplace Occupational health and safety;
asset integrity
Health
Public health
Diversity and
inclusion
Sustainable
employment
Fair and inclusive work
environment
Employee development;
employee wellbeing, talent
acquisition & retention
Business ethics Business ethics; responsible
operations; fair competition
Commitment
Saipem Net Zero:
≥ Net Zero for Scope 1, Scope 2 and Scope 3 by 2050;
≥ 50% reduction in Scope 1 and 2 emissions by 2035 (based on 2018 GHG
emissions);
≥ Carbon neutrality for Scope 2 emissions by 2025.
Saipem is aware that biodiversity and ecosystems are the basis of human
well-being in the present and future, and that their rapid decline threatens both
nature and people.
The Company supports the principles of “No net loss of biodiversity”, “No net
deforestation” and, where applicable, “Net improvement” and “Net gain” approaches,
involving clients, vendors and any other potential partners or actors in the sector,
aiming in general to achieve a net positive impact on biodiversity in the company's
operational sites and projects, including by enhancing nature and communities in
the areas in which it operates.
Fair and knowledgeable management of water resources focused on maximising the
reuse of water where possible and reducing to a minimum water consumption in all
operating sites and projects, especially when these are
in areas
characterised by a particular scarcity of water.
Reducing and mitigating the environmental risk associated to oil and chemical spills,
guaranteeing the adoption of appropriate prevention and recovery measures.
located
Saipem considers the circular economy a relevant and priority topic within its
strategy and is committed to minimising the generation of waste, maximising its
reuse and recycling and entrusting its transport and disposal to vendors in line with
our environmental standards. The Company promotes and implements measures,
also through the research and development of new materials, which allow
hazardous materials to be replaced with non-dangerous alternatives.
Working responsibly and cooperating with stakeholders to create shared value,
while constantly minimising the potential negative impacts the operations and
presence of the Company could produce.
Respecting international best practices on the subject of human and labour rights
and monitoring their compliance. Cooperating with vendors to contribute to the
development of their own business sustainability and to reduce/minimise
sustainability risks within the supply chain.
Building and developing an integrated security model fully embedded in business
processes and aligned with company values and applicable legislation in order to:
≥ provide a safe and secure workplace and protect all employees, subcontractors
and third parties;
≥ protect all Company information and know-how;
≥ protect the integrity and reputation of management and stakeholders.
Respecting international best practices on the subject of human and labour rights
and monitoring their compliance. Cooperating with vendors to contribute to the
development of their own business sustainability and to reduce/minimise
sustainability risks within the supply chain.
Implementing measures to prevent injuries, negative health impacts and damage to
assets.
Designing and implementing initiatives to provide the knowledge and skills needed to
enable everyone to do their job safely.
Continuously improving the way the Company works, the efficiency of procedures
and our management system, in line with the highest international standards and
through digital transformation and innovation of processes, to be able to meet
future challenges.
Protecting the health of workers and guaranteeing the continuity of health services
and, more generally, the continuity of the Company's operations in the various areas
of the world, with particular reference to the health management of the pandemic
with the aim of reducing its impact.
Cooperating with vendors to contribute to the development of their own business
sustainability and to reduce/minimise sustainability risks within the supply chain.
Maximum attention to identifying and assessing risks relating to people's health, in
order to adopt quick and effective mitigation measures.
Protecting the health of staff and all people influenced by the Company’s activities,
taking into account both activities in execution and planned, and specific criticalities
or vulnerabilities in operational scenarios.
Promoting the strengthening of an inclusive company culture.
Maintaining an alignment between employee skills and business requirements,
guaranteeing its people’s well-being, and improving the Company’s image in order to
retain and attract talented people.
Operating in conformity with the best ethical business practices.
\ 85
SAIPEM ANNUAL REPORT 2023
The following table “Material topics and impacts” lists and describes the main impacts linked to the material
topics, including their assessment.
Material topics and impacts
Material topics
First level
Material topics
Second level
Climate change GHG emissions;
energy; air emissions;
transition to
renewable energy;
climate change risk
management;
alternative fuels
Biodiversity
Biodiversity
Water
Water
Accidents and
spills
Spills; Accidents in
operations and assets
Waste
Community
development
Non-hazardous waste
management; waste
recovery & reduction;
transition to a circular
economy
Support and
development of
communities
Human rights
Human rights;
Security practices
Labour rights Labour rights; supply
chain management
Safe workplace
Climate change
Occupational health
and safety
GHG emissions;
energy; air emissions;
transition to
renewable energy;
climate change risk
management;
alternative fuels
\ 86
Main impacts
Nature Time horizon Magnitude
Acceleration of the transition to other efficient
technologies aimed at reducing energy consumption
and promoting renewable sources
Increase in emissions (CO2, climate-changing,
pollutants) due to operational activities or along the
value chain
Improvement of cultural and environmental
awareness (thanks to initiatives meant for civil society
and participation in research, studies and
partnerships)
Improvement of cultural and environmental
awareness (thanks to initiatives meant for civil society
and participation in research, studies and
partnerships)
Impacts on biodiversity due to operational
activities/projects
Promotion of wastewater treatment and reuse
Decay of ecosystem services due to the withdrawal of
natural water resources (e.g. in water-stressed
areas)
Contribution to the improvement of technologies, skills
and company preparation with a view to preventing
spills
Adverse impacts on human health or the environment
due to leaks, spills and discharges of substances
Negative impacts on human health or the environment
due to waste produced by operational
activities/projects if not disposed of responsibly
Increased well-being and local development for host
communities thanks to the improvement of local
infrastructure and the increase in tax revenue in the
countries of operation
Increased cultural awareness on sustainability issues
in the local contexts in which Saipem operates
Development of the local market (and local vendors)
following the acquisition of projects in remote areas
Impacts on the traditional socio-economic/cultural
context due to Saipem's presence and activities in the
area
Increase in awareness and knowledge of human and
labour rights, including in countries where dialogue
with workers is not guaranteed
Violation of human and workers' rights following
non-compliance with decent working conditions along
the supply chain and/or value chain and following
security practices that do not comply with the law
Violation of human and workers' rights following
non-compliance with decent working conditions along
the supply chain and/or value chain and following
security practices that do not comply with the law
Contribution to the development of skills and
opportunities in local contexts
Spreading ESG awareness and culture
Increase in awareness and knowledge of human and
labour rights, including in countries where dialogue
with workers is not guaranteed
Contribution to technological improvement and
innovation of HSE practices
Increase in the health and safety culture and living
conditions of local communities
Impacts on people's health and the environment due to
unexpected damage to assets and/or exposure to risk
factors associated with the nature and context of the
activities carried out
Acceleration of the transition to other efficient
technologies aimed at reducing energy consumption
and promoting renewable sources
+
-
+
Short term
Medium
Short term
Medium
Medium term
Medium
+
Medium term
Medium
-
+
-
+
-
-
Short term
High
Short term
Short term
Medium
Medium
Short term
Medium
Short term
Short term
Low
High
+
Medium term
Medium
+
+
-
+
-
-
+
+
+
+
+
-
-
Medium term
Medium
Short term
Medium
Short term
High
Short term
Medium
Short term
Low
Short term
Low
Medium term
Medium
Short term
Short term
Medium
Medium
Medium term
Medium
Medium term
Medium
Short term
Low
Short term
Low
CONSOLIDATED NON-FINANCIAL STATEMENT
Material topics
First level
Material topics
Second level
Health
Public health
Diversity and
inclusion
Fair and inclusive
work environment
Sustainable
employment
Employee
development; talent
acquisition & retention;
employee wellbeing
Business
ethics
Business ethics;
responsible
operations; fair
competition
Main impacts
Increase in the health and safety culture and the living
conditions of local communities in the territories in
which Saipem operates, thanks to local partnerships
and collaborations
Contribution to technological improvement and
innovation of HSE practices thanks to relationships
with various academic institutions and participation in
sector associations
Impacts on people's health and the environment due to
unexpected damage to assets and/or exposure to risk
factors associated with the nature and context of the
activities carried out
Increase in diversity, equity and inclusion by promoting
and strengthening an inclusive culture
Non-balance of the male/female workforce at local
level due to less attractiveness for women because of
the nature of Saipem activities
Increase in worker well-being through the welfare
tools offered
Increase in diversity, equity and inclusion by promoting
and strengthening an inclusive culture
Contribution to training, increase in hard and soft
skills
Non-balance of the male/female workforce at local
level due to lower attractiveness for women because
of the nature of Saipem activities
Reduction of illicit practices in the areas of operation
thanks to enforcement actions
Dissemination of best practices/procedures in the
legal field also oriented towards sustainability issues
Nature Time horizon Magnitude
+
Medium term
Medium
+
Medium term
Medium
-
+
-
+
+
+
-
+
+
Short term
Low
Medium term
High
Long-term
Low
Short term
Medium term
Short term
Long-term
High
High
High
Low
Medium term
Medium
Medium term
Medium
The quantification model is in line with the metrics of the Integrated Risk Management process.
The extent of an actual positive impact depends on the scale and scope of the impact itself, while the
extent of a potential positive impact depends both on the scale and scope of the impact itself and on its
likelihood.
The extent of an actual negative impact depends on the severity of the impact itself (scale, scope and
irremediable character), while the extent of a potential negative impact depends on both its severity and its
likelihood. All negative impacts that can be linked to human rights have had a further multiplication factor in
order to make severity prevail over likelihood as indicated by the GRI. The magnitude considers the mitigation
actions implemented by the Company which are described in the various paragraphs of the NFS.
Below, in the “Material topics and risks” table, they are associated to material topics and related potential
financial effects.
Material topics and risks
Material topics
First level
Material topics
Second level
Climate change GHG emissions;
energy; air
emissions;
transition to
renewable
energy; climate
change risk
management;
alternative fuels
Main risks
Strategic - Competitive positioning
Strategic - Emerging ESG trends
(energy transition)
Strategic - Market trends
Strategic - Technological innovation
and intellectual property
Asset Management - Availability of
suitable assets and disposal (fleet and
sites)
Country - Natural events/severe
environment
HSE - Operational, asset and
transport incidents
HSE - Environmental incidents
(including pollution)
Partnership - Other 3rd party and
stakeholder relations
Potential financial impacts
Evolution or change in the competitive context, increase in
market competitiveness, adequate competitive positioning
of Saipem (in terms of energy transition/renewable
projects and use of alternative fuels; long-term value
creation and support for the local economy).
Evolution of regulations regarding climate change and
energy transition (e.g. greenhouse gas emissions and
reduction, energy use and efficiency, use of alternative
fuels, etc.).
Possible fluctuation in demand and clients’ orders (energy
transition/renewable/infrastructure projects, use of
alternative fuels and energy efficiency).
Evolution of the technological scenario and launch of
innovative technologies on the market.
Management and protection of the intellectual properties
of the Company or third parties in new technologies
application (in terms of energy transition technologies,
use of alternative/new fuels, support tools for the
mitigation of air emissions).
Availability of fleets, yards, vessels, vehicles, services or
infrastructure for project execution.
Effects on activities, resources or people due to
natural/meteorological events/harsh environments.
Operations and asset integrity.
\ 87
Main risks
Strategic - Emerging ESG trends
(energy transition)
Country - Natural events/difficult
environment
Strategic - Emerging ESG trends
(energy transition)
HSE - Health and safety
HSE - Environmental incidents
(including pollution)
HSE - Logistics activities and incidents
Country - Environmental
restrictions/difficult environment
Strategic - Emerging ESG trends
(energy transition)
Potential financial impacts
Evolution of regulations relating to other environmental
issues (for example, biodiversity, pollution, etc.).
Effects on activities, resources or people due to
natural/meteorological events/harsh environments.
Evolution of regulations on environmental issues.
Occupational health and safety management system and
potential impacts on the health of workers and people
living near Saipem industrial sites.
Effects on biodiversity, forests and water resources due
to Saipem's activities, correct management of natural
resources and waste.
Ability to meet environmental/emissions targets.
Asset functioning and integrity.
Effects on activities, resources or people due to adverse
natural/meteorological events/environmental events.
Evolution of regulations on environmental issues.
Contribution to the local economy, impact on long-term
value creation and community relations.
Relations with stakeholders and partners.
Effects on biodiversity, forests and water resources due
to Saipem's activities; correct management of natural
resources and waste.
Ability to meet environmental/emissions targets.
Ethical behaviour or fraudulent activities committed by
employees, vendors and third parties as part of Saipem's
activities.
Global and local security: changes in the geopolitical
scenario; events that impact political, social and economic
stability.
Align the skills portfolio with the business and its new
long-term positioning (including diversity objectives).
Ability to attract talented profiles from the labour market,
to retain key skills internally and to develop and manage
adequate succession plans.
Labour litigations.
Occupational health and safety management system and
potential impacts on the health of workers and people
living near Saipem industrial sites.
Align the skills portfolio with the business and its new
long-term positioning (including diversity objectives).
Evolution of the technological scenario and launch of
innovative technologies on the market.
Management and protection of the intellectual properties
of the Company or third parties in new technologies
application (in terms of energy transition technologies,
use of alternative/new fuels, support tools for the
mitigation of air emissions).
Occupational health and safety management system and
potential impacts on the health of workers and people
living near Saipem industrial sites.
Start of pandemics or epidemics and new pathologies in
the country in which Saipem operates.
Ability to attract talented profiles from the labour market,
to retain key skills internally and to develop and manage
adequate succession plans.
Evolution of social regulations (human rights, diversity and
inclusion, etc.).
Align the skills portfolio with the business and its new
long-term positioning (including diversity objectives).
Ability to attract talented profiles from the labour market,
to retain key skills internally and to develop and manage
adequate succession plans.
SAIPEM ANNUAL REPORT 2023
Material topics
First level
Material topics
Second level
Biodiversity
Biodiversity
Water
Water
Accidents and
spills
Spills; Accidents
in operations
and assets
Waste
Community
development
Non-hazardous
waste
management;
waste recovery
& reduction;
transition to a
circular
economy
Support and
development of
communities
Human rights
Human rights;
Security
practices
Country - Local content/limits
Partnership - Other 3rd party and
stakeholder relations
HSE - Environmental incidents
(including pollution)
Compliance - Integrity
Country - Social and political
instability/geopolitical context
Strategic - Emerging ESG trends
(Social)
Labour rights
Labour rights;
supply chain
management
People - Turnover and availability of
resources (and know-how)
Litigations - Other litigations (e.g.
labour)
Safe workplace Occupational
Health and
Safety
HSE - Health and safety
People - Know-how and skills
Strategic - Technological innovation
and intellectual property
Health
Public health
HSE - Health and safety
Other external contexts -
Biological/Pandemic
Diversity and
inclusion
Fair and
inclusive work
environment
People - Turnover and availability of
resources (and know-how)
Strategic - Emerging ESG trends
People - Turnover and availability of
resources (and know-how)
Sustainable
employment
Employee
development;
talent
acquisition
& retention;
employee
wellbeing
\ 88
CONSOLIDATED NON-FINANCIAL STATEMENT
Main risks
Potential financial impactsi
Compliance - Integrity
Compliance - Corruption
Partnership - Other 3rd party and
stakeholder relations
Supply Chain -
Vendors/subcontractors performance
Supply chain - Vendor/subcontractor
performance
Ethical behaviour or fraudulent activities committed by
employees, vendors and third parties as part of Saipem's
activities.
Relations with stakeholders and partners.
ESG performance of vendors/subcontractors and
compliance with contractual requirements.
Material topics
First level
Material topics
Second level
Business ethics Business ethics;
responsible
operations;
unfair
competition
Reporting boundary
As prescribed by Italian Legislative Decree No. 254/2016, the NFS contains the information and performance
indicators for Saipem SpA and the fully consolidated subsidiaries as described in section “Structure of the
Saipem Group”. These indicators are marked by the wording “Full consolidated”.
To ensure the understanding of the Company’s activities, progress, results and the impact it has produced,
i.e. to provide the information necessary to ensure the understanding of the activities of the whole Saipem
Group, and also to guarantee the comparability of its performance in relation to the information published in
other corporate documents, in addition to the companies consolidated boundary (referred to as the
“consolidated boundary” in this document), the indicators are also given with a broader reporting boundary,
including subsidiaries that are not fully consolidated and those in joint operation, joint control or affiliated
companies in which Saipem has control over the operations. These indicators are marked by the wording
“Group Total”.
Unless otherwise specified, the "Group Total" data corresponds to the "Fully Consolidated" perimeter, as
some issues are managed centrally and all data falls within the "Fully Consolidated" perimeter.
Any changes in the reporting boundary from the previous year are described in the “Changes in
consolidation scope” section of the “Annual Report”.
As regards the safety data, these are accounted for separately for Saipem and its subcontractors. On the
other hand, environmental indicators also include the data for subcontractors operating on Saipem and
partner sites in activities where Saipem is responsible for HSE management.
Please also note that companies that do not have significant business activities are excluded from relations
with local stakeholders.
The reporting process for the indicators reported in the present document is based on a capillary collection
per single site/operational project, with peculiarities given by the management model of the topics to which
they refer, in order to allow consistent and complete monitoring and control by the responsible functions of
the different areas and at all hierarchical and geographical levels. Those indicators that by characteristics
inherent to their management model have an exclusively centralised origin of data, are here excluded.
For a description of the risks identified by the Company in relation to the five areas for discussion laid down
in Legislative Decree No. 254/2016 and the topics identified as material for the Company, in addition to what
explained in the specific sections of the NFS, reference is also made to the “Risk management” section of
the “Directors’ Report” for a more complete description integrated into Saipem's overall Integrated Risk
Management system and that of its subsidiaries.
For policy description, reference for each topic is included in the specific section, where the management
system is described.
\ 89
SAIPEM ANNUAL REPORT 2023
Correspondence table
Areas laid down in
D.Lgs. No.
254/2016
Material
topics
First level
Material topics
Second level
GRI Sector
Standards
Company
management and
organisation model
Article 3.1,
subsection a
Policies
Article 3.1,
subsection b
Environmental
topics:
- environmental
impacts
Article 3.2,
subsection c
- energy and
emissions
Article 3.2,
subsection a;
Article 3.2,
subsection b
- water resources
Article 3.2,
subsection a
Human resources
management
Article 3.2,
subsection d
Impacts on health
and safety
Article 3.2,
subsection c
Climate
change
GHG emissions; energy;
air emissions; transition
to renewable energy;
climate change risk
management; alternative
fuels
Biodiversity Biodiversity
Water
Water
Accidents
and spills
Spills; Accidents in
operations and assets
Waste
Labour
rights
Non-hazardous waste
management; waste
recovery & reduction;
transition to a circular
economy
Labour rights; supply
chain management
GRI Standards
GRI 2: General
Disclosures 2021
GRI 201: Economic
Performance 2016
GRI 204: Procurement
Practices 2016
Topic 11.1 GHG
Emissions
Topic 11.2 Climate
adaptation, resilience,
and transition
Topic 11.3 Air
emissions
Topic 11.4 Biodiversity GRI 304: Biodiversity
GRI 201: Economic
Performance 2016
GRI 302: Energy 2016
GRI 305: Emissions 2016
GRI 416: Customer
Health and Safety 2016
2016
GRI 303: Water and
Effluents 2018
GRI 306: Effluents and
Waste 2016
Topic 11.6 Water and
effluents
Topic 11.8 Asset
integrity and critical
incident management
Topic 11.5 Waste
Topic 11.10
Employment practices
Topic 11.13 Freedom
of association and
collective bargaining
Safe
workplace
Occupational health and
safety; asset integrity
Health
Public health
Diversity and
inclusion
Fair and inclusive work
environment
Topic 11.9
Occupational health
and safety
Topic 11.3 Air
emissions
Topic 11.9
Occupational health
and safety
Topic 11.11 Non-
discrimination and
equal opportunity
\ 90
NFS sections
Company management and
organisation model
Company profile and key operations
Governance of business
sustainability
Economic value generated and
distributed
Supply chain management
GHG emissions
Preserving the air quality
Biodiversity
Water resource management
Spill prevention and response
GRI 306: Waste 2020
Waste management
Human resource policies and
management
Equal treatment and enhancement of
differences
Safeguarding the health and safety
of people
Safeguarding the health and safety
of people
Local content (in Country Value)
Equal treatment and enhancement of
differences
Human resource policies and
management
Safeguarding the health and safety
of people
Governance of business
sustainability
Reporting suspected violations
GRI 401: Employment
2016
GRI 402:
Labour/Management
Relations 2016
GRI 404: Training and
Education 2016
GRI 405: Diversity and
Equal Opportunity 2016
GRI 406: Non
discrimination 2016
GRI 413: Local
Communities 2016
GRI 414: Supplier social
assessment 2016
GRI 416: Customer health
and safety 2016
GRI 305: Emissions 2016
GRI 403: Occupational
Health and Safety 2018
GRI 416: Customer health
and safety 2016
GRI 403: Occupational
Health and Safety 2018
GRI 202: Market
Presence 2016
GRI 401: Employment
2016
GRI 402:
Labour/Management
Relations 2016 (not
included in the GRI)
GRI 404: Training and
Education 2016
GRI 405: Diversity and
Equal Opportunity 2016
GRI 406: Non
discrimination 2016
Material
topics
First level
Sustainable
employment
Material topics
Second level
Employee development;
employee wellbeing; talent
acquisition & retention
GRI Sector
Standards
Topic 11.10
Employment practices
Topic 11.9
Occupational health
and safety
Areas laid down in
D.Lgs. No.
254/2016
Human resources
management
Article 3.2,
subsection d
Impacts on health
and safety
Article 3.2,
subsection c
Social aspects
Article 3.2,
subsection d
Community
development
Support and development
of communities
Respect for human
rights
Article 3.2,
subsection e
Human
rights
Human rights; security
practices
Fighting corruption
Article 3.2,
subsection f
Business
ethics
Business ethics;
responsible operations;
fair competition
Topic 11.14 Economic
impacts
Topic 11.15 Local
communities
Topic 11.17 Rights of
Indigenous peoples
Topic 11.12 Forced
labour and modern
slavery
Topic 11.18 Conflict
and security
Topic 11.19 Anti-
competitive behaviour
Topic 11.20 Anti-
corruption
CONSOLIDATED NON-FINANCIAL STATEMENT
NFS sections
Equal treatment and enhancement of
differences
Human resource policies and
management
Local content (in Country Value)
Creation of sustainable value over
time
Supply chain management
A sustainable supply chain
Security practices
Reporting suspected violations
Saipem people and all subsections.
Respect for Human and labour rights
Security and cybersecurity practices
Fighting corruption
GRI Standards
GRI 401: Employment
2016
GRI 402:
Labour/Management
Relations 2016
GRI 403: Occupational
Health and Safety
GRI 404: Training and
Education 2016
GRI 414: Supplier Social
Assessment 2016
GRI 201: Economic
performance 2016
GRI 202: Market
Presence 2016
GRI 203: Indirect
Economic Impacts 2016
GRI 204: Procurement
Practices 2016
GRI 409: Forced or
Compulsory Labour 2016
GRI 410: Security
Practices 2016
GRI 414: Supplier Social
Assessment 201
GRI 205: Anti-corruption
2016
GRI 206: Anticompetitive
behaviour 2016
\ 91
SAIPEM ANNUAL REPORT 2023
Sustainability plan
The section summarises the 2023 results of the objectives set, also including the objectives of the Saipem
2023-2026 Sustainability Plan approved by the Board of Directors in September 2023, and the main new
objectives.
The four-year "Our Journey to a Sustainable Business" Sustainability Plan was drawn up with the aim of
implementing an integrated strategy that combines the business and financial objectives of the Plan with a
set of ESG factors. It sets out the commitments undertaken by the Company in the Sustainability Policy in
terms of qualitative and quantitative objectives measurable over time, in order to create value for all
stakeholders in the short and long term.
The annual update of the Sustainability Plan is guided by the results of the materiality analysis, as well as by
the evolution of the international context and by the inputs and requests of stakeholders, such as customers
and the financial community. The objectives defined in the Plan contribute to the achievement of the
Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda, in particular to 12 SDGs which
are more pertinent to Saipem's business and in line with the Group's strategic guidelines.
The Plan is divided into 3 pillars including the various strategic ESG areas, indicating specific objectives and
related implementation programmes for each: 1) Net Zero, 2) Carbon Neutral Project, 3) Biodiversity and
pollution prevention, 4) Sustainable employment, 5) Diversity and inclusion, 6) Health and safety, 7) Local
impact, 8) Responsible supply chain, 9 ) Business ethics, 10) Cybersecurity, 11) Digital and Innovation.
The following table shows with the indication [Incentive scheme] the objectives within which the targets of
the management's short and long-term variable incentive plan were defined.
CLIMATE CHANGE MITIGATION &ENVIRONMENT PROTECTION
Material topic
CLIMATE CHANGE
BIODIVERSITY
WATER
ACCIDENTS AND SPILLS
WASTE
Contribution to the SDGs
2023-2026 Goals
GHG emissions avoided through energy
management initiatives (38 kt of CO2 eq
for 2023 and 138 kt of CO2 eq for the
period 2023-2025) [Incentive scheme]
GHG emissions offsetting thanks to
Saipem's offsetting strategy (250 kt of
CO2 eq for the period 2023-2025)
[Incentive scheme]
Carbon Neutrality for Scope 2 by 2025:
activate the purchase of 100%
renewable energy, preferably certified, in
all offices, where applicable (including
I-REC certificates) and offsetting the
remaining share of emissions
Assess introduction of an internal carbon
price shadow in investment
decision-making processes (2024*)
Systematise the mapping of operating
sites in areas sensitive to biodiversity in
2023
2023 Results
47 kt of CO2 eq avoided
through energy management
initiatives
Status
(cid:1)
Reference
GHG emissions
2024-2027 Plan
Extended to 2027
Saipem's Net Zero
programme
New targets in new
objectives
Saipem's Net Zero
programme
Confirmed
Saipem's Net Zero
programme,
sub-paragraph
Internal Carbon
Pricing
Biodiversity
Extended to 2024
-
100 kt of CO2 eq acquired, of
which 70 kt from REDD+
projects in carbon credits
(cid:1)
Finalised an offsetting credit
agreement with 3 companies
and purchases (see objective
above)
(cid:1)
Ongoing analysis
(cid:1)
(cid:1)
Mapping of Saipem
operational sites in sensitive
areas according to IUCN
categories for biodiversity
and according to the
UNESCO World Heritage List
of Protected Areas for
Biodiversity with Geographic
Information System (GIS)
\ 92
2023-2026 Goals
Map the operating sites of the main
suppliers in biodiversity sensitive areas
by 2025
Continue spill mapping and risk analysis
with 2 new Oil Spill Mappings and Risk
Assessments in the ABSER Business
Line in 2023
2023 Results
Definition of a list of
significant suppliers and
ongoing analysis through
external partners
Status
(cid:1)
Implementation of 2 new Oil
Spill and Risk Assessments
(cid:1)
Continue efforts to reduce waste and
increase the types of recyclable waste
sent for recycling in 2023**
Maintaining 100 per cent
recycled waste types at most
applicable sites
(cid:1)
(*) Target extended to 2024.
(**) Target year brought forward from 2026 to 2023.
CONSOLIDATED NON-FINANCIAL STATEMENT
2024-2027 Plan
Confirmed
-
-
Reference
Protecting the
environment and
minimising
environmental
impacts, biodiversity
Protecting the
environment and
minimising
environmental
impacts.
Spill prevention and
response
Protecting the
environment and
minimising
environmental
impacts.
Waste management
New goals
Listed below are the main new objectives defined in the 2024-2027 plan.
≥ Renewal of third-party certification for the Net Zero program (2024)
≥ GHG emissions avoided thanks to energy management initiatives (47 kt of CO2 eq for 2024) [Incentive
≥ GHG emissions avoided thanks to energy management initiatives (163 kt of CO2 eq for 2024-2026)
scheme]
[Incentive scheme]
≥ GHG emissions offsetting thanks to Saipem's offsetting strategy (250 kt of CO2 eq for the period
2024-2026) [Incentive scheme]
≥ Structure a transformation programme to strengthen partnerships with clients and vendors, improve
traceability of emissions of acquired goods and services’ emissions, to redesign a resilient and transparent
Supply Chain in compliance with CBAM (Carbon Border Adjustment Mechanism) regulation in anticipation
of regulatory evolution (2024-2025)
≥ Continue participating in the SAF programme (2024-2027)
≥ Issuance of corporate criteria/guidelines for the selection of offset portfolio projects (2024-2025)
≥ Set interim targets for the period on Scope 3 greenhouse gas emissions (2026)
≥ Map clients’ emissions (2024)
≥ Certification of a sustainable event in line with UNI EN ISO 20121:2012 (2026)
≥ Organisation of 2 low impact events with emissions offsetting in Milan and Fano, Italy (2024)
≥ Installation of a potable water system on board the FDS (2024)
The objectives still active, also listed in previous versions of the plan, have been maintained or updated
according to the "Plan 2024-2027" column.
PEOPLE CENTRALITY
Saipem material topic
SAFE WORKPLACE
HEALTH
LABOUR RIGHTS
Contribution to the SDGs
DIVERSITY & INCLUSION
SUSTAINABLE EMPLOYMENT
HUMAN RIGHTS
(cid:1)
(cid:1)
(cid:1)
2023 Results
In 2023, the TRIFR stood at
0.32 and the HLFR at 0.74
2023-2026 Goals
Maintain a TRIFR and HLFR no higher
than the average of the last 5 years each
year until 2026. For 2023, the average of
the last 5 years’ TRIFR is 0.43 and HLFR is
0.98 [Incentive scheme]
Status
(cid:1)
Reference
People safety
2024-2027 Plan
Confirmed by new
targets in the “New
objectives” section
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2023 Results
The TRIFR as a whole was
0.23 while HLFR was 0.44
Status
(cid:1)
Reference
Safeguarding the
health and safety of
people
2024-2027 Plan
Confirmed by new
targets in the “New
objectives” section
SAIPEM ANNUAL REPORT 2023
2023-2026 Goals
Maintain a TRIFR and HLFR for
subcontractors no greater than the
5-year average for each year through
2026. For 2023, the average of the last 5
years of the TRIFR corresponds to 0.32
and stands at 0.57 for HLFR
Involve corporate management in LiHS
In 2023, 750 managers took
part in the LiHS Workshop
(cid:1)
Implement innovative actions to further
strengthen the safety performance: such
as the Fire Prevention Campaign in 2023
In 2023, initiatives aimed at
promoting safety in the
workplace were implemented
(cid:1)
Identify innovation initiatives aimed at
eliminating the risk of working at heights
and falling objects by 2025
Implementation of the “Digital Permit to
Work” (E-PTW) on board 100% of the
Saipem fleet by 2026
Improve the efficiency and use of
telecardiology services
Extend application of telehealth services
(2023-2026)
Launch initiatives for employee health on
the following topics: mental health,
cardiovascular risk prevention and
healthy eating in the 2023-2026 period
Set up Smart Clinics for Fano and
Arbatax sites in the 2023-2026 period
Implement a methodology to identify
countries in which to launch health
related sustainability initiatives in the
2023-2026 period
Reviewing and updating the contents of
the "Sì viaggiare" application for public
health services
Launch of the 'Fondo Nuove
Competenze' training project for all
Saipem Italy employees, with the aim of
involving 50% of employees
Introduction of an onboarding
programme for new employees
Ensure continuation of the “Sinergia
Programme”
Implementation of certified Project
Management training courses by the
Saipem Academy
Definition of a set of KPIs on Diversity
& Inclusion to guarantee the ongoing
monitoring of that topic in 2023
Prepare a feasibility study for a “Global
Employment Guideline” in 2023
(cid:1)
(cid:1)
(cid:1)
(cid:1)
The “Safety Step up” project
was continued in 2023 to
identify innovation initiatives
In 2023, 32% of the Saipem
fleet had the Digital Permit to
Work on board.
The implementation of
E-PTW on board the Saipem
fleet is going on
In 2023, the use rate was
75% of the identified sites
In 2023, telepsychology and
teledermatology services
were defined and launched in
all selected sites
In 2023, 14 events were
carried out on topics such as
diabetes, cancer, hepatitis
The activities for the Smart
Clinic in Fano are underway
A methodology has been
developed in 2023 and is
being applied in projects in
India and Indonesia
The application has been
updated
Training activities were
implemented and concluded,
involving 85% of the target
employees
Training, mentoring and job
rotation for new recruits was
introduced
The programme continued
involving five high schools
76 project management
diplomas were delivered.
A set of KPIs has been
defined
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
Feasibility study carried out (cid:1)
Increase the number of women with
STEM backgrounds employed by Saipem
SpA by 2025 [Incentive scheme]
Obtain Gender Equality certification in
line with Italian Reference Practice No.
125:2022 in 2023
Activities were developed
with universities and the “Role
Model” project was
continued
Certification was obtained in
November
(cid:1)
(cid:1)
\ 94
Safeguarding the
health and safety of
people
Safeguarding the
health and safety of
people
Safeguarding the
health and safety of
people
Safeguarding the
health and safety of
people
The objective for
2027 is included in
the "New
objectives" section
The objective for
2027 is included in
the "New
objectives" section
Maintained
Target modified
Safeguarding the
health and safety of
people
Employee health
-
-
(cid:1)
Employee health
Maintained
Employee health
Confirmed
Industrial relations
-
-
Completed
Industrial relations
Completed
Human Capital
Completed
Human Capital
Completed
Human Capital
Completed
Industrial relations
Completed
Equal treatment and
enhancement of
differences
Equal treatment and
enhancement of
differences
Equal treatment and
enhancement of
differences
Completed
Confirmed
Completed
CONSOLIDATED NON-FINANCIAL STATEMENT
2023-2026 Goals
Maintain ISO 30415 - Human Resource
Management Diversity and Inclusion
certification in 2023
Adopt a Gender Equality criterion in the
recruitment process for structural
positions in 2025 [Incentive scheme]
2023 Results
The certificate was
maintained
Status
(cid:1)
The criteria for the recruiting
process have been defined
(cid:1)
Reference
Equal treatment and
enhancement of
differences
Equal treatment and
enhancement of
differences
2024-2027 Plan
Confirmed
Confirmed
New goals
Listed below are the new objectives defined in the 2024-2027 plan.
≥ Maintain a TRIFR and HLFR no greater than the 5-year average each year through 2027. For 2024, the
average of the last 5 years of the TRIFR corresponds to 0.41 and stands at 0.92 for HLFR [Incentive
Scheme]
≥ Maintain a TRIFR and HLFR for subcontractors no greater than the 5-year average for each year through
2027. For 2024, the average of the last 5 years of the TRIFR corresponds to 0.29 and stands at 0.55 for
HLFR
≥ Develop and deliver a new HSE training initiative based on Human Performance principles (2027)
≥ Strengthen the leadership of Saipem and its partners in the safety field through engagement initiatives with
key stakeholders such as clients and suppliers (2027)
≥ Launch of new medical check-ups for selected segments of Italian employees (2024)
≥ Introduction of the Hepatitis C Virus screening test in protocols (2027)
≥ Adoption of a Global Employment guideline (2025)
≥ Launch of a mentoring programme (2024)
≥ Parental Onboarding programme: feasibility study (2024) and implementation (2026)
≥ Completion of the first edition of the HSE Master and launch of a new edition (2024)
≥ Launch of the Saipem ITS (Istituto Tecnico Superiore) in the Marche region, Italy (2026)
≥ Participation in the launch of the "Centro Orientamento Nazionale" in Italy (2026)
≥ Maintenance of SA8000 certification (2024)
≥ Human rights risk assessment on all operations sites (2024)
The objectives still active, also listed in previous versions of the plan, have been maintained or updated
according to the "Plan 2024-2027" column.
VALUE CREATION
Saipem material topic
BUSINESS ETHICS
HUMAN RIGHTS
CLIMATE CHANGE
Contribution to the SDGs
2023-2026 Goals
Extend the number of suppliers
registered in Open-es and strengthen
information and data available on the
platform (2023-2026)
Extend the number of suppliers
registered in Carbon Tracker and
strengthen information and data available
on the platform (2023-2026)
Increase awareness on human and
labour rights issues with Saipem's main
contractors in 2023
Conduct (desktop) audits on Saipem
suppliers on human and labour rights
2023
Strengthen skills on sustainability in the
Supply Chain function through specific
training by 2024
COMMUNITY DEVELOPMENT
LABOUR RIGHTS
2023 Results
Onboarding was carried out
for about 800 international
suppliers involved
Status
(cid:1)
Reference
Saipem's Net Zero
programme
2024-2027 Plan
The Open-es
platform was
adopted for the
vendor qualification
process
Confirmed
Saipem's Net Zero
programme
A sustainable supply
chain
Confirmed on new
target vendors
In June 2023, one meeting
was carried out with 250
suppliers, in addition 30
one-to-one meetings were
carried out with as many
suppliers
70% of the target suppliers
participated in the training
(cid:1)
(cid:1)
Audits were carried out on 10
main suppliers
(cid:1)
A sustainable supply
chain
New objective with
updated target
A pilot training was delivered
to 39 resources.
(cid:1)
Respect for Human
and labour rights
Confirmed
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SAIPEM ANNUAL REPORT 2023
2023-2026 Goals
Carry out new market surveys to identify
possible environmental requirements
applicable to procurement processes in
the 2023-2026 period
Strengthen the supplier qualification
process on ESG issues when updating
the company qualification system (2023)
Continue the training activity on
Anti-Corruption and 231 Compliance for
at risk personnel, with 100% coverage of
the countries included in the training plan
in 2023 [Incentive scheme]
Implement a job rotation program for
recent graduates to ensure they make
experience in Control and Compliance
Functions by 2025 [Incentive scheme]
Maintain the “detection and response”
process in accordance with ISO/IEC
27001 with the confirmation of the
certification in 2023
Continue the public health initiatives, for
example those linked to preventing
malaria and promotion and awareness of
health topics in 2023
Develop a methodology to monitor the
effectiveness of initiatives on the ground
in the 2023-2026 period
Implement a biodiversity protection
initiative (“Seabin initiative” pilot project)
in 2023
2023 Results
2 new market surveys were
carried out on equipment for
our fleet and a survey on
contracting services
In the process of completion
following decision to join, by
invitation, the Open Es
platform for the ESG part of
supplier qualification
Training was carried out for
18 countries and an update
was performed for 2
countries
The implementation of the
programme involving 16 new
recruits has begun
Certification confirmed in
February 2023.
Numerous health promotion
initiatives were organised in
the region, including malaria
prevention
A methodology has been
developed and will be applied
to the initiatives planned for
2025
Activity completed
(cid:1) Target achieved or, for objectives in 2024-2025-2026, underway as per plan.
(cid:1) Target partially reached or in progress.
Status
(cid:1)
Reference
Respect for Human
and labour rights
2024-2027 Plan
Confirmed
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
A sustainable supply
chain
Objective nearing
completion
Objective
confirmed with
updated target
Human Capital
Confirmed
New objective with
updated target to
obtain new
certification
New objective with
updated target
Maintained
New objective with
updated target
New goals
Listed below are the new objectives defined in the 2024-2027 plan.
≥ Increase in the number of suppliers on the Carbon Tracker platform: 800 vendors by 2026
≥ Adopt minimum environmental requirements in purchasing processes: launch of 2 new market surveys
(2024)
≥ Training of supply chain personnel on ESG issues (2024)
≥ Conduct human and labour rights audits of suppliers and employment agencies (11 audits) (2024)
≥ Awareness-raising initiatives on human and labour rights, involving 50% of key subcontractors in high-risk
countries (2024)
≥ Implement the 2024 Local Community Initiatives Plan as planned
≥ Installation of a new seabin in the Arbatax area, Italy, and renewal of the seabin installed in 2023 in Venice,
Italy (2024)
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CONSOLIDATED NON-FINANCIAL STATEMENT
Relations with stakeholders
GRI 2-29
Pursuing a constant dialogue and sharing objectives with all stakeholders are the means through which it is
possible for the Company to create shared value. The approach developed by Saipem over time aims to
ensure open and transparent relations between all parties involved, promoting positive and mutually
advantageous interactions in relations with all of its stakeholders, including local ones, in the territories in
which Saipem operates.
The principles and responsibilities at the basis of Saipem’s stakeholder engagement process are defined in
the "Stakeholder Engagement" Management System Guideline, a corporate governance tool applied to the
entire Group, the relations with the stakeholders in line with the cornerstones of the Group's Sustainability
Policy, available on the company intranet.
The stakeholder engagement process is structured as follows:
To identify material topics, stakeholder engagement is a key element (refer to the "Materiality analysis and
content definition" section for information on the type and number of stakeholders involved in the process).
Below are listed the main categories of stakeholders of the Company, the engagement approach adopted
and the main engagement activities implemented.
Financial community
The Company is committed to maintaining a continuous dialogue with its financial community, to which it
guarantees maximum transparency and fair access to confidential information. Individual shareholders can
liaise directly with the Company Secretariat.
Non-financial information is increasingly analysed by investors and the financial market, who look more
analytically at the ability of a company to develop sustainable business strategies and plans over time, with
measurable objectives and concrete actions that demonstrate the company’s ability to manage risks and
exploit the opportunities of changing markets and scenarios.
The Company is also committed to developing and maintaining long-term relationships with insurers and
banks, with whom it communicates on security and loss prevention initiatives and their results in order to
secure competitive terms and conditions. The risk transfer process identifies the insurance capacities for
appropriately covering our risk profile and exposures.
MAIN ENGAGEMENT ACTIONS
≥ Organisation of 4 post-results roadshows and participation in conferences and reverse roadshows, for a
total of 16 days of meetings.
≥ Engagement activities with 23 financial stakeholders on ESG topics.
≥ Approximately 760 people took part in four conference calls and webcasts on the quarterly and yearly
financial results.
≥ Approximately 200 interactions with investors during in-person or virtual meetings.
≥ Periodic publication of information through press releases and presentations.
ESG rating and indexes
ESG analysts monitor Saipem’s performance in relation to environmental, social and governance criteria.
Also, for 2023, Saipem has maintained leadership positions and remained well above the average for the
reference sector, demonstrating a distinctive commitment to the sustainability of its business. “ESG
Indexes and Rating” section of the 2023 Sustainability Report provides more details on indexes and
analysis on the sector.
In particular, we note the inclusion of Saipem for the seventh consecutive year in the Dow Jones
Sustainability Indexes (World and Europe) with the highest score in the Energy Equipment & Services
sector (77 compared to the sector average of 25), following the Corporate Sustainability Assessment
conducted by S&P Global.
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SAIPEM ANNUAL REPORT 2023
Clients
Clients are one of Saipem’s fundamental stakeholders, and guaranteeing their satisfaction is important both
in terms of the profitability of projects and the effectiveness, efficiency and sustainability of the processes
adopted for their implementation. In addition to constant reporting and frequent meetings on operational
projects, specific customer satisfaction monitoring and analysis systems are implemented in each business
line, to improve Saipem’s operational management and performance in meeting the needs of clients and
maintaining closer relations with them. Relationship with clients is aimed at understanding their requirements
and expectations from the perspective of solution providers and with a focus on energy transition, including
through defining partnerships and collaborations.
Direct assessment is regularly performed with the involvement of clients, through specific meetings and/or
gathering information through satisfaction questionnaires. Furthermore, indirect assessment is performed
without the explicit involvement of clients, through regular monitoring and the analysis of specific satisfaction
indicators. All the results obtained through the customer satisfaction system are regularly reviewed by the
Company Management to identify the critical areas and any preventive or improvement measures.
During 2023, the Customer Relationship Management system, which centralises workflows, data and
insights on business initiatives, clients and markets in a collaborative digital platform, and which employs
more than 300 colleagues, was further developed to enable the listening of clients and improve relationships.
Specifically, the implementation of a new digital management function of the Project Customer Satisfaction
process described above has ended, with the possibility of configuring questionnaires based on the
peculiarities of the Business Line and of the specific project, with automatic return and logging of responses
and multidimensional display of analytics.
MAIN ENGAGEMENT ACTIONS
≥ Involvement of clients through a customer satisfaction monitoring system (21 evaluations of clients
involved through customer satisfaction questionnaires). 90% of interviewees expressed satisfaction for
Saipem’s conduct (i.e.: they assigned an overall score greater than or equal to 6 on a scale of 0 to 10), while
62% of interviewees stated that they were completely satisfied with the company’s activities (i.e. they
assigned an overall score of 9 or higher on a scale of 0 to 10).
≥ Partnerships and agreements signed with clients for the joint development of technological innovations,
including those aimed at new renewable energy markets and the sustainable use of resources.
≥ Joining the “Net Zero Pact”, an initiative created by SSE with 10 other founding partners as a legacy of
COP26, which brings together different companies at all levels of the energy sector – including civil,
maritime, renewable energy, electrical engineering and others – which are committed to a fair and
equitable transition to net zero carbon emissions.
≥ Involvement of some clients in update events on the values of the new Health and Safety Vision 2023.
≥ 23 clients involved in the reputation analysis update.
Institutions and trade associations
Saipem has always been engaged in a constructive and transparent dialogue with central and local
institutions, and with trade associations in host countries.
The activity of interest representation is carried out by the Company with the will to create a climate of
effective collaboration in a logic of constructive and beneficial dialogue for all parties involved, often on
relevant issues of general interest, direct and/or indirect.
The Public Affairs function is responsible for institutional dialogue, guaranteeing uniform and coherent
relational strategies and communication to external parties.
By virtue of the strong international orientation of the Group, Saipem collaborates and maintains close
relations with the Italian diplomatic network, engaging in a constant dialogue with the Ministry of Foreign
Affairs and International Cooperation and with foreign diplomatic institutions in Italy. With this in mind, Saipem
believes it is important to make its operations and its achievements in industry known to institutions.
In 2023, Saipem participated in several institutional meetings and international round tables.
Among the main memberships, we highlight that to industrial associations and specifically Assolombarda,
aimed at receiving support mainly in industrial relations management, also at local level, and updates on
operational issues in the sector, as well as at increasing the industrial system’s knowledge of the company
and of its services. As part of its membership in the World Energy Council (WEC), Saipem participates in the
first bilateral workshop organised in Washington to establish a dialogue with US institutions, in particular the
Department of State and the Department of Energy, on possible collaborations between Italy and the USA to
face the challenges of the transition. Saipem also contributes to the dialogue with international stakeholders
on the industrial and economic level through its membership in ISPI, in Associazione Italia ASEAN and in the
Ambrosetti Forum.
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CONSOLIDATED NON-FINANCIAL STATEMENT
Other participations worth mentioning are those in sector associations such as IADC (International
Association of Drilling Contractors),
IOGP
(International Association of Oil and Gas producers) and Windeurope. Total membership fees spent in 2023
amounted to €1.1 million.
(International Maritime Contractors Association),
IMCA
More details on collaborations with international associations and organisations on climate change can be
found in the section "The contribution to mitigating climate change".
MAIN ENGAGEMENT ACTIONS
On the occasion of COP28, Saipem also organised a collateral event within the Italian Pavilion, managed by
the Ministry of the Environment and Energy Security (MASE), to discuss topics such as innovation and
technology for achieving decarbonisation targets. The event, entitled “Engineering for a Sustainable Future.
Decarbonisation Technologies and Solutions”, was the opportunity to present the company's most
innovative solutions.
Saipem collaborated with the Ministry of Foreign Affairs and International Cooperation, with the Ministry of
the Environment and Energy Security and with the Ministry of Business and Made in Italy by participating in
working groups; in particular with the Coordination Table C.EN.TRA Energy Climate and Ecological Transition,
which in 2023 has resumed its work and technical discussions on projects of national interest in which
Saipem is involved. In June 2023 Saipem participated in the Italy Uzbekistan Business Forum, organised by
the Ministry of Foreign Affairs, Confindustria and the Italian Trade Agency, following which it signed a
Memorandum of Understanding to cooperate in the field of natural gas, CO2 capture and hydrogen, with the
ambition of carrying out a transfer of know-how and skills:
≥ in October 2023, as part of the Italy Mozambique Business Forum organised by Confindustria, the Ministry
of Economy and Finance of Mozambique and a delegation of Mozambican entrepreneurs participated in a
meeting at the Saipem headquarters to promote the participation of small and medium-sized Mozambican
enterprises to the projects planned in the country, with a view to valorising local content and supporting
the socio-economic development of Mozambique;
≥ lastly, Saipem welcomed some representatives of the Ministry of Energy of Oman to its headquarters in
Milan to explore possible collaboration opportunities in the field of green hydrogen in light of the country's
strategies, and a delegation from Canada, accompanied by the Italian Embassy, to evaluate financial
support opportunities for projects in the CCUS context.
Furthermore, the Company actively participates in the Gas Industry Advisory Committee (GIAC) and its
Technical, Economic and Regulatory sub-committees, within the international organisation of the East
Mediterranean Gas Forum, whose purpose is to promote cooperation and investment in the area and to
initiate a structured and systematic political dialogue on natural gas.
In 2023, the Saipem Group was an active member of 112 national and international business and trade
associations. In particular, the parent is a member of 57 associations and organisations.
Employees
In its relationship with its employees, the Company's priority commitment is to recruit and retain talented
people, promoting their development, motivation and skills, guaranteeing safe and healthy workplaces, and
stable relations with trade unions in order to maintain an open and collaborative dialogue. The Company is
committed to supporting people’s diversity and inclusion in all their forms. Actions aimed at promoting equity
are a priority for Saipem and a duty towards company population.
MAIN ENGAGEMENT ACTIONS
≥ Involvement of more than 3,000 employees through a training programme called STEP (Saipem Training
Enabling People), focused on digital and energy transition, thanks to the opportunities offered by the "New
Skills Fund", established by ANPAL (National Agency for Labour Policies) and connected to the
Recovery Fund.
≥ Employees involved in events on HSE issues (LiHS programme, World Environment Day celebration, drug
and alcohol prevention programme, cardiovascular disease prevention programme, etc.). For example,
over 350 people including Saipem employees and their families, partners from the Middle East and the
Italian community in the United Arab Emirates were involved in the cascading process of the new Health
& Safety Vision.
≥ Corporate volunteering initiative (in collaboration with Plastic Free Odv Onlus at the Cassinis park in Milan,
near the new Saipem headquarters in Milan Rogoredo).
≥ Raising awareness on Diversity and Inclusion issues in partnership with the Valore D Association.
≥ Launch of a Diversity & Inclusion themed survey in Italy to track the level of satisfaction and awareness
among employees on the topic of gender equality in the workplace.
≥ Delivery of the Welcome to Saipem programme to new hires, to present Saipem's business, its values and
some company processes.
≥ Employee involvement through the 2023 Strategy Line Up meeting, an event to share the company
strategy and objectives.
≥ Involvement of approximately 6,000 employees via virtual focus groups to update the leadership model.
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SAIPEM ANNUAL REPORT 2023
Local communities
The Company is committed to contribute to the progress of the local communities, to the social, economic
and cultural development and improvement of their living conditions. Each operating company or project
adopts a targeted approach that takes into account the role of the company and the specific context in
which it operates, adopting for this purpose an open and transparent dialogue with the communities living in
the host territories.
Local communities are actively involved in the implementation of local development projects and the
Company provides proactive support in crisis and emergency situations.
MAIN ENGAGEMENT ACTIONS
≥ 48 development initiatives for local communities in 12 countries (Angola, Saudi Arabia, Azerbaijan, Brazil,
Guyana, India, Indonesia, Italy, Kazakhstan, Mozambique, Nigeria, Senegal) which reached a total of more
than 1 beneficiaries. Invested more than €1.2 million in these initiatives.
≥ Provide support with disease control (e.g., Malaria Control Program in Angola).
≥ HSE awareness events involving local communities (in Angola and Indonesia).
≥ Promoting environmental awareness and the importance of conservation of the environment and pollution
reduction (e.g. in Italy, Saudi Arabia, Azerbaijan, Indonesia).
≥ Cooperation with local schools and universities in many countries to encourage the development of
human capital (e.g. training courses, internships, research projects, lectures at universities, provision of
scholarships in Angola, Italy, Indonesia, Brazil, Nigeria, Kazakhstan, etc.).
≥ Partnerships and agreements with research centres and universities for sharing knowledge and the joint
development of technological innovations, also through the organisation of Talent Attraction initiatives in
order to connect companies and educational institutions such as the La Sapienza University of Rome, the
Polytechnic of Bari, the IUAV University of Venice, the University of Bologna, the University of Pavia and the
Federico II University of Naples.
≥ Awarding of scholarships (University of Trieste) and partnership for the creation of three-year courses and
master's degree courses in "Engineering for industrial sustainability" and "Green industrial engineering"
(Polytechnic University of Marche), creation of the HSEQ SYNERGY Master, in collaboration with the QUINN
Consortium, which aims to train 15 young graduates.
Local organisations and NGOs
The Company is committed to providing adequate information to local and non-governmental organisations
interested in Saipem operations. The regular publication of information, objectives and results on topics of
interest through Saipem's institutional channels is the main and most extensively tool used. It is also of
interest to Saipem, with a view to creating shared value and local development, to facilitate and participate in
development projects. In order to identify and implement them, it has to interact with organizations of proven
experience and integrity with whom to establish short- and medium-term collaborative relationships.
MAIN ENGAGEMENT ACTIONS
≥ Community
initiatives developed through partnerships and cooperation with non-governmental
organisations (e.g. Plastic Free in Italy).
≥ The collaboration with One Ocean Foundation continued.
≥ Participation in the World Congress on Health and Safety at Work organised by the International Labour
Organization (ILO) and the International Social Security Association (ISSA).
≥ Participation in the Sustainable Procurement working table of the Italian Network of UN Global Compact
and in the Target Gender Equality accelerator.
Vendors
Saipem believes in sharing sustainable value along its entire supply chain. The relationship with its suppliers
is based on mutual trust and ethical behaviour, in order to have a strong and reliable supply chain. From this
point of view, the Company is committed to developing and maintaining long-term relationships with its
suppliers, whose reliability from a technical, financial, organizational and ethical point of view is guaranteed by
a structured evaluation and management process.
Vendors are also proactively involved in initiatives to strengthen their knowledge on HSE, human and
workers' rights. Vendors are also fundamental partners for reducing our environmental footprint with whom
the Company collaborates continuously and proactively.
MAIN ENGAGEMENT ACTIONS
≥ Subcontractors involved in HSE initiatives (Saudi Arabia, Kuwait, Azerbaijan).
≥ 117 vendors involved in training activities on human and labour rights.
≥ More than 1,100 vendors involved in activities to promote sustainable practices in the supply chain.
Future generations
Saipem is committed to the education and training of the new generations through investments in the local
system and in education programs in the contexts in which the company operates.
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CONSOLIDATED NON-FINANCIAL STATEMENT
Our commitment to young talent takes the form of opportunities to join the company, and personal and
professional growth through empowerment and tutoring initiatives, as well as support in career guidance and
the dissemination of corporate culture.
Moreover, the Company is committed to building a concrete and lasting partnership with schools and
universities, encouraging the integration of knowledge with work experience.
MAIN ENGAGEMENT ACTIONS
≥ Events for attracting talented people to foster the connection between the world of work and the world of
education, with a specific focus on STEM (e.g. Synergy programme).
≥ Partnerships with many universities in countries where we operate (e.g., Archimedes project in Brazil, ERSAI
scholarships in Kazakhstan, various activities carried out in collaboration with the Milan Polytechnic in Italy).
≥ Vocational training courses for young people to help them enter the labour market (e.g. in Guyana, Nigeria,
Kazakhstan).
≥ Improvement of educational facilities to ensure a safe and effective learning environment (e.g. in India,
Indonesia and Oman).
≥ Participation and support in the 21st edition of the Premio Socialis: recognition for the best Italian degree
theses on CSR and sustainable development issues.
≥ As part of the partnership signed with the Carlo Bo University of Urbino, at the beginning of 2023, 38
students of different nationalities and five professors visited our FDS 2 vessel (at that time moored in
Genoa, Italy). The interactive online visit was held on board the Saipem 7000 in October 2023, in which
approximately 27,000 students participated.
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SAIPEM ANNUAL REPORT 2023
SAIPEM’S BUSINESS
Company profile and key operations
GRI 2-4, 2-6
SASB
IF0301-A/B/C
SASB
EM-SV-000.
A/B/C/D
SASB
IF-EN-000.C
Saipem Group is a global leader in the engineering and construction of major projects for the energy and
infrastructure sectors, both offshore and onshore. The Company is present in more than 50 countries, with 8
fabrication yards and a marine fleet composed, at the end of 2023, of 21 construction vessels and 15 drilling
vessels, of which 8 owned by Saipem. For details about the events recorded in the year leading to changes in
the fleet composition compared to the previous year, please see the “Director's Report”. The Company
works in Europe, Americas, CSI, Africa, Middle East, Far East and Oceania and has specialist skills in the
management of complex projects, from design to decommissioning, in extreme environments, remote areas
and deep waters.
The market conditions in which the Group operates are described in the “Market conditions” section of this
Annual Report.
To foster energy transition, responding to and anticipating current and future market needs, the Group has
made innovation and digitalisation key elements of its strategy. A commitment affecting both the
conventional business linked to fossil fuel sources and to the development of new technologies for the
emerging renewable energy markets.
The Group business model enhances the synergies between the different business areas and the external
context in which it operates, aiming to constantly identify new solutions to increase operational efficiency,
reduce the environmental impacts of operations and products supplied to clients, and to improve the safety
of staff and vendors. The section “Organisational structure” of the present Annual Report lays out the
Group’s organisational configuration.
Additional information on the company profile and the operations by business Division is available in
paragraph “Organisational structure” of the Annual Report and in section “Issuer’s profile” of the Report on
Corporate Governance and Shareholding Structure 2023.
Metrics of operational activities in the year
Total backlog (a)
Unit of measurement
(€ million)
2023
29,802
(a) Does not include Onshore Drilling.
Core business revenue by business
(€ million)
Asset Based Services
Energy Carriers
Offshore Drilling
Shareholding
2023
6,069
5,062
743
2022
5,026
4,389
565
available
information
11971/1999
Saipem is a company subject to the joint control of Eni SpA and CDP Equity SpA. As of December 31, 2023,
the share capital of Saipem SpA amounted to €501,669,790.83, broken down into No. 1,995,557,732
ordinary share and No. 1,059 savings
shares, none with a nominal amount. Based
on
and
communication received pursuing Consob
Resolution
(Issuers’
Regulation), as of December 31, 2023,
31.19% of the share capital of Saipem SpA
was owned by Eni SpA, 12.82% is owned
by Cassa Depositi e Prestiti (CDP) SpA, a
company controlled by the Italian Ministry
of Economy and Finance, through the
subsidiary CDP Equity SpA, while the
is distributed among private
remaining
shareholders, among which Norges Bank
holds a significant share of 3.15%.
Company management and organisation model
With a view to continuously improving corporate performance and processes, the process of consolidating
the operational and corporate governance model defined by Saipem in 2022 continued in 2023. It involved
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CONSOLIDATED NON-FINANCIAL STATEMENT
the identification of distinct Business Lines, each with dynamics, objectives and skills specific for technical
and economic development of offers and the management of projects acquired in the assigned business
sector:
≥ Asset Based Services: development of asset-based projects and services in the drilling and offshore
sector;
≥ Energy Carriers: design and construction of complex plants or their low carbon reconversion;
≥ Robotics & Industrialized Solutions: development of modular, repeatable, scalable plants and monitoring
and maintenance services based on digital technologies;
≥ Sustainable Infrastructures: project development
in the new ecosystem of energy transition and
sustainable mobility.
In February 2023, the Company established the Offshore Wind business line with the aim of consolidating
Saipem's role in the offshore wind sector through the unitary management and development of the business
and market opportunities.
During 2023, in continuity with the pursuit of the objectives of innovation, effectiveness and efficiency at the
heart of the Saipem culture, the following main organisational interventions were carried out:
≥ update of the Overseas Operating Model with the definition of the role of Country Manager, responsible for
representing Saipem in the various countries, ensuring governance and coordination between the
Managing Directors of the various companies in the country and the central organisational structures of
Saipem SpA;
≥ review of the organisational structure of the Commercial Function with the establishment of a unitary
Business Development unit, structured by geographical areas;
≥ updating of Saipem’s Privacy Organisation Model, also on the basis of the elements deriving from the
progressive consolidation of the interpretations concerning the European Regulation 679/2016 - GDPR;
≥ integration of the Sustainability activities into the People, Safety and Environment Function, in order to
maximise the operational synergies with the units governing HSE and HR, which underpin the key features
of Saipem’s Sustainability Plan;
≥ reorganisation of the Fano operations centre in order to enhance and strengthen its activities and key
competencies;
≥ optimisation of the organisational structure of the HSE and Business Operations and Maintenance areas, in
order to strengthen corporate focus on Asset Integrity activities;
≥ in the context of the General Counsel structure: (i) centralization of contract management activities, both in
the commercial and executive phases, guaranteeing the concentration of legal and contractual activities
and negotiation support in a single function; (ii) updating the organisational structure to oversee legal
assistance and consultancy activities;
≥ reorganisation of the Cybersecurity Operations with the aim of ensuring greater segregation between
policy, governance and control activities with respect to the execution of operational activities;
≥ launch and development of the “Cost Baseline Transformation” programme to reduce the baseline of
Company costs not directly related to projects, generating positive impacts on their efficiency and
performance, with a view to ensuring profitable and sustainable growth for Saipem over time;
≥ establishment of the Diversity and Inclusion Committee with the aim of ensuring the promotion and
adoption of the gender equality principles included in company policies within Saipem, and guaranteeing
the constant application of all the elements and requirements of Uni PdR 125:2022.
Development of the market scenario and strategy
The forecast information contained in this paragraph must be seen as “forward-looking statements”, since
they depend on the occurrence of events and future developments that are beyond the control of the
Company; in particular, the information could be reviewed following the evolution of the on-going
Russian-Ukrainian and Israeli-Palestinian crises and as a result of the situation in the reference market.
The current context is characterised by a positive cycle in the reference markets for Saipem, in particular
that of Oil&Gas, globally triggered by the growing need to access safe and sustainable energy sources. In
2023, the world economy, according to the International Monetary Fund, grew by 3.0% compared to 2022,
driven by strong growth in India (+6.3% in 2023) and in the emerging Asian countries, capable of compensate
for a slowdown in some advanced economies, in particular that of the Euro area. This trend has manifested
itself despite some significant factors impacting the global scenario, such as the worsening of geopolitical
instability, burdened by the Israeli-Palestinian crisis and ongoing conflict in Ukraine, and the persistence of
high inflation rates, however, decreasing compared to the previous year and expected to decrease further.
In 2023, the energy sector, one of the most impacted by the crisis of the 2020-2022 period, consolidated,
with ever greater solidity, the recovery begun in previous years, supported by growing attention to the
security of energy supplies. This dynamic has favoured the growth in demand for traditional energy sources,
such as oil and gas, and has moved in a more balanced market context, with Brent crude oil settling at around
80 dollars a barrel. Overall, the signals that emerged during the year have gradually translated into a further
increase in investment in the Oil&Gas segment, now firmly above pre-COVID values. This growth was
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SAIPEM ANNUAL REPORT 2023
recorded in all geographical areas and with particular intensity in Africa and South America. In addition to the
inflationary dynamics that continued into 2023, investments in energy infrastructures contributed to
supporting this trend, as a strategy for mitigating supply risks, in particular in some geographical areas, such
as Europe, which are continuing in the process of energy source diversification. The main oil companies have
moved in this direction, also through mergers and acquisitions, to guarantee a growing supply of fossil fuels,
on the one hand pursuing a strategy aimed at maintaining the solidity of their financial structure, and on the
other continuing in the process of diversifying its investment portfolio in the field of energy transition, so as
to respond to the growing pressure from the market in this area and to its objectives of CO2 emission
reduction.
The expectations for the Oil&Gas sector in coming years are positive in different regions (for example, Africa
and the Middle East, areas where Saipem has a historical presence), and across the different reference
markets of Saipem, starting from the most reactive to the oil and gas price trend, such as Offshore E&C and
Offshore Drilling, to the Onshore E&C market, diversified between upstream, midstream and downstream
activities. Saipem’s unique capabilities in the Oil&Gas value chain will be directed towards an ever greater
focus on the delivery of integrated projects between Offshore and Onshore, as for the recent award of the
Hail&Gasha project in the United Arab Emirates (UAE). Furthermore, particular interest will be placed on the
execution of the record backlog linked to the traditional Offshore Construction markets, simultaneously
exploring the opportunities offered by the decommissioning of large platforms, especially in the North Sea. In
the Offshore Wind market, we will continue to implement a multi-phase strategy, consolidating the
experience gained so far thanks to the completed foundation installation projects, and then expanding along
the value chain, in parallel with market development expected in the coming years. This market, despite the
slowdown experienced during 2023 due to limited supply chain capacity, increased cost of materials and
high interest rates, is still expected to grow strongly in the short- to medium-term. In the Onshore
Construction sector we will continue with a selective commercial approach, pursuing opportunities in
collaboration with the Offshore business, and focused on upstream projects and energy transition products
linked to natural gas and its downstream, such as Liquefied Natural Gas (LNG) and green and blue ammonia,
as well as biorefineries and carbon capture, storage and utilisation (CCUS) hubs. A growing contribution will
be provided by modular solutions such as the proprietary BlueEnzyme™ in the CCUS field and Flatfish in the
Sonsub field. While in the field of sustainable infrastructures a growth strategy will be pursued towards
foreign markets, after having consolidated its positioning in the market Italian.
An analysis of the market context shows a gradually changing world over the longer term, strongly
dependent on the scenario considered. In defining its strategies, Saipem analyses long-term energy
scenarios, provided by a third party (Rystad Energy). In the central scenario (which foresees a temperature
increase of 1.9 °C at the end of the century – in line with a C31 category scenario as identified by the
International Panel for Climate Change (IPCC) in its Sixth Assessment Report) the energy mix gradually
evolves by expanding towards renewable energy sources, with energy from fossil sources reaching its peak
respectively at the end of the decade for oil and in the middle of the next decade for gas. In this scenario,
global energy demand will grow until 2030, and then settle in the long term at values comparable to those of
2023, thanks to greater process efficiency and the transition of energy transport from molecules (e.g. oil,
gas) to electrons (renewable sources). Furthermore, the ever-increasing commitment by governments in the
main countries to progressively reduce climate-altering emissions is expected to continue to support a
gradual shift in the use of traditional energy sources, favouring renewables and low-carbon sources. These
commitments, which are also supported by the ESG choices of financial investors and pressure from public
opinion, have led to the announcement of several emission reduction initiatives by countries and companies
in different areas of the planet. The achievement of these objectives is mainly based on the development and
use of a range of new technologies in areas such as renewable energy, the decarbonisation of various
industrial sectors (e.g. agriculture, steel and cement production, transport), energy efficiency and the circular
economy. The use of these innovative solutions in building new energy infrastructures and reducing carbon
emissions is expected to create a significant market that is of particular interest to Saipem, which already has
the skills and experience in this context, representing a competitive advantage in the new energy transition
areas. In particular, Saipem continues to focus its efforts on certain key areas, such as:
≥ technology partnerships, patents and pilot plants on various green plant technologies (e.g. Bluenzyme™
for CO2 capture, Star 1 and Hexafloat for floating wind power);
≥ innovative robotic solutions (e.g. subsea drones like the Flatfish), to offer low carbon footprint monitoring
and maintenance services;
≥ proven experience and track record on plants and technologies that will be of primary importance in the
strategies of CO2 capture and hybridization of energy sources (e.g., treatment of CO2 coming from wells,
refineries that will evolve into biorefineries, ammonia plants);
≥ a solid reputation with the main Oil&Gas operators that are playing a key role today in the implementation
of the energy transition.
(1) In the C3 scenarios, the global warming is kept below the highest threshold established by the Paris Agreement with a percentage of
67% and requires cutting emissions to 44 Gt of CO2 eq (2030), 29 (2040) and 20 (2050) reaching peaks in CO2 and other greenhouse gases
as in C2. Carbon neutrality will only be truly achieved in 2070-2075.
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CONSOLIDATED NON-FINANCIAL STATEMENT
In the outlined context, the main focus of Saipem's energy transition strategy is divided into the following
reference markets:
≥ LNG, as a transition energy carrier;
≥ low-carbon fertilisers such as green and blue ammonia, for sustainable growth, guaranteeing greater
access to food and consolidating its positioning in this sector;
≥ Carbon dioxide capture and sequestration, with long-term growth expectations and a number of initiatives
already at an advanced stage in several countries. The market is also expected to evolve in sectors other
than Oil and Gas, such as hard-to-abate electricity, steel and cement production, leveraging, in addition to
its know-how on the subject, also on proprietary enzymatic technology;
≥ Hydrogen and new energy carriers based on it, such as ammonia, methanol and electrofuels (e-fuels),
primarily if produced from zero-impact energy sources. This market is also expected to expand strongly in
the coming decades, also supporting the decarbonisation of air and marine transport;
≥ chemical recycling market of plastic, both through depolymerisation and plastic-to-liquid conversion, with
SASB
IF-EN-410b.1
SASB
IF-EN-410b.3
dedicated technological development initiatives;
≥ offshore wind, for which significant investments are foreseen by operators, requiring an ever-growing need
for skills and competencies along the whole value chain. In addition, Saipem will continue to invest in the
development of offshore wind technologies, focusing on the proprietary technologies Star 1 and
Hexafloat.
Moreover, Saipem will continue the process of decarbonising its fleet, thanks to agreement signed with Eni
Sustainable Mobility in 2023: it will promote the use of biofuels on its offshore construction and drilling fleet,
in order to significantly reduce its carbon footprint during operations.
Finally, particular emphasis has been laid on the smart and sustainable infrastructure market, in particular
those with a high technological and sustainable content associated with the Italian Recovery and Resilience
Plan (PNRR). Saipem has consolidated experience in the sector on several significant projects both in Italy
and abroad, and all the credentials in place to take up interesting business opportunities over the coming
years.
Sustainable activities according to the EU Taxonomy
The European Taxonomy (hereinafter also referred to as the "Regulation" or "Taxonomy") is a unified system
for the classification of environmentally sustainable economic activities, established by the European Union
with Regulation 2020/852, in force from 12 July 2020. This system aims to identify economic activities that
are sustainable from an environmental point of view, in order to guide the choices of all financial market
participants by promoting sustainable investments, preventing the greenwashing phenomenon, as well as
supporting the objectives of the European Green Deal.
The Taxonomy establishes six environmental objectives (climate change mitigation, climate change
adaptation, sustainable use and protection of water and marine resources, transition to a circular economy,
pollution prevention and control, protection and restoration of biodiversity and ecosystems) and defines an
economic activity as environmentally sustainable if:
≥ it contributes substantially to the achievement of one or more of the six environmental objectives;
≥ it does not cause significant harm to any of the additional environmental objectives;
≥ it is carried out in compliance with the minimum safeguard guarantees.
This information is drawn up in compliance with Regulation (EU) 2020/852 and the relevant applicable
delegated acts, in particular:
≥ the Delegated Regulation on climate 2021/2139 which introduces economic activities and the related
technical screening criteria for the objectives of mitigation and adaptation to climate change;
≥ the Regulation relating to the Article 8, also defined as "Delegated Regulation on disclosure" 2021/2178;
≥ the EU Delegated Regulation 2022/1214 concerning economic activities in certain energy sectors, which
integrates the Delegated Regulation on the climate and the Delegated Regulation on Article 8;
≥ the Delegated Regulation 2023/2485 which introduces further technical screening criteria and activities
falling within the first two objectives, integrating the Delegated Regulation on climate;
≥ the Delegated Regulation 2023/2486 which introduces the list of economic activities for the remaining
four environmental objectives.
Identification of Taxonomy-eligible activities
The European Taxonomy defines as eligible the economic activities included in the Delegated Regulation on
climate (and subsequent amendments) and in the Delegated Regulation on the remaining environmental
objectives. Saipem has therefore identified within its business the activities carried out in line with the
provisions of the above-mentioned Delegated Regulations and determined their eligibility.
During 2023, Saipem selected the main projects awarded by its clients that fall under the classification of
economic activities eligible for the European Taxonomy, in particular for the objective of mitigating climate
change (Annex I of the Delegated Regulation on Climate).
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SAIPEM ANNUAL REPORT 2023
In addition, the engineering and construction projects that Saipem carries out in the natural gas sector and
which represent approximately 55% of its revenue, were analysed. Saipem’s involvement in the sector
concerns the natural gas value chain (extraction, treatment, storage, transportation, etc.), which is excluded
from the Commission Delegated Regulation (EU) 2022/1214 on gas and nuclear, for which the eligible
activities are exclusively those of electricity production (ref. “4.29 Electricity generation from fossil gaseous
fuels - Construction or operation of electricity generation facilities that produce electricity using fossil
gaseous fuels”).
Finally, in light of the regulatory updates contained in Commission Delegated Regulation (EU) 2023/2486,
Saipem carried out a screening of the activities relating to the remaining four objectives ("sustainable use
and protection of water and marine resources"; “transition towards a circular economy”; “pollution prevention
and control”; “protection and restoration of biodiversity and ecosystems”), in order to assess the eligibility of
its activities for the financial year 2023. The eligibility assessment for these new objectives expands the
panel of economic activities identified by the Taxonomy and which closely affect Saipem's business. The
main eligible Saipem projects fall within the objectives of "transition to a circular economy" and "pollution
prevention and control".
As an engineering and construction company, Saipem has an important role in supporting its clients also in
the design and construction of plants and structures
line with the environmental sustainability
requirements. Therefore, in accordance with the Delegated Regulation 2021/2139 recital (37), some Saipem
activities have been included as they are preparatory to client’s activity. This is, for example, the case of
“Production of anhydrous ammonia” (activity 3.15), for which Saipem has a proprietary technology that
improves the efficiency of urea plants, but also the analysis and feasibility studies carried out in various areas
falling within the eligibility classification for Taxonomy.
The CCM 6.14 "Infrastructures for railway transport" activity is one of those to undergo most of the changes
following the update of Annex I published in 2023. Such changes, however, do not affect the eligibility of the
activities already identified by Saipem which fall within the existing description.
in
Regarding Saipem’s activities eligible according to the 4 new environmental objectives, the following projects
are worth mentioning:
≥ Conversion of the Scarabeo 5 semi-submersible drilling unit into an FPU (Floating Production Unit)
separation and upgrading plant which falls within the activity "5.3 Preparation for re-use of end-of-life
products and product components" relating to the objective of transition to a circular economy.
≥ Use of underwater drones to carry out monitoring, predictive and non-predictive maintenance and
pollution prevention activities which fall within the activities "4.1 Provision of
IT/OT (information
technology/operational technologies) data-driven solutions", relating to the objective of transition to a
circular economy and "2.4 Remediation of contaminated sites and areas", relating to the objective of
pollution prevention and control.
≥ Decommissioning of offshore platforms such as the Thistle A and Heather Jacket EPRD projects in the
North Sea for the client EnQuest, falling within the activity "3.3 Demolition of buildings and other
structures", relating to the objective of transition to a circular economy.
\ 106
Below are the main eligible activities as described by the Regulations:
Table 1. Eligible economic activities
Objective
Climate change
mitigation (CCM)
Economic activities according to Taxonomy
3.6 Manufacture of other low carbon technologies
3.10 Manufacture of hydrogen
3.15 Manufacture of anhydrous ammonia
3.17 Manufacture of plastics in primary forms
4.1 Electricity generation using solar photovoltaic technology Photovoltaic projects
4.3 Electricity generation from wind power
4.13 Manufacture of biogas and biofuels for use in transport
and of bioliquids
4.14 Transmission and distribution networks for renewable
and low-carbon gases
5.1 Construction, extension and operation of water collection,
treatment and supply systems
5.9 Material recovery from non-hazardous waste
5.11 Transport of CO2
Offshore wind farms projects
Biogas plant/bioenergy projects
CONSOLIDATED NON-FINANCIAL STATEMENT
Description of Saipem activities
Carbon capture and other low carbon technologies
projects
Hydrogen projects
Ammonia and urea projects
Plastic recycling projects
Projects relating to the construction of pipelines
for hydrogen transportation
Water pipe construction projects
Circularity projects and recovery of materials
Projects relating to the construction of pipelines
for CO2 transportation
Projects relating to underground CO2 storage
Rail infrastructure construction projects
Decommissioning projects
Use of underwater drones for monitoring
and maintenance activities
Sale of spare parts for ammonia and urea systems
Asset conversion project
Spill prevention and control systems
5.12 Underground permanent geological storage of CO2
6.14 Infrastructure for rail transport
3.3 Demolition of buildings and other structures
4.1 Provision of IT/OT (information technology/operational
technologies) data-driven solutions
5.2 Sale of spare parts
5.3 Preparation for re-use of end-of-life products
and product components
2.4 Remediation of contaminated sites and areas
Transition to a
circular economy
(CE)
Pollution
prevention and
control (PPC)
Analysis of alignment to Taxonomy
An economic activity is considered aligned with the European Taxonomy if it contributes substantially to at
least one of the six environmental objectives, does not cause significant harm to any of the other five
environmental objectives and respects the minimum safeguard guarantees.
After the identification of the eligible economic activities, specific analyses were conducted of the technical
criteria established, according to the Regulation and Annex I of the Delegated Regulation on Climate, for the
main projects relating to each of the identified activities, in order to evaluate the alignment. This verification
was carried out by the competent company and project functions, including the Environment, Sustainability,
Engineering
(Project
Manager/Director) and is supported by the collection of specific data and by the analysis of the project
documentation, with particular focus on the Environmental and Social Impact Assessment (ESIA) documents
and other technical documents.
the Project Management
functions, and with
involvement of
the direct
Substantial contribution to the climate change mitigation objective
ANALYSIS OF THE SUBSTANTIAL CONTRIBUTION FOR THE ACTIVITY 4.1
The requests relating to the substantial contribution criterion for activity 4.1 require that the activity
produces electricity using solar photovoltaic technology. Within the scope of analysis, Saipem considered
projects relating to the design, installation and maintenance of photovoltaic systems, which meet the
required criteria.
ANALYSIS OF THE SUBSTANTIAL CONTRIBUTION FOR THE ACTIVITY 4.3
In compliance with the requirements of the substantial contribution criterion of the Delegated Regulation on
Climate, only projects relating to the construction or management of plants for the production of electricity
from wind energy are considered. Projects relating to the construction and installation of structures for
offshore wind fields have been included within this category.
ANALYSIS OF THE SUBSTANTIAL CONTRIBUTION FOR THE ACTIVITY 6.14
Activity 6.14 carried out by Saipem meets the substantial contribution criteria as the infrastructures for rail
transport consist of: electrified trackside infrastructure and associated subsystems, and infrastructure and
installations dedicated to the transfer of passengers from other modes of transport to rail, not used for
transportation or storage of fossil fuels.
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SAIPEM ANNUAL REPORT 2023
Verification of the “DNSH” criteria for the other 5 environmental objectives
The analysis to verify compliance with the criteria that Do Not Significant Harm (DNSH) was conducted
starting from a verification at individual project level, as for the verification of substantial contribution, with
possible in-depth analysis by geographical area in order to identify potential non-compliance.
CLIMATE CHANGE ADAPTATION
The DNSH climate change adaptation criterion is the same for activities 4.1, 4.3 and 6.14 and requires
compliance with Appendix A of Delegated Regulation 2021/2139, which requires the presence of a robust
climate and vulnerability risk assessment and an evaluation of adaptation solutions. Saipem identifies, for
each project included in the above-mentioned activities, the climate risks considered relevant among those
indicated in Appendix A, as well as the actions to reduce negative consequences. Risks and opportunities
related to the impact of climate in projects are identified, assessed and consolidated through a risk register
created for each project.
The approach adopted is therefore compliant with the requirements of this DNSH criterion.
SUSTAINABLE USE AND PROTECTION OF WATERS AND MARINE RESOURCES
Regarding the objective of sustainable use and protection of waters and marine resources, a verification of
compliance with Appendix B in the Delegated Regulation on Climate is required for activity 6.14. For these
infrastructures, the potential impacts and mitigation solutions of the works on water were already identified
as part of the environmental impact studies carried out.
This DNSH is not applicable for activity 4.1. For activity 4.3, the criterion refers instead exclusively to offshore
plants, therefore it is applicable to Saipem. This requirement specifies that adequate measures are adopted
to prevent or mitigate noise impacts in the marine environment. In this regard, the potential impacts are
considered in the Environmental Management Plan or other documents, which establish monitoring actions
for noise disturbance, as well as measures for its minimisation. Compliance with the DNSH criterion relating
to the objective of sustainable use and protection of waters and marine resources is therefore confirmed for
activities 4.3 and 6.14.
For further information on how Saipem manages water resources, please refer to the paragraph "Water
resource management".
TRANSITION TO A CIRCULAR ECONOMY
For activities 4.1 and 4.3, the DNSH criterion relating to the transition towards a circular economy required
the examination of techniques aimed at promoting the circular economy by assessing the availability and use
of highly durable, recyclable and easily restored equipment and components. In this regard, Saipem
evaluates materials and equipment used for the realisation of the various projects by considering, where
possible, circularity options when purchasing them or the reuse of the equipment in future projects.
For activity 6.14, Saipem proceeded to verify that the waste production from construction and demolition
activities occurred according to the best available techniques, and that at least 70% (by weight) of such
non-hazardous waste were prepared for reuse, recycling and recovery of other materials. Furthermore, the
alignment assessment of these projects took into account the update introduced by the amendment to
Annex I of Delegated Act 2021/2139.
For further information relating to the waste produced, its recycling and disposal, see the paragraph "Waste
management" in the chapter "Protecting the environment and minimising environmental impacts".
For the three economic activities mentioned above, the techniques, analyses, procedures and management
systems adopted by the Company are deemed compliant with the DNSH requirements for the transition
towards a circular economy.
POLLUTION PREVENTION AND CONTROL
The DNSH pollution prevention and control is relevant only for activity 6.14. Before construction and after
construction noise studies are carried out in railway infrastructure projects; furthermore, impact mitigation
measures during construction works are considered.
With the publication of Delegated Regulation 2023/2485, a change to the DNSH requirements for activity
6.14 was introduced. Specifically, it Is asked to verify compliance with the criteria indicated in Appendix C of
the Delegated Climate Regulation. However, this integration does not apply to Saipem as component
manufacturing is not included in project execution. The requirements of the DNSH pollution prevention and
control are therefore respected.
PROTECTION AND RESTORATION OF BIODIVERSITY AND ECOSYSTEMS
The DNSH criterion for activities 4.1, 4.3 and 6.14 refers to Appendix D of the Delegated Regulation
2021/2139, which requires to carry out an assessment of impacts on biodiversity and ecosystems. Eligible
projects are subject to Environmental Impact Assessments – sometimes provided by clients – which contain
the relevant proposals for measures to prevent and mitigate negative impacts in particular regarding fish
resources, marine mammals and avian fauna. Furthermore, no significant impacts on habitats and species in
protected areas have been identified. Even for those projects located in the vicinity of Natura 2000 sites, the
potential effects of construction were considered such as not to compromise the conservation status of the
sites. With regard to activity 4.3, and specifically in the case of offshore wind farms, Saipem implements
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CONSOLIDATED NON-FINANCIAL STATEMENT
adequate considerations on actions that could impact the integrity of the seabed and biodiversity, formalised
in specific environmental management plans. The DNSH criteria for activity 6.14 have been integrated into
In particular when constructing
Delegated Regulation 2023/2485 with additional
infrastructures, Saipem does not have significant impacts on Natura 2000 sites and does not jeopardise the
recovery or maintenance of protected species in the areas in which it operates. Compliance with the DNSH
requirements is therefore guaranteed for all the aforementioned activities.
requirements.
Eligible but not aligned activities
The alignment analysis performed through the evaluation of the applicable criteria, the verification of specific
data and the analysis of the project documentation as a whole was carried out with a materiality-based
approach to the activity. For minor activities, for which information retrieval was difficult and whose impact on
KPI construction was not substantial, the analysis of alignment with the technical criteria was not carried out.
Furthermore, in line with the disclosure obligations envisaged with the update of the reference regulatory
framework and the publication of Delegated Regulation 2023/2486, Saipem has taken into consideration the
list of criteria useful for determining whether an economic activity provides substantial contribution to the
remaining four objectives of the Taxonomy in order to identify new eligible economic activities. These
activities have been set out in the previous paragraphs and are not subject to verification for alignment for
the year 2023 as per the Regulation.
Minimum safeguards
Saipem has examined the respect of minimum safeguard guarantees (Minimum Safeguards) regarding
human rights, taxation, fair competition and corruption, in order to guarantee compliance with the Article 3,
letter c) of Regulation 2020/852. The analysis was conducted through a self-assessment carried out
following an in-depth analysis of company documents and procedures in order to guarantee the alignment of
Saipem's operations with the provisions of the OECD Guidelines for multinational companies, the United
Nations Guiding Principles on business and human rights and the fundamental ILO conventions. The
guidelines identified by the Platform on Sustainable Finance in the "Final Report on Minimum Safeguards"
published in October 2022 were also taken into consideration.
The European Commission has recognised a link between the minimum safeguard guarantees established
by the Taxonomy and the SFDR (Sustainable Financial Disclosure Regulation) principle of "not causing
significant harm", highlighted in the FAQ published in June 20232. What has been identified implies that social
and personnel issues, respect for human rights and issues relating to the fight against active and passive
corruption comply with the PAI (Principal Adverse Impact or Main indicators of negative impact). Therefore,
the possibility of considering some additional indicators among the minimum safeguard guarantees is
introduced, namely:
≥ the unadjusted gender pay gap;
≥ Board gender diversity;
≥ involvement in the sector of controversial weapons (which include anti-personnel mines, cluster munitions,
chemical weapons and biological weapons).
Saipem is not involved in the manufacture or sale of controversial weapons.
For further information on the remaining indicators, please refer to the paragraphs "Governance of business
sustainability", "Workforce trends" and "Equal treatment and enhancement of differences" of this NFS.
Human Rights, including labour rights
Saipem's commitment to these issues and the actions implemented are described in the "Operate
responsibly" chapter of this document.
Taxation
The tax policy and strategy are described in the paragraph “Tax transparency”.
Anti-corruption
For all information relating to Saipem's anti-corruption system, please refer to the "Fighting corruption"
paragraph of this document.
Fair competition
Saipem shows its commitment to promoting fair competition in its Code of Ethics, highlighting how the
Company's commercial and corporate activities must be carried out in a transparent, honest and fair manner,
in good faith and in full compliance with competition regulations. Furthermore, Saipem adopts vendor
selection policies in order to guarantee the quality, costs and necessary supply of products and services
through a diversified network of commercial partners, preferring competitive selection processes and
encouraging the rotation of its suppliers.
(2) Commission Notice on the interpretation and implementation of certain legal provisions of the EU Taxonomy Regulation and links to the
Sustainable Finance Disclosure Regulation (2023/C 211/01).
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SAIPEM ANNUAL REPORT 2023
Please also refer to the "Legal proceedings" chapter in the Annual Financial Report for the relevant
information.
In conclusion, Saipem carries out its economic activities in compliance with the minimum safeguard
guarantees, in line with the requirements of the Article 3, letter c) of Regulation 2020/852.
EU Taxonomy reporting and KPI calculation criteria
The tables in Annex I include information relating to the indicators listed in the templates provided in Annex V
of Delegated Regulation 2023/2486, which makes changes to Delegated Regulation 2021/2178, as well as
to the templates included in EU Delegated Regulation 2022/1214, for economic activities in specific energy
sectors such as gas and nuclear.
The proportion of economic activities eligible and aligned with the Taxonomy with respect to Turnover,
CapEx, OpEx is calculated in accordance with the regulatory requirements and according to the accounting
criteria specified in Annex I of the Delegated Regulation (EU) 2021/2178 and the Annex V of Delegated
Regulation 2023/2486.
Below are the main results and the note on accounting standards.
Proportion of turnover from products or services associated
with Taxonomy-aligned economic activities - 2023
Code
CCM 4.1
CCM 4.3
CCM 6.14
Economic activities
Taxonomy eligible activities
Environmentally sustainable activities (Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation from wind power
Infrastructure for rail transport
Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
CCM 3.6
Manufacture of other low carbon technologies
Manufacture of anhydrous ammonia
CCM 3.15
Manufacture of biogas and biofuels for use in transport and of bioliquids CCM 4.13
Transmission and distribution networks for renewable
and low-carbon gases
Infrastructure for rail transport
Demolition of buildings and other structures
Provision of IT/OT (information technology/operational technologies)
data-driven solutions
CE 4.1
Preparation for re-use of end-of-life products and product components CE 5.3
Remediation of contaminated sites and areas
Other (*)
CCM 4.14
CCM 6.14
CE 3.3
PPC 2.4
Turnover (k€)
1,411,016
777,839
7,644
465,496
304,699
Proportion
of turnover %
11.88
6.55
0.06
3.92
2.57
633,177
11,226
263,412
22,994
101,849
34,537
5,251
17,851
155,551
12,339
8,167
5.33
0.10
2.22
0.19
0.86
0.29
0.04
0.15
1.31
0.10
0.07
(*) Other eligible activities include: manufacture of low carbon technologies for transport; manufacture of hydrogen; manufacture of plastics in primary forms; electricity
generation using solar photovoltaic technology (not aligned); electricity generation from wind power (not aligned); electricity generation from ocean energy technologies;
construction, extension and operation of water collection, treatment and supply systems; material recovery from non-hazardous waste; transport of CO2; underground
permanent geological storage of CO2; retrofitting of sea and coastal freight and passenger water transport; infrastructure enabling low-carbon water transport; close to
market research, development and innovation and sale of spare parts.
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CONSOLIDATED NON-FINANCIAL STATEMENT
Proportion of CapEx from products and services associated
with Taxonomy-aligned economic activities - 2023
Economic activities
Taxonomy eligible activities
Environmentally sustainable activities (Taxonomy-aligned)
Electricity generation from wind power
Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Electricity generation from wind power
Transport of CO2
Installation, maintenance and repair of energy efficiency equipment
Installation, maintenance and repair of technology
for renewable energies
Purchase and ownership of buildings
Demolition of buildings and other structures
Provision of IT/OT (information technology/operational technologies)
data-driven solutions
Other (*)
Code
CCM 4.3
CCM 4.3
CCM 5.11
CCM 7.3
CCM 7.6
CCM 7.7
CE 3.3
CE 4.1
CapEx (k€)
161,353
107,151
107,151
Proportion
of CapEx (%)
20.34
13.51
13.51
54,202
2,576
7,589
4,219
1,333
31,085
1,131
5,258
1,011
6.83
0.32
0.96
0.53
0.17
3.92
0.14
0.66
0.13
(*) Other eligible activities include: transmission and distribution networks for renewable and low-carbon gases; close to market research, development and innovation and
remediation of contaminated sites and areas.
Proportion of operations expenditure (OpEx) from products and services associated with
Taxonomy-aligned economic activities -2023
CCM 4.3
CCM 6.14
Code
Economic activities
Taxonomy eligible activities
Environmentally sustainable activities (Taxonomy-aligned)
Electricity generation from wind power
Infrastructure for rail transport
Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Conservation forestry
Manufacture of other low carbon technologies
Manufacture of anhydrous ammonia
Manufacture of plastics in primary forms
Electricity generation from wind power
Transmission and distribution networks for renewable
and low-carbon gases
Transport of CO2
Close to market research, development and innovation
Provision of IT/OT (information technology/operational technologies)
data-driven solutions
CE 4.1
Preparation for re-use of end-of-life products and product components CE 5.3
Other (*)
CCM 1.4
CCM 3.6
CCM 3.15
CCM 3.17
CCM 4.3
CCM 4.14
CCM 5.11
CCM 9.1
OpEx (k€)
360,036
305,526
304,592
934
54,510
485
1,379
12,052
376
4,817
21,042
575
1,491
5,808
6,164
321
Proportion
of OpEx (%)
25.12
21.32
21.25
0.07
3.80
0.03
0.10
0.84
0.03
0.34
1.47
0.04
0.10
0.40
0.43
0.02
(*) Other eligible activities include: electricity generation using solar photovoltaic technology; electricity generation from geothermal energy; manufacture of biogas and
biofuels for use in transport and of bioliquids; construction, extension and operation of water collection, treatment and supply systems and remediation of contaminated
sites and areas.
ACCOUNTING POLICY
The KPIs were calculated in accordance with the requirements of the Commission Delegated Regulation (EU)
2021/2178 of July 6, 2021.
The turnover KPIs were determined as follows:
≥ denominator: the core business revenue (reference to income statement) and
≥ numerator: the revenues of the Taxonomy eligible and/or aligned projects.
The CapEx KPIs were determined as follows:
≥ denominator: the additions to ROU, tangible and intangible assets during 2023 (reference to Note 15
“Property, plant and equipment”, Note 16 “Intangible assets” and Note 17 “Right-of-Use assets, lease
assets and lease liabilities”) and
≥ numerator: the part of the mentioned additions referred to:
• assets or processes associated with Taxonomy eligible and aligned projects or
• Taxonomy-related CapEx initiatives of the technology plan (CapEx Plan) or
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SAIPEM ANNUAL REPORT 2023
• the CapEx initiatives of the Net Zero plan or in any case falling within the definition of CapEx c) as per
Delegated Regulation (EU) 2021/2178.
OpEx KPIs, which must include research and development direct costs not capitalised, short-term lease,
maintenance and repair of assets and any other direct expense related to daily maintenance of property,
plant and equipment needed to ensure the continuous and effective operation of these assets, were
determined as follows:
≥ denominator: the relevant direct non-capitalised costs that relate to research and development, short-
term lease, maintenance and repair of assets
≥ numerator: the part of the above-mentioned costs referred to:
• assets or processes associated with Taxonomy eligible and aligned projects or
• Taxonomy-related OpEx initiatives of the technology plan (CapEx Plan) or
• OpEx initiatives of the Net Zero plan.
The short-term lease costs include also the components related to Lease variable payments and low value
lease, which pertain to the same cost nature.
The maintenance and repair costs of assets were quantified using the specific approach for each Saipem
Business Line in order to allow these costs identification in the most coherent and effective way considering
the peculiarity of each performed activity.
The Taxonomy-related KPIs were calculated on related project or job basis for each Taxonomy-eligible
economic activity.
Any double counting was avoided through the application of the careful analysis and definition of the overall
process at company level to identify and map all taxonomy-related activities. Each value is associated with
only one Taxonomy-related economic activity and referred to a single cost/revenue object clearly identified
in the accounting system and considered only once in the analysis. In particular, the value of any short-term
lease costs included in the CapEx Plan and accounted for on jobs eligible for the Taxonomy was verified in
order to avoid double counting.
CONTEXTUAL INFORMATION
The numerator of the turnover KPI includes exclusively the revenues from the contracts with customers.
The percentage of turnover relating to activities aligned on the turnover relating to activities eligible for the
Taxonomy is 55%: a sharp decline compared to 91% in the previous year, due to the completion of some
offshore wind installation projects.
Breakdown of CapEx KPI numerator by accounting category.
Accounting category
Additions to property, plant and equipment
Additions to intangible assets, including:
- related to business combinations
Additions to capitalised right-of-use assets
Percentage share
62.5
0
0
37.5
Breakdown of CapEx KPI numerator according to classification provided in Delegated Regulation (UE)
2021/2178.
Type
Related to assets or processes that are associated with Taxonomy-eligible
or aligned economic activities
Part of a plan to expand Taxonomy-aligned economic activities (CapEx Plan)
Related to the purchase of output from Taxonomy-aligned economic activities
and individual measures enabling the target activities to become low-carbon
or to lead to greenhouse gas reductions
Percentage share
75.6
0.3
24.1
The percentage of capital expenditure (CapEx) aligned on the capital expenditures (CapEx) eligible for the
Taxonomy is 66%.
Breakdown of OpEx KPI numerator.
Main expenses
Short-term lease
Maintenance and repair of assets
Net Zero Plan
R&D (part of Technology Plan)
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Percentage share
90.0
5.9
0.2
3.9
CONSOLIDATED NON-FINANCIAL STATEMENT
The percentage of operating expenditure (OpEx) aligned on the operating expenditures (OpEx) eligible for the
Taxonomy is 85%.
CAPEX PLAN
Saipem Taxonomy-related CapEx plan is a part of the Company’s Technology Innovation Plan (Technology
Plan) which aims to expand the Taxonomy-aligned economic activities. Depending on the specific type of
projects and investments, the effort is divided between Research & Development (OpEx) and Technological
Investments (CapEx).
The Plan is the document that sets out the short, medium and long-term technology innovation activities
aiming to respond to Saipem's business needs for the four-year reference period. At the same time, it
presents the strategic framework and the strategic innovation directives adopted, the four-year spending
and investment plan (with particular focus on the first year of the plan), collaborations with third parties to
achieve the plan's objectives and the existing ones, the results achieved in the previous technology plan.
The approval of the Saipem's four-year Technology Plan coincides with the approval of the Strategic Plan, of
which the Technology Plan is a part, and with which it is aligned on the main directives. The processes for the
approval of the Technology Plan are set out in relevant regulatory documents.
The technological innovation proposals identified are selected on the basis of the criteria listed below:
≥ business strategies/opportunities;
≥ market analysis;
≥ technical-economic evaluation of the chosen option and comparison with the alternatives;
≥ technology portfolio analysis;
≥ indications from the technological risk assessment of technologies (including third party ones) applied to
the project;
≥ technology checks (Intellectual Property strategy);
≥ Identification and availability of the required resources.
The 2024-2027 Technological Plan confirms the dual strategy of the Company which sees its technological
investments concentrated on the one hand on maintaining our competitiveness in the Oil & Gas sector, and
on the other on the frontier of the energy transition with increasingly digital means, technologies and
processes oriented since their conception to environmental sustainability.
The Company has undertaken various actions towards the energy transition with a strategy characterised by
4 main pillars:
1. Decarbonisation of highly carbon-intensive
(hard-to-abate): this means still producing
industries
energy/products through fossil fuels, but significantly reducing the related climate-changing emissions.
This applies not only to the Oil&Gas industry, but also to highly energy-intensive ones such as steel mills,
paper mills and cement factories.
2. Renewable Energy: primarily wind, but also floating solar energy, are particularly relevant for Saipem; their
systemic integration could allow greater independence from the intermittent nature of most renewables,
possibly also through the production of hydrogen.
3. Hydrogen: can act as a chemical intermediate product with low carbon content and, as an energy carrier, it
could progressively replace natural gas, especially for applications that are difficult to electrify.
4. “Low Carbon” fuels, Biomass conversion and Circular Economy: embracing these models means trying to
safeguard the environment by improving resource management, eliminating waste through more efficient
design and maximising the circulation of products.
The four areas are closely interconnected and overlapping is very frequent.
At the same time, attention is also paid to longer-term prospective issues, such as innovative nuclear energy
technologies, the recovery/extraction of strategic critical minerals, the management of water resources and
the conception of new sustainable infrastructures.
The main objective of the Technological Plan is to gradually bring to full development the various
technological solutions identified in the previous plans for the various sectors, so as to be ready for their full
commercialisation by the end of the Plan.
The total Taxonomy-related CapEx during 2023 is about €14 million while the value for the entire period of
the plan (2024-2027) is €67 million.
Sustainable development partnerships
In 2023, several partnership agreements were drawn up as part of the sustainable development of the
Company's business, especially in the field of energy decarbonisation. The most relevant ones are detailed
below, as well as some already active in the field and which gave interesting results during the year:
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SAIPEM ANNUAL REPORT 2023
≥ With regard to the development of the “Saipem CO2 Solutions” proprietary technology, Saipem is actively
participating in the “ACCSESS” innovation project, funded by the European Community, which started in
2021 and involves 18 European partners. The project is demonstrating the possibility of capturing CO2
from gaseous effluents from various hard-to-abate industries such as paper mills, cement and waste
treatment plants. Tests began in 2023 and will continue in 2024 for CO2 capture campaigns. In the field of
marine wind technologies, Saipem and Seaway7 announced that they have entered into a commercial
collaboration agreement to jointly identify, propose and execute offshore wind projects on fixed
foundations.
≥ In 2023, Saipem also applied to the “COREu” innovation project, financed by the European Community. The
project, coordinated by Sintef (as ACCESS), was accepted and the related Grant Agreement was signed in
December 2023. COREu which will start in 2024 and will have a duration of 5 years, aims to demonstrate
key technologies for the entire CCS value chain, supporting the development of links between CO2
emitters and storage sites in Central and Western Europe.
≥ Furthermore, a particular effort was dedicated to the optimisation of the manufacturing sequence, in the
floating wind sector, which led to the launch in 2023 of the Joint Industry Project called RECIF, with the
support of the French organisations ADEME and CORIMER (French Orientation Council for Research and
Innovation of the marine industrial sector), and whose objective is the development of specific blocks for
the optimisation of manufacturing.
≥ Saipem is participating, together with a number of other partners, in the 'Floatech' programme, funded by
the European Union as part of 'Horizon 2020', to increase the cost competitiveness of marine wind energy
by developing aero-hydrodynamic modelling coupled with active control technologies.
≥ In 2023, Saipem also applied to the Floatfarm innovation project, financed by the European Community.
The project was accepted and the related Grant Agreement was signed in December 2023; Floatfarm aims
to significantly consolidate and make competitive the floating wind technology, and we will have the
opportunity to further enhance the technological maturity of Star 1.
≥ Saipem is also involved in the development of floating substations in collaboration with Siemens Energy.
≥ In February 2023, Eni Sustainable Mobility and Saipem signed a Memorandum of Understanding (MoU) with
the aim of using biogenic fuels on Saipem's drilling and construction vessels, with particular reference to
operations in the Mediterranean Sea area.
≥ In March 2023, Saipem and Garbo, an Italian chemical company, signed an agreement to support the
industrialisation, development and global marketing of a new technology for plastic recycling. The
agreement also provides for collaboration between Saipem and Garbo for the construction of the first
chemical plastic recycling industrial plant in Italy, located in Cerano in the province of Novara.
≥ In November 2023, Eni and Saipem signed an agreement for the development of biorefining. The
agreement supports the transformation process of traditional refineries and the development of new Eni
biorefineries. The agreement aims in particular at the study and possible construction of plants for the
production of biojet, sustainable aviation fuel, and HVO diesel biofuel, produced 100% from renewable raw
materials.
≥ In 2023, Saipem continued its collaboration in the Puglia Green Hydrogen Valley, which saw Sosteneo
(Generali Investments) joining the project. The project aims at helping the acceleration of the spread of
green hydrogen in the national energy mix in order to reach the Italian and European targets of climate
neutrality by 2050.
≥ Regarding the Hydrone robotic platform, the Company continues its collaboration with WSense for the
development of intelligent submarine units that act as intelligent communication nodes, also able to
communicate with each other through underwater channels (e.g. optical and acoustic channels) strongly
integrated with Saipem’s subsea robotic systems.
≥ Saipem participated in the 'AIPlan4EU' project, funded by the “Horizon 2020” European programme, for the
joint development of artificial intelligence protocols and applications for the automatic planning of
autonomous drone missions, which will also be used for the Hydrone platform.
≥ Saipem, in partnership with ISME, an inter-university centre including the universities of Genoa and Pisa,
was also assigned a project within the PNRM (National Plan for Military Research) with the aim of
developing a special underwater robotic system (Hydrone-D) for the identification and deactivation of
mines and other defence activities (AWS and "seabed warfare").
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CONSOLIDATED NON-FINANCIAL STATEMENT
Governance, control and risk management system
Governance
The Company undertakes to maintain and strengthen a governance system in line with international best
practice standards, able to deal with the complex situations in which Saipem operates, and with the
challenges it faces for sustainable development, in accordance with mandatory principles defined in the
Code of Ethics.
More information is available in the "Code of Ethics" section of the Corporate Governance and Shareholding
Structure Report 2023 and in the subsequent sections of this chapter.
Saipem adopts a system of Corporate Governance that is based on the applicable general and special
regulations, the Articles of Association, the Code of Ethics, the recommendations contained in the
Corporate Governance Code approved by the Corporate Governance Committee of the Italian Stock
Exchange – which came into force on January 1, 2021 – and the best practices on the subject.
Saipem’s system of Corporate Governance is based on the central role of the Board of Directors, on
transparency and the effectiveness of the internal audit system.
It should be noted that the Sustainability, Scenarios and Governance Committee and the Audit and Risk
Committee are responsible for examining the "non-financial disclosures" governed by Legislative Decree No.
254 of December 30, 2016.
In particular, the Sustainability, Scenarios and Governance Committee is responsible for: "verifying the
general approach of the non-financial statement and the articulation of its contents, as well as the
completeness and transparency of the information provided with the same statement, reporting the
outcome of its assessments, through its Chairman, to the Audit and Risk Committee, which is called upon to
assess the suitability of the periodic non-financial information to correctly represent the company's business
model, strategies, the impact of its activities and the performance achieved".
Consequently, the Audit and Risk Committee has the task of assessing "the suitability of periodic financial
and non-financial information to fairly present the company's business model, strategies, the impact of its
activities and the performance achieved, cooperating, for periodic non-financial information, with the
Sustainability, Scenarios and Governance Committee".
For a more detailed description of the governance of the aspects required by Italian Legislative Decree No.
254/2016, refer to the “Corporate Governance and Shareholding Structure Report 2023”, and in particular to
the sections regarding the Board of Directors and Internal Control and Risk Management. The above-
mentioned document is included in the "Governance - Documents - Corporate Governance" section of the
Company’s website.
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SAIPEM ANNUAL REPORT 2023
Governance of business sustainability
The Board of Directors was appointed by the Shareholders’ Meeting on April 30, 2021 for three financial
years and will expire on the date of the Meeting called for the approval of the financial statements for the year
ending December 31, 2023. The appointment of Directors occurs pursuant to Article 19 of Articles of
Association, through voting from a list, so as to allow the appointment of minority interest representatives
and to ensure gender balance. The majority of directors are aged over 50.
It should be noted that, on August 31, 2022, following the resignation of Pier Francesco Ragni (notified on
August 19, 2022), the Company's Board of Directors appointed Alessandro Puliti as director to replace him,
by co-opting pursuant to and for the purposes of the Article 2386, first paragraph, of the civil code.
Also during the meeting of August 31, 2022, the then Chief Executive Officer Francesco Caio resigned with
immediate effect and the Board of Directors therefore appointed Alessandro Puliti as Chief Executive Officer,
former General Manager of the Company.
In light of the above, the composition of the Board of Directors had to be integrated and the number of its
members brought to nine, as set by the Shareholders’ Meeting on April 30, 2021. On October 26, 2022, the
Board of Directors therefore appointed by co-optation, pursuant to Article 2386, first paragraph, of the civil
code, Davide Manunta as non-executive and non-independent director. Mr. Manunta was also appointed
member of the Sustainability, Scenarios and Governance Committee.
Pursuant to Article 2386 of the Italian Civil Code, the Shareholders' Meeting of May 3, 2023 appointed
Alessandro Puliti and Davide Manunta as members of the Board of Directors, whose mandate will expire
together with the directors in office, and therefore on the occasion of the Shareholders' Meeting called for
the approval of the financial statements for the 2023. The Board of Directors, again on May 3, 2023,
confirmed (i) Alessandro Puliti as Chief Executive Officer and Director in charge of establishing and
maintaining the Company's Internal Control and Risk Management System and (ii) Davide Manunta as
member of the Sustainability, Scenarios and Governance Committee.
The curriculum with the personal and professional characteristics of the directors is available on the website
www.saipem.com in the “Governance - Board of Directors” section.
The responsibilities of the Board of Directors include the definition, at the request of the Chief Executive
Officer-CEO, of the strategic lines and objectives of the Company and the Group, including their
sustainability policies.
The Board of Directors appointed by the Shareholders' Meeting of April 30, 2021 has in its current
composition competences related to evaluations and decisions linked to sustainability issues, connected to
the exercise of company business and its dynamics of interaction with all stakeholders.
Notably the Board of Directors guides the Company by pursuing its sustainable success and, consistently
with this objective, defines, at the proposal of the CEO, the strategic lines and objectives of the Company
and the Group, including policies for sustainability and monitors their implementation.
The Board, 88% of which is made up of members over 50 years of age and 12% of which is made up of
members between 30 and 50 years of age, is also adequately equipped with expertise in the field of the
Code of Ethics, national and international regulations and best practices.
75% of Board committees are chaired by a female director.
With regard to the formation and information to the members of the new Board of Directors appointed by the
Shareholders' Meeting of April 30, 2021, the Company has prepared and implemented a "Board Induction"
programme (that can be off-site as well), in order to allow the directors to progressively deepen their
knowledge of the Company from both an industrial/operational/commercial standpoint and from a financial
and governance compliance perspective. The following induction sessions were held among others, which
also involved the Board of Statutory Auditors:
≥ September 20, 2023: induction session on the 2023-2026 Sustainability Plan;
≥ November 22, 2023: an off-site Board of Directors’ Meeting was organised on board the vessel Saipem
7000;
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CONSOLIDATED NON-FINANCIAL STATEMENT
≥ December 18, 2023: induction session on digital transformation “Digital Transformation Roadmap 2027”,
which also covered cybersecurity issues.
Note that the Board of Directors is periodically updated on corporate risk methodologies during meetings to
allow the presentation of Risk Assessment results, and on the quarterly monitoring of the Key Risk Indicators.
In order to carry out its duties more efficiently, the Board has established:
≥ a Remuneration and Nomination Committee (composed of mostly independent, non-executive Directors
exclusively);
≥ an Audit and Risk Committee (composed of independent, non-executive Directors exclusively), whose task
is, among others, to assess whether the periodic financial and non-financial information correctly
represents the business model, corporate strategies and the impact and performance of its business
operations and to examine the content of the periodic non-financial information of importance for the
Internal Control and Risk Management System;
≥ a Related Parties Committee (composed of independent, non-executive Directors exclusively);
≥ a Sustainability, Scenarios and Governance Committee (composed of four non-executive Directors, two of
which are independent, and chaired by the Chairman of Saipem’s Board of Directors, who is independent).
In particular, the Sustainability, Scenarios and Governance Committee is tasked with facilitating the Board
of Directors with advisory, preparatory and consultative functions, for its evaluations and decisions on
sustainability issues, also related to Environmental, Social & Governance (ESG), connected to the
performance of the company’s activities, to the dynamics of interactions with all the stakeholders, to the
company's Social responsibility, to the review of scenarios for the preparation of the strategic plan, based
also on an analysis of issues relevant to the generation of value over the long term and to the Company’s
and Group’s corporate governance.
Further details on the composition, appointment, responsibilities, activities and formation of the Board of
Directors and internal Committees can be found in the section “Corporate Governance and Shareholding
Structure Report 2023”.
THE MAIN SUSTAINABILITY TOPICS FACED BY THE BOARD OF DIRECTORS IN 2023
≥ The Board of Directors met 14 times during 2023. In some of the meetings (8 out of 14 meetings), the
following topics were discussed:
Addressed topic
Sharing of the materiality analysis results for 2022 (January 2023)
and 2023 (December 2023).
2023-2026 Sustainability Plan.
Periodic analysis of Risk Assessment results;
2022 Consolidated Non-Financial Statement and 2022 Sustainability
Report.
Non-profit and local community initiatives plan: 2023 guidelines
and budget.
2023 Report on Remuneration Policy and Compensation Paid.
Trends of health, safety and environment performance.
Human Rights and Modern Slavery Statement 2022.
Update of Model 231.
Corresponding ESG topic
Climate change, Biodiversity, Water, Incidents and
Spills, Waste, Community Development, Human
rights, Labour rights, Safe workplace, Health,
Diversity and Inclusion, Sustainable Employment,
Business Ethics, Innovation, Cybersecurity.
Community Development.
Climate change, Business ethics, Diversity and
inclusion.
Safe workplace.
Human Rights, Labour rights.
Business Ethics.
Incentive system
Given the transversal nature of this topic, the sustainability objectives are defined, and must be disseminated
within the Company, consistently with the various operational contexts and the requests emerging from
stakeholder consultations and other contextual evidence. The Board of Directors approves the management
performance plan, at the proposal of the Compensation and Nomination Committee, through which the
Company’s objectives are assigned to the CEO and General Director. The plan is drafted on the basis of the
company’s strategic plan and, for the part concerning objectives on ESG issues, considers the areas that
were deemed to be of highest priority by the company's stakeholders. The objectives are then transferred
with a cascade process to the management of the organisation and are set out in the Short- and Long-Term
Variable Incentive Plans, described in detail in the "Report on Remuneration Policy and Compensation Paid"
available on the Company website.
The active and regular involvement of stakeholders in the determination of priorities (including, for example,
through materiality analysis) and the creation of an advanced monitoring system to monitor and report on
company ESG performances also confirm that ESG/Sustainability factors represent a commitment the
Company adopts towards stakeholders with a view to creating shared value in the long term. In terms of the
Company's position to be an energy transition leader, the objective to reduce Scope 1 & 2 GHG emissions by
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SAIPEM ANNUAL REPORT 2023
50% by 2035 (the reference value is calculated compared to 2018), and to reach Carbon Neutrality for
Scope 2 emissions by 2025.
Risk management
The model for the integrated management of corporate risks, within the framework of the Internal Control
and Risk Management System (SCIGR) has been defined in compliance with the principles and with
international best practices, the Model follows an organic and concise vision of the risks to which the
Company is exposed, greater consistency of methodologies and tools to support risk management, and
strengthening of awareness at all levels to the effect that an appropriate assessment and management of
risks of various types can have a positive impact on the achievement of objectives and on the Company's
value.
At company level, Integrated Risk Management, developed in accordance with the “CoSO Report” reference
framework and national and international best practices, involves the identification, assessment and analysis
of risks. It provides an assessment of the strategic, external and operational risk events at Corporate,
Business Lines and Subsidiaries level and the monitoring of the Top Risks, supplying an update of the risk
profile for Saipem in relation to strategic and management objectives. The risk assessment is regularly
performed and updated on a six-month basis through several meetings and workshops conducted with the
managers of the organisations.
Given the geopolitical context of extreme uncertainty that characterised 2023, Saipem has carefully
monitored the situation at a global level through the "social & political instability/geopolitical context" risk,
seen as an emerging risk notably with regards to the Israeli-Palestinian conflict and its possible extension to
the entire Gulf area, situations of potential escalation of other open war fronts (China/Taiwan, etc.),
strengthening of the economic polarisations already emerged following the Russian-Ukrainian conflict.
In particular, for each country in which Saipem operates, specific monitoring is carried out aimed at analysing
the situation both from a security point of view and from the socio-economic trend of the country, in
coordination with the Crisis Unit of the Ministry of Foreign Affairs, in order to verify the adequacy of the
Security Model adopted by Saipem also in relation to Supply Chain issues.
A quick and unexpected worsening of the risk scenarios – both onshore and offshore – of the countries in
which Saipem operates could in fact impact on operations, as well as involve interruptions in the supply
chain, with negative consequences on the operational continuity of the Group.
Cyber risk is constantly growing all around the world, thanks also to the increasing availability of attack tools
that make use of Artificial Intelligence (AI). The improper use of Artificial Intelligence systems by malicious
actors could amplify the negative effects deriving, for example, from cyber attacks via malware and phishing
activities. The supply chain is particularly targeted, its vulnerabilities being exploited to penetrate the
defensive measures implemented by companies.
Saipem is adopting a supplier evaluation model based on precise cybersecurity requirements.
In 2023 Saipem started establishing an internal and multidisciplinary working group on Artificial Intelligence -
AI (Machine Learning, Fuzzy systems, Evolutionary algorithms). This working group, in which the Integrated
Risk Management and Compliance Function is also involved, is currently aimed at monitoring regulatory
developments at European and Italian level (e.g. AI Act currently being prepared by the European institutions),
in order to regulate the adoption of these technologies on the European market, as well as to analyse
emerging risks and evaluate any impacts of the implementation of such tools/projects within the company.
A process has been established for monitoring the main risks of the Group on a quarterly basis through
specific risk and control indicators, which make it possible to monitor the evolution of the risk and the
effectiveness of the related mitigation activities.
With this assumption, Saipem has decided to take a risk management perspective that includes ESG topics
right from the offer phase. In particular, we have started an environmental risk assessment process which,
starting from some basic information (e.g. type, location, cost, hours worked, etc., of the project), first
analyses the greenhouse gas emissions that will be generated by the planned project. It is essential to
appropriately evaluate prospective GHG emissions to estimate any impacts both on the company objectives
and on the increasingly restrictive ones that countries are setting themselves to limit the risks related to
climate change.
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Integrated Risk Management process
CONSOLIDATED NON-FINANCIAL STATEMENT
Events that involve risks
As described in the “Risk management” section, Saipem is exposed to strategic, operational, and external
risk factors that may be associated with both business activities and the business sector in which it operates.
The occurrence of such risks could have negative effects on the Group’s business and operations and on its
financial position, performance and cash flow.
The following are the main risk factors identified, analysed, assessed and managed by Saipem management.
List of risks
1. Financial risks
2. Country risk
3. Biological/pandemic risk
4. Risks related to the supply chain
5. Cyber risks
6. Strategic risks and project acquisition risks
7. Project execution risks
8. IT risks
9. Risks associated with legal proceedings (legal, administrative, tax and labour)
10. Risks related to asset management
11. Risks related to human resources
12. HSE risks
13. Risks related to client contract management
14. Compliance risks
Internal Control and Risk Management System
Saipem’s Internal Control and Risk Management System (SCIGR) consists of the set of rules, procedures and
organisational structures that aim to assure an effective and efficient identification, measuring, management
and monitoring of the main risks, in order to contribute to the sustainable success of the company.
The structure of Saipem’s internal control system, which is an integral part of the Company’s Organisational
and Management Model, is governed by the “Internal Control and Risk Management System” Management
System Guideline and is based on the principles contained in the Code of Ethics and the Corporate
Governance Code, taking the applicable legislation, the CoSO Report and national and international best
practices into account.
The Internal Control and Risk Management System involves, in various roles, the administrative bodies,
compliance bodies, control bodies, the management and all the personnel.
Saipem undertakes to guarantee the integrity, transparency, correctness and efficiency of its processes by
adopting suitable tools, standards and regulations for the conducting of the activity and the exercising of
powers, and it promotes rules of conduct inspired by the general principles of traceability and separation of
the activities.
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SAIPEM ANNUAL REPORT 2023
For some time now, Saipem has been committed to fostering the development, and dissemination to all
company personnel, of a sense of awareness of the importance of matters concerning internal control. The
internal control system is subjected over time to auditing and updating, with a view to ensuring that it
continues to be adequate to safeguard the main areas of corporate risk, in line with the typical
characteristics of the operating sectors and the organisational framework of the company, and in function of
any legal and regulatory updates.
In this context, Saipem handles, through special internal regulations, the reception – through easily
accessible information channels –, analysis and processing of reports sent or transmitted by anyone, even in
confidential or anonymous form (the so-called Whistleblowing), on problems regarding internal control,
financial reporting, administrative liability of the company, fraud or other matters. Saipem fully guarantees the
protection of anyone making a report in good faith and submits the results of the preliminary investigations
to senior management and to the appointed control and supervision bodies. The internal control system is
subjected over time to auditing and updating, with a view to ensuring that it continues to be adequate to
safeguard the main areas of corporate risk, in line with the typical characteristics of its operating sectors and
organisational framework, and in function of any legal and regulatory updates
Internal Audit Function
The Head of the Internal Audit Function reports hierarchically to the Board of Directors and, therefore to the
Chairman, except for those duties that fall under the remit of the Audit and Risk Committee and to the Chief
Executive Officer-CEO, in his capacity as Officer responsible for the Internal Control and Risk Management
System (SCIGR). He is appointed for overseeing that the SCIGR is fully operational and effective
During the 2023, the Internal Audit function carried out the Audit Plan approved by the Board of Directors on
March 7, 2023, including checks on the reliability of the information systems, including the accounting
reporting systems, and provided regular and periodic information regarding its implementation to the Audit
and Risk Committee, the Board of Statutory Auditors and the Compliance Committee insofar as it falls within
their remit. On March 12, 2024, the Head of the Internal Audit function released his annual report on the main
results of the activities carried out by the Saipem Internal Audit function (referring to the period January 1-
December 31, 2023 with update to the date of its issue) and, in this area also expressed an assessment of
the adequacy of the Internal Control and Risk Management System based on the results of the monitoring
activities carried out in the reference period.
Main responsibilities of the Internal Audit Department are: (i) supervise the verification of the operation and
suitability of the Internal Control and Risk Management System of Saipem SpA and its subsidiaries, also to
support the assessment by company bodies and relevant structures through the integrated planning of audit
and supervision initiatives and 231 Model compliance, the performance of interventions, including unplanned
ones, and monitoring of corrective action implementation; (ii) ensure specialised support to the Management
regarding the Internal Control and Risk Management System in order to facilitate the effectiveness,
efficiency and integration of controls in company processes; (iii) contribute to independent monitoring
required by the internal control models adopted by the Company; (iv) ensure the management of
investigations on whistleblowing reports, including anonymous ones.
Control activities on non-financial reporting
In order to further strengthen the reliability, timeliness, and completeness of the reporting process, Saipem
has developed an Internal Control System dedicated to non-financial reporting.
A dedicated function has been created which is responsible for coordinating and planning the tasks
necessary for the functioning of the control system and specific internal procedures have been issued (a
dedicated Management System Guideline and a Risk and Control Matrix for the Group).
A minimum set of controls and monitoring has been defined for the Group; it has been broken down by
macro-processes, sub-processes and indicators, as well as by type of site/asset, to be implemented
according to the scope of application. Particular focus on the site/asset is fundamental as there are
specificities in non-financial reporting processes, in particular for the collection of primary data.
The operating phases of Control System are the following:
1) definition of the scope of application through quantitative assessments (identification of relevant Group
companies and significant non-financial indicators);
2) identification and evaluation of controls. Specific control activities are identified, which may include
approvals, authorisations, verifications, reconciliations, reviews of operational performance, confirmation
of assumptions and estimates, and separation of duties. Controls may be manual or automated,
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CONSOLIDATED NON-FINANCIAL STATEMENT
depending on the method and tools used to perform them, and may also be preventive or detective,
depending on the position of the control in the reporting flow;
3) monitoring activities and corrective actions. Monitoring is a set of tasks aimed at verifying that the Internal
Control System is correctly designed and operational. Two types of monitoring are foreseen: ongoing
monitoring and independent monitoring. Ongoing monitoring is carried out on an annual basis by the head
of the organisational unit managing the phase or task on which the risk lies. Independent monitoring is
carried out on a six-month basis with the assistance of Saipem's Internal Audit Function;
4) internal control system reporting and assessment. A summary report on the Internal Control System on
non-financial reporting is prepared, describing the main findings of ongoing and independent monitoring
activities. In 2023, this report was shared with both the Sustainability, Scenarios and Governance
Committee and the Audit and Risk Committee.
The System has been operational since 2019 and is progressively expanded year after year, by including
companies and indicators to the scope of application.
Since the introduction of the System to date, some reporting processes have been strengthened, additions
have been made to some company procedures, new indicators have been integrated into the company's IT
systems and some calculations previously done manually have been automated. In addition, a major effort
has been made to formalise existing control activities, especially to design appropriate monitoring activities
when not already foreseen.
In order to further strengthen the effectiveness of operational processes related to ESG, the Internal Audit
function – starting from 2021 – has included, within the work programmes used for independent audit and
monitoring interventions on companies, branches and some relevant processes, the integration of a set of
verifications on ESG issues.
Such issues are mainly related to respect for human rights, sustainable supply chain, diversity and
environment.
These tests are carried out on a sample of companies and/or processes included in the annual audit plan
approved by the Board of Directors.
The analyses conducted, the results of which were presented to the Audit and Risk Committee as part of the
regular and periodic reporting on the implementation of the Audit Plan, did not reveal any particular critical
issues in this regard.
Regulatory System
In order to allow the concrete implementation of what is stated in the mission and to guarantee integrity,
transparency, correctness and effectiveness of its processes, Saipem adopts rules for the performance of
corporate activities and the exercise of powers, ensuring compliance with the general principles of
traceability and segregation. Saipem Regulatory System is a dynamic system that provides for continuous
improvement in accordance with the evolution of the internal and external context and is based on a process
logic. Therefore, regardless of the placement of the activities in Saipem's organisational and corporate
structure, all activities are traced back to a map of transversal processes and/or topics. Through its
Regulatory System, Saipem promotes the integration of compliance principles within corporate processes.
The regulatory documents contain the control principles that the people involved in the regulated process
are required to comply with in order to operate in conformity with current laws and regulations. The complete
Saipem’s regulatory system is based on and is consistent with a wider reference framework which includes:
legal provisions, Articles of Association, Corporate Governance Code, CoSO Report, Organisation,
Management and Control Model, and the basic principles of Internal Control Systems.
“Model 231 (including the Code of Ethics)”
In 2004, the Board of Directors of Saipem SpA resolved to adopt its own organisation, management and control
model pursuant to Italian Legislative Decree No. 231/2001, “Model 231 (includes the Code of Ethics)”
(hereinafter, the “Model 231”), aimed at preventing the commission of crimes sanctioned by Italian Legislative
Decree No. 231/2001 “Provisions on the administrative liability of legal persons, companies and associations,
including those without legal personality”, in accordance with Article 11 of law September 29, 2000, No. 300".
Later, through specific projects, Model 231 was updated to reflect changes in the legislation and in the
corporate organisation of Saipem SpA. In particular, the subsequent updates of Model 231 have taken into
account the following:
≥ changes in the corporate organisation of Saipem SpA;
≥ changes in case law and jurisprudence;
≥ the considerations arising from the implementation of Model 231, including case law indications;
≥ practices of Italian and foreign companies with regard to these models;
≥ the results of supervision activities and the findings of internal audit activities;
≥ the evolution of the legislative framework and the Confindustria Guidelines.
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SAIPEM ANNUAL REPORT 2023
Model 231 is the tool through which Saipem clearly defines its values, principles and responsibilities with a
view to maximising the efficiency, reliability and reputation of Saipem, which are key factors for its success,
and in order to improve the conditions in which it works.
Model 231 includes the Code of Ethics that represents a general mandatory principle. Saipem’s Code of
Ethics clearly defines, in compliance with the law, the values that the Company recognises, accepts and
shares in the conducting of its activities; it also establishes the responsibilities assumed towards
stakeholders, both internal and external. Compliance with the Code of Ethics by Saipem’s directors, statutory
auditors, management and employees as well as by all those who operate in Italy and abroad to achieve
Saipem’s objectives (“Saipem’s People”), each within their own functions and responsibilities, is of paramount
importance – also pursuant to and for the effects of legal and contractual provisions governing the
relationship with Saipem – for Saipem’s efficiency, reliability and reputation, which are all crucial factors for its
success and for improving the social situation in which Saipem operates. All Saipem People, without any
distinction or exception whatsoever, must respect the principles and contents of the Code of Ethics in their
actions and behaviours in the context of their functions and tasks, aware that compliance with the Code of
Ethics is fundamental for the quality of their working and professional performance. Relations among Saipem
People, at all levels, shall be characterised by honesty, fairness, cooperation, loyalty and mutual respect.
Compliance with the rules of the Code of Ethics must be considered an essential part of contractual
obligations for all Saipem Personnel, pursuant to and for the effects of the applicable law. The Compliance
Committee monitors the effectiveness of Model 231. The Committee also acts as the Guarantor of the Code
of Ethics. It is compulsory for all Saipem Personnel to communicate in a timely manner any cases, or
requests, of violation of Model 231 to their immediate superiors or to the body to which they belong and to
the Compliance Committee. The reporting parties in good faith are protected against any form of retaliation,
discrimination or penalisation and in any case confidentiality on their identity shall be ensured, without
prejudice to the obligations according to law and the protection of the rights of the company or of the
individuals wrongly accused or accused in bad faith.
During 2023, Model 231 (includes the Code of Ethics) of Saipem SpA was updated to incorporate
organisational and legislative changes; a first update was approved by the Board of Directors on June 27,
2023. In relation to new regulations and amendments, we note in particular: Italian Legislative Decree No.
156/2022 "Additional and corrective provisions of the Legislative Decree of July 14, 2020, No. 75,
implementing Directive (EU) 2017/1371, relating to the fight against fraud to the financial interests by means
of criminal law"; Italian Legislative Decree No. 19/2023 “Implementation of Directive (EU) 2019/2121 of the
European Parliament and of the Council, of November 27, 2019, which amends Directive (EU) 2017/1132
relating to cross-border transformations, mergers and divisions; Italian Legislative Decree No. 24/2023
“Implementation of Directive (EU) 2019/1937 of the European Parliament and of the Council of October 23,
2019 concerning the protection of persons who report breaches of Union law and containing provisions
concerning the protection of persons who report breaches of national regulatory provisions".
A second update of Model 231 (includes Code of Ethics) of Saipem SpA was approved by the Board of
Directors of Saipem SpA on December 18, 2023; in relation to regulatory interventions, particular mention
should be made of the law of October 9, 2023, No. 137 “Conversion into law, with amendments, of the
Legislative Decree of August 10, 2023, No. 105, containing urgent provisions on criminal trials, civil trials,
fighting forest fires, recovery from addictions, health and culture, as well as on matters of judiciary and public
administration personnel". It introduced in the catalogue of the predicate crimes of Legislative Decree No.
231/2001 the crimes of: disrupting the freedom of auctions (Article 353, criminal code), disrupting the
freedom of the procedure for choosing the contractor (Article 353-bis, criminal code) and fraudulent transfer
of values (Article 512-bis, criminal code).
Fighting corruption
GRI 205-2
GRI 205-3
GRI 415-1
SASB
EM-SV-510a.2
SASB
IF-EN-510a.3
Saipem has always conducted its business with openness, fairness, transparency, integrity and in full
observance of laws and regulations. In this context, corruption is an intolerable impediment to the efficiency
of business and to fair competition.
Among the various initiatives, Saipem has designed an “Anti-Corruption Compliance Programme”, a detailed
system of regulations and controls for the purpose of preventing corruption, in line with international best
practices and with the principle of “zero tolerance” expressed in the Code of Ethics.
In particular, Saipem’s Code of Ethics (included in Model 231) establishes that “bribes, illegitimate favours,
collusion, requests for personal or career benefits for oneself or others, either directly or through third
parties, are prohibited without any exception”.
In particular, Saipem’s “Anti-Corruption Compliance Programme” is dynamic and is constantly focused on
the evolution of the national and international framework of regulations and best practices.
Over the course of the years, in a perspective of continuous improvement, the “Anti-Corruption Compliance
Programme” has been constantly updated in line with the reference provisions (including among others the
United Nations Convention against Corruption, the Organisation for Economic Co-operation and
Development Convention on Combating the Bribery of Foreign Public Officials in International Business
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CONSOLIDATED NON-FINANCIAL STATEMENT
Transactions, Italian Legislative Decree No. 231 of June 8, 2001, the US Foreign Corrupt Practices Act, the
UK Bribery Act and the French Sapin 2 law).
More specifically, the Board of Directors of Saipem SpA approved the “Anti-Corruption Management System
Guideline” (Anti-Corruption MSG) on April 23, 2012. This repealed and replaced the previous Anti-Corruption
Compliance Guidelines to optimise the compliance system in force. All the detailed anti-corruption
procedures for specific risk areas were then updated (inter alia, the procedures for joint venture agreements,
sponsorship, gifts, non-profit initiatives, vendors and consultants, relations with public administration and
merger & acquisition operations).
During 2023, Saipem SpA has updated the “Anti-Corruption Management System Guideline” with a view to
regularly improving the “Anti-Corruption Compliance Programme” and Saipem’s Corporate Governance
systems on Anti-Corruption issues. The revision of the procedure has been issued in early January 2024.
The adoption and implementation of the aforementioned MSG are obligatory for Saipem SpA and all its
subsidiaries.
All Saipem personnel are responsible for complying with the anti-corruption laws: for this reason all
documents relating to this topic are easily accessible on the Company’s website and intranet portal. In this
context, a particularly important role is played by the managers, who are called upon to enforce observance
of the anti-corruption procedures, also by their collaborators.
Furthermore, Saipem was among the first Italian companies to achieve the international certificate ISO
37001:2016 "Anti-bribery management systems", valid for the whole Group. This certification, awarded by an
independent accredited body, identifies a management standard that helps organisations in the fight against
corruption, establishing a culture of integrity, transparency and compliance. The certification process, which
included an audit phase that began in January 2018 and ended in April 2018, took into consideration such
factors as the organisational structure, local presence, processes and services.
Subsequently, the audit activities necessary for the recertification were carried out and on April 28, 2021, the
new certificate ISO 37001: 2016 was issued with a three-year validity and expiring on April 27, 2024.
Aware that the primary element for developing an effective strategy to combat the phenomenon of
corruption lies in fostering thorough knowledge of the tools for its prevention, Saipem considers training and
awareness-raising activities of paramount importance and confirms the strategic importance of these also
to promote and disseminate knowledge on Compliance, Ethics and anti-corruption.
In 2023, 17% of employees for the full consolidated perimeter and 18% for the Group perimeter was trained
on these issues, 2 percentage points higher than the previous year. Training hours delivered in these areas
amounted to 15,775 for the Group perimeter and 15,663 for the full consolidated perimeter, down for both
perimeters compared to the total number of training hours delivered the previous year.
Moreover, the Internal Audit function of Saipem shall independently review and assess the internal control
system with a view to verifying compliance with the requirements of the Anti-corruption MSG, on the basis of
its own annual audit programme approved by the Board of Directors of Saipem SpA.
Any violation, alleged or confirmed, of the anti-corruption laws or procedures must be reported immediately
via one of the channels indicated in the procedure “Whistleblowing reports received by Saipem and its
subsidiaries”, available on the Company website and intranet portal. Disciplinary measures are provided for
people in Saipem who violate the anti-corruption regulations and omit to report violations that they are aware
of.
In 2023, no confirmed cases of corruption were reported.
More information on legal proceedings in which the Group is involved is available in Note 33 to the Notes to
the consolidated financial statements, “Guarantees, commitments and risks - Legal proceedings”.
Saipem requests compliance by Business Partners with the applicable laws, including the anti-corruption
laws pertinent to the business activities carried out with Saipem, and the commitment to follow the reference
principles contained in the Anti-Corruption MSG.
It should also be noted that Saipem does not make direct or indirect contributions, in whatever form, to
political parties, movements, committees, political organisations, or to their representatives and candidates.
Direct or indirect contributions may be made to trade unions and their representatives, to the extent this is
provided for by mandatory legislative requirements or applicable collective labour contracts.
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SAIPEM ANNUAL REPORT 2023
(No.)
Employees who have received training
on compliance (1)
For category of employees
Blue collars
White collars
Managers
Senior managers
For geographical area
Americas
CIS
Europe
Middle East
North Africa
Sub-Saharan Africa
Far East
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
52
3,364
1,672
223
176
25
3,290
1,068
34
342
376
48
3,342
1,672
223
176
25
3,290
1,067
34
317
376
72
3,177
1,711
182
247
175
2,888
713
24
248
848
72
3,171
1,708
182
247
175
2,887
709
24
243
848
33
2,578
1,486
170
189
2
2,823
678
35
400
141
22
2,447
1,444
170
189
1
2,810
634
35
273
141
(1) Please note that the figures relate to companies with which the employees are formally part of the workforce.
Reporting suspected violations
GRI 406-1
GRI 406-1
A fundamental part of Saipem’s structured system for managing stakeholder complaints is the reporting
management process (“whistleblowing”) governed by a special Corporate Standard made available to all
employees (through various means, among which the intranet and company notice boards) and external
stakeholders (published on the Company’s website).
The term “report” refers to any information, new, fact or conduct which in any way is brought to the attention
of Saipem staff regarding possible violations, behaviour and practices that do not conform to the provisions
in the Code of Ethics and/or which may cause damage or injury to Saipem SpA (even if only to its image) or
any of its subsidiaries, on the part of employees, directors, officers, auditing companies of Saipem SpA and
its subsidiaries and third parties in a business relationship with these companies, in one or more of the
following areas: the internal control system, accounting, internal accounting controls, auditing, fraud,
administrative responsibilities under Legislative Decree No. 231/2001, and others (such as violations of the
Code of Ethics, mobbing, theft, security, and so on). Saipem has prepared various channels of
communication as a way to facilitate the sending of reports, including, but not necessarily limited to, regular
post, fax numbers, yellow boxes, e-mail, and communication tools on the intranet/internet sites of Saipem
SpA and its subsidiaries. The Internal Audit function ensures that all appropriate controls are in place for any
facts that have been reported, guaranteeing: (I) that these are carried out in the shortest time possible and
respecting the completeness and accuracy of the investigation; (ii) the utmost confidentiality with methods
suitable for protecting the person reporting. The investigations are composed of the following phases:
(a) preliminary control; (b) verification; (c) audit; (d) monitoring of corrective actions. The Internal Audit
\ 124
CONSOLIDATED NON-FINANCIAL STATEMENT
prepares a quarterly report on reports received that, following examination by the Saipem Board of Statutory
Auditors, is transmitted to the relevant people for suitable assessment.
The following files were opened in 2023: 11 whistleblowing report files on discrimination issues, of which 3
are still open and the remaining 8 are closed; 1 whistleblowing report file on local communities issues,
already closed; 37 whistleblowing report files on workers' rights issues, of which 3 are still open and the
remaining 34 are closed; 54 whistleblowing report files on mobbing/harassment issues, of which 17 still open
and the remaining 37 are closed. All 103 cases were transmitted to the pertinent company bodies (Board of
Auditors of Saipem SpA, Supervisory Board of Saipem SpA and the Compliance Committees of the
companies affected by the reports).
With regard to the discrimination issues, with reference to the 8 closed cases, in 2 cases the competent
Company bodies decided to dismiss them on the basis of the investigation carried out, deeming that there
was no violation of the Code of Ethics with reference to the facts reported; in one case, though without
violation, corrective action was taken, whilst violation was confirmed in 2 cases. The corrective actions
identified were the following: evaluation of disciplinary measures, awareness-raising on compliance with the
Code of Ethics of the Saipem Group, transfer of an employee and various initiatives aimed at improving the
quality of life on board a vessel for all personnel embarked.
Two cases reported in the year 2022 regarding discrimination issues that were still pending as of the last
reporting date were closed in 2023. With reference to the 2 closed cases, in 1 case the competent Company
bodies decided to dismiss it on the basis of the investigation carried out, deeming that there was no violation
of the Code of Ethics with reference to the facts reported, violation was confirmed in 1 case. The corrective
action identified consisted of an awareness-raising activity on compliance with the Group Code of Ethics
intended for the reported person.
(No.)
Number of cases reported
Total, of which:
- founded or partially founded
- unfounded
- open
(No.)
Files on cases of discrimination
Total, of which:
- founded or partially founded
- unfounded
- open
Files regarding violations of the rights of local communities
Total, of which:
- founded or partially founded
- unfounded
- open
Files regarding mobbing and harassment
Total, of which:
- founded or partially founded
- unfounded
- open
Files in relation to other workers’ rights
Total, of which:
- founded or partially founded
- unfounded
- open
2023
2022
2021
226
54
135
37
137
34
103
-
158
49
109
-
2023
2022
2021
11
2
6
3
1
-
1
-
54
16
21
17
37
3
31
3
5
2
3
-
1
-
1
-
24
9
15
-
29
7
22
-
2
-
2
-
-
-
-
-
35
14
21
-
22
3
19
-
Data of 2021 and 2022 have been updated as of December 31, 2023.
(*) Note: starting from the year 2021 the company has included a new reporting category in order to provide even more detailed information to its stakeholders. The category “Mobbing
and harassment” includes mobbing, assaults, abuse, offensive conduct, verbal harassment, threats.
With regard to the issues of workers’ rights, with reference to the 34 closed cases, in 19 cases the
competent company bodies decided to dismiss them on the basis of the investigation carried out, deeming
that there was no violation of the Code of Ethics with reference to the facts reported, whilst violation was
confirmed in 3 cases and in 12 case, though without violation, corrective action was taken. The corrective
actions were the following: evaluation of disciplinary measures of various kinds, evaluation of measures
against suppliers and monitoring of the correct payment of contributions and salaries of their employees,
raising awareness regarding the correct management of the services provided, request for a legal opinion
regarding the correct management of a particular type of contract, preparation of a procedure for managing
\ 125
SAIPEM ANNUAL REPORT 2023
the overtime approval process, cancellation of incorrect disciplinary measures and accreditation of a law
firm.
It should also be noted that 3 workers’ rights cases reported in 2022 were closed in 2023; they were still
open at the time of the last reporting. With reference to the 3 closed cases, in 2 cases the competent
Company bodies decided to dismiss them on the basis of the investigation carried out, deeming that there
was no violation of the Code of Ethics with reference to the facts reported, violation was confirmed in 1 case.
The corrective action identified concerned the adoption of measures aimed at overcoming deficiencies in
compliance with the local law on working hours.
In the area of mobbing/harassment, the competent company bodies dismissed 13 of the 37 cases closed in
the year on the basis of the investigation carried out, deeming that the events reported did not represent a
violation of the Code of Ethics, while a violation was confirmed in 16 cases and corrective actions were
implemented even in the absence of violations in 8 case. The corrective actions were the following:
evaluation of disciplinary measures of various kinds, awareness-raising activities on sexual harassment and
compliance with the Code of Ethics, training regarding Model 231, communications to suppliers aimed at
reminding them to comply with the Code of Ethics, removal of an employee from a project, carrying out
periodic analyses on the working environment and monitoring an employee's behaviour.
10 cases reported in 2022 regarding mobbing/harassment issues that were still pending as of the last
reporting date were closed in 2023. The competent company bodies dismissed 5 of the 10 cases closed in
the year on the basis of the investigation carried out, deeming that there was no violation of the Code of
Ethics, while a violation was confirmed in 3 cases and corrective actions were implemented even in the
absence of violations in 2 cases. The corrective actions were as follows: evaluation of a disciplinary measure
and an awareness-raising activity on compliance with the Code of Ethics.
As regards issues on the relations with local communities, with reference to the closed case, the competent
company bodies decided to dismiss it on the basis of the investigations carried out, deeming that there was
no violation of the Code of Ethics with reference to the facts reported.
\ 126
CONSOLIDATED NON-FINANCIAL STATEMENT
Operate responsibly
How Saipem’s business model creates value
GRI 201-1
GRI 201-4
Knowledge of the external context, and active listening to all interlocutors, helps to create long-term
sustainable value, combining economic and social growth.
Through the Company’s activities, its relations with stakeholders in all territories, its cooperations and
partnerships, Saipem’s business model promotes sustainable development, fully in line with the indications
of the United Nations Global Compact, of which Saipem has been an active member since 2016, which
underline the importance of the increasing integration of sustainability into strategic corporate choices. More
information on the business model of the organisation are available in the "Directors' Report" of the Annual
Report, specifically in the chapters "Asset Based Services and Offshore Wind", "Energy Carriers, Sustainable
Infrastructure and Robotics & Industrialized Solutions" and "Offshore Drilling".
Economic value generated and distributed
GRI 201-1
Saipem produces economic value through its activities and redistributes part of that value, contributing to
the economic growth of the social and environmental context it operates in.
In 2023 Saipem generated economic value worth €12,063 million, an increase of 16% compared to the
previous year. €11,878 million was distributed to stakeholders in the form of payments and other forms of
transfer. The main beneficiaries of this value were the supply chain, to whom €9,231 million (78% of the
overall value distributed, compared to 73% in 2022) and employees, to whom €1,736 million were distributed
(€1,656 million in the previous year), equal to 15% of the total. The amount distributed to suppliers of capital
is €765 million, equal to 6% of the value distributed, compared to €1,075 million in 2022, equal to 10%.
The share destined to the public administration – in the form of taxes and charges – was €145 million (1% of
the distributed value).
Economic value generated and distributed
(€ million)
Core business revenue
Other revenue and income
Financial income
Derivative financial instruments
Net reversals (impairment losses) on trade receivables and other assets
Other operating income (expense)
Gains (losses) on equity investments
(Gross) economic value generated
Depreciation, amortisation, and impairment losses
Economic value generated (net of depreciation, amortisation and impairment losses)
Economic value distributed
- of which Operating expenses (purchases, services and other costs)
- of which Wages and employee benefits (personnel expenses)
- of which to the Community (*)
- of which Capital providers (interest on loans)
- of which to the Public Administration (taxes)
Economic value retained in the Group on continuing operations
Economic value of discontinued operations
Economic value retained in the Group
2023
11,874
24
672
(74)
1
(5)
60
12,552
(489)
12,063
11,878
9,231
1,736
1
765
145
185
(6)
179
2022 (*)
9,980
11
1,008
(128)
32
7
(65)
10,845
(445)
10,400
10,715
7,830
1,656
1
1,075
153
(315)
106
(209)
(*) These are understood to be the local communities in the countries the group operates in, for socio-economic development projects, environmental protection, as well as
cultural, humanitarian, scientific and sporting initiatives (€0.6 million in 2022; €1.2 million in 2023).
Tax transparency
GRI 207-1
GRI 207-2
GRI 207-3
GRI 207-4
During 2023, Saipem revised and updated the Group Tax Strategy with the aim to integrate the guidelines
and key principles that inspire corporate operations in the management of the tax variable.
This document, drawn up in compliance with the Code of Ethics and the Group Sustainability Policy, was
approved by the Company's Board of Directors, which defines the objectives contained therein (so-called
"Tone at the top principle") and guarantees its application within the entire Group with the responsibility of
spreading a corporate culture based on the values of honesty and integrity and on the principle of legality.
\ 127
SAIPEM ANNUAL REPORT 2023
In particular, the Tax Strategy, published on the Company website, intends to guarantee the correct and
timely payment of taxes due by law, the execution of tax obligations and the containment of tax risk, that is
the risk of operating in violation of tax laws or in contrast with the principles or purposes of the tax law.
To guarantee the implementation of these principles and goals, the Group:
≥ is committed to promptly applying the fiscal regulations of the countries in which it operates, and ensures
compliance with the spirit and purpose that rules or systems set forth for specific tax issues;
≥ does not use, at either a domestic or cross-border level, artificial schemes or structures to obtain fiscal
convenience and, unless justified by operating requirements, it does not establish or localise residence of
its subsidiaries in States which do not adopt international standards with regards the exchange of
information on fiscal matters.
≥ is committed to guaranteeing a consistency between the place in which value is produced and the place of
taxation, by not transferring the value it creates towards low-tax jurisdictions;
≥ does not make investments in tax havens for the purpose of reducing its tax burden, as it only does so for
business initiatives;
≥ for tax purposes, it manages intragroup relations in accordance with the "arm's length principle" as defined
by the OCSE, with the aim of aligning as correctly as possible the transfer conditions and prices with the
places in which the value is created by the Group.
In order to strengthen the Internal Control and Risk Management System and ensure correct and continuous
management of taxation, the Tax Control Framework (TCF) was implemented and adopted, in line with the
principles and guidelines contained in the Group Tax Strategy.
This system, entered into operation starting from 2022 for Saipem SpA and extended in 2023 to Servizi
Energia Italia SpA, envisages a governance model aimed at ensuring that the tax function is involved in the
preliminary assessment of the tax impacts of strategic and operational business transactions, both planned
and to be implemented, and that Top Management is informed about the tax consequences of these
transactions, ensuring that every decision taken is consistent with the Group’s Tax Strategy.
The TCF therefore ensures supervision of the areas in which fiscal risk may occur and, specifically, monitors
and manages:
≥ the tax compliance risk, i.e. the risk of not correctly carrying out the tax obligations required by law;
≥ interpretative tax risk, i.e. the risk deriving from the interpretation of tax legislation;
≥ the tax fraud risk, i.e. the risk of incurring a violation that constitutes a fraudulent tax crime, with particular
regard to the predicate offences pursuant to Italian Legislative Decree No. 231/2001.
Furthermore, this system is based on three lines of defence, as illustrated below:
≥ first level monitoring entrusted to the Management of the operational structures affected by fiscal risks;
≥ second level monitoring carried out by the Tax Risk Manager and aimed at evaluating the adequacy and
effectiveness of first level controls in the tax field, as well as, by competence, by the company functions
responsible for ensuring compliance with specific regulations (e.g. Law No. 262/2005);
≥ third level monitoring performed by the Internal Audit on the adequacy of the Internal Control and Risk
Management System.
The results of the monitoring activities on the operation and correct functioning of the Tax Control
Framework, as well as the main aspects that characterised the management of tax risk, are reported annually
through a specific report intended for the Board of Directors and the Control Bodies.
Finally, in December, following the approval resolutions of the respective boards of directors, Saipem SpA
and Servizi Energia Italia SpA presented an application to join the Collaborative Compliance regime with the
Revenue Agency pursuant to Italian Legislative Decree No. 128/2015, in order to establish a collaborative
relationship with the Financial Administration that aims to reduce the level of uncertainty on relevant tax
issues through constant and preventive dialogue.
Country-by-Country Report
The information and data reported in this paragraph were developed on the basis of the Country-by-Country
Report (“CbCR”) prepared and presented to Italian tax Authorities by Saipem SpA in its capacity as Parent
Company of the Saipem Group.
As part of the BEPS (Base Erosion and Profit Shifting) project published by the OECD (Organisation for
(Transfer Pricing Documentation and
Economic Co-operation and Development), Action 13
Country-by-Country Reporting) provides for the drafting by multinationals (whose total revenue resulting
from the consolidated financial statements relating to the previous tax period are equal to or greater than
€750 million) of a report known as "BEPS Country-by-Country Report" ("CbCR") which collects data on
aggregate turnover, profit and taxes with reference to the tax jurisdictions in which they operate.
Pursuant to Law No. 208/2015, implemented by Decree 23/2017 of the Ministry of Economy and Finance,
Saipem SpA annually transmits to the Italian Revenue Agency its CbCR containing the data on jurisdictions in
which the Group operates, in accordance with the reporting model approved by the OECD. The subjective
scope of reporting includes all companies directly or indirectly controlled by Saipem SpA, fully consolidated.
\ 128
CONSOLIDATED NON-FINANCIAL STATEMENT
The data relating to the branches, i.e. the permanent establishments (PE) of the companies within the scope,
are reported with reference to the tax jurisdictions where they are actually registered and operate. Therefore,
with reference to the jurisdiction of tax residence of those companies, the relevant data excludes that
relating to their foreign branches or PEs. The data presented in the report are aggregated by tax jurisdiction
and are extracted from the management system used by Saipem SpA for the preparation of the
consolidated financial statements. The data therefore corresponds to what is contained in the financial
reporting models ("reporting package") that the companies within the scope send to the Parent Company at
the closing of the financial statements and which are certified by the auditor.
The reporting period corresponds to the 2022 fiscal year of the Parent Company Saipem SpA, coinciding
with the calendar year.
The reporting is structured in tables referring to each of the tax jurisdictions in which Saipem conducts
operational activities. The data contained in each country presentation are obtained by aggregating those
extracted from the Reporting Package of all Saipem SpA subsidiaries having tax residence in the country or
operating there through a branch or PE.
Revenues
Year 2022
Tax jurisdiction
Albania
Algeria
Angola
Argentina
Australia
Austria
Azerbaijan
Bolivia
Brazil
Bulgaria
Canada
Chile
China
Colombia
Congo
Croatia
Cyprus
Denmark
Ecuador
Egypt
Equatorial Guinea
France
Gabon
Georgia
Ghana
Greece
Guyana
India
Indonesia
Iran
Iraq
Israel
Italy
Ivory Coast
Kazakhstan
Korean Republic
Kuwait
Libya
Luxembourg
Malaysia
Mauritania
Mexico
Morocco
Non-Related
Parties
0.04
4.10
182.60
28.97
26.01
0.13
234.63
11.63
283.25
0.00
0.16
17.93
0.14
51.04
30.24
0.00
0.00
24.20
14.43
126.00
1.48
1,427.95
0.01
0.00
18.43
20.69
195.95
8.08
356.53
0.01
16.60
53.02
1,831.40
9.38
2.04
0.01
160.46
1.37
0.09
0.08
140.90
59.70
1.05
Related
Parties
0.00
(0.06)
50.42
0.01
10.35
0.00
(0.07)
0.06
20.48
0.00
0.11
0.19
2.70
0.02
4.63
0.00
3.08
0.00
0.00
94.58
0.00
511.08
0.00
0.00
0.35
0.00
5.08
73.92
345.35
0.00
0.72
0.38
1,856.92
0.00
3.91
0.62
0.00
0.03
5.52
0.99
0.00
3.41
0.00
Profits (Losses)
before income
taxes
0.00
(4.04)
(0.45)
(9.67)
(30.61)
(0.10)
81.14
(4.28)
(24.10)
(0.05)
(1.43)
8.00
0.32
(6.18)
7.99
0.00
0.25
2.62
2.63
16.76
0.22
(68.09)
0.00
(0.01)
0.65
(1.87)
38.20
17.14
51.09
(0.01)
1.22
(17.84)
(353.76)
(0.13)
(6.47)
0.03
40.41
0.26
(22.04)
1.71
2.41
78.36
0.98
Total
0.04
4.05
233.02
28.98
36.36
0.13
234.56
11.69
303.72
0.00
0.27
18.13
2.85
51.06
34.86
0.00
3.08
24.20
14.43
220.58
1.48
1,939.03
0.01
0.00
18.77
20.69
201.03
82.00
701.88
0.01
17.32
53.40
3,688.32
9.38
5.95
0.63
160.46
1.41
5.62
1.07
140.90
63.11
1.05
Paid income
taxes
(based on cash
accounting
0.00
17.09
10.11
2.01
0.00
0.33
12.74
0.00
5.84
(0.01)
0.00
(0.91)
0.00
1.90
0.90
0.00
0.03
0.00
0.36
0.19
0.15
18.62
0.00
0.00
1.79
0.00
13.85
4.64
15.94
0.12
0.93
0.14
(8.61)
0.00
(2.77)
0.00
0.00
0.00
0.00
0.00
0.08
0.22
0.02
Accrued
income taxes
(current year)
0.00
15.56
10.11
0.00
0.00
0.00
15.63
0.00
0.00
0.00
0.00
2.05
0.00
0.00
0.93
0.00
(0.13)
0.00
0.51
0.33
3.47
20.56
0.00
0.00
0.18
0.00
6.01
4.60
15.89
0.18
1.21
0.00
15.96
0.00
0.67
0.01
0.00
0.27
0.00
0.00
2.41
0.00
0.31
Number
of employees
0
12
1,237
114
31
1
912
90
402
2
15
74
24
335
172
0
163
30
121
444
0
1,615
0
0
28
0
374
1,969
3,759
0
48
18
4,301
144
89
12
497
26
10
9
1
284
0
\ 129
SAIPEM ANNUAL REPORT 2023
Tax jurisdiction
Mozambique
Netherlands
Nigeria
Norway
Oman
Panama
Peru
Poland
Portogallo
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
South Africa
Spain
Switzerland
Thailand
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Uganda
United Arab Emirates
United Kingdom
United States
Venezuela
Non-Related
Parties
68.89
257.38
96.72
61.69
75.80
0.00
20.27
11.78
162.43
1,012.75
4.23
107.14
2,283.42
0.00
0.45
0.41
0.00
(0.41)
75.07
232.77
0.01
0.00
91.19
0.00
0.00
272.14
505.61
96.24
0.04
Revenues
Year 2022
Related
Parties
3.51
840.37
8.32
69.32
0.00
0.00
1.04
0.00
435.45
0.61
114.61
0.00
292.04
0.00
0.00
1.20
0.00
0.70
275.37
3.96
0.00
0.00
0.00
0.00
0.00
89.85
163.73
76.39
0.00
Profits (Losses)
before income
taxes
56.41
396.82
(50.15)
(27.63)
9.95
(0.02)
(14.89)
(2.87)
15.45
(39.56)
12.41
62.59
309.34
0.36
(0.28)
(0.92)
(0.11)
(3.30)
(0.22)
(133.28)
0.00
(0.07)
0.81
(0.02)
(0.09)
11.91
(82.25)
(2.62)
(1.06)
Total
72.40
1.097.75
105.04
131.02
75.80
0.00
21.31
11.78
597.88
1,013.37
118.85
107.14
2,575.46
0.00
0.45
1.61
0.00
0.30
350.43
236.73
0.01
0.00
91.19
0.00
0.00
361.99
669.34
172.62
0.05
Paid income
taxes
(based on cash
accounting
2.26
8.85
17.02
0.11
0.81
0.00
0.03
0.00
9.17
0.00
0.59
1.37
10.61
0.02
0.35
0.00
0.00
0.00
2.10
7.90
0.00
(0.07)
4.49
0.00
0.00
0.00
0.00
0.59
0.00
Accrued
income taxes
(current year)
5.07
13.24
11.86
0.01
(0.40)
0.00
0.00
0.00
10.08
4.93
1.94
2.19
22.33
0.36
(0.06)
0.00
0.00
0.00
1.92
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.22
0.00
Number
of employees
42
360
1,504
388
167
0
332
0
98
1,006
166
567
6,092
280
0
3
0
230
338
172
0
0
326
0
1
1,326
763
330
8
The aggregate data by tax jurisdiction is as follows:
≥ Total revenues: the sum of revenue generated in the tax jurisdiction in the reference year by all Group
entities resident or operating there through branches or PEs is indicated, with separate evidence of
revenue generated by transactions with third parties ("Unrelated parties") and intra-group transactions
(“Related parties”). Revenue include all positive income elements, such as, for example: revenue from the
sale of products and the provision of services, royalties received for the rights to use industrial patents,
active interests, capital gains on the sale of plant, property and equipment, intangible assets and equity
investments, unrealised gains (such as the fair value of non-hedging derivatives); however, intra-group
dividends are excluded. Furthermore, positive income components recognised in the overall result are
excluded.
≥ Profits (Losses) before income taxes: the sum of profits and losses before income taxes recorded in the
reference year by all Group entities resident in the tax jurisdiction or operating there through branches or
PEs is indicated. The result before taxes, consistently with the criterion for revenue representation,
excludes intra-group dividends received by the holding companies.
≥ Income taxes paid (based on cash accounting): the income taxes paid in cash in the reference year by
all Group entities resident in the tax jurisdiction or operating there through branches or PEs, both to the tax
jurisdiction of residence and all other tax jurisdictions. Entities, as tax withholding agents are charged with
withholding taxes paid by other companies of the Group: such taxes are applied on the compensation paid
by the latter to the former mainly for the provision of services.
≥ Income taxes accrued (current year): current taxes accrued on the pre-tax result for the financial year
are indicated, recorded by all Group entities resident in the tax jurisdiction or operating there through
branches or PEs. Deferred tax assets or liabilities and the recognition of uncertain tax treatments are
excluded.
≥ Number of employees: represents the total average number of employees, calculated for the period
under observation and on an FTE basis, i.e. full-time equivalent, employed by all entities (including branches
and PEs) within the Group and resident for tax purposes in a specific tax jurisdiction.
≥ Reporting currency: the reporting currency is the euro. Amounts are indicated in € million. Values in
currencies other than the euro are converted using the average exchange rate recorded in the year under
observation.
\ 130
GRI 2-6
GRI 2-6
GRI 204-1
GRI 204-1
CONSOLIDATED NON-FINANCIAL STATEMENT
≥ Sector of activity: for each entity of the Group (company, branch or PE) the main economic activity
carried out, according to the OECD indications on Country-by-Country reporting, is indicated.
Further details on the operational activities of each entity are available in Annex II.
Supply chain management
In executing its operational projects, and in the normal course of its activities, the Saipem Group relies on
numerous vendors of works, goods and services. Saipem is committed to maintaining and improving
relations with the companies that work with and for Saipem to make them lasting, mutually profitable and
reliable for both parties.
Saipem’s business is characterised by a highly complex global supply chain, covering different geographical
areas and different industrial sectors. To date, the Group registers almost 22,000 qualified suppliers, with a
prevalence (31%) of suppliers in the European area. In over 60 years of business in numerous countries in
the world, Saipem has created a consistent network of partners and vendors; more than 6,000 vendors have
worked with Saipem for at least 10 years.
The product categories of works, goods and services required to perform Saipem’s activities, classified to
define uniform vendor-product combinations, total more than 1,600, of which approximately 900 are
classified as critical categories, i.e. deemed essential for the development of the Company’s core business.
In 2023, those most represented in terms of amount purchased are related to mechanical assembly,
chartering of vessels, purchase of package systems for ballast water treatment, construction of onshore
pipelines, personnel services. During the year, purchases were made mainly from vendors located in Europe,
Middle East and Central Asia.
The complexity and heterogeneity of the Company’s supply chain lead to the need for a system
guaranteeing an alignment between the Saipem standards and those adopted by its vendors, to prevent and
mitigate risks and ensure an appropriate and resilient supply chain that can cope with the needs of current
operational projects and potential acquisitions and developments in market conditions.
Saipem demands that its vendors apply the highest standards in relation to health and safety, combating
bribery and corruption, respect for human rights and environmental protection.
The procurement process, aiming to satisfy the needs expressed by the Group's different units, aims to
maximise the overall value for Saipem, guaranteeing the availability and quality of the vendors, the correct
management of contracts, logistic flows and post-order activities. The process is divided into five
sub-processes which include, in order: the definition of the market approach strategy to be applied to the
various supplies and the definition of project and non-project procurement plans using efficient and effective
purchasing solutions; contract/purchase order processing and issue activities, including relations with
vendors, and finally post-order activities and contract management. The supply chain flow described above
is further divided into the sub-process relating to Vendor Management, which ensures the availability of a
fleet of vendors that is quantitatively and qualitatively appropriate to the goods, works and services required
to meet the Group’s needs, according to the required economic, financial, ethical, professional, technical and
HSE standards; finally, the sub-process relating to Reporting, control and management of documentation,
which, through the management of documentation, guarantees the traceability of all phases of the Supply
indicators and possible actions for
Chain process, making available
improvement in relation to all supply chain activities.
information, key performance
The supply chain process
According to the principle of open competition, Saipem guarantees equal commercial opportunities for all
companies which may potentially provide works, goods and services for its business, selecting its vendors
and subcontractors from all over the world. Vendors are assessed in terms of technical and financial
reliability and organisational capacity, including conformity with the principles expressed in the Saipem Code
of Ethics, Sustainability Policy and Vendor Code of Conduct, as well as the requirements laid down in the
specific HSE policies and standards.
The requirements are checked during the vendor qualification phase using a questionnaire, and where
required also through more specific assessments and visits to production sites in the case of critical
supplies. Additional checks on technical aspects and the vendor's ethical integrity are also carried out prior
to the signature of actual purchase contracts.
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SAIPEM ANNUAL REPORT 2023
The monitoring and control of vendor performances are fundamental phases of the relational process with
vendors, as these offer a reduction in the risks associated with the supply and provide inputs to the vendor
aiming to improve their own processes and performance.
More details on the management of the supply chain in terms of the sustainability of their operations, with
particular attention to the respect for human rights and HSE issues, are available in the “A sustainable supply
chain” section of this document.
Respect for Human and labour rights
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Saipem operates within the framework of the United Nations Universal Declaration of Human Rights, the ILO
Fundamental Conventions, the OECD Convention for Multinational Enterprises, the Guiding Principles on
Business and Human Rights and the principles of the United Nations Global Compact.
In 2016, Saipem joined the United Nations Global Compact, further strengthening its principles on major
issues such as respect for human and labour rights, environmental protection and the fight against
corruption integrated into strategies, policies and procedures, as well as in daily operations of society.
In 2020, the Chief Executive Officer signed the "CEO Guide to Human Rights" drawn up by the World
Business Council on Sustainable Development (WBCSD), the international call to action addressed to top
management on human rights issues.
Since 2016, Saipem has published a Statement every year, in compliance with the UK Modern Slavery Act, to
describe the processes and measures adopted to identify and manage the risks associated to modern
slavery and human trafficking in operations and along the supply chain.
Saipem's commitment is expressed in company policies and procedures which are in line with international
labour regulations and guidelines, as well as with the labour laws of the countries in which it operates.
Saipem's Code of Ethics sanctions the rejection of any form of discrimination, corruption, forced or child
labour. The code promotes human rights and the safeguarding of the dignity, freedom and equality of human
beings, including the protection of labour rights and freedom of trade union membership and health and
safety. Saipem's Code of Ethics strictly requires that there is no workplace harassment and protects against
any form of discrimination, whether based on gender, ethnicity, religious beliefs, age, marital status or any
other aspect. The Code of Ethics applies to all of Saipem's population, as well as to third parties with whom
Saipem collaborates.
The Sustainability Policy reinforces Saipem's commitment to promoting and respecting human and labour
rights together with the protection of health, security and personal safety which are non-negotiable values
for the company, and which suppliers, clients and subcontractors must subscribe to work with our Company.
Saipem's Human Rights Policy details the specific areas in which the commitment to protect human rights
takes place, with particular reference to the protection of workers' dignity, also within the supply chain, the
relationship with local communities, and security management.
Saipem’s approach to human rights
Saipem's commitment and management model on this aspect is organised on the most significant business
areas and activities, according to the risks and impacts on human and labour rights (HLR), in line with
international standards.
Country risk analysis on human and labour rights (HLR)
Operating in more than 50 countries with different social, economic and cultural contexts, it is essential for
Saipem to analyse the potential risks associated with activities in the various local contexts. Therefore, for
each country in which Saipem operates, a specific analysis is carried out based on a study of the legislation
in force and the state of ratification of ILO fundamental conventions relating to: child labour, forced labour,
non-discrimination in employment and occupation, freedom of association and collective bargaining. Further
information on the country is taken from studies and analyses carried out by international organisations and
NGOs (e.g. ITUC, Human Rights Watch) dealing with labour rights and human trafficking.
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Based on the results of the analysis, the countries are classified in relation to human and labour rights risks
into four distinct risk categories: high, medium, moderate and low. Saipem uses this classification for the
supplier qualification process, the identification of high-risk suppliers for possible audits, as well as for the
operational human and labour rights due diligence as described in the following section.
Based on this analysis, 44% of Saipem's main operating companies are based in high-risk countries, while
the remaining 56% are located in medium-, moderate- and low-risk countries.
Due Diligence on human rights at operational sites (HLR risk register)
Starting from 2021, Saipem has introduced a system for identifying and assessing risks of impact on human
and labour rights (HLR) through a special register that allows for the identification and classification of the
potential impacts that the Company can generate during operations and define proper mitigation actions.
This register also integrates the country risk assessment in order to highlight any systemic risks due to the
country context.
During 2022, the tool was revised with a view to strengthening the methodology and alignment with the
requirements of the "OECD Due Diligence Guidance for Responsible Business Conduct".
Starting from 2022 the implementation of the HLR risk register started in all countries where Saipem's
operating activities can generate a significant impact on the issue. The implementation of the tool and
monitoring of results were based on two criteria: the related level of country risk and the significance of
Saipem's presence, in terms of employees on site.
During 2023, 36 companies and subsidiaries operating in 35 countries completed the registry. Risk mapping
was carried out by 80% of the relevant operating companies at work in high-risk countries, and by 88% of the
operating companies at work in countries classified as medium and low risk.
The potential impacts identified include freedom of association in some countries, discrimination and
respect for working hours and overtime, risks connected to labour rights and decent working conditions at
supplier premises, risks deriving from abuse of force by security service providers in some contexts.
Based on the results of the risk assessment, and, to mitigate the potential impacts, a series of actions,
already carried out in 2023 or planned for 2024, were identified; they were then reported in the action plan for
each operating company. Among the actions initiated with regard to suppliers and employment agencies, in
some countries compliance checks with local legislation on labour rights were carried out.
Human rights on the workplace
In March 2022, Saipem SpA obtained SA8000 Social Accountability International (SAI) certification
confirming the application of a social responsibility management system in the context of human rights,
workers' rights and their well-being within the company. The SA8000 certification, issued by DNV, an
international leader in the sector, is an international global ethical certification of a voluntary nature which
commits companies to also monitor their supply chains, triggering a virtuous circle throughout it. This
certification guarantees compliance to the best international guidelines and ethical rules defined by leading
world organisations on the protection of human and labour rights, such as the ILO (International Labour
Organisation) and related UN conventions.
Obtaining and maintaining it during 2023 represent an important confirmation of Saipem's commitment to
sustainability in a process of continuous improvement, particularly in some essential areas such as respect
for human rights, respect for labour law, protection against child exploitation and guarantees of health and
safety in the workplace, freedom of association and the right to collective bargaining along the entire value
chain of the company's activity.
Other information relating to people management and industrial relations is included in the specific chapters.
Global Projects Services (GPS AG) is a wholly owned subsidiary within the Saipem Group which has held a
license for international recruitment and supply of personnel services since 1994 and is also an agent of
Seafarer's Recruitment and Placement Services in compliance with ILO MLC 2006. GPS AG is a human
resources centre of excellence providing a complex range of work-related services. GPS AG is supported by
local employment agencies which are continuously monitored to verify how they manage sensitive
processes such as hiring practices. This monitoring includes a documentary check of the technical
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SAIPEM ANNUAL REPORT 2023
capabilities in advance of the provision of services, inspections at supplier premises and/or remotely, as well
as telephone interviews with personnel recruited through said agencies. In 2023, 2 audits were carried out
pursuant to the ISO 9001:2015 standard on already qualified suppliers in relation to the contractual terms
and conditions agreed for the provision of the service, and the documentary assessment of the technical
capabilities of 240 potential new HR service suppliers. In addition, 77 international workers recruited with the
support of agencies, but with an employment contract with GPS AG, were interviewed by telephone, outside
their workplace, to gather their opinion on the management of their recruitment and other administrative
practices. There were no reports of behaviour contrary to human and labour rights. In 2022 GPS AG created
a further tool to monitor and understand the level of satisfaction of international staff in an agile way, with the
intention of both establishing and facilitating communication with those workers who are less proficient in
the English language, and possibly directing them towards the correct interlocutor. At the end of the second
year of implementation of the tool mentioned, a staff satisfaction level of over 97% was recorded. The
provision of training to agencies via e-learning on Saipem's ethical principles also continued. During 2023, 8
agencies were involved. The new module of this e-learning training dealt with passive corruption with the
sharing of a video.
Security and human rights
Saipem is committed to adopting preventive measures aimed at reducing the need for response by
public/private security forces in the case of any threats to the safety of its people and the integrity of its
assets. Saipem manages relations with local security forces to ensure a shared commitment to human
rights, as well as the adoption of rules of engagement that limit the use of force and the impact on local
communities. Before signing a contract, due diligence of suppliers of security systems and services is
performed to verify if there are indicators linked to the violation of human rights. In 2010, Saipem introduced
clauses relating to respect for human rights in contracts with these suppliers and failure to comply with the
clauses will result in the termination of the contract.
Collaborations and training activities
Collaboration continued in 2023 within Building Responsibly (BR), a coalition of leading engineering and
construction companies working together to raise the bar in promoting workers' rights and well-being across
the sector.
As part of a broader initiative aimed at spreading awareness on human rights and the principles of decent
work, as well as on the most recent requirements of European legislation, two training sessions were
organised for 27 HSE managers based in Saipem branches abroad. At the end of the training sessions, the
HSE managers received materials, such as posters and videos, summarising Saipem principles on labour
rights and the internal whistleblowing process to be used during the HSE induction activities in their area.
After the training, the human rights topic was integrated into the HSE inductions for the following areas and
projects: onshore projects in Kuwait and Saudi Arabia, offices and construction site in Indonesia, offices in
China and Malaysia, projects in Nigeria and Mozambique. The topic was also included in the Project
Management meeting of the Balein project in Ivory Coast.
Saipem has launched an e-learning training programme in 2020, specifically dedicated to people who work in
Security functions. Training includes a specific focus on ethics and compliance, including respecting and
promoting human rights. From 2020, a total of 129 people completed the training.
Since 2016, Saipem has implemented a training programme on “human rights and the supply chain” to train
Saipem's procurement functions, mainly Post Order. The training envisages a focus on international
standards and internal policies, the actions that can be implemented and the role of employees on these
issues. The training aims to instruct employees who interact directly with vendors on the importance of
reporting serious situations they may observe during visits to vendors. Training is provided through an
e-learning platform. In the period 2016-2023, a total of 811 employees were trained, covering the entire
population of Post-Order functions. Starting in 2020, the training is available to all new hires in the functions
concerned.
Furthermore, in order to involve the entire Supply Chain Function, new training on the "Sustainable Supply
Chain" was launched in 2023 which focuses on human and labour rights and environmental issues. The
training aims to strengthen knowledge of these topics, with particular reference to the risks and impacts
associated with our suppliers and subcontractors, and along the entire supply chain. Two training sessions
involving 38 people from the Supply Chain function were organised in 2023, and e-learning training will be
launched in 2024 to cover the rest of the function members.
Security and cybersecurity practices
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Saipem's corporate security model is based on an accurate analysis of what is called the "Operational
Environment” (i.e. the understanding of the local context from a political, criminal, economic, ethical, social
and legality perspective) aimed at identifying the mitigation measures necessary to guarantee the business a
suitable "security framework" within which to develop the company's activities. For the physical safety of
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people we must protect, the UNI 31000 standard on "Risk management - Principles and guidelines” is the
reference.
Following what has been stated above, Saipem:
≥ manages security risk by taking preventive and defensive measures, in full compliance with regulations,
human rights and the highest international standards;
≥ promotes the adoption of a uniform and integrated security system to ensure appropriate coordination of
emergency and crisis management;
≥ ensures the management of information gathered from stakeholders in full compliance with the law and
adopting international best practices;
≥ promotes the monitoring and management of security risks by designing optimal solutions that minimise
the impact of adverse events and their likelihood of occurrence;
≥ sets up the most effective protection plans and mechanisms to safeguard the Company’s personnel and
assets;
≥ guarantees training and information to personnel on the security risks in the workplace, starting from the
pre-travel phase.
Main security risk mitigation actions carried out in 2023:
≥ constant monitoring of the main threats to the operational security and verification of the adequacy of the
countermeasures adopted by means of a structured risk management process;
≥ organising local security at country, operating company and/or project level, under the coordination of
Area Security Manager functions;
≥ involvement of the Security function in the project life-cycle, starting from the project bid phase
(commercial);
≥ strengthening the corporate culture on Security;
≥ cooperation with the Ministry of Foreign Affairs and its Crisis Unit and local authorities in the countries
hosting Saipem operations;
≥ emergency and crisis management plans - evacuation;
≥ introduction of mandatory training initiatives on Health and Safety for personnel going abroad before
induction), as well as on
Induction) and once at destination (local security
departure (pre-travel
Cybersecurity awareness;
≥ compliance with regulations and sector frameworks (Italian Legislative Decree No. 81/2008, Italian
Legislative Decree No. 231/2001, ISO 31000 and ISO 27001).
The Company manages relations with local security forces to ensure a shared commitment to human rights,
as well as the adoption of rules of engagement that limit the use of force.
Before signing a contract, providers of security goods and services are subjected to a due diligence to verify
that there are no counter-indications connected with the violation of human rights.
Saipem has introduced clauses regarding the respect for human rights in its contracts with these vendors
since 2010, and failure to observe them leads to the withdrawal of the Company from the contract.
For project activities, Saipem’s Security Function prior to the possible offer, carries out a dedicated Security
Risk Assessment, reported in the Project Security Execution Plan, in which the security risk connected with
the operating activities and the context is analysed, including human rights violation issues. On the basis of
the risks identified, the actions needed both to manage and reduce these to a minimum are decided upon.
Potential breaches of human rights are in fact assessed in all the Company’s operations using country risk
sheets, in which the risk is assessed using specific quantitative and qualitative indicators.
Regarding the international scenario, the reignition of the Israeli-Palestinian conflict brings instability back to
a region that has always been at the centre of tensions. In this context, the evacuation of 63 Saipem
expatriates based in Israel (of which 15 were Italians) by air from the Ben Gurion airport in Tel Aviv was
successfully completed.
Cybersecurity
Cybersecurity is an important pillar of corporate security management as a whole. Saipem has implemented
a Data Protection (FNCS) tool to mitigate threats through solid security and governance protocols.
Saipem has identified a Chief Security and Information Security Officer who reports to the Director of People,
HSEQ & Sustainability.
Saipem continues to maintain its ISO 27001 “Information Security Management System” certification for the
“Cybersecurity Incident Monitoring and Management” process.
In 2023, the Information Security and Data Management Programme continued consisting of the following
strands: Identity Management & Access Governance, Data Governance, Encrypted Traffic Protection,
Network Segmentation, Operational Technology Security, Privileged Access Management, The
Programme has the aim of further increasing the level of IT security of application and infrastructure
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SAIPEM ANNUAL REPORT 2023
resources and the protection of corporate information and know-how, minimising the risk of critical
information resources being lost, compromised or made unavailable. The duration of the programme initially
planned to be two years was extended by one year.
In 2023, the Vendor Management integrated in its process a list of minimum cybersecurity requirements to
which all suppliers will have to comply. Deviations from a minimum threshold will be followed by remediation
actions and plans in order to be qualified.
To further strengthen internal skills on the topic, training campaigns continued in 2023, for a total of 18,187
hours for the Group perimeter (18,177 for the full consolidated).
The cybersecurity performance is described below.
Cyber incidents
- of which critical cyber incidents
Vulnerabilities identified
Critical vulnerabilities
No. of information breach
2023
39,396
-
104,177
1
-
2022
32,256
-
32,968
6
-
With regards to system resilience assessments, Vulnerability Assessments are carried out on a monthly
basis. Furthermore, Penetration Tests (a simulated cyber-attack to verify the resilience of security measures)
are performed annually on representative perimeters defined from time to time.
Furthermore, simulated phishing campaigns are also launched to evaluate opportunities for further training
initiatives. In 2024 there are plans to increase the frequency of these campaigns.
In line with the requirements of Resolution MSC.428 (98) “Maritime Cyber Risk Management in Safety
Management Systems” of the International Maritime Organization (IMO), considers cyber risk among the risks
that can impact the safety of its fleet, its personnel and the environment.
Cybersecurity Officers have also been appointed (on board each vessel), who, are suitable for acquiring
cyber skills.
Cyber attack drills were also performed on board the vessels, according to scenarios and models which are
an integral part of Saipem SpA's emergency and crisis management system.
The function maintains close contact with the local authorities/embassies in the countries in which it
operates and, at a central level with the Crisis Unit of the Ministry of Foreign Affairs.
The correct functioning of the Security Model, which includes Saipem's cybersecurity issues, is constantly
monitored by the Audit and Risk Committee which reports to the Board of Directors and by the corporate
INAU function.
Saipem internally carries out technical audits on peripheral corporate security functions, up to projects, to
verify compliance with security instructions and guidelines.
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CONSOLIDATED NON-FINANCIAL STATEMENT
CONTRIBUTION TO MITIGATING CLIMATE CHANGE
Since 2020, Saipem has been an official supporter of the recommendations of the Task Force on
Climate-Related Financial Disclosure.
As described in the “Governance” section, the Board of Directors is involved in the strategic discussion on
issues related to climate change and its implications on corporate strategy and programmes.
The sustainability objectives for 2023 included in the company's Short- and Long-Term Variable Incentive
Plan include objectives linked to actions related to climate change (with a weight equal to 5% for the
short-term objective, and overall equal to 10% for the long-term objective).
Short-term sustainability objective relating to climate change, and concerning greenhouse gas emissions
avoided in the year, was achieved with an overall saving of 47 kt of CO2 eq thanks to the implementation of
energy efficiency and saving initiatives.
The 2024 Remuneration Policy also confirms Saipem's attention to sustainability objectives and support for
the achievement of the Net Zero programme objectives. In this context, for 2024, the climate targets are
included in both the Short- and Long-Term Incentive Plan, as described in the 2024 “Report on
Remuneration Policy and Compensation Paid”.
Climate-related risks
The climate-related risk analysis process is integrated into Saipem's risk assessment and governance,
described in the section "Approach to risk management".
The Company's operations are inherently exposed to both physical and transition risks from climate change.
Risk category
HSE risks and project execution risks
Strategic risks and risks connected to project
technical complexity/novelty
Strategic risks
Financial risks
>
>
>
>
Climate-related risks included
Physical risk - acute
Transition risk - technology
Transition risk - legislation
Transition risk - market
Below is a presentation of the main risks identified for which it was possible to make a quantitative
assessment of the potential impact (in financial terms) resulting from an internal assessment focused on the
climate-related component of the risks.
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SAIPEM ANNUAL REPORT 2023
CLIMATE-RELATED RISKS
Types of
risks
Physical risk:
≥ acute
Risk
Accidents in
assets and
transport
Accidents/significant
impacts that may occur
on strategic assets and
operational projects due
to meteorological events
Risk description Evaluation
Time
horizon:
≥ short and
medium
term
Likelihood:
≥ likely
Transition
risk:
≥ technology
Project
complexity
(technical
novelty/scop
e of work)
Risk in the execution of
new projects to support
the energy transition
(offshore wind project)
Transition
risk:
≥ technology
Technology
innovation
Loss of business
opportunities for energy
transition projects
related to new
technologies
Time
horizon:
≥ short and
medium
term
Likelihood:
≥ moderate
Time
horizon:
≥ short and
medium
term
Likelihood:
≥ moderate
Transition
risk:
≥ regulatory
Emerging
sustainability
trends
Impacts on business
activities deriving from
the evolution of
regulatory framework
(e.g., carbon tax, ETS,
CBAM, etc.)
Time
horizon:
≥ Short
term
Likelihood:
≥ likely
Impact
magnitude*
Significant
Significant
Significant
Negligible
Financial
impact
This risk may
lead to impacts
in terms of
increased
operating
costs, delays in
operational
activities and
erosion of
project
margins.
Increased
operational
costs in
project
execution,
delays in
operational
projects and
erosion of
project
margins.
Loss of
business
opportunities.
Erosion of
project
margins due to
increased
operating
costs related
to CO2
emission fees
and cost of
supplies.
Transition
risk:
≥ market
ESG financial
components
and
constraints
Loss of business
opportunities linked to
difficulty in obtaining bank
guarantees
Loss of
business
opportunities.
Significant
Time
horizon:
≥ Short
term
Likelihood:
≥ rare
Mitigation measures
The main risk mitigation
actions are:
≥ insurance coverage;
≥ inclusion of contract
clauses related to weather
events;
≥ HSE and vessel
management system;
≥ specialised training for
employees on technical and
HSE topics.
Sharing of best practices
and lessons learnt,
development of contractual
clauses to protect
business specificities,
training and development
of personnel skills.
Analysis and identification
of market and
technological trends.
Benchmarking and
alignment of Saipem with
the open innovation efforts
of clients and competitors.
Strategic partnership.
Innovation spending on
energy transition
technologies.
Monitoring of GHG
emissions regulation,
launch of
Net Zero programme,
implementation of
initiatives to increase
energy efficiency, regular
maintenance and upgrade
of Saipem's assets to
continuously improve
environmental
performance, involvement
of suppliers on emission
reduction strategies.
The main risk mitigation
actions are:
≥ initiatives to increase the
limit of available lines;
≥ negotiating with clients;
≥ increase in the use of
insurance instruments;
≥ continuous monitoring.
(*) The Magnitude ranges are 5: Negligible, Significant, Relevant, Very relevant and Extreme. The estimated likelihood ranges are 5: Rare, Unlikely, Moderate, Likely and More
Than Likely. The entity of the economic-financial impact is estimated considering the time horizon of the Strategic Plan.
Climate-related opportunities
Opportunities associated with products and services are primarily assessed and managed in terms of
business development, taking into consideration Saipem's competitive positioning, the identification of the
main future challenges in the reference sector and the possibilities of diversifying the business portfolio as
analysed in the Company's Strategic Plan. The main opportunities listed concern "products and services"
and efficient use of resources.
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CONSOLIDATED NON-FINANCIAL STATEMENT
CLIMATE-RELATED OPPORTUNITIES
Type of
opportunity
Products and
services
Description
Increased
revenues in
decarbonisation
and circular
economy projects.
Evaluation
Time horizon:
≥ medium term
Likelihood:
≥ very likely
Impact
magnitude*
Very relevant
Financial impact
Impact associated with
the existing backlog
and potential new
acquisitions related to
decarbonisation and
circular economy
projects in the
strategic plan horizon.
Products and
services
Revenue increase
in the renewable
business segment.
Relevant
Time horizon:
≥ medium term
Likelihood:
≥ very likely
Impact associated with
the existing backlog
and potential new
acquisitions related to
renewable energy
projects in the
strategic plan horizon.
Products and
services
Increased
revenues in low-
carbon business
segments such as
rail infrastructure.
Time horizon:
≥ medium term
Likelihood:
≥ very likely
Significant
Impact associated with
the existing backlog
and potential new
acquisitions related to
infrastructure projects
in the strategic plan
horizon.
Efficient use of
resources
Offering more
efficient and cost-
optimised solutions
through the use of
energy-efficient
solutions on
vessels and at
sites.
Time horizon:
≥ medium term
Likelihood:
≥ very likely
Reduction of fuel and
electricity consumption
costs through the
implementation of
energy efficiency
solutions already
identified in the Net
Zero Plan.
Negligible
Method for managing
opportunities
Commercial focus on
decarbonisation and
circular economy
projects.
Cooperation with
relevant clients and
institutions.
Innovation and R&D on
new technologies
activities, also through
collaborations and
partnerships.
Specific business line
focused on offshore
wind.
Commercial focus on
renewable energy
projects, particularly
offshore wind.
Cooperation with
relevant clients and
institutions.
Innovation and R&D
activities also through
collaborations and
partnerships.
Specific business line
focused on
infrastructure projects.
Commercial focus
tailored to rail
infrastructure.
Collaboration with
partners and suppliers
to develop innovative
solutions in terms of
digitisation and
sustainable
infrastructure.
Collaboration with key
clients/institutions to
develop new sustainable
infrastructure
solutions.
Carrying out energy
assessments to identify
suitable solutions and
maximise savings.
Design and
implementation of
measures and actions
aimed at reducing
energy consumption
and greenhouse gas
emissions.
(*) The Magnitude ranges are 5: Negligible, Significant, Relevant, Very relevant and Extreme. The estimated likelihood ranges are 5: Rare, Unlikely, Moderate, Likely and More
Than Likely. The entity of the economic-financial impact is estimated considering the time horizon of the Strategic Plan.
The strategy of mitigating risks and maximising opportunities focuses on two main pillars:
≥ expand the range of low carbon technologies and support clients' decarbonisation process and energetic
transition;
≥ improve the efficiency of its assets and operations to reduce its greenhouse gas emissions.
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SAIPEM ANNUAL REPORT 2023
Analysis of the climate-related scenario
Saipem is aware that climate change may have a significant direct and indirect impact on its business
operations. Due to the nature of these impacts, the effect can be analysed in the short-, medium- (range of
the strategic plan) and long-term, also depending on the socio-economic, energy and climate scenarios that
can be considered. For Saipem Group, the assessment of the long-term drivers (2050) of the external
context is based on the analysis of various scenarios: each of these represents a possible path towards a
different market structure.
Saipem, in formulating its strategies, considers a series of scenarios provided by a third party (Rystad
Energy), which include various forecasts of temperature increases by 2100, starting from the Net-Zero
scenarios (+1.5°C) up to those with a high climatic impact (+2.5 °C). The analysis of the scenarios presented
to the Board of Directors is confirmed as a fundamental element for the definition of the four-year Strategic
Plan.
In particular, the reference scenario is the one which foresees a rise in temperature of 1.9 °C at the end of the
century, in line with a C3 category scenario, as identified by the International Panel of Climate Change (IPCC)
in its Sixth Assessment Report. For a sensitivity analysis and for its resilience analysis, Saipem also uses, in
addition to the aforementioned central scenario, an improvement scenario of 1.6 °C (intermediate between
that identified by Net Zero Emissions (NZE) – +1.5 °C – and the Announced Pledges Scenario (APS) – +1.7 °C
– of the International Energy Agency), while the worsening scenario refers to a 2.2 °C scenario.
Analysis of scenarios considers the macroeconomic, social and possible demand trends of the various
energy sources which are deemed may have a visible impact on the main drivers of the business for the
entire Saipem Group.
Long- and medium- and short-term scenarios are analysed during the planning process and are included
amongst the elements for defining the Strategic Plan; these are updated every year, discussed with the Top
Management and covered by dedicated meetings of the Board of Directors, also making use of different
external sources (forecasts from analysts, companies from the sector, intergovernmental organisations and
other stakeholders and consultants).
Our strategy to support decarbonisation and the energy transition
As indicated in the paragraph on the development of the market scenario and strategy, hydrocarbons are
expected to continue to provide an important contribution to the energy mix in the medium-term, to then
mark a gradual decline in the longer term (with likely accelerated timing for oil compared to natural gas in the
different scenarios). In this context, large-scale investments in oil and particularly in gas infrastructures will
remain necessary in the medium and long term, and it is expected that traditional clients will continue to
invest in long-term strategic projects, particularly in some key regions including the Middle East.
Cutting-edge technological solutions with lower environmental impact will increasingly be in demand, and
this is a huge opportunity for Saipem. In line with what was during COP28, in this phase of energy transition,
various scenarios highlight the role of some clean technologies and "hybrid" solutions which involve the
integrated use, where possible, of fossil fuels and renewable sources. Through CCUS technology it is
possible to significantly reduce direct CO2 emissions from various industrial processes, in particular heavy
industries (such as steel and cement), as well as to allow the production of "Blue Hydrogen", the basis to
produce low-carbon fertilisers. In the medium- long-term, the development of technologies and skills,
combined with economies of scale and modularisation, will make it possible to produce hydrogen from
renewable sources and electrolysis of water (“Green Hydrogen”) both for simultaneous use and in
replacement of Blue Hydrogen.
The commitment towards technological development, confirmed by the industrialisation of Bluenzyme™ in
the field of carbon dioxide capture, the constant adaptation of the mix of expertise and innovation initiatives
and its support to clients in defining the best technical and operating solutions from the perspective of the
entire life-cycle of plants, are the most effective instruments Saipem is using to deal with the challenges
linked to climate change which the industry is facing. Moreover, diversification in less carbon-intensive
business segments (i.e. biorefineries, chemical plastic recycling, blue/green hydrogen, etc.) and, where
possible, adjacent sectors in which Saipem can exploit its expertise (such as the largest and most complex
infrastructure projects), will remain a strategic pillar in coming years.
Saipem’s Net Zero programme
Saipem's Net Zero Programme, within the broader Sustainability Plan “Our journey to a sustainable business”,
aims to achieve Net Zero for Scope 1, 2, 3 emissions by 2050.
Furthermore, the programme has identified two specific short- and medium-term objectives:
≥ 50% reduction in Scope 1 and 2 emissions by 2035 (based on 2018 GHG emissions);
≥ carbon neutrality for Scope 2 emissions by 2025.
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CONSOLIDATED NON-FINANCIAL STATEMENT
The Net-Zero Programme involves various corporate functions both at Group level and at Business Line level
which contribute to achieving the stated objectives. The cross-functional working groups participating in the
programme have been created by bringing together extensive skills and knowledge, and the implementation
plan is transversal to the entire Group and to the corporate functions involved in its implementation. Like the
Strategic Plan, the Plan is valid for four years and can be updated. Based on a medium-long term systemic
vision, it identifies long-term actions that could be implemented.
The Programme and its contents were validated by an independent third-party (Bureau Veritas) at the end of
2021.
Renewal of third-party validation is scheduled for 2024.
The Programme and the related objectives are updated following current and future developments of the
context, such as new regulatory and external market pressure, stakeholder expectations, including requests
from clients, analysis of benchmarks, technological developments, availability of energy scenarios and other
similar inputs.
Saipem's approach to Net-Zero is irreversible and systematic, aiming for continuous improvement both
internally and along the value chain. Saipem aspires to create "change agents", both inside and outside its
organisation, involving its clients, suppliers and all the players in its value chain.
The reduction activities envisaged by the Net Zero Programme refer to Scope 1, Scope 2 and Scope 3
emissions, according to the methods described below and the principles set out in the document "Net Zero
at a Glance", published in July 2023 and available on the institutional website.
Planned actions for the reduction of Scope 1 and 2 emissions
The reduction of Saipem’s direct emissions will hinge on the three “R”s: retrofit, renewal and renewables. The
main goal of these phases is to reduce the carbon footprint of all of Saipem’s assets, such as vessels, rigs
and TCFs (Temporary Construction Facilities).
Retrofit: Phase I, increasing the energy efficiency of Saipem's operations through the use of the best
available technologies (2018-2030).
Renewal: Phase II, replacing assets with innovative assets that are more energy efficient and with lower GHG
emissions, thanks also to digitalisation and, for example, unmanned operations (2030-2040).
Renewables/CCS: Phase III of massive use of renewable energies and technologies, both traditional and
advanced (such as marine and floating solar energy), and possible application of Carbon Capture and
Storage technologies on assets (2040-2050).
Furthermore, Scope 1 and 2 emissions will also be reduced thanks to:
≥ use of alternative fuels: replacing fossil fuels with low carbon-emission fuels, such as the use of HVO
biodiesel instead of fossil fuels;
≥ electrification: switching from electricity generation with fuel-powered generators to grid power where
possible.
To meet the Scope 2 target, priority will be given to the following criteria, in order of importance:
1. energy saving and efficiency;
2. renewable energy from the grid or self-produced from renewable sources;
3. offsetting of residual emissions, after all the measures above have been implemented.
Periodical energy assessments on our main assets are carried out/updated to contain energy consumption.
Energy flows and consumption will also be constantly monitored.
During 2023, Saipem financed part of offsetting projects, acquiring a total of 100,000 carbon credits
equivalent to 100,000 tonnes of CO2 eq not emitted. Investments have been directed towards a diverse
project portfolio, from forest conservation to the promotion of renewable energy sources. The portfolio is
mainly composed of nature-based projects, of the REDD+ type (Reduction of Emissions from Deforestation
and Forest Degradation), selected on the basis of additional benefits both environmental (supporting
Saipem's proactive role in the protection of biodiversity and ecosystems), and social (promoting the
sustainable development of local communities).
A risk assessment model has been developed internally to analyse the risks associated with the offsetting
projects we have already invested in, as well as to evaluate potential projects for the next portfolio.
Planned actions for the reduction of Scope 3 emissions
With regard to Scope 3, Saipem will support clients, suppliers and different players in the value chain on their
decarbonisation path, acting as a facilitator of low impact strategies and technologies in terms of
greenhouse gas emissions while playing a key role in the energy transition. The ultimate aim is to set
reduction targets as soon as possible, in the context of the Net Zero Programme, in eligible areas of Scope 3,
over which a certain degree of control can be exercised, such as mobility and supply chain.
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SAIPEM ANNUAL REPORT 2023
In this regard, in the context of the Net Zero Programme, Saipem is working to offer clients "Carbon Neutral"
construction sites or projects, introducing, in synergy with the clients themselves, technical measures of
efficiency and reduction in emissions, self-produced renewable energy and energy from the network, all
completed by insetting and offsetting projects, for the compensation of residual emissions.
Regarding the supply chain, a specific workstream was identified in this area with the aim of strengthening:
≥ the monitoring of ESG performance in the supply chain; to this end, Saipem has adopted the Open-es
platform;
≥ the sustainability requirements in the purchase of goods and services that impact Scope 1 and 2;
≥ the monitoring of Scope 3 emissions related to the supply chain (in terms of perimeter and granularity) by
means of the Carbon Tracker platform, in order to define its reduction targets.
Further information is available in the "Responsible supply chain" section of the 2023 Sustainability Report.
Management of climate-related risks and opportunities
Income from product or services supporting the transition to low-carbon economy.
The EU Taxonomy for sustainable activities is a classification system established by the European Union to
identify which activities and investments are environmentally sustainable.
As reported in the paragraph "Sustainable activities according to the EU Taxonomy", Saipem reports the
information in accordance with EU Regulation 2020/852 on Taxonomy. Below are the KPIs for the activities
eligible and aligned with the Taxonomy for all the objectives envisaged by the Regulation.
Investments in R&D of low carbon products/services.
The new energy panorama emerging in coming years will be a mosaic of many competing forces, which is
difficult to forecast today. What is clear however is that the speed of innovation and the adoption of new
technologies will be fundamental for making conventional developments more sustainable in the energy
transition process.
Within the overall framework of technology innovation activities, Saipem filed 19 new patent applications in
2023, 12 of which for new decarbonisation technologies. In total, Saipem has a portfolio of 2,519 patents
and new patent applications.
€34 Mln
19
AMOUNT SPENT ON DECARBONISATION R&D AND TECHNOLOGY APPLICATION
NEW PATENT APPLICATION, OF WHICH 12 FILED FOR ENERGY DECARBONISATION TECHNOLOGIES
Internal carbon pricing
During the year, an Internal Carbon Price Fee was adopted based on the annual emissions of Saipem
Business Lines, with the aim of financing specific climate-related initiatives (such as, for example,
participation in Sustainable Aviation Fuel programmes, the maintenance of ESG platforms for vendor data
management, the purchase of renewable energy and participation in emissions compensation projects).
Cooperation with international organisations and associations on the topic of climate change
As a key player in the energy sector, Saipem is an active member of specific trade associations in the
countries in which it has a well-structured presence, taking part in events and discussions on environmental
and climatic issues.
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CONSOLIDATED NON-FINANCIAL STATEMENT
information and experience on different topics,
Saipem's participation in these events, carried out through its presence in associations, is shaped and
evaluated on the basis of alignment with its objectives and policies. In fact, since 2023, Saipem has published
the document "Climate Policy Alignment", which reports the results of an analysis aimed at evaluating the
contribution to climate advocacy activities through active participation in trade associations. In particular, the
assessment was based on a control of the relevance of climate policies with respect to Saipem's typical
activities and its targets (achievement of net zero, promotion of renewables, transparency and disclosure
activities) and detected the degree of alignment with the relevant associations. Since 2018, Saipem has
published a document on the Climate in accordance with the recommendations of the TCFD. From 2022,
climate information is fully integrated in this non-financial statement.
Active participation in associations allows Saipem to be involved in a dynamic network, promoting its own
technological excellences and sharing
including
sustainability, energy efficiency and climate issues.
In 2023, Saipem supported the creation of a new Italian association in the field of renewable energies,
becoming a founding member of AERO (Offshore Renewable Energy Association), particularly active in the
institutional context: it has the aim of promoting the development of an Italian supply chain for offshore
renewables, which allows the company to support national decarbonisation strategies.
Furthermore, Saipem takes part in the Norwegian Solar Energy Cluster, which aims to foster cooperation and
support the development of solar energy skills. It is also participating in other associations and networks
active on the energy transition issue, such as the Global Carbon Capture & Storage Institute (GCCSI), and the
associations CO2, Value Europe and Hydrogen Europe and, through the latter, the European public-private
initiative Clean Hydrogen Alliance.
The total amount for membership to associations active in the energy transition in 2023 equals to
approximately €146 thousand.
Starting from the end of 2022, Saipem has been cooperating with One Ocean Foundation by supporting the
deepening and refinement of the first reporting tool for companies on issues related to ocean protection, the
Ocean Disclosure Initiative (ODI). An initiative of One Ocean Foundation developed in collaboration with SDA
Bocconi School of Management, McKinsey & Company and CSIC (Consejo Superior de Investigaciones
Científicas). The ODI aims to become a reference framework and a scientific methodology which, through a
system of metrics and indicators, aims to support companies in disclosing the direct and indirect pressures
on marine ecosystems, the related risks and strategic responses, and thus become a rating tool for
measuring the impact of different industrial sectors on the ocean and marine environment.
In fact, ODI includes the specific study of the pressure exerted on the ocean by various types of industries,
thus creating targeted tools at a sectoral level. Specifically, Saipem contributed by providing comments and
feedback during the drafting of the industry reviews and questionnaires relating to the Oil&Gas and
Construction sectors.
SASB
EM-SV-110a.1
Energy consumption
Total direct consumption of energy
Total indirect consumption of energy
Total consumption of energy
Energy from renewable sources
Energy intensity
(TJ)
(TJ)
(TJ)
(%)
(TJ/€mln)
2023
Group
Total
14,334
377
14,715
9.76
1.2
Full
consolidated
14,092
351
14,447
9.92
-
2022
Group
Total
16,665
696
17,361
Full
consolidated
16,041
380
16,421
2021
Group
Total
14,171
692
14,863
Full
consolidated
13,325
366
13,691
1.7
-
2.1
-
The calculation of energy consumption in Joule is made by applying the following conversion factor: toe = 41.867 GJ. The value of the energy intensity is calculated through the ratio
between the total consumption of direct energy and the total revenues, expressed in millions of euro.
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SAIPEM ANNUAL REPORT 2023
Direct energy consumption in 2023 decreased by approximately 14% compared to 2022 for the Group
perimeter. The main cause is the activities of the Tangguh Expansion Project (Indonesia) which, despite still
having one of the most significant energy consumptions in 2023 (17 ktoe), has demobilised many vehicles
and consequently reduced diesel consumption.
Other sites with significant energy consumption are the following: FPSO Cidade de Vitória (29 ktoe),
Castorone (19 ktoe), Saipem 7000 (18 ktep) and Constellation (16 ktoe).
It must be noted that from 2023 the data relating to FPSOs, of which we have full operational control, have
been included in the reporting perimeter, in line with the recent updates to the reporting criteria.
2023
2022
2021
Total indirect consumption of energy
Electricity consumed from the grid
Of which produced from renewable
sources (*)
Thermal energy consumed (**)
Electricity self-produced from renewable
sources
(*) Category introduced in 2023
(**) Category introduced in 2022.
Group
Total
40,496
38,134
14,399
1,977
(MWh)
(MWh)
(MWh)
Full
consolidated
37,789
35,427
Group
Total
78,551
68,120
Full
consolidated
45,760
35,329
Group
Total
71,868
71,569
Full
consolidated
37,975
37,676
13,676
1,977
16,133
10,066
14,680
10,066
9,367
-
(MWh)
384.3
384.3
365.2
365.2
298.9
7,860
-
298.9
The 43% reduction in indirect energy consumption for the Group perimeter is mainly attributed to the
reduction in grid electricity consumption in 2023. The main cause is the conclusion of the Arctic LNG project
(Russia) which constituted 43% of the 2022 electricity consumption for the Group perimeter.
The decrease in thermal energy consumed is a consequence to the transfer of the headquarters from San
Donato to Milan to more environmentally efficient buildings.
A further reason for the reduction of electricity consumption is the continuous implementation, in the
context of the Net Zero Programme, of initiatives aimed at reducing energy consumption and, consequently,
CO2 emissions. In 2023, these initiatives led to a reduction in energy consumption of 590.7 TJ at Group level.
Examples of initiatives implemented during the year include: the continual improvement in the luminous
efficiency in numerous onshore and offshore sites, improvement in the efficiency of Saipem vessels
(initiatives for the optimisation of routes and the Saipem eco-operation campaign to reduce wastes), a better
energy management in offshore rigs (Saipem 12000 and Scarabeo 8), an increase in the efficiency of
"accommodation camps" in onshore projects, etc.
Further information can be found in the section "Path to Net Zero" in the 2023 Sustainability Report.
Starting from 2022, total energy consumption includes that relating to biofuels and the purchase of heat, as
envisaged by the revision of the methodology for estimating emissions into the atmosphere issued by the
Saipem Group in 2022.
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CONSOLIDATED NON-FINANCIAL STATEMENT
GHG emissions
GRI 305-1
GRI 305-2
GRI 305-3
GRI 305-4
GRI 305-5
SASB
IF-EN-410a.2
Energy consumption data are used to calculate GHG emissions. The Company maintains a methodology for
estimating emissions that is certified by an independent third party in accordance with the principles of
regulation UNI EN ISO 14064-3. The method had already been revised for the first time in 2018, and again in
2019 and in 2022, with an extension of the field of application of the method, and in particular by extending
the emission categories of Scope 3 emissions.
The following GHG emissions are considered in the document:
≥ direct emissions deriving from the use of fuels (Scope 1);
≥ indirect emissions deriving from the purchase of electrical and thermal energy and location and
market-based emissions (Scope 2);
≥ indirect Scope 3 emissions deriving from:
• extraction and transportation of the fuels used, directly and indirectly;
• network losses in the transmission of purchased electrical and thermal energy;
• water supply and disposal;
• procurement of materials and waste disposal;
• shipment of materials;
• hotel accommodation during business trips;
• travel by air and by land for business trips;
• leased assets;
• commuting in permanent sites.
The methodology for the quantification of Scope 1, 2 and 3 GHG emissions is aligned with UNI EN ISO
14064-1 for the applicable parts. Scope 1 emissions were calculated by adopting the emission factors listed
in the document "EMEP/EEA Air Pollutant Emission Inventory Guidebook 2019" and in the DEFRA database.
The location-based Scope 2 emissions were calculated using the emission factors of the IEA (International
Energy Agency) and the DEFRA database3. Scope 3 emissions were calculated using the DEFRA database
and IEA (International Energy Agency) emission factors. DEFRA and IEA emission factors are updated to
2021.
(3) UK Department for Environment, Food & Rural Affairs.
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SAIPEM ANNUAL REPORT 2023
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Total emissions
(Location-based Scope 1, 2 and 3)
Total emissions
(Market-based Scope 1, 2 and 3)
Emission intensity
(Market-based Scope 1, 2)
(kt CO2 eq) 6,446.7
6,340.3
4,385.6
3,642.5
2,664.5
2,355.9
(kt CO2 eq) 6,446.5
6,340.2
4,383.3
3,640.5
2,662.4
2,403.9
(kt CO2 eq/€mln)
87.7
-
125.4
-
156.5
-
(*) Starting from 2023, emission intensity is calculated considering Scope 2 Market-based emissions instead of Scope 2 Location-based emissions.
Scope 3 GHG emissions by category
(kt CO2 eq)
Purchased goods and services;
Fuel and energy related activities (not included in Scope 1 or Scope 2)
Leased assets
Waste generated in operations
Upstream transportation and distribution
Business travel
Other (*)
(*) Other includes home-work travel at permanent locations, overnight stays in hotels, water supply and treatment.
Year
2023
2022
2021
2020
2023
2022
Group
Total
4,744
241
260
53
35
63
9
Full
consolidated
4,666
236
260
52
31
63
9
Group
Total
2,440
296
233
59
45
48
10
Full
consolidated
1,784
280
233
54
39
48
10
Savings goals
38.2 kt of CO2 eq
36.3 kt of CO2 eq
36.5 kt of CO2 eq
17.8 kt of CO2 eq
Savings achieved
47.0 kt of CO2 eq
38.19 kt of CO2 eq
36.98 kt of CO2 eq
26.69 kt of CO2 eq
In 2023, Saipem recorded a GHG intensity of 87.7 t of CO2 eq/€mln (at Group level, the value is calculated
considering the market-based Scope 1 and Scope 2 emissions in relation to revenue in millions of euro). In
2022 the value stood at 125.4 t of CO2 eq/€mln, a constant decrease compared to the previous year (156.5 t
of CO2 eq/€mln in 2021).
In 2023, there was a general increase in Scope 3 emissions (73%), mainly due to:
≥ increase in the procurement of materials, consequent to project activities, +161% of emissions for the
consolidated perimeter (+94% of the Group total);
≥ extension of the activity perimeter of leased assets (+12% of the Group total).
However, there was a reduction in well-to-tank emissions from fuel consumption, directly and indirectly used,
-16% of emissions for the consolidated perimeter (-19% of the Group total).
The significant percentage of Scope 3 emissions attributable to the procurement of materials confirms the
need to continuously improve forecasts for emissions related to the supply chain, to pursue reduction
objectives.
Numerous initiatives are underway to strengthen the partnership with our suppliers with the aim of improving
the traceability of this data and to optimise their environmental performance. Further information can be
found in the paragraph “Sustainability Plan” of this document and in the “Responsible Supply Chain” section
of the 2023 Sustainability Report.
Preserving the air quality
GRI 305-7
The company policy to reduce GHG emissions and the objectives of the Net Zero Programme also have a
strong impact on the reduction of other atmospheric pollutants, as they are a consequence of energy
consumption, and will allow a clear reduction of atmospheric pollutants in the medium-long term.
The trend of pollutant emissions follows the trend of energy consumption, which is increasing. This is due to
the increase of operations after the contraction during the pandemic.
\ 146
Air pollutant emissions
(t)
NOX
SO2
CO
NMVOC
PM10
CONSOLIDATED NON-FINANCIAL STATEMENT
2023
2022
2021
Group
Total
11,275
562
4,534
815
425
Full
consolidated
11,064
556
4,490
800
416
Group
Total
14,849
607
5,726
1,005
576
Full
consolidated
14,399
593
5,471
965
550
Group
Total
12,415
542
5,231
840
477
Full
consolidated
11,762
523
4,798
782
442
In 2023 pollutant emissions decreased compared to 2022 emissions, and efficiency and saving measures
described in the section "The Path to Net Zero" of the 2023 Sustainability Report have made it possible to
achieve further reductions also for the emissions of other atmospheric pollutants such as NOx, SO2, CO,
NMVOC and PM10.
Pollutant emissions avoided
(t)
NOX
SO2
CO
NMVOC
PM10
2023
Group
Total
475.3
18.4
98.5
26.2
15.3
Full
consolidated
473.6
18.4
98.3
26.1
15.2
2022
Group
Total
433.5
13.7
146.5
25.3
13.9
Full
consolidated
433.5
11.6
146.5
25.3
13.9
2021
Group
Total
426.9
16.9
121.2
24.2
13.6
Full
consolidated
426.9
16.9
121.2
24.2
13.6
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SAIPEM ANNUAL REPORT 2023
Protecting the environment and minimising
environmental impacts
Environmental management policies and system
in the
industry
Saipem is aware that all its activities, from the planning and design stages to construction and operation, may
potentially have an impact on the environment, both directly and along its business value chain.
In identifying, assessing and managing environmental and social impacts tied to business management, both
potential and actual, Saipem is guided by international regulations, principles, shared approaches and
internationally recognised recommendations adopted
including UN Global Compact
principles, the principles expressed in the International Finance Corporation (IFC - World Bank) Performance
Standards on Environmental and Social Sustainability, Organisation for Economic Co-operation and
Development (OECD) guidelines for multinationals.
As reported in the Saipem Group HSES Policy, the Company undertakes to prevent potential environmental
impacts caused by its activities and to use energy and other natural resources efficiently, "by adopting
measures aimed at preventing and mitigating pollution and contamination, while also proactively participating
in the appropriate management of natural resources, in the protection of biodiversity, the restoration of
ecosystems in the places where we work and the effective management of waste”, both when these are
managed directly with its own personnel and means, and in operations managed by third parties for its own
operational projects (clients, subcontractors, etc.).
Moreover, Saipem pays the utmost attention to the constant improvement of its environmental performance.
To guarantee these results, Saipem has adopted a certified Environmental Management System. All the
most significant entities in the Saipem Group are ISO 14001:2015 certified to support and guarantee the
environmental management system adopted by the Company. Saipem is aware of the real impacts of its
activities and defines specific actions and tools required to manage these impacts for each operating
context.
As required by the environmental management system, all significant projects (taking into consideration the
the environmental
operation of
aspects/environmental risk assessment.
the context and operational control)
the project/site,
lead
to
In 2023, a model was defined to assess environmental risks during the BID approval phase of projects which
evaluates the potential impacts of the project in terms of GHG emissions, biodiversity, water and waste.
In its purchasing processes, Saipem is committed to selecting materials and services which take into
account environmental criteria and encourages the use of low impact technologies through the research
and adoption of solutions with the lowest possible impact on the environment during their entire life-cycle, in
terms of the disposal/release/emission of pollutants, the use of hazardous substances and the production of
waste.
Saipem organises various training initiatives on environmental issues, also involving its subcontractors in the
operating sites and in 2023 it provided 92,441 hours of training for the consolidated perimeter (96,131 for
the Group perimeter). Note that, as part of the STEP programme, various courses have been delivered on
environmental issues, in particular on Climate Change and Energy Management.
Furthermore, the Company invests in research and development programmes to create technologies that
minimise the environmental impact of its operations and of the delivery of its service to the reference sector,
and organises specific initiatives designed to promote environmental awareness and the dissemination of
best practices, also involving external entities as addressees.
Further details can be found in the “Research and development” section of the “Directors’ Report” and in the
“Biodiversity and pollution prevention” section of the 2023 Sustainability Report.
Spill prevention and response
SASB
SASB
EM-SV-150a.2
EM-SV-150a.2
Pollutant spills are one of the most significant environmental issues for the sector in which Saipem operates.
In the case of spills, the prevention of accidental events and response actions are absolute priority elements
for their management. Saipem’s spill management strategy is in fact focused on minimising the risk of spills
and implementing emergency mitigation and management actions, for which it adopts advanced equipment
and procedures. The Saipem management system is based on the following hierarchy of actions:
≥ Prevention: actions have been implemented to identify specific areas of risk and improve processes and
operational control of those sites and vessels which are most at risk of spills.
≥ Instruction and training: specific training events on spill prevention are periodically organised, along with
drills aiming to improve the skills of operating staff in emergency management. The drills are carried out
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CONSOLIDATED NON-FINANCIAL STATEMENT
both on land and at sea, involving, if necessary, clients or third parties designated for emergency response
activities. During 2023, 394 spill response drills were carried out, far beyond the set target of 375 drills.
≥ Spill response: all Saipem sites have the necessary equipment for tackling any spills which may arise and
specific Spill Response Teams have been set up and trained. Each operating site implements a spill
management plan which identifies the accident scenarios and adequate response modes and can also
include the intervention of designated third parties. Note that, whenever possible or technically practicable,
recovery activities are implemented for spills that have occurred.
≥ Reporting: the data concerning spills and “near misses” (events that, under slightly different conditions,
could have caused environmental damage) are monitored by a specific software and subsequently
analysed to assess the causes, prevent recurrence and share the ‘lessons learned’ within the Company.
Saipem also provides services for the prevention and management of emergencies due to spills at sea.
Specifically, the services offered may concern training, the use of underwater drones and remote emergency
intervention of the OIE (Offset Installation Equipment): a unique system in the world, designed to intervene in
the event of a spill from an underwater well into shallow water (up to approximately 600 m deep), when direct
vertical access is not possible.
Number of spills
Total
Spills of chemical substances
Spills of oily substances
Spills of biodegradable substances (*)
Spills of drilling muds (*)
Spills of wastewater (*)
Volume of spills
Total
Spills of chemical substances
Spills of oily substances
Spills of biodegradable substances
Spills of drilling muds
Spills of wastewater
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(m3)
(m3)
(m3)
(m3)
(m3)
(m3)
27
1
20
4
2
-
10.75
0.002
9.09
0.04
1.6
-
27
1
20
4
2
-
10.75
0.002
9.09
0.04
1.6
-
18
2
9
4
3
-
7.85
0.04
2.17
0.15
5.5
-
18
2
9
4
3
-
7.85
0.04
2.17
0.15
5.5
-
38
-
27
8
2
1
3.10
0.00
0.33
2.20
0.54
0.05
37
-
26
8
2
1
3.10
0.00
0.32
2.20
0.54
0.05
The internal reporting rule for spills requires a minimum volume of 1 litre, beyond which it must be reported
as an accident.
Out of 27 total spills in 2023, 14 were less than 10 litres. The volume of spills in 2023 attributable to both the
Group perimeter and the consolidated perimeter recorded an increase of 37% compared to 2022.
The 3 main spills (with more than 500 litres) that took place are the following:
≥ a spill of oily substances into the soil in the context of the onshore FEED Pipelines for New Refinery Project
(8,744 litres) due to a pipe detached from the pipeline. This spill constitutes approximately 80% of the
2023 volume;
≥ a drilling mud spill on the Scarabeo 9 vessel (1,112 litres) due to inadequate sealing;
≥ a spill of drilling mud from the mud collection tank on Rig PTX 5929 (500 litres).
The criticality of each spill is assessed according to the actual and potential impacts generated by the event,
in terms of consequences measured against the environmental matrix. All incidents are accompanied by
evaluations and cause analyses. For the risk of spills, the list of mitigation and prevention measures is
assessed and established in order to reduce the risk of future occurrence and/or environmental impacts. No
events occurring in the year had severe consequences.
Water resource management
GRI 303-1
GRI 303-2
GRI 303-3
GRI 303-4
SASB
EM-SV-140a.1
EM-SV-140a.2
SASB
IF-EN-410a.2
Saipem is aware of the need for greater resilience in the planning and management of water resources, also
to react to the effects of climate change. In some regions, there could be an increase in water availability,
while in others a reduction in availability, leading to water stress and competition for resources, throughout
the project life cycle.
Saipem is therefore focusing more on the development of new water technologies and in general on
improving water management.
The water resource management strategy is an integral part of the environmental strategy and is defined in
the environmental management system documentation; it is also an objective of the Group HSE plan.
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SAIPEM ANNUAL REPORT 2023
The hierarchical approach to water management aims to maximise reuse, where possible, and reduction of
consumption in all operational sites and projects, particularly those in water-stressed areas.
Saipem has chosen to go beyond legal requirements and implement Yard Energy and Water Efficiency
Management Plans (YEWEMP) within its fabrication yards, based on the same concept introduced by the IMO
for ships (MARPOL annex 6) of the Ship Energy Efficiency Management Plan (SEEMP).
Between 2019 and 2020, Saipem’s main sites developed their own Energy and Water Efficiency
Management Plans (YEWEMP), i.e. Ambriz (Angola), Arbatax (Italy), STAR (Saudi Arabia) and SCNL (Nigeria). In
2023 the above-mentioned sites updated their plans with new targets based on the performances that had
been reached and continued implementing initiatives such as the installation of meters on the water network
in order to measure differentiated consumption. Furthermore, construction sites are installing LED lights to
replace fluorescent bulbs, in order to reduce electricity consumption.
Also in 2023, in the Energy Carrier Business Line, actions/activities were implemented to achieve significant
water savings. In Nigeria, as part of the LNG Bonny Train 7 project, the following measures were implemented
for the efficiency of the two accommodation camps: installation of aerators in shower heads and sinks,
double flush system for toilets and sinks with aerators and push buttons in common areas. The
implementation of the aforementioned initiatives has allowed an estimated saving of approximately 88,000
m3 of water in 2023.
Other examples of the effectiveness of the water saving measures introduced by Saipem are the measures
implemented in 2022 by the Marjan pack 10 and Berri (Saudi Arabia) projects. These measures (aerators in
shower heads; water toilet tank banks; new washing machines with lower water consumption) led to water
savings of 4,082 m3 and 11,731 m3 respectively in 2023.
Furthermore, we highlight as water reuse practices: the reuse of treated wastewater for dust abatement,
irrigation, hydrotests (in accordance with specific regulatory limits).
The mapping of Saipem sites located in water-stressed areas, updated annually, is the basis for the definition
of these initiatives.
Compared to the total water withdrawals for the year, it should be noted that the withdrawal of fresh water
represents 44% of the total withdrawals for the Group perimeter and 46% for the full consolidated perimeter,
while the salt water represents 38% within the Group perimeter and 40% for the full consolidated perimeter.
Water consumption decreased by 28% compared to 2022 for the consolidated perimeter and by 27% for
the Group perimeter, mainly following the reduction in sea water consumption used in the Tangguh
Expansion project (Indonesia), and the transfer of headquarters from the third and fourth buildings in San
Donato Milanese (Milan) to Spark1 in Milan.
In particular, the following are recorded:
≥ a reduction in fresh water withdrawals from public networks, mainly due to the onshore projects South Gas
Compression Plants Pipeline Project (SGCP) Pipelines (Saudi Arabia) and Dammam Camp (Saudi Arabia);
≥ a reduction in water withdrawals from the ground, mainly due to the closure of the third office building
(Milan) which consumed a significant quantity for the thermoregulation of the building. The new Saipem
headquarters in Milan, Spark1, is characterised by high efficiency use of water and by a rainwater reuse
systems which in 2023 allowed a saving of 99% of the water consumed by the Third and Fourth Office
\ 150
CONSOLIDATED NON-FINANCIAL STATEMENT
Buildings compared to 2019 (last year of full building occupation before the COVID pandemic that implied
partial closing);
≥ a reduction in water withdrawals from surface watercourses, mainly due to the activities of the Petromar
Ambriz Yard (Angola);
≥ a reduction in seawater withdrawals, mainly due to the termination of the activities in the BP Tangguh
Expansion - LNG EPC onshore project (Indonesia).
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
(103 m3)
(%)
183
5
183
6
298
6
298
7
447.8
11
447.8
12
Recycled and re-used water
Re-used water
Water discharges
(103 m3)
Total water discharged, of which:
- water discharged into the sewer systems
- water discharged into bodies of surface water
- water discharged into the sea
Group Total
1,656
189
448
1,019
Full
consolidated
1,608
184
448
976
2023
2022
Group
Total
2,786
194
1,090
1,502
Full
consolidated
2,704
189
1,090
1,425
2021
Group
Total
2,238
176
919
1,143
Full
consolidated
2,138
171
897
1,071
Water discharges fell for all reported categories, in line with that which was reported for water consumption.
Specifically, water discharges decreased by 41% both for the Group perimeter and for the full consolidation.
Our offshore vessels are equipped with water treatment systems; therefore, any discharge into the sea is
treated before release in line with the most stringent applicable regulations and guidelines.
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SAIPEM ANNUAL REPORT 2023
Location of main Saipem sites on map of water-stressed areas produced through the Aqueduct Water Risk
Atlas.
Wastewater in water-stressed areas
(103 m3)
Total water discharged (*)
2023
Group
Total
333.1
Full
consolidated
330.0
2022
Group
Total
401.0
Full
consolidated
391.9
(*) Indicator modified in 2023. In 2022, water discharges were reported by destination; in 2023 the indicator was aligned with GRI requirements to indicate discharges by
type of water. Please note that all water discharged in water stressed areas falls into the fresh water category.
In 2023, water withdrawals in areas with water stress increased considerably because the classification of 12
areas changed (out of 37 in total) which from this year, according to the Aqueduct system, are classified as at
risk of water stress and which in 2022 weren't. In these 12 areas, operational projects were carried out in
2023 that used 77% of the water in water-stressed areas.
\ 152
GRI 306-1
GRI 306-1
GRI 306-2
GRI 306-2
GRI 306-3
GRI 306-3
GRI 306-4
GRI 306-4
GRI 306-5
GRI 306-5
CONSOLIDATED NON-FINANCIAL STATEMENT
Waste management
The Company adopts a responsible and specific waste management system based on the type of operating
activity, which it also shares with the third party companies it operates with.
Waste management is tackled by applying a hierarchy of operations mainly aimed at minimising waste
production through the use of appropriate procedures or technologies, re-using waste as material and
recycling it after the most appropriate treatment.
Priority is given to hazardous waste in the context of action aimed at minimising waste generation. The
Company promotes and implements measures, also through the research and development of new
materials, which allow hazardous materials to be replaced with non-harmful alternatives.
Saipem sets the objectives by analysing the KPIs of the last four years (from 2019 to 2023) in consideration
of business activity, region and country to be able to establish targeted and effective improvement
objectives.
The waste KPIs are defined by country taking into account all active projects and thinking about each site in
terms of the quantity of waste produced and recycled. By grouping countries together it is possible to define
regional KPIs. The experiences made with past projects are considered a starting point for defining the
baseline.
In order to comply with its management standards, Saipem controls the traceability of waste within its sites
and ensures that subcontractors do the same (e.g. through specific contractual requirements, inspections,
audits, etc.).
Any type of service provided by a subcontractor is associated with a Commodity Code, each of which is
associated with an HSE criticality level.
The assessment of the HSE criticality level is based on the feedback received from the Business Lines and
on the analysis of HSE data. Supplier requirements are defined based on the level of criticality. Therefore,
since waste management is considered highly critical, suppliers are subjected to additional assessments
and also to contractual incentive systems meant to reward excellent safety results or discourage
non-compliance with rules, procedures and good practices aimed at protecting workers' health, safety and
environment.
Saipem is aware that waste characteristics, quantity and dangerousness may also vary according to the
type, progress and factors, such as geographical aspects, in which the project is carried out. The approach is
therefore to try to reduce the production of hazardous waste as much as possible and maximise recycling
both in terms of categories and quantities.
(kt)
Total weight of waste produced, of which:
- hazardous waste disposed of in landfill sites
- hazardous waste incinerated in external plants
- hazardous waste incinerated in Saipem plants (*)
- recycled hazardous waste
- hazardous waste disposed of in other structures
- non-hazardous waste disposed of in landfill sites
- non-hazardous waste incinerated
in external plants
- non-hazardous waste incinerated
in Saipem plants (*)
- recycled non-hazardous waste
- non-hazardous waste disposed of
in other structures
2023
Full
consolidated
709.7
6.2
0.8
0.5
1.4
33.9
138.1
2022
Group
Total
851.7
19.2
0.6
0.7
2.6
97.4
220.2
Full
consolidated
762.5
18.5
0.6
0.7
2.5
97.4
210.3
2021
Group
Total
811.9
10.9
2.0
0.8
15.2
108.9
261.8
Full
consolidated
743.5
10.4
2.0
0.8
15.1
108.8
252.6
0.02
1.6
51.2
0.05
2.6
95.6
0.04
2.6
92.9
0.2
1.7
90.6
0.1
1.7
86.1
Group
Total
790.2
6.3
0.8
0.5
1.4
33.9
139.8
0.02
1.6
52.8
553.2
476.0
412.7
337.1
319.9
265.8
All waste, with the exception of the incinerated category, is processed in plants that are external to the Company’s sites.
(*) We report that, at present, no Saipem incineration site allows energy to be recovered.
In 2023, a waste reduction of 7% was recorded for both perimeters compared to 2022, mainly due to the
decrease (91%) in the disposal of hazardous waste in the Al-Zour Refinery Project refinery (Kuwait). This
project is in fact under completion.
Compared to 2022, there was a decrease in the production of hazardous waste by 64% in both perimeters,
while non-hazardous waste produced increased by 4% for the fully consolidated perimeter and by 2% for the
Group perimeter. In general, compared to 2022, there was a 45% reduction in the quantity of recycled waste,
mainly due to the onshore Nong Fab LNG project (Thailand), following a reduction in the waste production
from earth and rock excavation and dredging materials that were sent for recycling in 2022. The project was
completed in 2022.
Since 2022, Saipem has developed and implemented customised KPIs for each project, location and
business line aimed at increasing the categories and quantities of recycled waste. The KPIs were achieved
\ 153
SAIPEM ANNUAL REPORT 2023
by the majority of Saipem projects which in fact showed an increase in total recycled waste (hazardous and
non-hazardous).
For several years now, Saipem has been celebrating the European Week for Waste Reduction, extending it to
all its offices around the world in order to raise awareness, promote cultural change, best practices for
reducing and improving waste reduction.
All employees are invited to participate and contribute to the campaign individually and collectively. On this
occasion, clients and suppliers are invited to participate in the organised activities.
Saipem has included waste reduction and the commitment to work on disposal methods (in particular
recycling) among its objectives in the Sustainability Plan.
More information on initiatives to reduce waste production can be found in the “Sustainability Plan”
paragraph of this document and “Biodiversity and Pollution Prevention” of the 2023 Sustainability Report.
Biodiversity
Aware of the importance of biodiversity and ecosystems for the well-being of society today and tomorrow, of
their rapid decline which threatens both nature and people, and its strict correlation with the climate crisis,
Saipem is committed to systematically assess, mitigate, restore and compensate for the impacts and risks
on biodiversity and ecosystems in the areas in which it operates. Furthermore, through mitigation and
adaptation actions to climate change, Saipem is committed to contributing to the biodiversity conservation
by addressing the main factors that cause its loss.
The protection of biodiversity and the reduction of impacts on ecosystems are completely integrated into
Saipem's Environmental Management System and also play a central role
in Saipem's Four-Year
Sustainability Plan, included in the Group's Strategic Plan.
Saipem is committed to leveraging its global presence in various cultural and environmental contexts to play
a significant role in counteracting or reversing the decline of biodiversity, promoting actions not only within
its value chain, but also beyond it.
Saipem is committed to supporting the principles of "No net loss of biodiversity", "No Net Deforestation" and,
if applicable, "Net improvement" and "Net Gain" approaches, involving clients, suppliers and any other
stakeholder, aiming to achieve a general net positive impact on biodiversity in its sites and projects, including
by enhancing the value of nature, communities and territories in the areas in which it operates.
The definition of appropriate KPIs and objectives, systematic monitoring and reporting of Saipem’s
performance in protecting biodiversity, as well as informing and engaging key stakeholders on the topic,
represent a further key element of Saipem's extensive commitment.
Promotion of actions within our value chain
1) As an EPCI contractor, Saipem:
≥ collaborates with clients and supports them, also stimulating subcontractors and suppliers, to achieve
their biodiversity and environmental protection objectives and comply with the requirements of the
Environmental Impact Assessment (EIA), thanks to its long experience in the execution of projects with
reduced impacts, even in difficult and vulnerable environments;
≥ works to mitigate the impacts on biodiversity directly controlled and influenced by Saipem, such as those
generated by its assets and sites.
Saipem's Environmental Management System, applied in sites and projects around the world, systematically
integrates the management of risks and impacts on biodiversity and ecosystems, based on information
released by ESIA and the environmental studies performed (e.g. survey).
Saipem applies environmental requirements in the management of its operations, that sometimes (when and
if necessary) can be even more stringent than current legislation, and also transfers them to its
subcontractors during each phase of the project.
The conservation of biodiversity in Saipem projects is put into practice by adopting a hierarchy of
interventions: rescue, protection, awareness and, depending on the requirements and characteristics of
specific projects, relocation and restoration.
Starting from 2023, Saipem has carried out a mapping of its operational sites and projects by means of a
Geographic Information System (GIS) to systematically identify potentially critical areas, interventions and/or
further improvement objectives.
\ 154
CONSOLIDATED NON-FINANCIAL STATEMENT
In 2023, 65 Saipem sites were analysed, all those subject to environmental reporting, and were mapped
using GIS in the light of potential proximity to IUCN and UNESCO areas. No critical issues were identified; the
mapped sites are in fact located outside the boundaries of IUCN and UNESCO areas.
78% of mapped sites are located more than 5 km from IUCN areas, some in areas more than 150-200 km
away.
All sites within 5 km of IUCN areas are offices and do not cause significant impacts on biodiversity.
Most Saipem sites are located more than 50 km from UNESCO sites.
Only 1 site is located near a UNESCO site (the Rio de Janeiro office which is about 1 km from the Rio Valongo
Wharf Archeological Site).
Note that the offshore vessels are not considered in the analysis as they move during the year.
Mapping of operational sites in areas classified as "Red List" by IUCN
Mapping of operational sites in UNESCO areas
\ 155
SAIPEM ANNUAL REPORT 2023
In 2023, more than 1,800 suppliers/subcontractors were selected (including qualified and active, based on
the HSE risk classification, and the amount ordered), whose sites will be mapped by 2026.
With respect to the mitigation of impacts on biodiversity triggered by its operations, in particular offshore
ones, Saipem, working on the identification and prioritisation of intervention areas, focuses on the following
main impact factors:
≥ hydrocarbon spills: specific KPIs are monitored, risks and mitigation measures are assessed, such as
through the adoption of biodegradable oils;
≥ plastic pollution: monitoring KPIs are identified, objectives are defined and initiatives are implemented to
reduce the use of single-use plastic (in major projects and sites around the world).
2) Saipem promotes research and technological innovation with increasingly digitalised processes to
improve the environmental sustainability of the sector. For example, the use of underwater robots to carry
out highly complex underwater tasks, such as underwater drones - Hydrones, the development of plastic
recycling technologies, decarbonisation, as well as advanced systems for inspection and monitoring of
seabed morphology, quality of water, the Integrity inspection of assets (such as spill prevention activities)
and marine species, and the development of advanced plastic recycling technologies to promote circularity.
More information on spill prevention services that we offer to our clients can be found in the paragraph "Spill
prevention and response".
Developing initiatives and solutions beyond its own value chain
Saipem supports nature-based projects and solutions, in line with its broader sustainability strategy,
dedicated to the prevention of forest degradation, their conservation and the restoration or rehabilitation of
ecosystems and habitats. High sustainability standards and robust risk models are applied to evaluate and
select investments in offset projects, with several traceable collateral benefits. In 2023, 4 project were
financed, with a total of 100.000 tonnes of CO2 eq compensated.
The approaches described above can be achieved through two main enabling factors:
≥ establish partnerships and collaborations with clients, suppliers, universities, institutions and research
bodies, to define new opportunities, methodologies and tools to promote within the sector;
≥ collaborate with employees to train, communicate and raise awareness on the adoption of sustainable
behaviours and involve communities, through local development initiatives, also focused on climate
adaptation.
Regarding community engagement and local development initiatives, key examples of initiatives related to
biodiversity protection implemented in 2023 include plastic reduction initiatives (e.g. Seabins installation,
bubble barriers in Brazil, cleaning and volunteering initiatives).
\ 156
Social aspects
Social policies and management
CONSOLIDATED NON-FINANCIAL STATEMENT
The Group operates in over 50 culturally and geographically different and distant countries, often in contexts
characterised by difficult situations and border issues, and it takes into account the specific issues of each
country when assessing social aspects linked to its activities.
For the social impacts linked to the operational projects it works on, Saipem bases its assessments on
environmental and socio-economic
Impact
Assessment), normally produced by its clients or, where necessary and established contractually, developed
internally. In operating projects, Saipem supports the client’s activities, in line with contract requests and the
requirements the latter received and/or agreed with local authorities through specific studies such as ESIA
(Environmental Impact Assessment).
impact studies, such as ESIA
(Environmental & Social
Instead, the activities in which Saipem has direct responsibility and management of the social impacts
generated at local level concern the fabrication yards or proprietary logistic bases. In these cases, the
potential effects of operations on the social context and local stakeholders are identified and assessed in
order to minimise their adverse impact and to define and implement specific activities and projects aimed at
developing the local socio-economic context working with the identified local stakeholders.
The overall risk profile (including the environmental and social ones) for every project is identified, analysed
and monitored from the commercial phase.
Wherever it operates, Saipem has always strived to minimize any adverse impacts on the territory and
contribute to maximising positive impacts through the implementation of strategies aimed at promoting
sustainable local development.
Relations with the local context
Saipem is committed to establishing relations with its local stakeholders based on correctness and
transparency to pursue concrete shared objectives for sustainable development. This is achieved by
strengthening mutual trust, seeking dialogue and promoting the right conditions in order to establish lasting
cooperation in the countries where the Company operates.
Wherever it works, Saipem identifies local stakeholders and the main impacts generated, also based on the
information provided by clients in contractual documents such as the ESIA (Environmental & Social Impact
Assessment). Saipem’s relations with local stakeholders therefore depend on the type of operating presence
in each specific area. This presence is divided between: long-term presence in the areas where the Company
owns fabrication yards, logistic bases or other operating structures that allows structured relations and
partnerships with various local stakeholders or their representatives to be established; and short/mid-term
presence where Saipem is involved in a specific project within set contract deadlines and, as a result,
participates in more targeted and short-term sustainable development initiatives, generally coordinated by
the client.
Saipem's involvement and dialogue with local stakeholders therefore depends on the type of presence in
each specific area, contract requirements set by clients on projects and the partners with which the
Company operates, as well as the characteristics and social composition of the relevant context. To support
this process, Saipem has implemented specific tools for analysing the local context, and identifying and
analysing the main stakeholders aimed at defining engagement and intervention plans, which may include
periodic meetings, information and communication activities, comparisons and specific investigations,
responses to reported issues, and contribution to initiatives for local communities.
An important tool is listening to the demands of the local stakeholders, also by means of consolidated
engagement processes. In particular, for the management of the negative impacts, the Company has drawn
up a principle (Guidelines on Grievance Management) for structuring a system to collect and manage the
demands of the local communities in the operating situations where it is considered necessary or requested
by the client. This process also allows potential negative social impacts to be identified and managed or
mitigated.
Moreover, significant examples of collaboration with local stakeholder are those with the university and
school bodies, the representatives of local institutions, the non-governmental organisations active in the
areas and the local bodies for the implementation of development programmes and the promotion of health.
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SAIPEM ANNUAL REPORT 2023
The social and economic impact on the territory
For Saipem, local presence means purchasing goods and services from local vendors, creating employment
at a local level and developing the know-how of the local personnel and vendors, strengthening their
technological and managerial skills. In this way Saipem contributes to creating development opportunities for
the people and companies in the communities where it operates. Saipem’s presence is also characterised by
a commitment to developing and maintaining a continuous relationship with local communities, clients and
vendors making it possible to obtain benefits also in terms of reductions in overall project costs and the
overall risk profile associated with operational activities.
In order to enhance and quantify the value generated in the countries in which it operates, (local content),
Saipem has internally developed a model (SELCE, “Saipem Externalities Local Content Evaluation”) to
quantify the value of its presence in the local territory in terms of economic, employment and human capital
development. The model implemented in the main operational areas in which Saipem works shows the
impact on the economies of the countries (ref. Sustainability Report, “Local Impact” section).
GRI 202-2
Local content (in Country Value)
(%)
Local employees
Local managers
Purchased from local vendors
2023
Group
Total
71
53
51
Full
consolidated
69
54
43
2022
2021
Full
consolidated
70
54
Group
Total
72
55
64
Full
consolidated
75
50
Group
Total
79
50
68
A local employee is a worker who works in the country where he/she was hired. Local managers include the
total of middle and senior managers. Given the large number of employees in the two headquarters in Italy
and France, the percentage of local managers is calculated excluding the data for these two countries, in
order to provide an effective representation of the Company’s commitments in the countries where it
operates.
\ 158
GRI 308-1
GRI 412-2
CONSOLIDATED NON-FINANCIAL STATEMENT
A sustainable supply chain
The vendor management system, described in the “Supply chain management” section of this document,
was structured to guarantee that they have proven technical and operational skills, but also that they share
Saipem’s values and policies. For this purpose, sustainability elements to analyse and monitor in the various
phases of the vendor management system have been identified; these elements include ethical behaviour,
respect for human and labour rights, including the protection of the health and safety of workers, and
environmental protection.
First of all, Saipem’s vendors are bound to comply with the principles that are an integral part of the Code of
Ethics, of the vendor Code of Conduct, and respect human rights in conformity with the Saipem
Sustainability policy, as required in the contractual clauses laid down in all contracts.
The vendor code of conduct was issued in 2022 and also published on the company website. The document
is aligned with the Code of Ethics and Saipem corporate policies and is mandatory for all vendors. It defines
Saipem's expectations regarding ethics and compliance, human rights and modern slavery, health, safety,
environmental protection, relationship with
information and data protection, and
whistleblowing reporting process. During 2023, the Vendors Code of Conduct was integrated with a specific
chapter relating to diversity and inclusion.
As of the introduction date, 63% of qualified suppliers have signed the Code: it is estimated that all qualified
suppliers will subscribe to it within the next two years.
local communities,
Vendors are responsible for managing risks in their operations, and the Company demands that, in turn, they
require the same principles and standards from their own vendors. In this way, we aim to guarantee safe and
fair working conditions and the responsible management of environmental and social aspects throughout
the supply chain.
During the qualification process, the analysis of vendor information is the first step for knowing and
understanding their capacities. This phase involves the gathering of data and information, as well as the
vendor's documentation, to evaluate:
≥ their technical and managerial skills, including their alignment with quality standards;
≥ their financial, reputational and ethical reliability;
≥ their ability to manage sustainability issues.
The level of risk linked to sustainability issues is determined by the country of origin of each vendor and the
industrial sector and/or criticality of the supply. The vendors identified with a high sustainability risk level are
subject to more in-depth investigations.
In particular, depending on the type of goods or services offered, vendors are subjected to a Counterparty
Risk Assessment (“VERC”), aiming also to verify their ethical conduct in terms of anti-corruption, unlawful
conduct and human rights, as well as any other aspect which could directly damage the reputation of the
vendor, and indirectly the reputation of Saipem. The VERC is performed by analysing the key characteristics
of the counterparty, with particular attention to economic-financial, ethical/reputational aspects and
ownership. The counterparty risk assessment on vendors or potential vendors is usually done by checks that
do not involve contacts with the counterparty, gathering available information from specialised third-party
sources. The VERC may be performed not only at the start of the qualification activity, but also during the
contract award phase or during the performance of periodic inspections, where foreseen. In 2023, the
number of VERCs drawn up amounted to 2,693, of which 1,585 drawn up as part of the qualification
processes managed during the year, 99 for the issuance of purchase documents,
The downward trend compared to previous years is motivated by a review of the Counterparty Risk
Assessment process, as part of the optimisation of the processes launched on the supply chain, which led to
the streamlining of the VERC drafting activities, while maintaining constantly rigid checks before any activity
related to suppliers.
Furthermore, depending on the level of risk of exposure to problems linked to human rights and/or health and
safety and environmental management aspects, vendors are assessed by analysing the documents
provided during qualification, to check compliance with the Saipem principles and the vendor’s ability to
manage these issues. In 2023, 474 suppliers were assessed on HSE issues and 431 were assessed on
labour rights issues.
Depending on the level of sustainability risk, the vendors subjected to qualification audits may also be
assessed on specific sustainability aspects, including labour rights, health and safety and environmental
protection.
During 2023, a total of 4 audits were carried out on the qualification process which also covered the social
and HSE aspects for new Chinese companies. Audits were carried out by an independent external auditor
(DNV). Following these audits, some non-conformities and observations were identified and improvement
actions were requested to vendors, especially regarding health and safety, working hours, remuneration,
disciplinary actions and contractual clauses, through specific action plans agreed with the vendors and
currently in progress.
\ 159
SAIPEM ANNUAL REPORT 2023
During the bid and contract execution phases, further controls are performed, including a counterparty risk
assessment based on the total value of the supply. For goods and services deemed to be of high risk of
health, safety and environment (HSE) issues, specific assessments are carried out to check the vendor’s
ability to perform the contract in accordance with the relative international and Saipem standards and on the
capacity to manage HSE aspects.
Furthermore, the contractual conditions applied to all vendors and all types of purchasing include specific
requirements that oblige the vendor to strictly comply with the Saipem Code of Ethics and to respect human
rights.
In order to share the ethical principles, inform and train vendors on the Saipem standards and requirements
and how they should align to these, Saipem organises specific events, meetings or forums for vendors, both
prior to qualification and during the execution of the contracts.
Other more informal checks are carried out by the Post-Order function team, trained with a special e-
learning course (delivered since 2016) on human and labour rights issues, by means of checklists prepared
to collect any observations that emerged during visits to the plants of suppliers to investigate on child labour,
forced labour, discrimination, compensation and hours worked, including overtime. In 2023, 102 new
checklists were filled in.
Furthermore, a new documented process was implemented during 2023 to identify key vendors operating in
certain countries and providing specific services to Saipem. The definition of the vendor risk profile is based
on the country risk, the type of activity (commodity code), the total ordered, and other information (duration
of the commercial relationship, feedback, etc.). Prioritisation of suppliers based on their risk profile is
essential given the large supply chain involved in Saipem projects and activities and is necessary to identify
specific mitigation actions, included in the Saipem Sustainability Plan.
In 2023, in line with Saipem's sustainability objectives, the main vendors identified by the prioritization
process were involved in the following actions:
≥ social assessment programme;
≥ training campaign on human and labour rights.
The Social assessment programme involved 10 key vendors (seven subcontractors and three employment
agencies) selected based on the criteria defined above, and which represented approximately 4% of the
total purchased in 2022. The Social assessment programme was structured in various phases and implies
preliminary involvement of vendor Management in one-to-one meetings meant to present Saipem's
expectations and requirements regarding compliance with its Code of Ethics and the Vendor Code of
Conduct, and share with them the objectives and the assessment process followed by a questionnaire and
further request of documentary evidence on the management of human rights in their activities.
The topics of the audit questionnaire focused on human rights (child and forced labour, discrimination, etc.)
and decent working conditions, such as recruitment and employment, working hours and overtime, payment
of wages, management of subcontractors.
All 10 vendors were evaluated with reference to the information and documentation provided. The main
results identified potential critical issues in the management of working hours and overtime, in the
recruitment and personnel management procedures,
in the
development and implementation of a due diligence process for vendors.
Vendors were informed of the results of the audits and improvement actions were requested to strengthen
the ability to manage these aspects.
in particular for migrant workers, and
The training campaign on human and labour rights involved 114 identified key vendors, which overall
represent 8% of the total ordered in 2022.
The training is based on the requirements relating to human rights and modern slavery included in the
Saipem Vendor Code of Conduct, which summarise Saipem's expectations regarding the prohibition of any
form of child and forced or compulsory labour, human trafficking, slavery, discrimination and harassment, and
the guarantee of decent working conditions, in line with local laws and the principles defined by ILO. The
training programme was launched at the end of 2023 and 67 vendors (for a total of 140 people) participated
in the training activities in the year (59% of the total).
Vendor performance and compliance with contractual provisions are constantly monitored: all the Saipem
functions involved in the various phases of the procurement chain management system are bound to
provide feedback on the conduct of vendors, including on sustainability aspects, such as any incidents
occurring during the execution of the work, conformity with local HSE or labour legislation, or evidence
collected during site inspections and audits.
The feedback received guarantees the assessment of the vendor's overall reliability and, in the case of
serious situations recorded, the possibility to terminate the contract or suspend the vendor's qualification.
Throughout 2023, 502 feedback surveys on vendor performances were compiled and published, of which
91% with a positive outcome and 7% with a neutral outcome.
\ 160
Diagram of key processes and instruments to manage sustainability issues
in the supply chain
CONSOLIDATED NON-FINANCIAL STATEMENT
Active vendors
Qualified vendors during the year
Vendors with existing contracts
Vendors with existing contract in countries with a high risk
of human and labour rights breaches
Vendors with existing contracts classified as at risk on HSE issues
Critical vendors
Ordered from critical vendors
Vendors qualified in the year working in countries with a high risk
of human and labour rights breaches, total of which:
- for critical qualifications (*) (**)
- for non-critical qualifications (*)
New vendors working in countries with a high risk of human
and labour rights breaches, assessed on the issue
Vendors qualified in the year for activities considered at HSE risk
Vendors assessed on HSE issues
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(%)
(No.)
(No.)
(No.)
(No.)
(%)
(No.)
2023
21,979
6,364
10,897
4,880
1,500
11,851
75
2,902
803
2,447
431
8
474
2022
22,311
6,393
-
-
-
-
-
2,807
573
2,234
446
9
578
2021
23,585
7,226
-
-
-
-
-
3,121
-
-
598
9
595
It must be stated that the numbers in the table are representative both for the total perimeter of the Group and the full consolidated perimeter, because a vendor qualified at corporate
level can potentially work with all the entities in the Group. Critical vendors mean those qualified in critical commodity codes.
(*) Category introduced in 2022.
(**) 71% of the target vendors qualified in the year, operating in countries at high risk of violation of human and workers' rights, were assessed on labour rights compliance. A list of
countries at high risk of violating human and labour rights is drawn up annually; for 2023 these countries are distributed in the various geographical areas with the following
percentages: 14% America, 36% Africa, 8% CIS, 5% Europe, 16% Middle East and 21% Oceania and Asia.
\ 161
SAIPEM ANNUAL REPORT 2023
Safeguarding the health and safety of people
GRI 403-1
GRI 403-7
The health and safety of all Saipem personnel is a priority and strategic objective for the Company. This
commitment is an essential pillar of the HSE Policy and the “Integrity in our operations” Policy.
The health and safety of people are constantly monitored, assessed and guaranteed through a management
system that integrates Quality, Health, Safety, Security and Environment, which meets the international
standards and current legislation. Also, it covers all employees and subcontractors working in sites managed
by the Group for the execution of all operational projects.
On the basis of the various organisational levels and the sampling established by the audit programme,
Saipem's HSEQ management system is monitored annually, through internal audit activities, in order to verify
the process performance and compliance with the reference standards applicable in quality, Safety and
Environment.
The Company carries out internal audits regarding HSEQ on: HSEQ management system, compliance with
the HSEQ legislative provisions. These audits involved operating companies, operating sites (including the
fleet) and subcontractors.
In 2023, more than 150 internal audits were conducted to monitor Saipem's Integrated Management System
(first stage audit). In more detail, 11 related to the Health Management System, 22 regarding the ISO 45001
(Safety), 10 according to the ISO 14001 scheme (Environment), 81 integrated in Environment and Safety, 5 in
accordance with the Asset Integrity scheme, 17 on Legislative Compliance and 6 on the Organisation and
Control Model adopted on crimes relating to health and safety at work, as well as environmental ones.
Saipem, in accordance with its procedures, also constantly monitors the HSE performance of its
subcontractors in various ways, including planning and carrying out sample HSE and Quality audits.
Again, in accordance with company procedures, the critical issues that emerge during the audits are
managed by the audited parties who define appropriate Corrective Action Plans for their resolution. The audit
teams then evaluate their effectiveness, all with a view to continuously improving HSE and Quality
performance.
The critical issues that emerged during the audits are also subject to constant monitoring and quantitative
analysis. During 2023, 85 non-conformities emerged, both major and minor.
During the year, Saipem also continued its process aimed at ensuring high health and safety standards for all
its personnel, achieving significant improvements.
Following the periodic audit by the accredited third-party certification body, the ISO 45001 and ISO 14001
certifications were confirmed for Saipem SpA and all the most significant Group companies, with a coverage
of 99% for the full consolidated perimeter (93% for the Group perimeter) of company employees and agency
workers, excluding subcontractors, as a guarantee of the homogeneous and systematic approach to the
management of processes.
As regards ISO 9001, coverage at the end of 2023 was 62% (61% for the Group perimeter) in terms of
entities involved in the audit activity.
Starting from 2023, Saipem has entrusted all certification activities to a single independent Certification
Body (DNV), including those for ISO 9001 which was renewed in December 2023 for Saipem SpA and some
Group entities.
Safe operations
Ensuring safety during the entire project life cycle, from design to delivery, has fundamental importance for
Saipem and is clearly explained in the Company's HSE Policy.
During the design phase, safety is ensured through the management of design risks and the identification,
evaluation and continuous reduction of main risks through process safety measures. Design risk
management is implemented through various engineering activities, including Inherent Safe Design.
Inherent Safe Design is the main approach to follow to avoid any danger and/or mitigate related risks: this
requires continuous discussion and regular meetings between all involved disciplines and safety specialists
from the beginning of the design through all project execution phases, in order to evaluate and review the
main design choices (such as process alternatives, layout solution, etc.) for:
≥ consideration of all risk reduction options (ALARP); and
≥ the timely and correct selection of security requirements/measures.
The management of safety aspects related to design and operation is ensured, among others, by the
following activities.
\ 162
CONSOLIDATED NON-FINANCIAL STATEMENT
1. Hazard review during project development: all major risks affecting each area of the facility to be
constructed are identified and classified using the HAZID and HAZOP assessment combined with the risk
assessment matrix and/or the results of other safety studies. The first step is the hazard identification study
(HAZID/ENVID) which also covers the construction, transportation and installation phases. The second step
is the HAZOP analysis which aims to emphasise the dangers that may arise from the project, in terms of
possible accidents, and provide information for the implementation of improvements in the design of
protective and preventive measures. The final step is the identification of preventive and mitigation
measures for the main risks identified during the updates of the HAZID and HAZOP assessments. Usually, all
these measures called Safety Critical Design Measures (SCDM) are included in a dedicated register.
2. Safety studies including, for example, flammability risk analysis and quantitative risk assessment (QRA).
3. Design of safety systems such as, but not limited to, Fire & Gas system, fire protection system and passive
fire protection.
4. Identification of Safety and Environmental Critical Elements (SECE): any system or equipment that is
believed to provide significant benefit in the prevention, detection, control or mitigation of a potential serious
hazard, whose failure may compromise the facility performing the safety activity. For SECE critical elements,
the relevant performance standards are defined and evaluated in order to assess correct design and
functionality/availability.
5. The Functional Safety Lifecycle activities in accordance with the IEC 61511 and IEC 61508 standards are
part of the safety activities performed for the design and operation phases, such as the assignment of the
SIL (Safety Integrity Level), the specification of the safety requirements for the SIF (Safety Instrumented
Functions) and verification activities.
Asset integrity
Operate safely, minimising the risk of major accidents, is a priority for Saipem. The Company is in fact aware
that such events could generate serious impacts on people, the environment, the community in general, its
assets and its reputation.
For Saipem, a company mainly operating as a contractor, working safely also means providing safe and
reliable services to its clients.
Saipem strongly pursues the effective implementation of its asset integrity management system as an
outcome of good design, construction and operating practices adopting the integrated management of
barriers to reduce the risks associated with Major Accident Events (MAE).
Asset integrity refers to the prevention and control of the events with very low frequency and high/severe
consequences on people, the environment, assets or project performance. The asset integrity model follows
a typical deming cycle: planning, operations, performance monitoring and continuous improvement.
Saipem undertakes to prevent risks to improve the integrity all offered services and operations. For this
purpose, it adopts a proactive approach in the mitigation of risks as an integral part of its management and
business activities, from the initial design phases.
In particular, risks relating to the standard operating portfolio of each offshore unit (construction, drilling and
floaters) are analysed in terms of possible impact on people, the environment and material damage to the
asset and/or in terms of delays in project execution. Major accident scenarios are identified and analysed
through specific studies aimed at identifying the prevention and mitigation barriers of each scenario with the
potential for escalation to a major accident. The critical elements for safety and environment (Safety Critical
Element - SCE) and the expected performances for each of them (performance standards) are then
identified, as well as the activities necessary to ensure the achievement of these performances during the
entire cycle of life of the asset (assurance activities). The activities described above are included in the
so-called "Safety Case", for which a process has been started to further improve the identification of Safety
Critical Equipment and Safety Critical Tasks associated with barriers dependent on human action, mapping
actions, responsibilities and skills necessary to carry out the task reliability.
Skills are managed through a Competence Assessment & Assurance process, aimed at identifying any skills
gaps and filling them with appropriate internal or external training, through courses or on-the-job training; this
also applies to the emergency management for which periodic exercises are carried out.
During asset life cycles, assurance activities, such as maintenance, testing, personnel training, updating of
procedures and manuals, are carried out by the operations and asset management departments.
Change management occurs through specific procedures meant to identify the level of impact of the
change, to activate the involvement of expert figures in the concerned disciplines, to identify the correct
level for final approval, and to manage the change process until its full closure.
Saipem constantly monitors asset integrity performance, collecting information on the state of health of all
safety critical elements, as well as critical skills and procedures. This information is represented through a set
of Key Performance Indicators, developed for each of the three business sectors involved: offshore
construction, drilling and production floaters.
\ 163
SAIPEM ANNUAL REPORT 2023
In addition to this, audit and barrier self-verification activities are systematically carried out by the Vessel
Management Teams.
All performance information is consolidated and presented during periodic reviews to define improvement
actions: quarterly with the Chief Operating Officers responsible for the concerned Business Lines and
half-yearly with the Chief Executive Officer of Saipem.
People safety
SASB
EM-SV-320a.1
SASB
EM-SV-000.D
SASB
IF-EN-320a.1
Saipem's commitment to people safety has led the Company to be considered today among the "Best in
Class" companies in its reference sectors4.
Every year Saipem defines a plan of safety objectives for the whole Group linked to the incentive plans for
senior managers for the areas of competence.
For the year 2023, these goals included:
≥ continuously guarantee the adequacy of the HSE management system, also with a view to modernising
operating processes towards the complete digitisation of HSE reporting activities for better and more
detailed data analysis;
≥ confirm the maintenance of the ISO 45001 (Occupational health and safety management system) and ISO
14001 (Environmental management system) certificates;
≥ maintain the SA 8000 Social Accountability International (SAI) certification (Saipem SpA obtained it in
March 2022 and maintained it in 2023) confirming the application of a social responsibility management
system in the context of human rights, workers' rights and their well-being within the company;
≥ ensure in a continual manner the identification of the hazards and the assessment of the risks associated
with the safety of personnel, vendors and other people involved in the Company’s activities as well as the
risks for the Company assets;
≥ guarantee adequate risk assessment related to the health and safety of people in all our operating sites
and those risks attributable to interference between activities contracted to vendors working in Saipem
structures or construction sites;
≥ guarantee a continual process of HSE training for staff. This process can be broken down into several
phases: updating the HSE training matrix (which identifies the training needs based on professional roles),
definition and standardisation of the courses on a dedicated platform, provision of the courses, monitoring
and reporting on the training activities;
≥ the consistent application of preventive and protective measures that are suitable for guaranteeing the
health and safety of people and the integrity and efficiency of assets;
≥ follow-up and control activities on the effectiveness of prevention and the measures implemented;
Promoting the safety culture of workers is facilitated in the Company’s sector by both the reference
regulatory framework, characterised by laws and agreements at national and company level, and by an
internal environment characterised by specific policies on health and safety.
Internal policies define particularly stringent and rigorous criteria for safeguarding people's safety; they are
also valid in various local operating contexts still characterised by a regulatory system on the subject still
under evolution. With regard to national agreements, not all countries in which Saipem operates have trade
unions at both national and local level. Where specific agreements are in place between trade unions and
Saipem, they can include the following on safety:
≥ setting up workers' H&S committees (composition and number);
≥ specific training for safety officers (responsible Company figures and employee representatives) and
grassroots information on safety matters to all employees, with particular reference to courses on Health
and Safety at Work, Fire Fighting, First Aid, and mandatory “Special Operations” (Onshore-Offshore);
≥ regular meetings between the company and workers’ representatives.
In Italy, the national collective agreement provides for the appointment of corporate representatives of the
workers for their protection in the areas of health, safety and environment (RLSA). The appointment is by
election, based on the provisions of law and the bargaining contract. There are a total of 16 RLSAs at the
Saipem
Italian offices. A specific trade union agreement signed by Saipem and the Trade Union
Organisations defines the duties of RLSAs and their full authority to carry out their activities also for workers
assigned temporarily to activities at yards and sites other than those of origin.
It should also be noted the presence of institutes in foreign countries, where participation is shared between
management and the workforce for the management of initiatives and programmes regarding health and
safety in accordance with the reference regulations in different countries.
It is specified that 37% of the total workforce in all locations is represented in formal joint management-
worker committees on health and safety.
(4) OGP - International Association of Oil & Gas Producers, IADC, International Pipeline & Offshore Contractors Association, IMCA
International Marine Contractors Association, IPLOCA - International Pipeline & Offshore Contractors Association, and numerous
competitors.
\ 164
Safety indicators,
definitions and
calculation methods
LTI (Lost Time Injury) -
means any accident at
work that renders the
injured person
temporarily unable to
perform any regular
activity or limited work
during any day/ shift
after the day on which the
accident occurred LTI
include fatal accidents,
permanent total disability,
permanent partial disability
and temporary total
disability.
WRC (Work Restricted
Case) - any injury at work,
with the exception of
deaths or lost work days,
which makes the person
unfit for performing all
his/her activities fully in the
days after the injury at
work. In this case, the
injured person is
temporarily assigned to
other duties or exempted
from some parts of his/her
normal duties. The
maximum limitation time
can be 30 days. If the
limitation exceeds 30 days,
the injury must be
classified as LTI.
TRI (Total Recordable
Injury) - means the sum of
LTI, cases of limited work
and cases of medical
treatment: TRI =
LTI+WRC+MTC.
TRIFR (Total Recordable
Injury Frequency Rate) - it
is calculated as (TRI
number on hours worked)
x 1,000,000.
FTLFR - (Fatal Accident
Frequency Rate):
calculated as (No. of fatal
accidents per hours
worked) X 1,000,000,000.
LTIFR - (LTI Frequency
Rate): it is calculated as
(No. LTI on hours worked)
x 1,000,000.
Lost days of work: the
total number of calendar
days in which the injured
person was not able to do
their job as a result of an
LTI. The calculation for the
lost days starts from the
day after an accident until
the day when the person is
capable of returning to
work. The calculation does
not include fatal accidents.
SR (Severity Rate) -
calculated as (No. of lost
days of work per hours
worked) x 1,000.
Injury with high-impact
consequences at work
(High-consequence
work-related injury):
injury with more than 180
days lost.
High-consequence work-
related injuries Frequency
Rate: calculated as (No. of
High-consequence
work-related injuries per
hours worked) x 1,000,000.
Absenteeism rate of
employees: it is calculated
as the ratio between the
number of total hours of
absence and the number
of total annual theoretical
working hours. The annual
theoretical working hours
are calculated
proportionately to the
number of staff at
December 31.
Events
high-level (HL): Any
work-related event that,
under slightly different
circumstances, could
have resulted in LTI or
fatalities. Accidents with
potential consequences on
people ≥ L3.
Total frequency of
high-level events:
calculated as No. HL
Events per hours worked)
x 1,000,000).
CONSOLIDATED NON-FINANCIAL STATEMENT
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
(million hours)
(million hours)
(million hours)
Worked Man-hours
Total, of which:
Man-hours employees
Man-hours subcontractors
Lost Time Injury (LTI)
Total, of which:
Employees
Subcontractors
Of which fatal accidents:
Total, of which:
Employees
Subcontractors
High-consequence work-related injury (a)
Total, of which:
Employees
Subcontractors
Of which with disabilities:
Total, of which:
Employees
Subcontractors
Days lost (a)
Total, of which:
Employees
Subcontractors
Severity Rate (a)
Total, of which:
Employees
Subcontractors
Total Recordable Injury (TRI)
Total, of which:
Employees
Subcontractors
Near miss
Total, of which:
Employees
Subcontractors
Absenteeism rate of employees
Fatal Accident Frequency Rate
(FTLFR)
Total, of which:
Employees
Subcontractors
LTI Frequency Rate (LTIFR)
Total, of which:
Employees
Subcontractors
High-Consequence Work-Related Injuries
Frequency Rate (HCWRFR)
Total, of which:
Employees
Subcontractors
TRI Frequency Rate (TRIFR)
Total, of which:
Employees
Subcontractors
Total High-Level Event Frequency
Rate (HLFR) (b)
Total, of which:
Employees
Subcontractors
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(ratio)
(ratio)
(ratio)
(No.)
(No.)
(No.)
(No.)
(No.)
(No.)
(%)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
(ratio)
176.0
83.8
92.2
17
10
7
1
-
1
2
2
-
1
1
-
991
706
285
0.006
0.008
0.003
57
36
21
214
130
84
3.5
0.57
-
1.08
0.10
0.12
0.08
0.011
0.024
-
0.32
0.43
0.23
0.74
1.07
0.44
169.2
78.1
91.1
237.8
98.4
139.4
215.9
86.7
129.2
199.7
90.8
108.9
16
10
6
1
-
1
2
2
-
1
1
-
921
706
215
0.005
0.009
0.002
54
34
20
209
125
84
3.6
0.59
-
1.1
0.09
0.13
0.07
38
24
14
1
-
1
4
4
-
2
2
-
2,405
1,757
648
0.010
0.017
0.005
103
53
50
-
-
-
5.5
0.42
-
0.72
0.16
0.24
0.10
0.012
0.026
-
0.017
0.041
-
0.32
0.43
0.22
0.74
1.09
0.44
0.43
0.54
0.36
0.88
1.21
0.65
36
23
13
1
-
1
4
4
-
2
2
-
2,390
1,754
636
0.011
0.020
0.005
98
50
48
-
-
-
5.4
0.46
-
0.77
0.17
0.27
0.10
0.019
0.046
-
0.45
0.58
0.37
0.92
1.29
0.67
37
27
10
-
-
-
4
3
1
4
3
1
3,153
2,486
667
0.016
0.027
0.006
74
46
28
-
-
-
5.6
-
-
-
0.19
0.30
0.09
0.020
0.033
0.009
0.37
0.51
0.26
0.76
1.26
0.46
(a) Updated 2021 data based on the number of days lost during 2022 for accidents that occurred in 2021.
(b) Category introduced in 2021.
In 2023, the Group's performance in relation to safety indicators improved compared to previous years. In
fact, the TRIFR of 0.32 recorded in 2023 is significantly lower than the 0.43 in 2022; the LTIFR was 0.10 in
2023 compared to 0.16 in 2022.
173.9
76.4
97.4
37
27
10
-
-
-
4
3
1
4
3
1
3,153
2,486
667
0.018
0.033
0.007
73
46
27
-
-
-
5.7
-
-
-
0.21
0.35
0.10
0.023
0.039
0.010
0.42
0.60
0.28
0.83
1.26
0.50
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SAIPEM ANNUAL REPORT 2023
In 2023, there was a fatal accident that occurred in an onshore construction site during the erection of
scaffolding.
The fatal accident involved a subcontractor worker who, during the assembly of the scaffolding, at
approximately 13 meters in height, fell from above while going down to the ground for a break.
The investigation results revealed that the direct causes of the accident lie in the incorrect behaviour of the
worker who voluntarily did not use the anchoring device and the rigid lifeline when descending from the
scaffolding. The mitigation and prevention actions identified concerned the review of the scaffolding
installation methods, the strengthening of scaffolding erection supervision and the implementation of
innovative tools for the identification of unsafe behaviours.
Furthermore, following the accident, the Safety Step Up programme was formally launched, managed by a
multidisciplinary team, to
improving safety
performance at work, in particular with regard to the prevention of serious accidents and high potential
events. The Programme is structured into 5 strands: Technology, Asset Integrity, Supply Chain, Behaviours
and System Data Analysis.
In 2023, various initiatives were carried out such as, for example, the implementation of "Video Analytics"
technology in the Berri project (Saudi Arabia) which through Artificial Intelligence can identify dangerous
situations in real time, in compliance with privacy provisions, using the equipment available on the
construction site. It turned out to be a very effective solution and will therefore be progressively extended in
projects and on board the fleet.
implement actions aimed at continuously
identify and
In addition to the fatal accident, in 2023 there were two injuries defined as HCWR5 (High Consequences Work
Related) which caused one permanent partial disability and one temporary disability with more than 180 lost
days.
An accident occurred while using the lathe and resulted in the partial amputation of the operator's middle
finger; the other accident occurred during the manual handling of a grill, also resulting in a finger injury.
From investigation results, it can be seen that the preventive and protective actions identified ensure
accurate technical/operational training for the execution of specific activities and reinforce the importance of
complying with operational procedures and the Life Saving Rules (LSR), i.e. the rules that each Saipem
resource is required to follow to protect themselves and their colleagues.
In January 2023, two high potential incidents (HIPO) occurred in Saipem, which, if they had not been promptly
and effectively managed, could have led to very serious consequences.
Following the two HIPOs, CEO Alessandro Puliti decided to intervene promptly by calling a meeting with
senior managers and operational managers to focus attention on the issue.
A new internal communication campaign followed, with a specific cascading toolkit, focused on the
prevention and mitigation of fire risk.
Furthermore, these Group performances are periodically presented to management, no less than once a
year, to identify further areas for improvement.
SASB
EM-SV-320a.2
Leadership in safety and HSE culture
With regard to the initiatives promoted by Saipem on the dissemination of a safety culture within the
organisation, the main actions carried out in 2023 were:
≥ promotion of the Leadership in Health and Safety (LiHS) programme, with the aim of transmitting safe
behaviour throughout the organisation and a strong focus on leadership development at all managerial
levels;
≥ creation and cascading of the Health & Safety Vision 2023: the H&S Vision reflects Saipem's values and its
daily commitment to guarantee the health, safety and well-being of all its people;
≥ the process of creating Saipem's new Health and Safety Vision took place through a collective
brainstorming which involved Top Management during a special edition of the Leadership in Health
& Safety workshop. Following this first event, the cascading process began to align all our stakeholders,
including subcontractors and clients, on the values of the new health and safety vision and share the
challenges to be faced in the coming years to bring our culture of health and security at an even higher
level;
≥ align our stakeholders on the Health & Safety Vision: Saipem organised three special events to share the
value of safety with Saipem stakeholders in the Middle East and align them on the new Health & Safety
Vision. The events, in the presence of CEO Alessandro Puliti, involved 350 people including Saipem
employees and their families, partners in the Middle East and the Italian community in the United Arab
Emirates;
≥ implement a LiHS relaunch programme for naval vessels: 3 workshops were held in 2023 to involve
Masters, Offshore Construction Managers, Chief Engineers and Chief Electricians. A fourth workshop is
(5) HCWR: term that defines a sub-category of an LTI with a resulting fatality or an LTI with at least 180 lost working days. All injuries resulting
in permanent disability must be registered in the reporting system used by the HSE function and consolidated as High Consequences Work
Related (HCWR).
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CONSOLIDATED NON-FINANCIAL STATEMENT
already planned for January 2024. This relaunch programme will continue with a new series of workshops,
until the Vessel Management Teams are fully covered;
≥ integration of “The Safer, The Better”; the film is the main tool of the Leadership in Health & Safety (LiHS)
methodology, including the CEO's introductory and final debriefing messages. Through these messages
the CEO expressed his personal vision on health and safety culture. The importance of intervening in
unsafe situations is underlined, exercising "stop work authority" and reiterating the concept of "ownership",
i.e. care and sense of responsibility towards oneself and others;
≥ the CEO's interventions to launch messages on workplace safety through dedicated events addressed to
his managers and the operational line directly; specifically, the topics treated were: fire risk prevention,
working at heights and the railway tragedy that occurred in Brandizzo, an event that did not occur in
Saipem that highlighted serious deficiencies in the health and safety culture in the sector;
≥ the organisation of Saipem Safety Days: to celebrate the World Day for Health and Safety at Work, Saipem
and the LHS Foundation organised a digital
live streaming event broadcast on April 28, 2023.
Saipem Safety Day 2023 was the opportunity to present the messages of the new Health & Safety Vision,
interpreted and contextualised by testimonies from over 30 managers and professionals of our
organization, http://www.fondlhs.org/saipemsafetyday2023;
≥ participation, in synergy with the LHS Foundation, in the 23rd edition of the World Congress on Health
& Safety at work. It is one of the most prestigious international conferences in the HSE field which aims to
promote the protection of workers' health. Saipem had the opportunity to present some internal
communication campaigns and to share its values and commitment to a safer future;
≥ launch of the fire risk prevention campaign: following two high potential incidents (HIPO), CEO Alessandro
Puliti decided to intervene promptly by calling a meeting with senior managers and operational managers
to focus attention on the issue. A new internal communication campaign followed, with a specific
cascading toolkit, focused on the prevention and mitigation of fire risk. The toolkit includes guidelines for
cascading, recording of the live CEO meeting, a safety moment and campaign posters. During the year, 40
cascading events were held in which 950 people took part;
≥ development and launch of the "Process Safety Fundamentals" programme, in line with the directives
and material made available by IOGP (The International Association Oil&Gas Producers), and on the basis
of statistics and data collected over a 10-year period, in order to strengthen further Process Safety, to
which 6 accident events can be linked on board the Floating Production Storage Operations (FPSO)
between 2021 and 2022.
Finally, there are also many initiatives carried out by the Saipem LHS Foundation, which has been active for
13 years with the mission of increasing the culture of health and safety in industry and society.
In line with its mission, during 2023 the LHS Foundation launched several related initiatives, aiming to foster
an increasingly widespread health and safety culture in Italy, targeting children, businesses and all the
community. "Improsafe", "A chi esita", "Le nuovissime avventure di Pinocchio", "La linea sottile" are the
performances designed to generate a strong emotional impact, shaking individual consciences, and
questioning deep-rooted beliefs and habits, helping the audiences to pay more attention to health and
safety.
The diffusion of the "Objective 18" communication campaign continued – it symbolically adds the culture of
safety as the eighteenth element in the list of 17 objectives for a sustainable future included in the UN
Agenda 2030.
Again with a view to joining forces and networking, the LHS Foundation kept on supporting the "HSE System"
project, a network that today brings together 100 HSE Managers of large companies to share experiences in
the HSE field and promote the dissemination of know-how along the supply chain, in coordination with the
representative entities of the production system.
Moreover, to provide a coherent picture of the situation of safety culture in Italy, to stimulate debate among
interest groups, to propose intervention strategies, and to draw the attention of the media and public opinion
to these issues, the LHS Foundation continues to support the development of the Observatory on
Leadership in Health and Safety, which counts on the scientific advice of several experts and the
collaboration of the Catholic University of Milan.
The involvement of citizens, students and workers is also fundamental through the "Italia Loves Security"
project, based on the interactive platform www.italialovessicurezza.it, which aims to inspire people to act
responsibly and safely every day, becoming increasingly aware of the value of security, in every aspect of life.
This year more than 19,000 people have joined the campaign launched for the World Day for Safety and
Health at Work of the April 28.
Finally, as in previous years, the LHS Foundation continues to develop projects for schools and young
people, in the belief that raising awareness and educating children is the actual key to building a safer world.
The offer of activities is very wide and ranges from workshops in collaboration with partners such as the Red
Cross and LILT (Italian League for the Fight against Cancer).
In 2023, the LHS Foundation took part again in the Milano Marathon, the large charity running event involving
over 120 athletes and marathon runners. Through their efforts, over €19,000 were raised for our charity
partner Lega Italiana per la Lotta contro i Tumori and its "Visite sospese" project for people in economic
difficulty.
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SAIPEM ANNUAL REPORT 2023
HSE training
The training on health, safety and the environment is an important part of the implementation of the HSE
system in Saipem’s central headquarters and operating sites. All the HSE training activities are critical
preventive actions for reducing risks.
During the year, Saipem continued to invest significant resources in training its staff on HSE issues through
campaigns and ad hoc programmes, with the aim to increase workers’ awareness of the risks associated
with work activities. Among the most critical in terms of risk assessment are working at height, working in
confined spaces, simultaneous operations and other activities that may involve objects falling from heights.
During 2023, an activity was launched to create tools based on Human Performance (HP) principles, to be
implemented in Saipem starting from the second half of 2024, with the ultimate objective of significantly
improving safety performance through greater effectiveness of HSE processes.
The HP kit will include training tools to provide a theoretical basis on Human Performance, as well as
high-level brainstorming activities, aimed at identifying areas of action and process improvement, and at
the same time will capitalise on the experience and methods which determined the success of the LiHS
programme.
Once fully operational, the set of tools will possibly bring benefits to activities managed at all hierarchical
levels: from high-level decision-making processes to site operations.
Note the introduction of a new training package to give the entire Saipem population, often travelling in
different areas of the world subject to the most varied climatic phenomena, basic preparation on how to deal
with extreme natural events, which are increasing due to climate change.
Saipem Training Centre in Saudi Arabia has been reorganised and reinforced to provide operational support
for drilling activities in the Saudi area (5 rigs in Saudi Arabia and 2 in Bahrain).
In 2023, the delivery of the HSE Train the Trainer (4 sessions) continued: to ensure that our family of
HSE instructors are always improving their training, and to increase participants' knowledge of training
design, delivery methods, and internal resources essential for HSE training, as well as the registration and
reporting process. Furthermore,
in 6 different
masterclasses organised in multiple sessions. The over 130 trainers who attended the masterclasses had
the opportunity to delve deeper into the following topics: working at heights, working in confined spaces, ISO
21001, new Health & Safety Vision and preview of the new “The Safer, The Better” film.
in 2023, trainers had the opportunity to participate
In 2024, the Group HSE Training Matrix will be replaced by a new HSE training model inspired partly by the
Italian approach (general training for everyone based on the role) and partly by the international approach
(ref. IOSH paths).
In fact, two basic courses will be provided (one for workers and one for supervisors and managers) and the
training modules will be structured according to the macro-category of risk they belong to (office,
office-construction site, construction site).
The training programme will be based both on HSE value and cultural aspects, and on the general risks of
the industry and the role.
The duration may vary from 2 to 8 hours based on the risk profile.
Additional training (on regulations, site/project, contracts, client, maritime, etc.) will be scheduled and
delivered by the operating sites.
More details on HSE training data can be found in the paragraph “Skills, knowledge and talent attraction”.
Employee health
GRI 403-3
GRI 403-6
GRI 403-10
As described in the “Integrity in our operations” Policy, Saipem considers the safeguard of health and the
promotion of the physical and mental well-being of its people as a fundamental requirement. This is a crucial
aspect influencing Saipem's operations, which is committed to being a leader in protecting the health of its
workers. The Company pursues this objective in compliance with the provisions on the protection of privacy
and the national and international laws on the safeguard of health and the prevention of diseases.
Implementation of company health policies implies that the health promotion programme for each work site
focuses mainly on preventive measures, including all the operations which may represent a risk for employee
health.
The Company’s operating activities require the movement of a considerable number of people, even to
remote locations. In this context, the Company ensures the best possible medical assistance to employees
wherever they work, organises periodic medical visits with the issuing of certificates of suitability and trains
the personnel in charge before each trip or assignment abroad. The aim is to prevent the risks of contracting
diseases as a consequence of climatic, environmental and other factors specific to destination. The
\ 168
CONSOLIDATED NON-FINANCIAL STATEMENT
Company has organised specific processes and chain of well-defined responsibilities to promptly manage
any medical emergency whatsoever.
Saipem has developed a continually evolving health management system, which is adapted to the work
environments, integrates the most recent epidemiological studies and is designed to ensure the best health
monitoring and medical services. This system observes the principles recognised at international level and
by local laws among which are the WHO (World Health Organization) Beijing Declaration, ‘Global Strategy on
Occupational Health for All’ (1994), European legislation and Directive 2000/54/EC on the protection of
workers from risks related to exposure to biological agents at work, its application in Italy through Legislative
Decree No. 81/2008 and its amendments (the so-called ‘Consolidated Act on Occupational Health and
Safety’). The management system provides for the identification and assessment of risks to the health of
workers for each site/project/asset following which adequate prevention and mitigation measures are
identified and implemented. A periodic monitoring activity of these measures is performed. The presence of
Saipem clinics in working contexts in Italy and abroad fulfils the desire not only to support employees, but
also to create proximity services that integrate the offer on the territory, with specific attention to the
possible needs of Saipem people both in the workplace and personally.
The intention to ensure high standards of health and safety to all its personnel is once again confirmed is the
WHP (Workplace Health Promotion) programme organised with ATS Milano and Regione Lombardia to
maintain the status of “Workplace that promotes health” obtained in recent years.
In line with the programme, Saipem committed itself to building an environment that encourages the
adoption of positive health behaviours and choices by employees, by promoting actions aimed at supporting
healthy choices (dietary habits and active lifestyle) and counteracting risk factors (e.g. smoking, alcohol
abuse).
And although the proposal of our company restaurants is already oriented towards balanced and healthy
menus, for 2024 Saipem intends to promote the introduction of targeted nutritional indications so that users
can make a choice based on nutritional benefits of specific regimes.
Saipem has always taken care of the health and well-being of its employees with specific attention to the
prevention of chronic diseases and in particular cardiovascular diseases, which represent a significant
challenge for public health worldwide. This year, campaigns against smoking and overweight continued, as
did a specific cardiovascular prevention programme for which a review is expected in 2024, in accordance
with updates to international guidelines.
Regular screening programmes can identify early risk factors, allowing timely and personalised interventions
and, to confirm the Company's commitment, in 2023 a free cardiovascular and cancer prevention check-up
was defined meant for workers in the age groups at greater risk. This service will be provided starting from
2024.
With a view to creating a local service that integrates the offer in the area with the possible needs of
Saipem’s personnel, both in the work and personal spheres, from this year the Milan office is equipped with a
health facility (Smart Clinic). In addition to offering first aid services, carrying out health checks, training
activities for caregivers and travel medicine activities, it will provide services aimed at the well-being of
workers; in fact, inside the facility there is a psychological helpdesk service which guarantees support for
psychological well-being both with a traditional approach and in a virtual environment with the use of the
metaverse. The service is carried out by a female and a male psychologist respecting diversity.
There is also a social assistance service for the management of family problems, support for the elderly and
management of family members with disabilities, etc. Saipem implements prevention with an approach that
integrates physical health and mental health, with particular attention to work-home balance, and which can
lead to tangible benefits for employees, but can also reduce absences due to illness, increase in productivity
and contribute to a positive working environment.
In 2023, a model aimed at managing disabilities was also created which provides, through the ICF
classification of disability conditions, the identification of any participation gaps in company life and
proposals for reducing them through specific and structured initiatives.
The many years of experience in using the telemedicine tool has favoured the use of remote IT and
telecommunication tools for healthcare management. In addition to telecardiology and teleradiology, in 2024
a teledermatology service will be activated abroad which provides specialised medical support to employees
especially in remote workplaces, and a telepsychology service which will be available 24 hours a day, seven
days a week.
In relation to the management of the SARS-CoV-2/COVID-19 virus, which has constantly decreased in the
number of infections, non-mandatory contagion prevention devices have currently been made available to
workers.
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SAIPEM ANNUAL REPORT 2023
Health surveillance activities continue on a regular schedule, complying with the indications provided by the
Ministry of Health, the national and territorial health authorities and the provisions for vulnerable workers.
Occupational diseases reported
Reported occupational disease rate
(No.)
(ratio)
2023
Group
Total
11
0.06
Full
consolidated
11
0.06
2022
Group
Total
6
0.03
Full
consolidated
6
0.03
2021
Group
Total
9
0.05
Full
consolidated
9
0.05
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CONSOLIDATED NON-FINANCIAL STATEMENT
Human Capital
Human resource policies and management
GRI 404-1
GRI 404-3
Saipem believes that its people are the crucial factor for the very existence of the company and their
dedication, proactivity and professionalism is essential to achieve the company objectives; this is confirmed
in “Our People” policy.
The following paragraphs delve deeper into the topic of skills and knowledge and talent attraction,
employment trends, pay equity and welfare, work-life balance and well-being.
Skills, knowledge and talent attraction
Saipem maintains its commitment to promoting and supporting the growth of its people through key
development initiatives focusing on professional and aptitude skills. Living in a diversified and global
corporate community like Saipem’s requires a shared and functional relational code to achieve objectives:
for this reason, a new Behavioural Model (“One Saipem Way”) has been redefined and developed which aims
to enable and consolidate specific skills, abilities and behaviours of Saipem people.
The concept of "One Saipem" indicates the need to consider ourselves and operate as a single entity divided
into multiple Business Lines, but united and cohesive in view of shared objectives. Talking about One Saipem
means reiterating the centrality of projects and, consequently, the need to share skills and knowledge in a
continuous and constructive dialogue. On the occasion of the Strategy Line-Up 2023, the event during which
the strategy and objectives are shared with all employees, the CEO underlined the need to capitalise on skills
and reiterated that cooperation and mutual support between all departments and functions are a key
element for the success of our projects.
The Model, inspired by Saipem values, constitutes the guide for attraction processes, development and
management of Saipem people and guides the strengthening of the most relevant and strategic soft skills
within the organisation, such as proactivity, commitment, behaviours that enhance inclusion and diversity, as
well as the centrality of all issues relating to our people’s safety.
The definition of the Model saw the involvement in Virtual Focus Group of approximately 6,000 employees
coming from the main countries in which Saipem operates and belonging to the various company functions
and different seniority groups. Widespread diffusion will be guaranteed by a specific communication
campaign and training and information courses. Furthermore, in continuity with the past, specific objectives
of strengthening soft skills inspired by the new behavioural model, in addition to professional objectives,
constitute an important part of a consolidated Performance Management system.
With the aim of expanding initiatives to support the development of skills, a coaching course dedicated to
young managers was also introduced during the year. The service, created through a digital platform,
represents a new self-development tool as it allows the person involved to strengthen awareness of their
potential and improve performance, thanks to the definition and implementation of an ad hoc growth plan,
with the support of certified and qualified coaches.
The development of people also represents the foundations of the new Training Centre that will be
established at the Santa Giulia headquarters in Milan and will be an enabler and catalyst for technical and soft
skills, by designing and delivering training courses and events to disseminate the corporate culture and
values. The Employee Experience is enabled not only by a physical place but also by a virtual space,
consisting of the new Human Capital Management system, implemented in October 2023, that will provide
access to on-demand content and a training offering focused on individual and business needs.
The competencies were the subject of a major upskilling and reskilling initiative. From June to November
2023, in fact, Saipem launched a training programme called STEP (Saipem Training Enabling People), which
consists of a simultaneous large-scale upskilling and reskilling plan, aimed at consolidating the skills of
Saipem people on transversal topics consistent with the objectives of the strategic plan and the evolution of
the business (green and technological innovation, decarbonisation, sustainable engineering, digitalisation of
processes, new ways of working, etc.). The initiative exploited the opportunities offered by the New Skills
Fund, established by ANPAL (National Agency for Active Labour Policies), linked to the Recovery Fund, which
aims to support companies willing to invest in the training of their people, in particular on the issues of digital
and ecological transition. In this way, Saipem has confirmed its attention to improving competitiveness,
enriching corporate know-how and promoting the cultural change necessary to face the ongoing transition.
The STEP training course involved the entire population of Saipem SpA, operating in Italy, with permanent
contracts/full-time apprenticeships (3,154 people) in 150 days. Each resource was invited to participate in 45
engaging and effective webinars (2 hours each), focused on the green and digital transition. The high
participation (85.09%) demonstrates the commitment of all the people involved who declared their
appreciation and satisfaction.
Another demonstration of Saipem's commitment to enhancing its resources was the development and
launch of the new Onboarding Process, which took place in the last months of 2023 and for the moment has
only involved the Italian offices. This process aims to best integrate and retain new hires in the company,
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SAIPEM ANNUAL REPORT 2023
through specific activities and events, to increase know-how and, at the same time, spread a company
culture based on shared values.
One of the initiatives envisaged by the process is the "Welcome to Saipem" event dedicated to new
resources. The event is aimed at presenting the company and its business, the main projects, the
organisational processes and the main initiatives such as Sustainability, Safety and Environment, the
Development and Training processes, the company's commitment to Diversity & Inclusion and the value of
corporate welfare, in order to make new hires acquire greater awareness of the context and its peculiarities.
The first edition of the event was held on November 29, 2023, dedicated to over 400 new hires who joined
Saipem between January and October 2023. For the event, various speakers were involved who,
representing their Functions, introduced Saipem's Business to the new resources, describing specific
projects, company organisation, Sustainability and HSE initiatives, Development and Training processes,
company's commitment to Diversity & Inclusion and the value of corporate welfare.
Particular attention is paid to young new hires, who are the recipients of an initiative aimed at developing a
broad vision of company processes, increasing the level of awareness on compliance, risk, governance and
control and encouraging the development of a working approach and an organisational culture more
oriented towards preventive risk assessment. The Programme lasts three/six months and starts in the first
two years of experience in the company.
The consolidated Sinergia programme launched in 2011 and aimed at young students of secondary schools,
continues and allows, in accordance with PCTO (school-work alternating activities) projects, collaboration
with technical institutes in Italy for training on business subjects by internal Saipem teachers.
The importance of technical competencies in Saipem is also reflected in the recent establishment of “Area
Knowledge Coordinators” (below “AKCs”), who, leveraging the experience acquired, define the technical-
executional competencies for their areas of responsibility, necessary for the achievement of business
objectives. To date, the AKCs represent the Business Lines of Offshore Drilling, Offshore Engineering
& Construction and Energy Carriers. The AKCs also perform a supporting role in identifying training paths
to support the development of technical-executional competencies, with the aim of strengthening the
company know-how for the benefit of continuous evolution of the business. To enrich the knowledge of
personnel, the mapping of the project experience of Saipem people and a methodology for evaluating the
skills functional to analyse the company workload are currently being tested.
One of the distinctive and characterising skills in Saipem is Project Management, whose development and
enhancement was at the heart of the new PM Academy, which synergically integrates all internal and external
training initiatives.
The value and importance of this competency was highlighted by the “PM Academy Diploma Ceremony”
held in April 2023 for 150 employees from the 4 Saipem hubs (Milan, Fano, Chennai and Abu Dhabi) involved
in previous years in the internal "Project Management Takeaways" training course consisting of 15 modules
which presents the Saipem methodologies for managing all phases of the project. The course continued in
2023, with the launch in June of a dedicated edition for colleagues from the United Kingdom, France, Oman,
Sharjah and Chennai.
The sessions dedicated to Project Managers of the PM Leading in Action course continued at the Schiedam
Training Centre (the Netherlands), aimed at consolidating managerial skills applied to projects, through a
learning methodology based on highly interactive simulations and case studies.
The importance for Saipem of ESG issues that impact the entire corporate supply chain is growing.
Accordingly, a major training initiative was started with the 2023-2026 Sustainability Plan for all the
professionals of the Supply Chain. The initiative consists of mini training modules primarily aimed at creating
awareness of ESG principles: what is meant by sustainable business; what are the rights and duties of the
company for protecting human rights and defending the environment; and the “Saipem Net Zero”
programme, whose goal is to achieve Carbon Neutrality for Scope 2 emissions by 2025.
The centrality of Saipem people is also reflected in the creation of shared value for all stakeholders, both
internal and external.
This push also took shape in 2023 when Saipem activated various talent attraction initiatives, with the aim of
defining an interconnected ecosystem between companies and educational institutions (universities, high
schools and technical schools) and favouring a path to skill increase, useful for our business, particularly in
the field of green economy.
The Politecnico di Milano and Saipem are still working together on the project for training and professional
orientation of students through training meetings on technical and transversal skills (Virtual Round Tables), as
well as events with focus on gender diversity with the aim of promoting the company as an equal opportunity
employer and focusing attention on female leadership.
In 2023, a project was launched to share with the students of the "Complex Projects Lab" course the
know-how of Saipem experts on topics such as floating solar and wind energy, sea water cooling, satellite
technologies, critical minerals, underwater data centres, ship retrofitting, diversity and inclusion, financing
decarbonisation projects and other topics:
≥ the scope of collaboration and existing relationships with Italian educational institutions (universities and
high schools) were expanded: new strategic partnerships with important centres such as La Sapienza
\ 172
University of Rome, the Polytechnic of Bari, the IUAV University of Venice, the University of Bologna, the
University of Pavia and the Federico II University of Naples were signed;
≥ a further agreement was stipulated with the University of Pavia on the use of non-university facilities for the
CONSOLIDATED NON-FINANCIAL STATEMENT
teaching and training needs of the "Hygiene and Preventive Medicine” specialisation school;
≥ a partnership agreement with the Polytechnic University of the Marche Region which provides for Saipem’s
involvement in the definition of a new course of study (three-year degree in "Engineering for industrial
sustainability" and a master's degree in English in "Green industrial engineering") on sustainability topics
and energy transition, and its contribution as a financing sponsor;
≥ as part of this partnership signed with the Carlo Bo University of Urbino, in early 2023 we invited 38
students of different nationalities and five professors to visit our FDS 2 vessel moored at the San Giorgio
del Porto shipyard in Genoa, Italy, and to learn more about safety issues and the world of offshore
operations. Also, as part of this collaboration, the interactive on-line visit was held on board the Saipem
7000 in October 2023. The virtual trip was designed and created to reach a large and heterogeneous
audience: first and foremost, teachers and students of all levels, but also Saipem employees and their
families. Through innovative digital technologies, it was possible to virtually bring the participants on the
Saipem 7000. During the two-day trip, participants followed the design and construction phases of the
Neart na Gaoithe (NnG) wind farm off the coast of Scotland in the North Sea. Almost 27 thousand students
participated in the visit;
≥ finally, the collaboration with the University of Trieste continues for the award of 3 scholarships named in
memory of a highly skilled Saipem professional: Egidio Palliotto. The initiative, in its third edition, aims to
give new generations a closer look on the skills and attitudes necessary to address the new challenges of
the future. The partnership with Bocconi University was also consolidated and at the beginning of the year
it was the guest of a company visit for students of the SDA Bocconi Master in Corporate Finance.
Among the new initiatives, it is worth mentioning the creation of the HSEQ SYNERGY Master, in collaboration
with the QUINN Consortium, which aims to train 15 young graduates for possible enrolment in Saipem. It
consists of a path in six sections dedicated to the energy world, the principles of the culture of health, safety,
environment and quality (HSEQ), project management, sustainability and digital culture.
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
(hours) 2,020,750
1,992,595 1,861,565
1,764,803
1,688,917 1,526,040
Training
Total hours of training, of which:
- HSE (employees and subcontractors),
of which:
- employees
- subcontractors
. managerial potential and skills
. professional technical skills
Total direct training costs
(hours) 1,719,376
542,037
(hours)
(hours) 1,177,339
83,021
(hours)
218,353
15.4
(hours)
(€ mln)
527,105
1,691,454 1,736,139
511,179
1,164,349 1,224,960
10,694
114,732
9.9
82,989
218,152
15.2
Please note that the figures relate to Companies in which personnel are employed and not seconded.
1,639,540
493,829
1,145,711
10,669
114,594
-
1,524,528 1,368,562
576,822
-
13,694
143,784
7.12
611,829
-
13,706
150,683
7.88
\ 173
SAIPEM ANNUAL REPORT 2023
In 2023, the Company recorded a 29% increase for the full consolidated perimeter (22% in the Group
perimeter), compared to 2022, in the total hours of training provided to employees at Group level.
For the Group perimeter, training was provided to 31,185 employees (97% of employees). In detail, the
number of male employees who attended at least one training course was 28,029 for the Group perimeter
and 26,721 for the full consolidated perimeter, while the number of female employees who attended at least
one training course, in 2023, is equal to 3,156 for the Group perimeter and 3,125 for the full consolidated
perimeter.
As regards the enjoyment of training courses by professional category, in 2023 it is noted that 12,800 blue
collars attended at least one training course for the Group perimeter (11,808 for the full consolidated
perimeter), 13,707 white collars for the Group perimeter (13,387 for the full consolidated perimeter), 4,372
managers for the Group perimeter (4,345 for the full consolidated perimeter) and 391 senior managers for
both perimeters.
As regards HSE training, the Group provided a total of 1,691,454 hours of training for the full consolidated
perimeter and 1,719,376 hours at Group level.
There was an increase in the hours of HSE training provided to employees; this increase is equal to 7% for
the full consolidated perimeter (6% for the Group perimeter). In particular, 263,013 hours of HSE training
were delivered to blue collars in the Group perimeter (252,018 for the full consolidated perimeter), 204,073
hours to white collars (200,306 for the full consolidated perimeter), 69,054 hours of training to managers in
the Group perimeter (68,883 for the full consolidated perimeter) and finally, to senior managers 5,897 hours
of HSE training for both perimeters.
In terms of number of participants, for the Group perimeter 12,643 blue collars (11,655 for the full
consolidated perimeter) took part in at least one HSE training course, 10,643 white collars in the Group
perimeter (10,355 in the full consolidated perimeter), 3,283 managers in the Group perimeter (3,262 in the
fully consolidated perimeter), finally 309 senior managers for both perimeters.
In 2023, the average hours of training per capita increased by 36.5% for the full consolidated perimeter, and
by 33.9% for the Group perimeter. In 2023, on average, every employee attended 28.8 hours of training for
the full consolidated perimeter (and 26.3 hours at the Group perimeter) and, specifically, on average, each
male employee participated in 25.9 hours for the Group perimeter (28.5 for the full consolidated perimeter),
while each female employee participated in 28.9 hours of training for the Group perimeter (30.9 hours for the
full consolidated perimeter). Lastly, with regard to the average use of training hours by employees by
professional category, senior managers attended an average of 46.1 hours of training for the full
consolidated (44.8 for the Group perimeter), managers 39.2 hours for the Group perimeter (40.7 for the full
consolidated perimeter), white collars 22.3 hours for the Group perimeter (23.8 for the full consolidated
perimeter) and blue collars 26.5 hours of training for the Group perimeter (29.6 for the full consolidated
perimeter).
Performance evaluation
Through the Performance Management process, Saipem contributes primarily to the dissemination of
company strategy and priorities, and to directing people's activities by promoting continuous improvement
and strengthening personal and professional skills and company results.
\ 174
CONSOLIDATED NON-FINANCIAL STATEMENT
On an annual basis, managers have the opportunity to assign objectives and evaluate the contribution
provided and results achieved by the people they manage, involving, in addition to the latter, any internal
stakeholders who collaborate with the employee on specific projects and/or geographical areas. Crucial and
integral parts of the process are self-assessment and continuous feedback.
The process, managed for over 15 years on dedicated information systems, migrated to a new release of the
Human Capital Management System in 2023, now integrated with multiple HR processes. The drivers that
guided the new setting of the system were the desire to innovate the process and simplify the tool, in order
to significantly increase its diffusion also by improving the user experience.
Employees subject to performance
assessment
Female employees involved
Male employees involved
Senior Managers
Managers
White Collars
Blue Collars
2023
2022
2021
Group
Total
20,174
63
63
63
359
3,664
10,734
5,417
Full
consolidated
19,483
68
66
68
359
3,606
10,245
5,237
Group
Total
11,823
37
65
33
364
3,138
6,751
1,570
Full
consolidated
11,278
38
67
35
364
3,085
6,398
1,431
Group
Total
16,132
42
-
-
404
2,960
9,290
3,478
Full
consolidated
16,111
50
-
-
404
2,960
9,273
3,474
(No.)
(%)
(%)
(%)
(No.)
(No.)
(No.)
(No.)
In 2023, the method to report performance evaluation indicators was changed. Note that it was not possible to restate previous years.
Starting from 2023, the performance evaluation indicator is calculated by considering the documents closed
in the reporting year and relating to the previous year's performance, instead of the cards open in the
reporting year. It is believed that this measures even more effectively Saipem's actual commitment to
evaluating the performance of its employees.
Finally, with regard to the indicators relating to performance evaluation, in 2023 for the Group perimeter,
20,174 documents were evaluated (corresponding to a coverage of 63%) and 19,483 for the full
consolidated perimeter (corresponding to 68% of the company population).
Specifically, the percentage of assessed employees is equal to 66% of women for the full consolidated
perimeter (63% for the Group perimeter) and 63% of men for the full consolidated perimeter (68% for the
Group perimeter).
Considering the described change in methodology, the 2023 data are not comparable with those of previous
years.
\ 175
SAIPEM ANNUAL REPORT 2023
Workforce trend1
Total employees at period end
Employee categories
Senior Managers
Managers
White Collars
Blue Collars
Type of contract
Employees with full-time contracts
Employees on permanent contracts
Employees on fixed term contracts
Non-employed workers
Employees recruited through
an agency
Turnover
Total turnover (2)
Voluntary turnover (3)
2023
2022
2021
Group
Total
32,033
Full
consolidated
28,756
Group
Total
32,377
Full
consolidated
29,583
Group
Total
38,806
Full
consolidated
32,041
407
1.3
4,902
15.3
15,981
49.9
10,743
33.5
31,920
16,921
15,112
396
1.4
4,697
16.3
14,583
50.7
9,080
31.6
28,643
15,945
12,811
375
1.2
4,769
1.2
15,781
48.7
11,452
35.4
32,231
15,719
16,658
366
1.2
4,605
15.6
14,692
50.0
9,920
33.5
29,437
14,789
14,794
409
1.0
4,812
12.4
18,258
47.0
15,327
39.5
38,642
15,779
23,027
394
1.2
4,632
14.5
16,113
50.3
10,902
34.0
31,877
14,779
17,262
(No.)
(No.)
(%)
(No.)
(%)
(No.)
(%)
(No.)
(%)
(No.)
(No.)
(No.)
(No.)
7,346
5,898
6,951
6,535
7,137
5,967
(%)
(%)
25
8
25
8
41
10
27
10
28
10
22
5
(1) Please note that the figures relate to Companies in which employees are seconded and not where they are directly employed. Furthermore, it is specified that there are no
employees with non-guaranteed hours.
To integrate the data relating to the year 2023 for the Group perimeter please find below the percentage of employees with a permanent contract for the following geographical areas:
Americas 68%, CIS 19%, Europe 80%, Middle East 28%, North Africa 19%, Sub-Saharan Africa 56%, Far East 44%. As regards the breakdown by gender, however, it should be noted that
the number of female resources with permanent contracts is equal to 3,082, a slight increase compared to 2022 (2,828). As regards employees with fixed-term contracts, the following
numbers were recorded by geographical area in 2023: Americas 32%, CIS 81%, Europe 20%, Middle East 72%, North Africa 81%, Sub-Saharan Africa 44%, Far East 56%. The number of
women with this type of contract is down compared to 2022 (581 in 2023, against 610 in 2022). As regards full-time contracts, the percentage is above 98% in all geographical areas.
The trend in the number of female employees is increasing (3,578 in 2023, against 3,326 in 2022), as opposed to that recorded for resources with part-time contracts (85 in 2023,
against 112 in 2022).
(2) The total turnover is calculated as the ratio between all the annual exits and the average resources in the year.
(3) The voluntary turnover is calculated as the ratio between all the annual exits and the average resources in the year.
As regards the breakdown into age groups by category of employee, Senior Managers over 50 make up the
largest part of the category, i.e. 57% (also for the full consolidated perimeter), those between 30 and 50
amount to 43% (43% for the full consolidated perimeter), while there are no Senior Manager employees in
the <30 bracket.
As regards the category of Managers, the over 50 account for 37% of the category (37% for the full
consolidated perimeter), those between 30 and 50 63% (also for the full consolidated perimeter) and in the
<30 bracket 0, 04% (0.04% for the full consolidated perimeter).
The White Collar category has 14% in the over 50 range (also for the full consolidated perimeter), 73% in the
range between 30 and 50 (73% for the full consolidated perimeter) and in the <30 range 13% (13% for full
consolidated perimeter).
The Blue Collar category has 16% in the over 50 range (also for the full consolidated perimeter), 73% in the
range between 30 and 50 (74% for the full consolidated perimeter) and in the <30 range 11% (10% for full
consolidated perimeter).
The total number of workers who are not Saipem employees and who worked at Saipem sites in 2023 was
estimated at the end of the year at 36,468 for the Group perimeter and 34,628 for the full consolidated
perimeter. In particular, 29,122 subcontractors for the Group perimeter (28,730 for the full consolidated
perimeter) and 7,346 agency staff (5,898 for the full consolidated perimeter).
The figure for subcontractors was estimated on the basis of the number of hours worked compared to the
number of average daily working hours considered for the type of activity performed, while the agency
personnel data corresponds to the number in force as of December 31.
The total promotions, for the Group perimeter in 2023, amounted to 367 men (353 for the full consolidated
perimeter) and 79 women (a figure which is also confirmed for the full consolidated perimeter).
New hires, in 2023, amounted to 7,945, of which 11% women, 89% men. 58% of the new hires fall into the
White Collar category, 38% into the Blue Collar category, 4% into the Manager category and the remaining
0.1% into the Senior Manager category. Compared to the distribution in geographical areas, the Middle East
recorded the highest number of new hires, whose percentage of the total stands at 29%, at 21% in Africa, at
15% in the Americas and CIS, finally at 11% in Europe and 9% in the Far East.
\ 176
CONSOLIDATED NON-FINANCIAL STATEMENT
The overall turnover rate recorded a decrease compared to 2022, reaching 25% in 2023 (25% also for the
full consolidated perimeter), a value that remains at a significant level due to the nature of Saipem's business
which, being a contractor company, works on large projects that have variable durations (from a few months
to years) in different geographical areas. Considering the specific circumstance, the qualitative and
quantitative sizing of Saipem's human capital is therefore subject to a natural fluctuation that is connected to
the various operational phases of projects and to the cyclical nature of client investments. In particular, for
the year 2023, the closure of projects in Russia has led to a significant increase in overall turnover.
Consistently with the total turnover, the overall turnover of both the male and female corporate population
also recorded a decrease compared to 2022, by 23% for the male population for the Group perimeter and by
25% for the full consolidated perimeter; 15% for the female population in the Group perimeter and 16% in
the full consolidated perimeter. Voluntary turnover, like the overall turnover, also recorded a decrease
compared to the previous year, reaching 8% for the total perimeter of the Group and for the consolidated
perimeter. In 2023, an attrition rate of the female population of 10% was recorded, with 238 resignations out
of a total of 2,401 for the Group perimeter (percentage also confirmed for the consolidated perimeter with
235 resignations out of a total of 2,310).
The percentages of total and voluntary turnover (for the Group perimeter) broken down by gender and age in
2023, are as follows:
(%)
Detail by gender
Female employees
Male employees
Detail by age
Employees under 30 years of age
Employees aged between 30 and 50
Employees over 50 years of age
Detail by category
Senior Managers
Managers
White Collars
Blue Collars
Voluntary turnover
Total turnover
7
8
10
8
4
4
6
10
5
15
23
33
22
21
6
9
24
28
The total turnover is calculated as the ratio between all the annual exits and the average resources in the
year.
The voluntary turnover is calculated as the ratio between all the annual voluntary exits and the average
resources in the year.
Industrial relations
On the national level, 2023 was characterised by substantial discussions with the trade unions of all the
sectors represented in the Company (Energy and Oil, Metalworkers and Maritime).
In the second half of the year, a framework agreement was signed with the trade unions of both the Energy
and Oil sectors and the Metalworkers sector on the profit-sharing scheme for the period 2023-2025.
The signed agreement provides for the achievement of objectives that are fully consistent and aligned with
the main targets and drivers defined within the 2023-2026 Strategic Plan, in terms of:
≥ volume of new contracts;
≥ productivity KPI, for which the investment in digital and green skill training, defined within the New Skills
Fund, represents a relevant and particularly innovative aspect;
≥ managerial KPIs;
≥ environmental parameters;
≥ introduction of a parameter aimed at enhancing the values of Diversity & Inclusion, an increasingly
important factor for the company.
Saipem has always considered the enhancement and promotion of the health and safety of workers in the
workplace to be primary. From this perspective, the introduction of new digital technologies for detecting
dangerous conditions, managing emergencies and improving supervision activities in the various working
environments is also envisaged. In line with these objectives, the second half of the year was therefore
characterised by constant discussions with the relevant company functions (e.g. Privacy, Cybersecurity) and
with trade unions to prepare the launch of pilot projects using artificial intelligence in construction sites and
on board the vessels operating in Italian territorial waters.
\ 177
SAIPEM ANNUAL REPORT 2023
In this regard, in the first weeks of December an agreement was set with the Arbatax trade unions for a demo
of an artificial intelligence system held at the construction site and using a robot dog, in the context of the
Safety Step Up programme (further information can be found in the paragraph “People Safety”).
In July 2023, the supplementary agreement with the trade unions of the Energy and Oil sector was renewed;
it governs trips of particular nature and duration carried out within the national territory by personnel
operating both on board of vessels and onshore in their support. The objective of the renewal is to
increasingly protect the health and safety of personnel as well as improve the general assignment
conditions.
In the maritime sector, the second half of the year was characterised by the review of the labour law and
regulatory aspects of the soon-to-expire reference collective labour agreement. To this end, discussions
with the trade unions are still ongoing.
Regarding foreign industrial relations, the four-year collective agreement with the International Transport
Workers’ Federation (ITF) came into force on January 1, 2023, covering staff employed on nine vessels in the
Saipem fleet.
Furthermore, during 2023, collective agreements were renewed and new negotiations started at the Saipem
entities operating in Angola, Brazil, Mexico, Nigeria and Singapore. In Indonesia, the renewed collective
agreement signed by PT Saipem Indonesia for local staff assigned to the Karimun fabrication yard came into
force in March.
At Saipem SA, France, an agreement was negotiated in October regarding the budget for the salary review
policy, as well as measures to support the quality of life (possibility for women suffering from endometriosis
to access an extended leave) and the payment of a bonus to protect purchasing power. With reference to
the latter, two agreements were signed with the provision for a bonus to non-Senior Manager employees. In
November 2023, an annual supplementary agreement was stipulated on working hours which regulates night
work and weekend work for personnel assigned to on-call shifts to support activities on board vessels.
During the year, discussions took place with the workers' representatives of Sofresid and Saipem SA
pursuant to the relevant regulations which led to the completion of the sale of Sofresid to the Ekium, in
October.
As regards the activities carried out at a transnational level by the European Works Council (CAE) during
2023, extraordinary meetings were organised remotely, as well as a plenary meeting in Bucharest in
September concerning updates on health and safety matters and human resources management, with
particular focus on employees in the European Economic Area and an in-depth look at the Neart na Gaoithe
(NNG) project, where Saipem was involved in the construction of an offshore wind farm in Scotland.
Employees covered by collective
bargaining agreements
Hours of strike
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
(%)
(No.)
42
7,521
40
7,521
50
63
52
63
46
248
46
248
GRI 401-2
GRI 401-3
GRI 405-1
GRI 405-2
Equal treatment and enhancement of differences
In May 2023, the Vendor Code of Conduct was updated, with the integration of a specific paragraph dealing
with values and commitments mentioned in the Diversity, Equality & Inclusion Policy issued in November
2022. In fact, supply chain involvement is necessary for a more effective promotion of an inclusive culture.
During 2023, the MSG and Standard corporate procedures in the HR, Stakeholder Engagement and Supply
Chain areas were also reviewed and integrated with the DE&I principles expressed in the relevant Policy.
Management's commitment to reducing the gender gap is also demonstrated by the establishment, in
October 2023, of the Diversity & Inclusion Committee responsible for ensuring the promotion and adoption
of gender equality principles listed in company policies, and guarantee the constant application of all the
elements and requirements of the Uni PdR 125:2022 Standard, for which Saipem obtained, in November
2023, the Gender Equality Certification, issued by the DNV accreditation body. Since 2021, Saipem has in
fact nominated a Chief Diversity Officer, reporting to the People, HSEQ & Sustainability Director.
In line with the defined strategy and with the commitments and values promoted through the Diversity,
Equality & Inclusion Policy, Saipem has updated the relevant paragraph in the Strategic Sustainability Plan,
valid for 2023-2026, regarding precise objectives and particular attention to guaranteeing the principle of
equity and gender equality, recognised as key values and a foundations of social rights in favour of gender
inclusion and female empowerment. As a demonstration of the strong commitment, an objective has been
set to guarantee equal opportunities in the selection process. Respect for gender equality is a crucial
element that we intend to guarantee since from the selection phase. In this regard, in May 2023, a specific
\ 178
CONSOLIDATED NON-FINANCIAL STATEMENT
internal guideline was adopted at Group level to promote the gender equality and a training course was
designed to spread awareness and contain bias in the recruiting process.
Attention and valorisation of STEM skills in young girls and women play a key role in Saipem Diversity
& Inclusion strategy; Saipem is therefore committed to encouraging and fostering their development by
joining the Elis programme in early 2023, which has involved a pool of Role Models in Saipem Italy in career
guidance days at vocational schools and high schools throughout the country, with the aim of increasing
exposure and confidence in STEM careers, to counteract cognitive biases, and gender bias in particular.
Saipem will continue on this path during 2024.
The interest in creating communities dedicated to women has also spread in Brazil where, in December
2023, "The Women's Circle" programme began, a series of monthly meetings reserved for female employees
of Saipem do Brazil to facilitate discussions, share experiences and provide mutual support on
gender-related topics.
In March 2023 Saipem promoted, again in collaboration with Elis, the Elis Open Week orientation initiative,
aimed at guiding people in the future of work, as part of the “Sistema Scuola Impresa” project, in which
Saipem participates as well. This initiative, accessible to all employees and their families, has made available a
varied schedule of online events dedicated to orientation and the professions of the future.
In September 2023, the first survey on gender equality was also promoted in Italy to draw an overall picture
of the level of satisfaction and awareness of employees on the topic of gender equality in the workplace.
In December 2023, the DNV accreditation body also renewed the annual ISO 30415:2021 certification-
Human Resource Management Diversity and Inclusion standard, which represents a valuable guide for the
effective application of the "Diversity & Inclusion" principles in business processes.
During 2023, Saipem continued its collaboration with the “Valore D” Association, confirming itself as a
supporting member by promoting a set of training and information initiatives in continuity with past years:
mentoring, sharing labs, thematic in-depth training and talks accessible to the entire population at Group
level.
With the aim of expanding the scope of equal opportunities, in October 2023, Saipem joined the “Liberi e
Uguali” Parks Association, engaged in training and information activities to promote awareness and
knowledge of gender identity and sexual orientation.
In general, training is confirmed to be a strategic channel to guarantee widespread awareness and
knowledge of priority topics in the D&I field. During 2023, the delivery at Group level of training courses on
Unconscious Bias, Disability and Gender Harassment continued. In particular, attention to harassment in the
workplace remains crucial and Saipem is engaged in combating the phenomenon by creating training and
information campaigns at Group level, which will continue throughout 2024. Furthermore, during 2023 the
SAFER (Security Awareness for Empowerment and Resilience) course was designed and delivered: it has
both a theoretical and practical approach and teaches how to identify and prevent dangerous situations and
acquire greater awareness of the urban environment in which we live. The course, with three editions held in
April and June 2023 at the headquarters in Milan, involved 100 people.
This year too, Saipem has proven to be strongly committed to contrasting gender violence, promoting the
International Day for the Elimination of Violence against Women (November 25) and joining for the second
consecutive year the UNESCO campaign “Orange the World: End violence against women now”. Through the
internal Wear Orange campaign, all employees of the Saipem Group offices were invited to wear an orange
cloth or accessory and to write down their commitment against gender violence.
Disabilities are of the utmost importance for Saipem which is actively committed through targeted attraction
initiatives. An example is the participation, in May 2023, in the Diversity Day at the Bocconi University in Milan,
an event meant to promote and facilitate the employment of people with disabilities and belonging to
protected categories. Furthermore, on the occasion of the International Day of Persons with Disabilities on
December 3, 2023, Saipem recalled its tangible commitment to breaking down the barriers that prevent the
inclusion of disabled people, through a post published on external communication channels summarising
some of the initiatives promoted abroad:
≥ in France, conferences dedicated to disability and various sporting events were organised with the support
of the French Handisport Federation;
≥ in Senegal, in collaboration with the catering company, three young people from the Senegalese
Association for the protection of children with mental disabilities were hired. This example demonstrates
how Saipem promotes an inclusive culture even among its subcontractors;
≥ in Brazil, a specific training programme for the leadership team was organised to enhance and develop
more inclusive leaders. Furthermore, the Diversity Committee of Saipem do Brasil has established two
working groups to promote accessibility, disability inclusion and qualification.
\ 179
SAIPEM ANNUAL REPORT 2023
(No.)
Female presence
Female employment, by geographical area:
Americas
CIS
Europe
Middle East
North Africa
Sub-Saharan Africa
Far East
Female Senior Managers
Female Managers
Women in non-managerial roles
Female presence in engineering and IT positions out
of the total number of such position (*)
Women promoted out of total promoted employees (*)
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
3,663
273
96
1,922
376
23
484
489
42
10
822
17
2,799
10
13
18
3,438
363
144
1,843
273
16
390
409
31
8
774
16
2,633
10
3,428
273
73
1,878
371
23
321
489
42
11
793
17
2,593
11
13
18
(%)
(%)
(%)
(%)
(%)
3,248
363
143
1,802
269
16
246
409
31
8
750
16
2,467
10
3,937
348
456
2,019
248
25
307
534
33
8
774
16
3,130
9
3,524
348
220
1,972
245
25
181
533
33
8
753
16
2,738
10
(*) Indicator introduced in 2023.
To supplement the data relating to the year 2023 in the Group perimeter, please note that more than 99% of female employees have a full-time contract with the exception of Europe
(96%) and, with regard to the type of contract, female employees with a permanent contract are distributed in the geographical areas as follows: Americas 96%, CIS 8%, Europe 96%,
Middle East 67%, North Africa 48%, Sub-Saharan Africa 74%, Far East 69%.
Note that "Women Managers" includes "Women Managers" and "Senior Managers" and "Women in non-managerial positions" includes white collar and blue collar women.
The table below also provides a complete view of Saipem's employee data:
(No.)
Age ranges
Employees under 30 years of age
of which women
of which men:
Employees aged between 30 and 50
of which women
of which men:
Employees over 50 years of age
of which women
of which men:
Average age (*)
Employees with disabilities
Multiculturalism
Number of nationalities represented in the employee
population
(*) Indicator introduced in 2023.
2023
2022
2021
Group
Total
Full
consolidated
Group
Total
Full
consolidated
Group
Total
Full
consolidated
3,188
514
2,674
22,873
2,565
20,308
5,972
584
5,388
41.78
254
3,054
2,796
399
475
2,655
2,321
20,524 23,443
2,392
2,465
18,132 20,978
5,436
5,880
561
574
4,875
5,306
41.82
249
384
5,346
2,660
548
373
4,798
2,287
21,448 27,558
2,318
2,801
19,130 24,757
5,902
5,475
588
557
5,314
4,918
3,574
462
3,112
23,077
2,501
20,576
5,390
561
4,829
378
195
193
130
130
129
129
130
128
As regards gender, women represent 12% of the work force (11% at Group level). With regards to the
distribution by age group, 10% of employees are under 30 years old, 71% are between 30 and 50 years old
and 18% are over 50 years old (data in line between the Group perimeter and the consolidated perimeter).
In terms of the distribution by professional categories, women represent 1% of Blue Collars (2% at Group
level), 17% of White Collars (16% at Group level), 17% of Managers and 11% of Senior Managers (10% at
Group level).
The percentage of women in a managerial position compared to the total number of women is 24%, a figure
which is 1 percentage point higher for the full consolidated perimeter compared to the previous year.
Female senior managers represent 11% of the total senior managers (10% compared to the Group
perimeter).
Female middle managers represent 17% of the total middle managers (17% compared to the Group
perimeter).
\ 180
With regard to the senior management, 3 of the 15 first reports to the CEO are women, as specified below:
CONSOLIDATED NON-FINANCIAL STATEMENT
Executives No.
Men
12
% of Executives
Executives
Men
Women
80 S. L. Rasini
R. Carrara
O. Stella
Executives No.
Women
3
% of Executives
Women
20
Executive
Men
M. Bonzi
P. Calcagnini
S. Chini
M. Branchi
F. Botta
P. Albini
F. Abbà
M. Toninelli
C. Bottaro
G. Secchi
M. Piasere
F. Picciani
Date
December 31,
2023
Pay equity
The Company defines on an annual basis the guidelines of the Remuneration Policy, and in particular
prepares precise guidelines to govern remuneration policies and reduce remuneration disparities between
men and women, the principle of “equal pay for equal work”, in all the countries in which it operates.
The salary gap indicator for the Senior Manager category is approximately 86% in 2023 (both for the full
consolidated perimeter and for the Group perimeter), showing a slight decrease compared to 2022. For
Middle Managers, the indicator has a value of 92% for the full consolidated perimeter, with an increase of 2
percentage points compared to 2022, and of 94% for the Group perimeter, with an improvement of 3
percentage points compared to 2022. For White Collars a value of 91% was reached for the full consolidated
perimeter and 93% for the Group perimeter, both showing a significant increase in both perimeters
compared to the 2022.
The remuneration gender pay gap indicator – which includes both the fixed and variable part of the
remuneration – for Senior Managers is 82% (for both the full consolidated and Group perimeter), which
represents a decrease compared to 2022; for Middle Managers 94% for the Group perimeter and 92% for
the full consolidated perimeter, with an improvement for both compared to 2022; for White Collar workers
the value is 91% for the full consolidated perimeter, while it is 93% for the Group perimeter, showing a
significant increase compared to the previous year.
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SAIPEM ANNUAL REPORT 2023
Considering the average pay by gender at Group level, women on average have a higher pay than men by
11.5% in 2023. This value, although varied over the years, has always been in favour of the women, in
compliance with the remuneration policy guidelines applied by the Company. The indicator is calculated by
measuring the total remuneration for men and women, without adjustments (e.g. role, category, level,
education, office, etc.).
Other remuneration data
We also report that, the ratio between the overall remuneration of the Chief Executive Officer-CEO and the
overall average remuneration of employees (full-time employees) of Saipem, calculated with reference to
Saipem SpA and the main subsidiaries, which stands at 37 and 51 respectively for 2023. With regard to the
ratio between the total remuneration of the Chief Executive Officer-CEO and the median total remuneration
of employees (full-time employees), it stands at 43 for Saipem SpA and 57 for the main subsidiaries in 2023.
Finally, the ratio between the percentage increase in the overall remuneration of the Chief Executive
Officer-CEO and the percentage increase in the average overall remuneration of Saipem SpA employees is 5
in 2023.
Further information on remuneration (fixed and variable), severance payments, bonuses and clawback
regulations for members of the Board of Directors, Statutory Auditors, the Chief Executive Officer-General
Manager and Senior Managers are available in the document "Report on Remuneration Policy and
Compensation Paid 2024”.
Finally, taking as a reference the personnel hired in 2023 in the lowest category, in Saipem SpA and in the
most significant Group entities with reference to projects under execution, it appears that the average annual
salary, compared to the contractual minimums and considering the variety of roles covered by the
concerned professionals, is the following:
Company
Saipem SpA
Saipem SA
Saudi Arabian Saipem Ltd
Saipem Contracting Nigeria Ltd
PT Saipem Indonesia
Petromar Lda
Men
102%
n.a.
110%
114%
585%
796%
Women Reference calculation
101%
Remuneration according to CCNL
cat. 3, CREA 3
182% Minimum salary at national level
n.a. Minimum salary at national level
114% Minimum salary at national level
n.a. Minimum salary at national level
n.a. Minimum salary at national level
Country
Italy
France
Saudi Arabia
Nigeria
Indonesia
Angola
n.a. Not available data.
\ 182
CONSOLIDATED NON-FINANCIAL STATEMENT
Welfare, worklife balance and wellbeing
Regarding employee engagement policies, welfare initiatives are of increasing importance and aim to
improve the quality of life, satisfaction and motivation and promote the conciliation between private and
professional life (work-life balance).
Saipem's focus on the well-being of its employees, from the choice of the new company headquarters to a
structured welfare programme, brings to offer services in various areas, with particular attention paid to the
three major pillars, namely: Health, Family and Savings.
From this perspective, Saipem continues to offer services to its employees.
During 2023, the main initiatives were concentrated at the new headquarters in Milan Santa Giulia with the
opening of the company restaurant, which combines comfort with quality service. The choice confirms
Saipem's commitment to sustainability issues by proposing a healthy diet, reducing food waste by donating
uneaten food surpluses to social solidarity entities or bodies, using green materials and introducing
initiatives, such as the Meat Free Day, aimed at reducing CO2 emissions.
The Saipem Wellness Club was also inaugurated in July 2023. An area dedicated to well-being and physical
activity and allowing both individual and collective training courses held by professionals in the sector. The
gym is equipped with changing rooms also available to those reaching the office by bicycle or jogging on
their lunch break.
In order to make the service available even remotely and for staff on assignment abroad, the MyWellness
portal was designed offering a wide range of on demand courses.
One of the ongoing innovations is the setting up of a Smart Clinic within the company premises. A medical
point for employees providing a variety of health services, from nursing consultations to travel prophylaxis,
psychological helpdesk and social assistance.
In 2023, with the end of the pandemic emergency, the “Estate Welfy” programme intended for parents with
children up to 16 years of age was also resumed. This initiative has allowed around 350 children and young
people to participate in summer camps that include activities aimed at learning English, sports and
recreation, and contact with nature. This is just one example of the numerous services to support families.
In addition to the existing welfare initiatives in the countries where Saipem operates, remote working policies
are being implemented, with a view to promoting work-life balance, in the countries where permitted by
business needs and local legislation.
Saipem guarantees its employees, based on the specific local circumstances, different types and modes of
benefits that include supplementary pension funds, additional health funds, mobility support services and
policies, initiatives in the field of welfare and family support policies, catering and training courses aimed at
ensuring more effective integration within the socio-cultural context of reference. These benefits, when
envisaged and based on the country/society/local legislation in force, today are applied to the specific
reference population regardless of the type of contract (temporary/permanent), except for those particular
services where the time scale of performance delivery may not be compatible with the duration of the
contract.
Saipem supports the work/family balance of its personnel through Company regulations and/or local policies
which guarantee parental leave. The differences among countries for this leave lie only in the time and
method of abstaining from work. There was an increase in the average number of days of parental leave
used. In 2023, Saipem had 460 employees (475 considering the Group perimeter), 234 men (237
considering the Group perimeter) and 226 women (238 considering the Group perimeter), who made use of
parental leave for a total of 16,697 days (17,603 referring to the Group perimeter). In this context one should
note, in the same period, the return to work from parental leave of 431 employees (444 at Group level), 231
men (234 for the Group perimeter) and 200 women (210 at Group level), with a return rate from parental leave
in the same year of 94% for the full consolidated perimeter (93% at Group level). Gender break down results
in 99% for men (in both perimeters) and 88% for women (both perimeters).
Overall, it should be noted that the employees who are entitled to parental leave are 18,066 (20,205 for the
Group perimeter), of which 3,312 are women (3,491 considering the Group perimeter) and 14,754 men
(16,714 considering the Group perimeter).
Considering the main companies of the Group (with coverage of 80% of employees), the Company offers at
least 20 weeks of maternity leave and 1.5 weeks of paternity leave.
\ 183
SAIPEM ANNUAL REPORT 2023
GRI content index
Reference documents
NFS23: Consolidated Non-Financial Statement 2023
AR23: Annual Report 2023
SR23: Sustainability Report 2023
CG23: Corporate Governance and Shareholding Structure Report 2023
RP24: Report on Remuneration Policy and Compensation Paid 2024
Statement of use
Saipem SpA has reported in accordance with the GRI Standards for the
period January 1, 2023 - December 31, 2023
GR used
Applicable GRI Sector Standards
GRI 1 - Foundation - 2021 version
GRI 11: Oil and Gas Sector 2021
General disclosures
GRI Standard
/Other sources
Disclosure
Location
Requirement(s)
Omitted/Reason/
Explanation
2-1 Organisational details
2-2 Entities included in the
organization’s sustainability
reporting
2-3 Reporting period,
frequency and contact point
2-4 Restatement of
information
2-5 External Assurance
2-6 Activities, value chain
and other business
relationships
2-7 Employees
2-8 Workers who are not
employees
2-9 Governance structure
and composition
2-10 Nomination and
selection of the highest
governance body
2-11 Chair of the highest
governance body
2-12 Role of the highest
governance body in
overseeing the management
of impacts
2-13 Delegation of
responsibility for managing
impacts
2-14 Role of the highest
governance body in
sustainability reporting
2-15 Conflicts of interest
2-16 Communication of
critical concerns
2-17 Collective knowledge
of the highest governance
body
Cover (AR23).
"Consolidation scope as of December 31, 2023”,
pages 237-241 (AR23).
“Methodology, principles and reporting criteria”,
pages 82-91 (NFS23); "Consolidation scope as of
December 31, 2023”, pages 237-241 (AR23);
“Changes in the consolidation scope”, page 242
(AR23). Inside back cover (AR23).
“Performance evaluation”, pages 174-175 (NFS23).
“Methodology, principles and reporting criteria”,
pages 82-91 (NFS23).
“Company profile and key operations”, page 102
(NFS23); “Social policies and management”, page
157 (NFS23).
“Workforce trend”, pages 176-177 (NFS23).
“Workforce trend”, pages 176-177 (NFS23).
"Governance of business sustainability”, pages
116-117 (NFS23); "Governance of sustainability”,
pages 11-12 (CG23).
"Governance of business sustainability”, pages
116-117 (NFS23); "Board of Directors”, pages 20-23
(CG23).
"Governance of business sustainability”, pages
116-117 (NFS23); "Board of Directors”, pages 20-23
(CG23).
“Methodology, principles and reporting criteria”,
pages 82-91 (NFS23); "Governance of business
sustainability”, pages 116-117 (NFS23); "Board of
Directors”, pages 20-23 (CG23).
"Executive Directors”, pages 32-34 (CG23); "Board
of Directors’ role”, pages 20-23 (CG23); "Functioning
of the Board of Directors (pursuant to Article
123-bis, paragraph 2, letter d), Consolidated Law on
Finance - TUF)", page 31 (CG23); “Methodology,
principles and reporting criteria”, pages 82-91
(NFS23).
“Methodology, principles and reporting criteria”,
pages 82-91 (NFS23); "Governance of business
sustainability”, pages 116-117 (NFS23).
"Governance of business sustainability”, pages
116-117 (NFS23); "Board of Directors”, pages 20-23
(CG23).
“Reporting suspected violations”, pages 124-126
(NFS23).
"Functioning of the Board of Directors (pursuant to
Article 123-bis, paragraph 2, letter d), Consolidated
Law on Finance - TUF)", page 31 (CG23); "Board of
Directors”, pages 20-23 (CG23).
GRI 2:
General
disclosures -
2021
\ 184
General disclosures
GRI Standard
/Other sources
Disclosure
Location
CONSOLIDATED NON-FINANCIAL STATEMENT
Requirement(s)
Omitted/Reason/
Explanation
2-18 Evaluation of the
performance of the highest
governance body
2-19 Remuneration policies
2-20 Process to determine
remuneration
2-21 Annual total
compensation ratio
"Governance of business sustainability”, pages
116-117 (NFS23); "Succession plans", page 38
(CG23).
"Governance of business sustainability”, pages
116-117 (NFS23); "Incentive system”, pages
117-118 (NFS23); "Contribution to mitigating climate
change“, pages 137-147 (NFS23); "Saipem’s Net
Zero programme”, pages 140-142 (NFS23); “Equal
treatment and enhancement of differences”, pages
178-181 (NFS23); “Section II - Compensation paid
and other information”, pages 34-44 (RP24).
"Governance of business sustainability”, pages
116-117 (NFS23); “Section II - Compensation paid
and other information”, pages 34-44 (RP24).
“Equal treatment and enhancement of differences”,
pages 178-181 (NFS23).
GRI 2:
General
disclosures -
2021
2-22 Statement on
sustainable development
strategy
2-23 Policy commitments
2-24 Embedding policy
commitments
2-25 Processes to
remediate negative impacts
"Letter to the shareholders”, pages 2- 4 (AR23);
"Development of the market scenario and strategy”,
pages 103-105 (NFS23); "Model 231 (including the
Code of Ethics)”, pages 121-122 (NFS23); "Letter to
stakeholders", pages II-1 (SR23).
“Company management and organisation model”
pages 102-103 (NFS23); "Governance of business
sustainability”, pages 116-117 (NFS23); “Protecting
the environment and minimising environmental
impacts”, pages 149-157 (NFS23); “Safeguarding
the health and safety of people”, pages 162-170
(NFS23); "Sustainability Plan”, pages 92-96 (NFS23);
“How Saipem’s business model creates value”, page
127 (NFS23); “Equal treatment and enhancement of
differences”, pages 178-181 (NFS23).
“Company management and organisation model”,
pages 102-103 (NFS23); "Governance of business
sustainability”, pages 116-117 (NFS23); “Protecting
the environment and minimising environmental
impacts”, pages 149-157 (NFS23); “Safeguarding
the health and safety of people”, pages 162-170
(NFS23); "Sustainability Plan”, pages 92-96 (NFS23);
“How Saipem’s business model creates value”, page
127 (NFS23); “Equal treatment and enhancement of
differences”, pages 178-181 (NFS23); “A sustainable
supply chain”, pages 159-161 (NFS23).
“Asset integrity”, pages 163-164 (NFS23); “Spill
prevention and response”, pages 147-148 (NFS23);
“Social policies and management”, page 157
(NFS23).
2-21a: partial
disclosure: Saipem
reports the indicator by
calculating the median
annual total
remuneration for
Saipem SpA only and
undertakes to extend
the reporting scope
progressively in the
coming reporting
cycles.
2-21.b: partial
disclosure: Saipem
reports information by
calculating the average
of the total employee
remuneration as the
data on the median for
2021 is not available.
\ 185
SAIPEM ANNUAL REPORT 2023
General disclosures
GRI Standard
/Other sources
Disclosure
Location
GRI 2:
General
disclosures -
2021
2-26 Mechanisms for
seeking advice and raising
concerns
2-27 Compliance with laws
and regulations
2-28 Membership
associations
2-29 Approach to
Stakeholder Engagement
2.30 Collective agreements
"Model 231 (including the Code of Ethics)”, pages
121-122 (NFS23); “Reporting suspected violations”,
pages 124-126 (NFS23).
“Company management and organisation model”,
pages 102-103 (NFS23); “Legal proceedings", pages
277-291 (AR23).
“Institutions and trade associations”, pages 98-99
(NFS23).
“Relations with stakeholders” pages 97-101
(NFS23).
“Industrial relations”, pages 177-178 (NFS23).
Requirement(s)
Omitted/Reason/
Explanation
MATERIAL TOPICS
GRI Standards
Disclosure
Location
GRI 3: Material
topics - 2021
3-1 Process to
determine material
topics
3-2 List of material
topics
“Materiality analysis and content definition”,
pages 83-91 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Materiality analysis and content definition”,
pages 83-91 (NFS23).
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
Economic performance (material topic: Climate change, Community development)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Economic value generated and distributed”,
page 127 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Economic value generated and distributed”,
page 127 (NFS23).
Market presence (material topic: Diversity & inclusion, Community development)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Climate-related risks”, pages 137-138
(NFS23); “Climate-related opportunities”,
pages 138-139 (NFS23).
Note 27 “Employee benefits”, pages 263-267
(AR23); “Incentive plans”, pages 293-294
(AR23).
Note 47 “Obligations regarding transparency
and disclosure. Italian Law August 4, 2017, No.
124 (Article 1, sections 125-129), page 316
(AR23); “How Saipem’s business model
creates value”, page 127 (NFS23).
“Equal treatment and enhancement of
differences”, pages 178-181 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Equal treatment and enhancement of
differences”, pages 178-181 (NFS23).
“Local content (In Country Value)”, page 158
(NFS23).
GRI 201:
Economic
performance
2016
201-1 Direct
economic value
generated and
distributed
201-2 Financial
implications and other
risks and
opportunities due to
climate change
201-3 Defined benefit
plan obligations and
other retirement plans
201-4: Financial
assistance received
from government
GRI 202: Market
Presence 2016
202-1 Ratios of
standard entry level
wage by gender
compared to local
minimum wage
202-2 Proportion of
senior management
hired from the local
community
\ 186
11.2.1
11.14.1
11.21.1
11.14.2
11.21.2
11.2.2
-
11.21.3
11.11.1
11.14.1
-
11.11.2
11.14.3
CONSOLIDATED NON-FINANCIAL STATEMENT
MATERIAL TOPICS
GRI Standards
Disclosure
Location
Indirect economic impacts 2016 (material topic: Community development)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
GRI 203: Indirect
economic
impacts 2016
203-1 Infrastructure
investments and
services supported
203-2: Significant
indirect economic
impacts
“Economic value generated and distributed”,
page 127 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Economic value generated and distributed”,
page 127 (NFS23); “Relations with
stakeholders”, pages 97-101 (NFS23).
“Economic value generated and distributed”,
page 127 (NFS23).
Procurement practices (material topic: Community development)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Supply chain management”, pages 131-132
(NFS23); “Methodology and Reporting
Criteria”, pages 84-86 (SR23).
“Supply chain management”, pages 131-132
(NFS23).
204-1 Proportion of
spending on local
suppliers
GRI 204:
Procurement
Practices 2016
Anti-corruption (material topic: Business ethics)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
Anticompetitive behaviour (material topic: Business ethics)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Fighting corruption”, pages 122-123 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Risk management”, pages 60-71 (AR23); “A
sustainable supply chain”, pages 159-161
(NFS23).
“Fighting corruption”, pages 122-123 (NFS23);
“A sustainable supply chain”, pages 159-161
(NFS23); "Governance of business
sustainability”, pages 116-117 (NFS23);
"Composition (pursuant to Article 123-bis,
paragraph 2, letter d) and d-bis), of Legislative
Decree No. 58/1998)", pages 25-30 (CG23).
“Fighting corruption”, pages 122-123 (NFS23).
“Legal proceedings", pages 277-291 (AR23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Legal proceedings", pages 277-291 (AR23).
There are no pending or completed legal
actions during the reporting period
concerning anti-competitive behaviour and
violations of anti-trust and anti-monopoly laws
in which the organisation has been identified
as a participant.
“Tax transparency”, pages 127-131 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Tax transparency”, pages 127-131 (NFS23).
“Tax transparency”, pages 127-131 (NFS23).
“Tax transparency”, pages 127-131 (NFS23).
205-1 Operations
assessed for risks
related to corruption
205-2
Communication and
training about
anti-corruption
policies and
procedures
GRI 205: Anti-
corruption 2016
205-3 Confirmed
incidents of
corruption and
actions taken
GRI 206:
Anticompetitive
behaviour 2016
Taxes
GRI 3: Material
topics - 2021
GRI 207: Taxes
2019
206-1 Legal actions
for anti-competitive
behaviour, anti-trust,
and monopoly
practices
3-3 Management of
material topics
207-1 Approach to
tax
207-2 Tax
governance, control
and risk management
207-3 Stakeholder
engagement and
management of
concerns related to
tax
207-4 Country-by-
country reporting
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
11.14.1
11.14.4
11.14.5
11.14.1
11.14.6
11.20.1
11.20.2
11.20.3
11.20.4
11.19.1
11.19.2
11.21.1
11.21.4
11.21.5
11.21.6
“Tax transparency”, pages 127-131 (NFS23).
11.21.7
\ 187
SAIPEM ANNUAL REPORT 2023
MATERIAL TOPICS
GRI Standards
Disclosure
Location
Energy (material topic: Climate change)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
302-1 Energy
consumption within
the organisation
302-2 Energy
consumption outside
the organisation
GRI 302: Energy
2016
302-3: Energy
intensity
302-4: Reduction of
energy consumption
Water and effluents (material topic: Water)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
303-1 Interactions
with water as a shared
resource
303-2 Management
of water
discharge-related
impacts
303-3: Water
withdrawal
303-4 Water
discharge
GRI 303: Water
and effluents
2018
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
“GHG emissions”, pages 145-146 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“GHG emissions”, pages 145-146 (NFS23).
“GHG emissions”, pages 145-146 (NFS23).
“GHG emissions”, pages 145-146 (NFS23).
“GHG emissions”, pages 145-146 (NFS23).
Saipem undertakes
to report the data in
the next reporting
cycles.
“Water resource management”, pages
149-152 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Water resource management”, pages
149-152 (NFS23).
“Water resource management”, pages
149-152 (NFS23).
“Water resource management”, pages
149-152 (NFS23).
“Water resource management”, pages
149-152 (NFS23).
Information on the
division into
drinking water
(≤1,000 mg/l of total
dissolved solid
particles) and other
water (>1,000 mg/l
of total dissolved
solid particles) is
not currently
available.
11.1.1
11.1.2
11.1.3
11.1.4
-
11.6.1
11.6.2
11.6.3
11.6.4
11.6.5
11.6.6
11.4.1
11.4.2
“Biodiversity”, pages 154-156 (NFS23).
11.4.3
“Biodiversity”, pages 154-156 (NFS23).
303-5 Water
consumption
“Water resource management”, pages
149-152 (NFS23).
Biodiversity (material topic: Biodiversity)
GRI 3: Material
topics - 2021
“Environmental management policies and
system”, page 147 (NFS23).
“Biodiversity”, pages 154-156 (NFS23).
3-3 Management of
material topics
304-1 Operational
sites owned, leased,
managed in, or
adjacent to, protected
areas and areas of
high biodiversity value
outside protected
areas
304-2 Significant
impacts of activities,
products, and
services on
biodiversity
304-3 Habitats
protected or restored
“Biodiversity”, pages 154-156 (NFS23).
304-4 IUCN Red List
species and national
conservation list
species with habitats
in areas affected by
operations
11.4.4
11.4.5
Information not
available: the
Company
undertakes to
collect the
information within
the next 3 financial
years.
Information not
available: the
Company
undertakes to
collect the
information within
the next 3 financial
years.
GRI 304:
Biodiversity 2016
\ 188
MATERIAL TOPICS
GRI Standards
Disclosure
Location
Emissions (material topic: Climate change, Safe workplace)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“GHG emissions”, pages 145-146 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“GHG emissions”, pages 145-146 (NFS23).
CONSOLIDATED NON-FINANCIAL STATEMENT
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
GRI 305:
Emissions 2016
GRI 305:
Emissions 2016
GRI 306: Waste
2020
305-1 Direct (Scope
1) GHG emission
305-2 Energy indirect
(Scope 2) GHG
emissions
305- 3 Other indirect
(Scope 3) GHG
emissions
305-4 GHG emissions
intensity
305-5 Reduction of
GHG emissions
305-7 Nitrogen
oxides (NOx), sulphur
oxides (SOx), and
other significant air
emissions
306-1 Waste
generation and
significant
waste-related impacts
306-2 Management
of significant
waste-related impacts
306-3 Waste
generated
306-4 Waste diverted
from disposal
306-5 Waste directed
to disposal
Waste (material topic: Waste)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“GHG emissions”, pages 145-146 (NFS23).
“GHG emissions”, pages 145-146 (NFS23).
“GHG emissions”, pages 145-146 (NFS23).
“GHG emissions”, pages 145-146 (NFS23).
“Preserving the air quality”, pages 146-147
(NFS23).
“Waste management”, pages 153-154
(NFS23); “Methodology and Reporting
Criteria”, pages 84-86 (SR23).
“Waste management”, pages 153-154
(NFS23).
“Waste management”, pages 153-154
(NFS23).
“Waste management”, pages 153-154
(NFS23).
“Waste management”, pages 153-154
(NFS23).
“Waste management”, pages 153-154
(NFS23).
“Spill prevention and response”, pages
147-148 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Spill prevention and response”, pages
147-148 (NFS23).
“A sustainable supply chain”, pages 159-161
(NFS23); “Methodology and Reporting
Criteria”, pages 84-86 (SR23).
“A sustainable supply chain”, pages 159-161
(NFS23).
“A sustainable supply chain”, pages 159-161
(NFS23).
Water discharge and waste (material topic: Accidents and spills)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
306-3 Significant
spills
GRI 306: Water
discharge and
waste 2016
Supplier Environmental Assessment (material topic: Climate change)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
GRI 308: Supplier
Environmental
Assessment 2016
308-1 New suppliers
that were screened
using environmental
criteria
308-2 Negative
environmental
impacts in the supply
chain and actions
taken
11.1.1
11.2.1
11.3.1
11.1.5
11.1.6
11.1.7
11.1.8
11.2.3
11.3.2
11.5.1
11.5.2
11.5.3
11.5.4
11.5.5
11.5.6
11.8.1
11.8.2
-
-
-
\ 189
SAIPEM ANNUAL REPORT 2023
MATERIAL TOPICS
GRI Standards
Disclosure
Location
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
11.10.1
11.11.1
11.10.2
11.10.3
Employment (material topic: Labour rights, Diversity & Inclusion, Sustainable employment)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Equal treatment and enhancement of
differences”, pages 178-181 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Workforce trend”, pages 176-177 (NFS23).
GRI 401:
Employment
2016
401-1 New employee
hires and employee
turnover
401-2 Benefits
provided to full-time
employees that are
not provided to
temporary or
part-time employees
401-3 Parental leave
“Equal treatment and enhancement of
differences”, pages 178-181 (NFS23).
“Equal treatment and enhancement of
differences”, pages 178-181 (NFS23).
Labour/Management Relations (material topic: Labour rights, Diversity & Inclusion, Sustainable employment)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
11.10.4
11.11.3
11.7.1
11.10.1
402-1 Minimum
notice periods
regarding operational
changes
GRI 402: Labour/
Management
Relations 2016
Occupational health and safety (material topic: Safe workplace, Health, Sustainable employment)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
"Human resources - Quality", page 50 (AR23);
"Human resources - Human Resources
Management", pages 50-51 (AR23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
"Human resources - Quality", page 50 (AR23);
"Human resources - Human Resources
Management", pages 50-51 (AR23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23); “Reporting
suspected violations”, pages 124-126
(NFS23)
“Employee health”, pages 168-170 (NFS23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23); “HSE
training”, page 168 (NFS23).
“Employee health”, pages 168-170 (NFS23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23).
“Employee health”, pages 168-170 (NFS23).
403-1 Occupational
Health & Safety
Management System
403-2 Hazard
identification, risk
assessment, and
incident investigation
403-3 Occupational
health services
403-4 Worker
participation,
consultation, and
communication on
occupational health
and safety
403-5 Worker training
on occupational
health and safety
403-6 Promotion of
worker health
403-7 Prevention and
mitigation of
occupational health
and safety impacts
directly linked by
business relationships
403-8 Workers
covered by an
occupational health
and safety
management system
403-9 Work-related
injuries
403-10 Work-related
ill health
GRI 403:
Occupational
Health and Safety
2018
\ 190
11.7.2
11.10.5
11.9.1
11.9.2
11.9.3
11.9.4
11.9.5
11.9.6
11.9.7
11.9.8
11.9.9
11.9.10
11.9.11
MATERIAL TOPICS
GRI Standards
Disclosure
Location
Training and Education (material topic: Labour rights, Diversity & Inclusion, Sustainable employment)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
CONSOLIDATED NON-FINANCIAL STATEMENT
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
"Human resources”, pages 50-53 (AR23);
"Human capital”, pages 171-183 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
"Human resources”, pages 50-53 (AR23);
"Human capital”, pages 171-183 (NFS23).
"Human resources”, pages 50-53 (AR23);
"Human capital”, pages 171-183 (NFS23).
"Human resources”, pages 50-53 (AR23);
"Human capital”, pages 171-183 (NFS23).
“Workforce trend”, pages 176-177 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
"Governance of business sustainability”,
pages 116-117 (NFS23); “Workforce trend”,
pages 176-177 (NFS23); “Equal treatment and
enhancement of differences”, pages 178-181
(NFS23).
“Equal treatment and enhancement of
differences”, pages 178-181 (NFS23).
GRI 404: A130
Training and
Education 2016
GRI 405:
Diversity and
equal
opportunity 2016
404-1 Average hours
of training per year
per employee
404-2 Programmes
for upgrading
employee skills and
transition assistance
programmes
404-3 Percentage of
employees receiving
regular performance
and career
development reviews
405-1 Diversity of
governance bodies
and employees
405-2 Ratio of basic
salary and
remuneration of
women to men
Diversity and Equal Opportunities (material topic: Labour rights, Diversity & Inclusion)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
Non-discrimination (material topic: Labour rights, Diversity & Inclusion)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Reporting suspected violations”, pages
124-126 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Reporting suspected violations”, pages
124-126 (NFS23).
406-1: Incidents of
discrimination and
corrective actions
taken
GRI 406: Non-
discrimination
2016
Freedom of Association and Collective Bargaining (material topic: Labour rights)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
"Respect for human and labour rights”, pages
132-134 (NFS23); "Human capital”, pages
171-183 (NFS23); “A sustainable supply
chain”, pages 159-161 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
"Respect for human and labour rights”, pages
132-134 (NFS23); "Human capital”, pages
171-183 (NFS23); “A sustainable supply
chain”, pages 159-161 (NFS23).
"Respect for human and labour rights”, pages
132-134 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
"Respect for human and labour rights”, pages
132-134 (NFS23).
GRI 407: Freedom
of Association
and Collective
Bargaining 2016
407-1 Operations and
suppliers in which the
right to freedom of
association and
collective bargaining
may be at risk
Child labour (material topic: Human rights)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
GRI 408: Child
labour 2016
408-1 Operations and
suppliers at significant
risk for incidents of
child labour
11.7.1
11.10.1
11.11.1
11.10.6
11.11.4
11.7.3
11.10.7
-
11.11.1
11.11.5
11.11.6
11.11.1
11.11.7
11.13.1
11.13.2
-
-
\ 191
Requirement(s)
Omitted/Reason/
Explanation
Ref No. GRI
industry
standards
11.12.1
11.12.2
11.18.1
11.18.2
11.17.1
11.17.2
11.15.1
11.15.2
11.15.3
11.10.1
11.12.1
11.10.8
11.12.3
11.10.9
11.22.1
11.22.2
SAIPEM ANNUAL REPORT 2023
MATERIAL TOPICS
GRI Standards
Disclosure
Location
Forced or compulsory labour (material topic: Human rights)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
"Respect for human and labour rights”, pages
132-134 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
"Respect for human and labour rights”, pages
132-134 (NFS23).
GRI 409: Forced
or Compulsory
Labour 2016
409-1 Operations and
suppliers at significant
risk for incidents of
forced or compulsory
labour
Security practices (material topic: Human rights)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
"Security and cybersecurity practices”, page
135 (NFS23); “Methodology and Reporting
Criteria”, pages 84-86 (SR23).
"Security and cybersecurity practices”, page
135 (NFS23).
GRI 410: Security
practices 2016
410-1 Security
personnel trained in
human rights policies
or procedures
Rights of Indigenous peoples (material topic: Human rights)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
411-1 Incidents of
violations involving
rights of Indigenous
peoples
GRI 411: Rights of
Indigenous
people 2016
Local communities (material topic: Community Development)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
“Reporting suspected violations”, pages
124-126 (NFS23); “Methodology and
Reporting Criteria”, pages 84-86 (SR23).
“Reporting suspected violations”, pages
124-126 (NFS23).
“Relations with stakeholders” pages 97-101
(NFS23); “Local communities”, page 100
(NFS23); "Local organisations and NGOs”,
page 100 (NFS23); “Relations with the local
context”, page 157 (NFS23).
“Relations with stakeholders”, pages 97-101
(NFS23); “Local communities”, page 100
(NFS23); "Local organisations and NGOs”,
page 100 (NFS23).
“Relations with the local context”, page 157
(NFS23).
“A sustainable supply chain”, pages 159-161
(NFS23); “Methodology and Reporting
Criteria”, pages 84-86 (SR23).
“A sustainable supply chain”, pages 159-161
(NFS23).
“A sustainable supply chain”, pages 159-161
(NFS23).
“Fighting corruption”, pages 122-123
(NFS23); “Methodology and Reporting
Criteria”, pages 84-86 (SR23).
“Fighting corruption”, pages 122-123
(NFS23).
GRI 413: Local
communities
2016
413-1 Operations
with local community
engagement, impact
assessments, and
development
programs
413-2 Operations
with significant actual
and potential negative
impacts on local
communities
GRI 414: Vendor
Social
Assessment
2016
Public policy
GRI 3: Material
topics - 2021
414-1 New suppliers
that were screened
using social criteria
414-2 Negative social
impacts in the supply
chain and action
taken
3-3 Management of
material topics
GRI 415: Public
policy 2016
415-1: Political
contributions
\ 192
Supplier social assessment (material topic: Labour rights, Sustainable employment, Human rights)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
CONSOLIDATED NON-FINANCIAL STATEMENT
MATERIAL TOPICS
GRI Standards
Disclosure
Requirement(s)
Omitted/Reason/
Explanation
Customer health and safety (material topic: Climate change, Labour rights, Safe workplace)
GRI 3: Material
topics - 2021
3-3 Management of
material topics
Location
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23); “Safe
operations”, pages 162-163 (NFS23); “Asset
Integrity”, pages 163-164 (NFS23); “People’s
safety”, pages 164-168 (NFS23); “Employee
health”, pages 168-170 (NFS23);
“Methodology and Reporting Criteria”, pages
84-86 (SR23).
“Safeguarding the health and safety of
people”, pages 162-170 (NFS23); “Safe
operations”, pages 162-163 (NFS23); “Asset
Integrity”, pages 163-164 (NFS23); “People’s
safety”, pages 164-168 (NFS23).
GRI 416:
Customer health
and safety 2016
416-1 Assessment of
the health and safety
impacts of product
and service
categories
Ref No. GRI
industry
standards
11.3.1
11.3.3
TOPICS IN THE APPLICABLE GRI SECTOR STANDARDS DETERMINED AS NON-MATERIAL
Topic
GRI 11.16
Land and resource rights
Explanation
The topic is not relevant according
to the kind of the Company’s
operational activities and the
contractual arrangements defined
with client companies for
operational projects, the
responsibility and related activities
related to the use of land and
natural resources, including the
possible resettlement of local
communities, lie with the client
companies.
\ 193
SAIPEM ANNUAL REPORT 2023
annex i
Table A - Proportion of turnover from products or services associated with Taxonomy-aligned
economic activities - disclosure covering year 2023
2023
Substantial contribution criteria
DNSH “(do no significant harm)” criteria
N
r
a
e
y
r
e
v
o
n
r
u
t
f
o
n
o
i
t
r
o
p
o
r
P
)
1
(
e
d
o
C
r
e
v
o
n
r
u
T
n
o
i
t
a
g
i
t
i
m
e
g
n
a
h
c
e
t
a
m
i
l
C
n
o
i
t
a
t
p
a
d
a
e
g
n
a
h
c
e
t
a
m
i
l
C
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
y
t
i
s
r
e
v
i
d
o
B
i
r
e
t
a
W
n
o
i
t
u
l
l
o
P
n
o
i
t
a
g
i
t
i
m
e
g
n
a
h
c
e
t
a
m
i
l
C
n
o
i
t
a
t
p
a
d
a
e
g
n
a
h
c
e
t
a
m
i
l
C
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
y
t
i
s
r
e
v
i
d
o
B
i
s
d
r
a
u
g
e
f
a
s
m
u
m
n
M
i
i
r
e
t
a
W
n
o
i
t
u
l
l
o
P
d
e
n
g
i
l
a
-
y
m
o
n
o
x
a
T
f
o
n
o
i
t
r
o
p
o
r
P
r
e
v
o
n
r
u
t
)
2
.
A
(
e
b
g
l
i
i
l
e
-
r
o
)
1
.
A
(
1
-
N
r
a
e
y
r
o
f
y
t
i
v
i
t
c
a
l
a
n
o
i
t
i
s
n
a
r
t
y
r
o
g
e
t
a
C
y
t
i
v
i
t
c
a
g
n
i
l
b
a
n
e
y
r
o
g
e
t
a
C
(k euro)
(%)
(%) Y/N (%) Y/N EL N/EL (%) EL N/EL (%) EL N/EL (%) EL N/EL (%)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
(%)
E
T
CCM 4.1
CCM 4.3
CCM 6.14
7,644 0.06
465,496 3.92
304,699 2.57
Y
Y
Y
N N/EL N/EL
N N/EL N/EL
N N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
6.55
777,839
304,699 2.57
0 0.00
6.55
2.57
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
0.36
6.89
2.95
10.20
2.95
0.00
E
E
T
(k euro)
(%)
EL N/EL EL N/EL EL N/EL EL N/EL EL N/EL EL N/EL
CCM 3.6, CCA 3.6
CCM 3.10, CCA 3.10
CCM 3.15, CCA 3.15
CCM 3.17, CCA 3.17
CCM 4.3, CCA 4.3
11,226 0.10
1,090 0.01
263,412 2.22
1,919 0.02
2,373 0.02
CCM 4.13, CCA 4.13
22,994 0.19
CCM 4.14, CCA 4.14
101,849 0.86
CCM 5.1, CCA 5.1
CCM 5.11, CCA 5.11
CCM 6.14, CCA 6.14
1,069 0.01
897 0.01
34,537 0.29
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
EL N/EL N/EL
N/EL N/EL
EL N/EL N/EL
N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
CE 3.3
5,251 0.04
N/EL
N/EL N/EL N/EL
EL N/EL
CE 4.1
CE 5.2
CE 5.3
PPC 2.4
17,851 0.15
260 0.00
155,551 1.31
12,339 0.10
559 0.00
N/EL
N/EL
N/EL
N/EL
EL
N/EL N/EL N/EL
N/EL N/EL N/EL
EL N/EL
EL N/EL
N/EL N/EL N/EL
N/EL N/EL
EL
EL N/EL N/EL
EL N/EL
N/EL N/EL
N/EL N/EL
633,177
5.33
3.72
0.00
0.00
0.10
1.51
0.00
1,411,016 11.88
10.27
0.00
0.00
0.10
1.51
0.00
0.05
0.02
0.86
0.00
0.01
0.01
0.00
0.02
0.00
0.00
N/A
N/A
N/A
N/A
N/A
0.03
1.00
11.20
10,463,070 88.12
11,874,086 100.00
Eligible per objective
Proportion of turnover/Total turnover (%)
Aligned per objective
6.55
0.00
0.00
0.00
0.00
0.00
10.27
10.27
0.00
1.51
0.10
0.00
Economic activities
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned) (2)
Electricity generation using
solar photovoltaic technology
Electricity generation from wind power
Infrastructure for rail transport
Turnover of environmentally
sustainable activities
(Taxonomy-aligned) (A.1) (2)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (2)
Manufacture of other low carbon
technologies
Manufacture of hydrogen
Manufacture of anhydrous ammonia
Manufacture of plastics in primary forms
Electricity generation from wind power
Manufacture of biogas and biofuels for
use in transport and of bioliquids
Transmission and distribution networks
for renewable and low-carbon gases
Construction, extension and operation
of water collection, treatment
and supply systems
Transport of CO2
Infrastructure for rail transport
Demolition of buildings
and other structures
Provision of IT/OT (information
technology/operational technologies)
data-driven solutions
Sale of spare parts
Preparation for re-use of end-of-life
products and product components
Bonifica di siti e aree contaminate
Other CCM (*)
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
(A.2)
A. Turnover of Taxonomy-eligible
activities (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities (B)
Total (A+B)
Code (1)
CCM
CCA
WTR
CE
PPC
BIO
(*) For 2023 other eligible activities include: CCM 3.3 Manufacture of low carbon technologies for transport; CCM 4.1 Electricity generation using solar photovoltaic
technology (not aligned); CCM 4.4 Electricity generation from ocean energy technologies; CCM 5.9 Material recovery from non-hazardous waste; CCM 5.12 Underground
permanent geological storage of CO2; CCM 6.12 Retrofitting of sea and coastal freight and passenger water transport; CCM 6.16 Infrastructure enabling low-carbon water
transport; CCM 9.1 Close to market research, development and innovation.
For 2022: CCM 3.1 Fabrication of technology for renewable energies; CCM 3.2 Manufacture of equipment for production and use of hydrogen; CCM 3.3 Manufacture of low
carbon technologies for transport; CCM 4.4 Electricity generation from ocean energy technologies; CCM 5.9 Material recovery from non-hazardous waste; CCM 5.12
Underground permanent geological storage of CO2; CCM 6.12 Retrofitting of sea and coastal freight and passenger water transport; CCM 6.16 Infrastructure enabling
low-carbon water transport; CCM 9.1 Close to market research, development and innovation.
(1) Climate change mitigation: CCM; climate change adaptation: CCA; water and marine resources: WTR; circular economy: CE; pollution prevention and control: PPC;
biodiversity and ecosystems: BIO.
(2) Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective; EL - Taxonomy-eligible activity for the relevant objective; N/EL - Taxonomy-non-eligible activity for the relevant environmental objective; N/A
- Not applicable.
\ 194
Table B - Proportion of CapEx from products and services associated with Taxonomy-aligned economic
activities - disclosure covering year 2023)
2023
Substantial contribution criteria
DNSH “(do no significant harm)” criteria
CONSOLIDATED NON-FINANCIAL STATEMENT
N
r
a
e
y
r
e
v
o
n
r
u
t
f
o
n
o
i
t
r
o
p
o
r
P
)
1
(
e
d
o
C
x
E
p
a
C
n
o
i
t
a
g
i
t
i
m
e
g
n
a
h
c
e
t
a
m
i
l
C
n
o
i
t
a
t
p
a
d
a
e
g
n
a
h
c
e
t
a
m
i
l
C
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
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t
i
s
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v
i
d
o
B
i
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e
t
a
W
n
o
i
t
u
l
l
o
P
n
o
i
t
a
g
i
t
i
m
e
g
n
a
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c
e
t
a
m
i
l
C
n
o
i
t
a
t
p
a
d
a
e
g
n
a
h
c
e
t
a
m
i
l
C
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
y
t
i
s
r
e
v
i
d
o
B
i
s
d
r
a
u
g
e
f
a
s
m
u
m
n
M
i
i
r
e
t
a
W
n
o
i
t
u
l
l
o
P
d
e
n
g
i
l
a
-
y
m
o
n
o
x
a
T
f
o
n
o
i
t
r
o
p
o
r
P
x
E
p
a
C
)
2
.
A
(
e
b
g
l
i
i
l
e
-
r
o
)
1
.
A
(
1
-
N
r
a
e
y
r
o
f
y
t
i
v
i
t
c
a
l
a
n
o
i
t
i
s
n
a
r
t
y
r
o
g
e
t
a
C
y
t
i
v
i
t
c
a
g
n
i
l
b
a
n
e
y
r
o
g
e
t
a
C
CCM 4.3
(%)
(k euro)
107,151 13.51
(%) Y/N (%) Y/N EL N/EL (%) EL N/EL (%) EL N/EL (%) EL N/EL (%)
N/EL N/EL
N N/EL N/EL
Y
Y/N
Y
Y/N
Y
Y/N
Y
Y/N
Y
Y/N
Y
Y/N
Y
107,151 13.51
0 0.00
0 0.00
13.51
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y/N
Y
Y
Y
Y
CCM 4.3, CCA 4.3
CCM 4.14, CCA 4.14
CCM 5.11, CCA 5.11
(%)
(k euro)
2,576 0.32
4 0.00
7,589 0.96
CCM 7.3, CCA 7.3
4,219 0.53
CCM 7.6, CCA 7.6
CCM 7.7, CCA 7.7
1,333 0.17
31,085 3.92
CCM 9.1, CCA 9.1
431 0.06
EL N/EL EL N/EL EL N/EL EL N/EL EL N/EL EL N/EL
N/EL N/EL
EL N/EL N/EL
EL
EL
EL
EL
EL
EL
EL
EL N/EL N/EL
EL N/EL N/EL
N/EL N/EL
N/EL N/EL
EL N/EL N/EL
N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
N/EL N/EL
N/EL N/EL
EL N/EL N/EL
N/EL N/EL
CE 33
1,131 0.14
N/EL
N/EL N/EL N/EL
EL N/EL
CE 41
PPC 2.4
5,258 0.66
576 0.07
N/EL
N/EL
N/EL N/EL N/EL
EL N/EL
N/EL N/EL
EL
N/EL N/EL
6.83
54,202
161,353 20.34
5.95
19.46
0.00
0.00
0.00
0.00
0.07
0.07
0.81
0.81
0.00
0.00
E
T
E
T
(%)
7.73
7.73
0.00
0.00
0.00
0.00
0.00
0.14
0.01
9.84
0.26
N/A
N/A
N/A
10.25
17.98
631,927 79.66
793,280 100.00
Proportion of CapEx/Total CapEx (%)
Eligible per objective
Aligned per objective
13.51
0.00
0.00
0.00
0.00
0.00
19.46
19.46
0.00
0.81
0.07
0.00
Economic activities
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned) (2)
Electricity generation from wind power
CapEx of enviromentally sustainable
activities (Taxonomy-aligned) (A.1) (2)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Electricity generation from wind power
Transmission and distribution networks
for renewable and low-carbon gases
Transport of CO2
Installation, maintenance and repair
of energy efficiency equipment
Installation, maintenance and repair
of technology for renewable energies
Purchase and ownership of buildings
Close to market research, development
and innovation
Demolition of buildings
and other structures
Provision of IT/OT (information
technology/operational technologies)
data-driven solutions
Remediation of contaminated sites
and areas
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
A. CapEx of Taxonomy-eligible (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities (B)
Total (A+B)
Code (1)
CCM
CCA
WTR
CE
PPC
BIO
(1) Climate change mitigation: CCM; climate change adaptation: CCA; water and marine resources: WTR; circular economy: CE; pollution prevention and control: PPC;
biodiversity and ecosystems: BIO.
(2) Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective; EL - Taxonomy-eligible activity for the relevant objective; N/EL - Taxonomy-non-eligible activity for the relevant environmental objective; N/A
- Not applicable.
\ 195
SAIPEM ANNUAL REPORT 2023
Table C - Proportion of OpEx from products and services associated with Taxonomy-aligned economic
activities - disclosure covering year 2023
2023
Substantial contribution criteria
DNSH “(do no significant harm)” criteria
y
t
i
v
i
t
c
a
l
a
n
o
i
t
i
s
n
a
r
t
y
r
o
g
e
t
a
C
T
T
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
Y/N
Y
Y
Y
Y
Y
y
t
i
s
r
e
v
i
d
o
B
i
Y/N
Y
Y
Y
Y
Y
r
e
t
a
W
Y/N
Y
Y
Y
Y
Y
n
o
i
t
u
l
l
o
P
Y/N
Y
Y
Y
Y
Y
N
r
a
e
y
r
e
v
o
n
r
u
t
f
o
n
o
i
t
r
o
p
o
r
P
)
1
(
e
d
o
C
x
E
p
O
n
o
i
t
a
g
i
t
i
m
e
g
n
a
h
c
e
t
a
m
i
l
C
n
o
i
t
a
t
p
a
d
a
e
g
n
a
h
c
e
t
a
m
i
l
C
y
m
o
n
o
c
e
r
a
u
c
r
i
C
l
y
t
i
s
r
e
v
i
d
o
B
i
r
e
t
a
W
n
o
i
t
u
l
l
o
P
n
o
i
t
a
g
i
t
i
m
e
g
n
a
h
c
e
t
a
m
i
l
C
n
o
i
t
a
t
p
a
d
a
e
g
n
a
h
c
e
t
a
m
i
l
C
CCM 4.3
CCM 6.14
(%)
(k euro)
304,592 21.25
934 0.07
(%) Y/N (%) Y/N EL N/EL (%) EL N/EL (%) EL N/EL (%) EL N/EL (%)
N/EL N/EL
N N/EL N/EL
N/EL N/EL
N N/EL N/EL
Y
Y
305,526 21.32
934 0.07
0 0.00
21.32
0.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Y/N
Y
Y
Y
Y
Y
Y/N
Y
Y
Y
Y
Y
CCM 1.4, CCA 1.4
CCM 3.6, CCA 3.6
CCM 3.15, CCA 3.15
CCM 3.17, CCA 3.17
CCM 4.3, CCA 4.3
(k euro)
(%)
485 0.03
1,379 0.10
12,052 0.84
376 0.03
4,817 0.34
CCM 4.13, CCA 4.13
173 0.01
CCM 4.14, CCA 4.14
CCM 5.11, CCA 5.11
21,042 1.47
575 0.04
CCM 9.1, CCA 9.1
1,491 0.10
EL N/EL EL N/EL EL N/EL EL N/EL EL N/EL EL N/EL
N/EL N/EL
EL N/EL N/EL
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
N/EL N/EL
EL N/EL N/EL
N/EL N/EL
EL N/EL N/EL
EL N/EL N/EL
N/EL N/EL
N/EL N/EL
EL N/EL N/EL
N/EL N/EL
CE 4.1
CE 5.3
PPC 2.4
5,808 0.40
6,164 0.43
99 0.01
49 0.00
N/EL
N/EL
N/EL
EL
N/EL N/EL N/EL
EL N/EL
N/EL N/EL N/EL
EL N/EL
N/EL N/EL
EL
N/EL N/EL N/EL
N/EL N/EL
N/EL N/EL
3.80
54,510
360,036 25.12
2.96
24.28
0.00
0.00
0.00
0.00
0.01
0.01
0.84
0.84
0.00
0.00
d
e
n
g
i
l
a
-
y
m
o
n
o
x
a
T
f
o
n
o
i
t
r
o
p
o
r
P
x
E
p
O
)
2
.
A
(
e
b
g
l
i
i
l
e
-
r
o
)
1
.
A
(
1
-
N
r
a
e
y
r
o
f
s
d
r
a
u
g
e
f
a
s
m
u
m
n
M
i
i
y
t
i
v
i
t
c
a
g
n
i
l
b
a
n
e
y
r
o
g
e
t
a
C
Y/N
(%)
Y 23.60
0.60
Y
Y
Y
Y
24.20
0.60
0.00
E
E
E
0.00
0.01
0.19
0.00
0.45
0.03
0.04
0.00
0.22
N/A
N/A
N/A
0.09
1.03
25.23
1,073,052 74.88
1,433,088 100.00
Proportion of OpEx/Total OpEx (%)
Eligible per objective
Aligned per objective
21.32
0.00
0.00
0.00
0.00
0.00
24.28
24.28
0.00
0.84
0.01
0.00
Economic activities
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned) (2)
Electricity generation from wind power
Infrastructure for rail transport
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) (2)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (2)
Conservation forestry
Manufacture of other low carbon
technologies
Manufacture of anhydrous ammonia
Manufacture of plastics in primary forms
Electricity generation from wind power
Manufacture of biogas and biofuels
for use in transport and of bioliquids
Transmission and distribution networks
for renewable and low-carbon gases
Transport ofi CO2
Close to market research, development
and innovation
Provision of IT/OT (information
technology/operational technologies)
data-driven solutions
Preparation for re-use of end-of-life
products and product components
Remediation of contaminated sites
and areas
Others (*)
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
A. OpEx of Taxonomy-eligible (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEX of Taxonomy-non-eligible
activities (B)
Total (A+B)
Code (1)
CCM
CCA
WTR
CE
PPC
BIO
(*) For 2023 other eligible activities include: CCM 4.1 Electricity generation using solar photovoltaic technology; CCM 4.6 Electricity generation from geothermal energy; CCM
5.1 Construction, extension and operation of water collection, treatment and supply systems.
For 2022: CCM 3.2 Manufacture of equipment for production and use of hydrogen; CCM 3.10 Manufacture of hydrogen; CCM 4.1 Electricity generation using solar
photovoltaic technology; CCM 4.6 Electricity generation from geothermal energy; CCM 5.1 Construction, extension and operation of water collection, treatment and supply
systems; CCM 5.9 Material recovery from non-hazardous waste; CCM 8.2 Data-driven solutions for GHG emissions reductions: CCM 9.2 Research, development and
innovation for direct air capture of CO2.
(1) Climate change mitigation: CCM; climate change adaptation: CCA; water and marine resources: WTR; circular economy: CE; pollution prevention and control: PPC;
biodiversity and ecosystems: BIO.
(2) Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective; EL - Taxonomy-eligible activity for the relevant objective; N/EL - Taxonomy-non-eligible activity for the relevant environmental objective; N/A
- Not applicable.
\ 196
CONSOLIDATED NON-FINANCIAL STATEMENT
Template 1 - Nuclear and fossil gas related activities
Row
1.
2.
3.
4.
5.
6.
Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration
and deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades,
using best available technologies.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production from nuclear energy, as well as
their safety upgrades.
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment, and
operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment and
operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
No
No
No
No
No
No
Saipem’s involvement in the natural gas sector concerns the gas value chain (extraction, treatment, storage,
transportation, etc.), which is excluded from the Commission Delegated Regulation (EU) 2022/1214 on gas
and nuclear, for which the eligible activities are exclusively those of electricity production (ref. “4.29 Electricity
generation from fossil gaseous fuels - Construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels”).
Furthermore, in the context of complex projects, Saipem's activity may also include the construction of
plants for the production of electricity to serve the plants covered by the acquired contracts. This activity is
part of the overall value of the contract and represents a non-preponderant element of the project.
Model 1 on activities related to nuclear power and fossil gases is therefore completed, while the other
models are omitted, as detailed information is not available.
\ 197
SAIPEM ANNUAL REPORT 2023
annex ii
Tax jurisdiction
Albania
Algeria
Angola
Argentina
Australia
Austria
Azerbaijan
Bolivia
Brazil
Bulgaria
Canada
Chile
China
Colombia
Congo
Croazia
Cyprus
Denmark
Ecuador
Egypt
Equatorial Guinea
France
Gabon
Georgia
Ghana
\ 198
Entity
Saipem SpA Albania Branch
Saipem Contracting Algérie SpA
Saipem SA Algeria Branch
Saipem SpA Algeria Branch
SnamprogettiChiyoda sas di Saipem SpA
Algeria Branch
Saipem Luxembourg SA Angola Branch
Saipem SpA Angola Branch
Petrex SA Argentina Branch
Saipem Australia Pty
SPCM Australia Branch
Saipem SpA Austria Branch
Saipem Contracting Netherlands BV Azerbaijan
Branch
Petrex SA Bolivia Branch
Andromeda Consultoria Tecnica e Rapresentações
Ltda
Saipem do Brasil Serviços de Petroleo Ltda
Saipem SpA Bulgaria Branch
Saipem Canada Inc
Petrex SA Chile Branch
Servizi Energia Italia SpA Chile Branch
Saipem Beijing Technical Services Co Ltd
Petrex SA Colombia Branch
Boscongo SA
International Energy Services SpA - Congo Branch
Saipem SpA Congo
Servizi Energia Italia SpA ATE Congo
Saipem SpA Croazia Branch
SPCM Cyprus Branch
Saipem Ltd Danimarca Branch
Petrex SA Ecuador Branch
Saipem Misr for Petroleum Services (S.A.E.)
Servizi Energia Italia SpA Egitto Branch
SPCM Egitto Branch
Main activity
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services
Manufacturing and Production;
Provision of services to non-related parties
Inactive
Research and development;
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services
Provision of services to non-related parties
Fabrication and production;
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services;
Provision of services to non-related parties
Provision of services to non-related parties
Saipem Offshore Construction SpA
Equatorial Guinea Branch
Saipem SA Guinea Equatoriale Branch
European Maritime Construction SAS
Saipem SA
Inactive
Inactive
Research and Development;
Purchases and Contracts;
Administration, management or support services;
Provision of services to non-related parties;
Holding of shares or other equity instruments
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties;
Administration, management or support services
Inactive
Saipem SA Gabon Branch
Saipem Contracting Netherlands BV Georgia Branch Inactive
Saiwest Ltd
Saipem SA Ghana Branch
Saipem SpA French Branch
Sofresid SA
Sofresid Engineering SA
Provision of services to non-related parties
Inactive
Tax jurisdiction
Greece
Guyana
Entity
Saipem SpA Grecia Branch
Saipem Guyana
India
Indonesia
Iran
Iraq
Israel
Italy
Ivory Coast
Kazakhstan
Libya
Lussemburgo
Malaysia
Saipem America Inc Guyana Branch
SPCM Guyana Branch
Saipem India Projects Ltd
SPCM India Branch
PT Saipem Indonesia
SPCM Indonesia Branch
Saipem SpA Iran Branch
Saipem SpA Iraq Branch
Sajer Iraq Llc
Servizi Energia Italia SpA Israele Branch
Saipem SpA
International Energy Services SpA
Saipem Offshore Construction SpA
Servizi Energia Italia SpA
Denuke Scarl
Snamprogetti Chiyoda SAS
Servizi Energia Italia SpA Costa d’Avorio Branch
Ersai Caspian Contractor Llc
North Caspian Service Co
Saipem SpA Kazakhstan Branch
Saipem SpA Lybia Branch
Saipem Luxembourg SA
Saipem Maritime Asset Management Luxembourg
Sarl
Saipem Asia Sdn Bhd
Saipem (Malaysia) Sdn Bhd
Mauritania
Mexico
Saipem SA Mauritania Branch
Saimexicana SA
Morocco
Mozambique
Netherlands
Saipem Offshore México SA de Cv
Saipem SpA Mexico Branch
Saipem SpA Morocco branch
Sofresid SA Morocco branch
Saipem Moçambique Lda
SPCM Mozambique Branch
Servizi Energia Italia SpA CCS JV
ERS Equipment Rental and Services BV
Saipem Contracting Netherlands BV
Saipem Finance International BV
Saipem International BV
Snamprogetti Netherlands BV
CONSOLIDATED NON-FINANCIAL STATEMENT
Main activity
Inactive
Fabrication and production;
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services;
Provision of services to non-related parties
Inactive
Fabrication and production;
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Research and development;
Possession or management of intellectual property
rights;
Administration, management or support services;
Purchases and contracts;
Fabrication and production;
Provision of services to non-related parties;
Holding of shares or other equity instruments
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Fabrication and production;
Provision of services to non-related parties
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services
Administration, management or support services
Provision of services to non-related parties;
Administration, management or support services
Provision of services to non-related parties;
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties;
Holding of shares or other equity instruments
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Administration, management or support services
Provision of services to non-related parties
Group self-financing
Holding of shares or other equity instruments
Administration, management or support services;
Holding of shares or other equity instruments
\ 199
SAIPEM ANNUAL REPORT 2023
Saipem Drilling Norway AS
Saipem Ltd Norway Branch
Saipem Norge AS
Saipem SpA Norway Branch
Entity
Saipem Nigeria Ltd
Saipem Contracting Nigeria Ltd
Saipem SA Nigeria Branch
Saipem SpA Nigeria Branch
Moss Maritime AS
Saipem SpA Oman Branch
Petrex SA Panama Branch
Petrex SA
Saipem Ltd Poland Branch
Saipem SpA Poland Branch
Saipem (Portugal) Comércio Marítimo, Sociedade
Unipessoal Lda (SPCM)
Saipem SpA Qatar Branch
Saipem Romania Srl
Main activity
Administration, management or support services
Provision of services to non-related parties
Inactive
Administration, management or support services
Research and development;
Provision of services to non-related parties
Provision of services to non-related parties;
Administration, management or support services
Provision of services to non-related parties;
Administration, management or support services
Administration, management or support services
Administration, management or support services;
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties;
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties;
Administration, management or support services
Inactive
Saipem SpA Aricestii Rahtivani Branch
International Energy Services SpA Sucursala Arices Inactive
Saipem SpA Russia Branch (Anapa)
Saipem SpA Representative Office Moscow
Saipem SpA Moscow Branch (Refinery Project)
Servizi Energia Italia SpA Moscow Branch
Servizi Energia Italia SpA Murmansk Branch
Servizi Energia Italia SpA Salechard Branch
Servizi Energia Italia SpA Novyi Urengoi Branch
Saipem Ltd Russia Moscow Office
Snamprogetti Engineering & Contracting Co Ltd
Saudi Arabian Saipem SA
Saudi International Energy Services Ltd
Snamprogetti Saudi Arabia Co Ltd
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
Provision of services to non-related parties;
Administration, management or support services
Inactive
Inactive
Provision of services to non-related parties;
Administration, management or support services
Inactive
Administration, management or support services
Provision of services to non-related parties
Administration, management or support services
Insurance services;
Administration, management or support services
Provision of services to non-related parties
Administration, management or support services;
Provision of services to non-related parties
Inactive
Inactive
Inactive
Provision of services to non-related parties
Inactive
Inactive
Saipem SA Senegal Branch
Saipem SpA Serbia Branch
Saipem Singapore Pte
Saipem SpA Rsa Branch
Saipem Asia Sdn Bhd South Korea Branch
Saipem Ingenieria Y Construcciones SLU
Global Petroprojects Services AG
Sigurd Ruck AG
Saipem Asia Sdn Bhd Thailand Branch
Saipem Singapore Pte Ltd Thailand Branch
Saipem SA Trinidad and Tobago Branch
Saipem SA Tunisia Branch
Saipem SpA Tunisia Branch
Servizi Energia Italia SpA Turkey Branch
Saipem SpA Turkmenistan
Saipem East Africa Ltd
Tax jurisdiction
Nigeria
Norway
Oman
Panama
Peru
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Senegal
Serbia
Singapore
South Africa
South Korea
Spain
Switzerland
Thailand
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Uganda
\ 200
CONSOLIDATED NON-FINANCIAL STATEMENT
Tax jurisdiction
United Arab Emirates
Main activity
Entity
Provision of services to non-related parties
Saipem SpA Abu Dhabi Branch
Saipem Contracting Netherlands BV Sharjah Branch Provision of services to non-related parties;
Saipem SpA Abu Sharjah Branch
Saipem SpA Sharjah Branch
SPCM Abu Dhabi Branch
Servizi Energia Italia SpA Sharjah Branch
Saipem Ltd
Saipem America Inc
Servizi Energia Italia SpA Venezuela Branch
Administration, management or support services
Administration, management or support services
Provision of services to non-related parties;
Administration, management or support services
Administration, management or support services
Administration, management or support services
Provision of services to non-related parties
Provision of services to non-related parties
Inactive
United Kingdom
United States
Venezuela
\ 201
SAIPEM ANNUAL REPORT 2023
independent auditors’
report
\ 202
CONSOLIDATED NON-FINANCIAL STATEMENT
\ 203
SAIPEM ANNUAL REPORT 2023
\ 204
SAIPEM
CONSOLIDATED FINANCIAL
STATEMENTS 2023
SAIPEM ANNUAL REPORT 2023
Statement of financial position
(€ million)
ASSETS
Current assets
Cash and cash equivalents
Financial assets measured at fair value through OCI
Other financial assets
Lease assets
Trade receivables and other assets
Inventories
Contract assets
Tax assets
Other tax assets
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Right-of-Use assets
Equity investments accounted for using the equity method
Other equity investments
Other financial assets
Lease assets
Deferred tax assets
Tax assets
Other assets
Total non-current assets
Discontinued operations and assets held for sale
TOTAL ASSETS
LIABILITIES AND EQUITY
Current liabilities
Current financial liabilities
Current portion of non-current financial liabilities
Current portion of non-current lease liabilities
Trade payables and other liabilities
Contract liabilities
Tax liabilities
Other tax liabilities
Other liabilities
Total current liabilities
Non-current liabilities
Non-current financial liabilities
Non-current leases liabilities
Provisions for risks and charges
Employee benefits
Deferred tax liabilities
Tax liabilities
Other liabilities
Total non-current liabilities
Discontinued operations and liabilities directly
related to assets held for sale
TOTAL LIABILITIES
EQUITY
Non-controlling interests
Equity attributable to the owners of the parent:
- share capital
- share premium reserve
- other reserves
- retained profit
- profit (loss) for the year
- negative reserve for treasury shares in portfolio
Total equity
TOTAL LIABILITIES AND EQUITY
Note (1)
Dec. 31, 2023
of which with
related parties (2)
Total
Dec. 31, 2022
of which with
related parties (2)
Total
489
675
27
1
4
1
112
846
1
2
(No. 7)
(No. 8)
(No. 9)
(No. 17)
(No. 10)
(No. 11)
(No. 12)
(No. 13)
(No. 13)
(No. 14 and 29)
(No. 15)
(No. 16)
(No. 17)
(No. 18)
(No. 18)
(No. 9)
(No. 17)
(No. 19)
(No. 13)
(No. 20 and 29)
(No. 30)
(No. 24)
(No. 24)
(No. 17)
(No. 21)
(No. 22)
(No. 13)
(No. 13)
(No. 23 and 29)
(No. 24)
(No. 17)
(No. 26)
(No. 27)
(No. 19)
(No. 13)
(No. 28 and 29)
(No. 30)
(No. 31)
(No. 31)
(No. 31)
(No. 31)
(No. 31)
(No. 31)
2,136
86
387
98
2,441
256
1,925
385
146
244
8,104
2,960
666
428
211
-
1
155
257
5
52
4,735
26
12,865
97
128
299
2,944
3,088
74
192
33
6,855
2,168
431
767
193
6
20
3
3,588
26
10,469
2
2,394
502
1,622
28
137
179
(74)
2,396
12,865
384
985
23
1
177
893
1
-
2,052
75
495
26
2,182
211
1,860
313
141
272
7,627
2,879
691
258
229
-
65
57
345
5
30
4,559
211
12,397
159
742
139
2,907
2,613
86
161
107
6,914
1,729
264
1,148
183
3
23
2
3,352
45
10,311
18
2,068
502
1,877
(116)
91
(209)
(77)
2,086
12,397
(1) The notes are an integral part of the consolidated financial statements.
(2) For an analysis of figures shown as “of which with related parties”, see Note 43 “Related party transactions”.
\ 206
Income statement
(€ million)
REVENUE
Core business revenue
Other revenue and income
Total revenue
Operating expenses
Purchases, services and other costs
Net reversals of impairment losses (impairment losses) on trade receivables and other assets
Personnel expenses
Depreciation, amortisation and impairment losses
Other operating income (expense)
OPERATING PROFIT (LOSS)
Financial income (expense)
Financial income
Financial expense
Derivative financial instruments
Net financial income (expense)
Gains (losses) on equity investments
Share of profit (loss) of equity-accounted investees
Other gains (losses) from equity investments
Net gains (loss) on equity investments
PRE-TAX PROFIT (LOSS)
Income taxes
PROFIT (LOSS) FOR THE YEAR - Continuing operations
PROFIT (LOSS) FOR THE YEAR - Discontinued operations
PROFIT (LOSS) FOR THE YEAR
Attributable to Saipem Group:
Continuing operations
Discontinued operations
Non-controlling interests
Continuing operations
Discontinued operations
Profit (loss) per share on Saipem’s profit (loss) for the year (€ per share)
Basic profit (loss) per share
Diluted profit (loss) per share
Profit (loss) per share on Saipem’s profit (loss) for the year - Continuing operations
(€ per share)
Basic profit (loss) per share
Diluted profit (loss) per share
(1) The notes are an integral part of the consolidated financial statements.
(2) For an analysis of figures shown as “of which with related parties”, see Note 43 “Related party transactions”.
STATEMENTS
Year 2023
Year 2022
of which
with
related
parties (2)
3,454
2
(574)
29
(2)
(19)
Note (1)
Total
(No. 34)
(No. 34)
(No. 35)
(No. 35)
(No. 35)
(No. 35)
(No. 35)
(No. 36)
(No. 37)
(No. 38)
(No. 30)
(No. 39)
(No. 30)
(No. 40)
(No. 40)
(No. 40)
(No. 40)
11,874
24
11,898
(9,232)
1
(1,736)
(489)
(5)
437
672
(765)
(74)
(167)
107
(47)
60
330
(145)
185
(6)
179
185
(6)
-
-
0.09
0.09
0.09
0.09
of which
with
related
parties (2)
2,221
-
(547)
5
(16)
8
Total
9,980
11
9,991
(7,831)
32
(1,656)
(445)
7
98
1,008
(1,075)
(128)
(195)
(65)
-
(65)
(162)
(153)
(315)
106
(209)
(315)
106
-
-
(0.22)
(0.22)
(0.33)
(0.33)
\ 207
SAIPEM ANNUAL REPORT 2023
Statement of comprehensive income
(€ million)
Profit (loss) for the year
Other items of comprehensive income
Items that will not be reclassified subsequently to the income statement
Remeasurement of defined benefit plans for employees
Change in fair value of equity investments measured at fair value through OCI
Share of other comprehensive income of equity-accounted investees
relating to remeasurement of defined benefit plans
Income tax relating to items that will not be reclassified
Total items that will not be reclassified subsequently to the income statement
Items that may be reclassified subsequently to the income statement
Change in the fair value of cash flow hedges
Change in the fair value of financial assets, other than equity investments,
measured at fair value through OCI
Exchange differences arising from the translation into euro of financial statements
in currencies other than euro
Share of other comprehensive income of equity-accounted investees
Income tax relating to items that may be reclassified
Total items that may be reclassified subsequently to the income statement
Total other comprehensive income, net of taxation
Comprehensive profit (loss) for the year
Attributable to Saipem Group:
Continuing operations
Discontinued operations
Non-controlling interests
Continuing operations
Discontinued operations
(1) The notes are an integral part of the consolidated financial statements.
Note (1)
(No. 31)
(No. 31)
(No. 31)
(No. 38)
(No. 31)
(No. 31)
(No. 31)
(No. 31)
(No. 38)
2023
179
(10)
-
(1)
3
(8)
124
3
(31)
-
(30)
66
58
237
244
(6)
(1)
-
2022
(209)
40
-
–
(10)
30
(52)
(5)
35
-
18
(4)
26
(183)
(301)
116
2
-
\ 208
Statement of changes in equity
Saipem shareholders’ equity
STATEMENTS
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2,068
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–
2,086
179
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–
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(20)
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(16)
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S
502
–
1,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(256)
–
–
1
–
–
–
–
(255)
–
–
–
–
502
–
–
1,622
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
80
80
–
–
–
–
80
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(€ million)
Balance as of December 31, 2022
Profit (loss) for the year 2023
Other items of comprehensive
income
Items that will not be reclassified
subsequently to the income
statement
Revaluations of defined benefit plans
for employees net of tax effect
Change in fair value of equity
investments measured at fair value
through OCI
Share of other comprehensive income
of equity-accounted investees relating
to remeasurement of defined benefit
plans, net of taxation
Other comprehensive income relating
to discontinued operations
Total
Items that may be reclassified
subsequently to the income
statement
Change in fair value of cash flow
hedges, net of taxation
Change in the fair value of financial
assets, other than equity investments,
measured at fair value through OCI
Exchange differences of financial
statements in currencies
other than euro
Share of other comprehensive income
of equity-accounted investees
Other comprehensive income relating
to discontinued operations
Total
Total comprehensive income (loss)
for 2023
Owner transactions
Dividend distribution
Retained earnings (losses)
Reverse stock split
Increase (reduction) of share capital
Capitalisation of costs of share capital
increase net of taxes
Treasury shares repurchased
Purchase/sale of non-controlling
interests
Other owner transactions
(contribution for future capital
increase)
Change of reserve of convertible bond
Total
Other changes in equity
Recognition of fair value
of stock-based incentive plans
Other changes
Transactions with companies
under common control
Total
Balance as of December 31, 2023
For details see Note 31 “Equity”.
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
95
–
–
–
–
95
95
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19
–
–
–
–
(1)
–
(1)
–
–
–
–
–
–
–
–
–
–
–
–
–
(4)
–
–
(4)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1)
–
(1)
(2)
–
47
–
–
–
–
–
–
–
47
3
–
–
3
137
–
209
–
–
–
–
–
–
–
209
–
–
–
–
179
–
–
–
–
–
–
2
–
–
–
2
2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(26)
–
–
(26)
(7)
–
–
–
(7)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1
–
–
–
–
–
–
–
–
–
–
–
1
(26)
(7)
(1)
(4)
179
–
–
(2)
–
1
(45)
–
1
(22)
–
3
(74)
–
7
2,394
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3
–
(7)
–
(1)
–
(8)
95
2
–
–
–
–
–
–
–
(7)
–
(1)
–
(8)
95
2
(30)
(1)
(31)
–
–
67
–
–
(1)
–
–
66
238
(1)
237
–
–
–
–
1
–
–
–
80
81
6
1
–
–
–
–
–
–
–
–
–
–
1
–
(13)
(13)
–
–
(13)
–
(2)
–
(2)
2
–
80
68
6
(1)
–
5
2,396
\ 209
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230
–
(2,467)
(209)
(84)
–
326
(209)
25
–
351
(209)
–
–
–
–
–
–
–
1
–
–
1
1
–
(103)
10
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(209)
–
2,467
–
–
–
–
–
–
–
(93)
–
–
2,467
1
(48)
–
(47)
91
–
–
–
–
(209)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6
1
20
–
–
10
30
(35)
(4)
33
–
–
(6)
(185)
–
–
–
1,999
(81)
–
–
–
–
1,918
7
2
–
7
(77)
–
9
2,068
–
–
–
–
–
–
–
2
–
–
2
2
(9)
–
–
–
–
–
–
–
–
(9)
–
–
–
–
18
20
–
–
10
30
(35)
(4)
35
–
–
(4)
(183)
(9)
–
–
1,999
(81)
–
–
–
–
1,909
7
2
–
9
2,086
SAIPEM ANNUAL REPORT 2023
cont’d Statement of changes in equity
Saipem shareholders’ equity
i
e
v
r
e
s
e
r
m
u
m
e
r
p
e
r
a
h
S
l
a
t
i
p
a
c
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(553)
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(81)
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(1,690)
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1
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1,877
–
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48
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48
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(88)
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–
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(88)
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–
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–
–
–
–
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–
–
–
–
–
–
–
–
–
(42)
–
1
–
(53)
–
(45)
–
–
–
–
–
–
(35)
–
1
–
–
(34)
(34)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(76)
–
–
–
–
–
–
(4)
–
–
–
(4)
(4)
–
–
–
–
–
–
–
–
–
–
–
(1)
–
(1)
(4)
–
–
–
–
–
–
–
32
–
–
32
32
–
–
–
–
–
–
–
–
–
–
–
1
20
–
–
10
30
–
–
(1)
–
–
(1)
29
–
–
–
–
–
–
–
–
–
–
–
–
–
1
(20)
–
–
(16)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(€ million)
Balance as of December 31, 2021
Profit (loss) for the year 2022
Other items of comprehensive
income
Items that will not be reclassified
subsequently to the income
statement
Revaluations of defined benefit plans
for employees net of tax effect
Change in fair value of equity
investments measured at fair value
through OCI
Share of other comprehensive income
of equity-accounted investees relating
to remeasurement of defined benefit
plans, net of taxation
Other comprehensive income
relating to discontinued operations
Total
Items that may be reclassified
subsequently to the income
statement
Change in fair value of cash flow
hedges, net of taxation
Change in the fair value of financial
assets, other than equity investments,
measured at fair value through OCI
Exchange differences of financial
statements in currencies
other than euro
Share of other comprehensive income
of equity-accounted investees
Other comprehensive income
relating to discontinued operations
Total
Total comprehensive income (loss)
for 2022
Owner transactions
Dividend distribution
Retained earnings (losses)
Reverse stock split
Increase (reduction) of share capital
Capitalisation of costs of share capital
increase net of taxes
Treasury shares repurchased
Purchase of non-controlling interests
Other owner transactions (contribution
for future capital increase)
Change of reserve of convertible bond
Total
Other changes in equity
Recognition of fair value
of stock-based incentive plans
Other changes
Transactions with companies
under common control
Total
Balance as of December 31, 2022
\ 210
Statement of cash flows
(€ million)
Profit (loss) for the year attributable to Saipem Group - Continuing operations
Profit (loss) for the year attributable to Saipem Group - Discontinued operations
Profit (loss) attributable to non-controlling interests
Adjustments to reconcile the year's profit (loss) to cash flows from operating activities:
- depreciation and amortisation - continuing operations
- depreciation and amortisation - discontinued operations
- net impairment losses (reversals of impairment losses) on property, plant and equipment,
intangible assets and right-of-use assets
- share of profit (loss) of equity-accounted investees
- net (gains) losses on disposal of assets and business
- interest income
- interest expense
- income taxes
- other changes
Changes in working capital:
- inventories
- trade receivables
- trade payables
- provisions for risks and charges
- contract assets and liabilities
- other assets and liabilities
Cash flow from working capital - Continuing operations
Cash flow from working capital - Discontinued operations
Cash flow working capital
Change in the provision for employee benefits - Continuing operations
Change in the provision for employee benefits - Discontinued operations
Dividends received
Interest received
Interest paid
Income taxes paid net of refunds of tax credits
Net cash flows from operating activities - Continuing operations (a)
Net cash flows from operating activities - Discontinued operations (b)
Net cash flows from operating activities
of which with related parties - Continuing operations (2)
of which with related parties - Discontinued operations (2)
Investments:
- property, plant and equipment - Continuing operations
- property, plant and equipment - Discontinued operations
- intangible assets
- equity investments
- securities for operating purposes
- financial receivables for operating purposes
Cash flow from investments - Continuing operations
Cash flow from investments - Discontinued operations
Cash flow from investments
Disposals:
- property, plant and equipment
- out-of-scope entities and business units
- equity investments
- securities for operating purposes
- financial receivables for operating purposes
Cash flow from disposals - Continuing operations
Cash flow from disposals - Discontinued operations
Cash flow from disposals
Net variation of securities and financial receivables not related to operations
(No. 35)
(No. 37)
(No. 38)
(No. 16)
(No. 18)
460
-
29
(107)
34
(54)
161
145
25
(45)
(261)
20
(324)
463
13
(134)
6
(128)
6
-
69
51
(150)
(134)
586
–
586
(472)
-
(10)
(1)
-
-
(483)
-
(483)
58
63
24
-
-
145
-
145
163
(1) The notes are an integral part of the consolidated financial statements.
(2) For an analysis of figures shown as “of which with related parties”, see Note 43 “Related party transactions”.
(a) Net cash flows from operating activities - Continuing operations does not include the gains on disposal of business equal to 119, for year 2022.
(b) Net cash flows from operating activities - Discontinued operations includes the gains on disposal of business equal to 119, for year 2022.
STATEMENTS
Note (1)
Year 2023
185
(6)
-
Year 2022
(315)
106
-
441
57
4
65
(121)
(11)
127
171
(109)
(13)
7
567
(289)
(451)
(445)
(624)
(22)
(646)
(26)
24
29
8
(116)
(165)
(523)
46
(477)
2,711
(17)
1,313
6
(513)
(27)
(10)
-
-
-
(523)
(27)
(550)
6
497
-
-
-
503
-
503
52
\ 211
SAIPEM ANNUAL REPORT 2023
cont’d Statement of cash flows
(€ million)
Net cash flows from investing activities
of which with related parties (2)
Increase in non-current loans and borrowings
Decrease in non-current loans and borrowings
Decrease in lease liabilities
Increase (decrease) in current loans and borrowings
Cash flow from increases (decreases) in loans and borrowings
Net capital contributions by non-controlling interests
Sale (purchase) of interests in consolidated companies
Dividend distribution
Sale (buy-back) of treasury shares
Net change in convertible bond
Net cash flows from financing activities
of which with related parties (2)
Effect of changes in consolidation scope
Effect of exchange differences and other changes on cash and cash equivalents
Net variation in cash and cash equivalents
Cash and cash equivalents - opening balance
Cash and cash equivalents - closing balance
Note (1)
(No. 43)
Year 2023
(175)
Year 2022
5
105
65
1,867
(2,042)
(119)
(60)
(354)
-
-
-
-
72
(282)
-
(45)
84
2,052
2,136
(No. 43)
(No. 7)
(No. 7)
1,330
(1,986)
(128)
(263)
(1,047)
1,918
-
-
-
-
871
-
(17)
-
21
420
1,632
2,052
(1) The notes are an integral part of the consolidated financial statements.
(2) For an analysis of figures shown as “of which with related parties”, see Note 43 “Related party transactions”.
For the disclosures required by IAS 7, please refer to Note 24, “Financial liabilities”.
\ 212
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
Note 18
Note 19
Note 20
Basis of presentation
Basis of consolidation and equity investments
Accounting policies
Accounting estimates and significant judgements
Recently issued accounting standards effective from 2024 and following years
Consolidation scope as of December 31, 2023
Cash and cash equivalents
Financial assets measured at fair value through OCI
Other financial assets
Trade receivables and other assets
Inventories
Contract assets
Tax assets and liabilities
Other current assets
Property, plant and equipment
Intangible assets
Right-of-Use assets, lease assets and lease liabilities
Equity investments
Deferred tax assets and liabilities
Other non-current assets
Note 21
Trade payables and other liabilities
Note 22
Note 23
Note 24
Note 25
Note 26
Note 27
Note 28
Contract liabilities
Other current liabilities
Financial liabilities
Analysis of net financial debt
Provisions for risks and charges
Employee benefits
Other non-current liabilities
Note 29
Derivative financial instruments
Note 30
Note 31
Note 32
Note 33
Note 34
Note 35
Discontinued operations, assets held for sale and directly associated liabilities
Equity
Additional information
Guarantees, commitments and risks
Revenue
Operating expenses
Note 36
Financial income (expense)
Note 37
Gains (losses) on equity investments
Note 38
Income taxes
Note 39
Note 40
Note 41
Note 42
Note 43
Note 44
Non-controlling interests
Profit (loss) per share
Reporting by business segment
Reporting by geographical segment
Related party transactions
Significant non-recurring events and operations
Note 45
Positions or transactions arising from atypical and/or unusual operations
Note 46
Note 47
Events after the reporting period
Obligations regarding transparency and disclosure. Italian Law August 4, 2017, No. 124
(Article 1, sections 125-129)
Page 214
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Page 217
Page 232
Page 235
Page 237
Page 243
Page 243
Page 244
Page 244
Page 245
Page 245
Page 246
Page 247
Page 247
Page 250
Page 252
Page 254
Page 256
Page 258
Page 258
Page 259
Page 259
Page 259
Page 261
Page 262
Page 263
Page 267
Page 268
Page 270
Page 271
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Page 274
Page 292
Page 293
Page 298
Page 299
Page 299
Page 300
Page 300
Page 301
Page 303
Page 303
Page 316
Page 316
Page 316
Page 316
\ 213
SAIPEM ANNUAL REPORT 2023
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1 Basis of presentation
The consolidated financial statements have been prepared according to the International Financial Reporting Standards
(hereinafter, IFRS)6 issued by the International Accounting Standards Board (IASB) and adopted by the European Commission
pursuant the procedure laid down in Article 6 of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of
July 19, 2002, and pursuant to Article 9 of Legislative Decree No. 38/2005. The consolidated financial statements have been
prepared on a going concern basis, by applying the historical cost method, taking into account value adjustments where
appropriate, except for those items that under IFRS must be measured at fair value, as described in the below accounting
policies section.
The consolidated financial statements as of December 31, 2023, approved by the Board of Directors of Saipem SpA on March
12, 2024, have been audited by KPMG SpA, main auditor, fully responsible for auditing the Group's consolidated financial
statements.
Amounts stated in financial statements and the notes thereto, considering their relevance, are in millions of euros.
2 Basis of consolidation and equity investments
Consolidated companies, non-consolidated subsidiaries and jointly controlled companies (investments in joint ventures and
joint operations) and associated companies are listed in section “Consolidation scope” in which changes from the previous year
are also shown.
The financial statements of the consolidated companies are audited by auditing firms that also examine and certify the
information required for the preparation of the consolidated financial statements.
The classification of a company as a subsidiary, jointly controlled or associated depends, irrespective of the percentage of
ownership, on the actual ability of the shareholder to make decisions concerning the relevant activities of such company. Such
decisions may be made independently or by the unanimous consent of all parties sharing control. In other cases, the
shareholder may exercise significant influence over the company, but not control or even joint control. The ability to make
decisions is reflected in the terms of contractual and shareholders' agreements.
in the consolidated financial statements; the carrying amount of
Subsidiaries
The consolidated financial statements include the financial statements of Saipem SpA and its Italian and foreign direct and
indirect subsidiaries.
An investor controls an investee when it is exposed to or has the right to participate in the variability of the company's economic
returns and has the ability to influence those returns through its decision-making power over the investee. Decision-making
power exists when the parent company has the right to direct the relevant activities of the investee, i.e., the activities most likely
to affect the economic returns of the investee.
Subsidiaries’ economic and asset values are included in the consolidated financial statements in accordance with uniform
accounting principles, from the date on which control is gained until the date on which such control ceases to exist.
Subsidiaries are consolidated on a line-by-line basis; accordingly, all assets and liabilities, expenses and income are fully
recognised
is eliminated against the
corresponding portion of the investee companies' equity.
In the event that additional ownership interests in subsidiaries are purchased after the transfer of control (purchase of non-
controlling interests), any difference between the acquisition price and the portion of acquired equity is recognised in equity
attributable to the owners of the parent. The effects of disposals of ownership interests in a subsidiary that do not result in a loss
of control are also recognised in equity.
In contrast, a disposal of shares that implies loss of control, triggers recognition in the income statement: (i) of any gain/loss
calculated as the difference between the consideration received and the corresponding portion of consolidated equity disposed
of; (ii) of the effect of the fair value adjustment of any residual investment retained; (iii) of any amounts recognised in other
comprehensive income relating to the former subsidiary that are required to be recycled through profit or loss7. The value of any
retained investment, aligned with its fair value at the date of disposal, represents the new carrying amount of the investment and
therefore the reference value for the subsequent evaluation of the investment in accordance with the applicable measurement
criteria.
Equity and profit attributable to non-controlling interests are shown separately in the statement of financial position and income
statement, respectively.
investments
(6) IFRS also include International Accounting Standards (IAS), which are still in force, as well as the interpretative documents issued by the IFRS Interpretations Committee,
formerly the International Financial Reporting Interpretations Committee (IFRIC) and before then the Standing Interpretations Committee (SIC).
(7) Conversely, any amounts recognised in other comprehensive income in relation to the former subsidiary that may not be reclassified to profit, or loss are
transferred to retained earnings (losses).
\ 214
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
When losses attributable to non-controlling interests in a consolidated subsidiary exceed the non-controlling interests of the
subsidiary's equity, the excess, and any additional losses attributable to non-controlling shareholders, are allocated to the
shareholders of the parent company except the portion for which the non-controlling shareholders have a binding obligation to
cover the loss with additional investments and are able to do so. If the subsidiary then makes a profit, those profits are allocated
to the shareholders of the parent company up to the amount of the losses belonging to the non-controlling shareholders, which
were previously absorbed by the shareholders of the parent company.
A number of subsidiaries that have, individually or on an aggregate basis, limited operating activity, are excluded from line-by-line
consolidation, as their exclusion does not have a material impact8 on the correct representation of the Group’s equity, economic
and financial situation. These investments are valued in accordance with the criteria indicated under “Equity method” or with the
cost method adjusted for impairment losses.
Joint arrangements
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets
of the arrangement. Investments in joint ventures are accounted for using the equity method, as indicated in the paragraph
“Equity method of accounting”.
A joint operation is an agreement in which the parties with joint control of the arrangement have rights to the assets and have
obligations for the liabilities (so-called enforceable rights and obligations) relating to the agreement; the verification of the
existence of enforceable rights and obligations requires the exercise of a complex judgement by the Top Management and is
made taking into consideration the characteristics of the corporate structure, the agreements between the parties, as well as
any other facts and circumstances that are relevant for the purposes of verification. Saipem’s share of the assets, liabilities,
revenues and expenses of joint operations is recognised in the consolidated financial statements on the basis of the actual
rights and obligations arising from the contractual arrangements. After initial recognition, the assets, liabilities, revenues and
expenses relating to a joint operation are accounted for in accordance with the applicable accounting standards. Joint
operations, which are separate non-material legal entities, are accounted for using the equity method or, if this does not have a
significant impact on total assets, liabilities, net financial position and results of operations, measured at cost, adjusted for
impairment losses.
Investments in associates
An associate is a company over which Saipem has significant influence, which is the power to participate in the financial and
operating policy decisions of the investee without having control or joint control over it. Investments in associates are
accounted for using the equity method as described under “Equity method”, i.e., when there is no significant impact on the
balance sheet, financial position and results of operations, at cost adjusted for impairment losses.
Equity method
Investments in subsidiaries not included in line-by-line consolidation, joint ventures and associates are accounted for using the
equity method9.
In application of the equity method, investments are initially recognised at purchase cost including transaction costs, allocating,
as in the case of business combinations, any difference between the cost incurred and the interest in the fair value of the net
identifiable assets of the investee; the allocation, provisionally made at the date of initial recognition, may be adjusted
retrospectively within the following twelve months to take into account new information on facts and circumstances existing at
the date of initial recognition. Subsequently, the carrying amount is adjusted to reflect: (i) the investor's share of the investee's
profit or loss realised after the acquisition date; (ii) the investor's share of the investee's other comprehensive income. Changes
in equity of an investee, other than those relating to profit or loss and other comprehensive income, are recognised in the
income statement when they substantially represent the effects of a sale of an interest in the investee. Dividends received from
an investee reduce the carrying amount of the investment. In accordance with the equity method, the adjustments required for
the consolidation process are applied. When there is objective evidence of impairment (e.g. significant breaches of contracts,
serious financial difficulties, the risk of insolvency of the counterparty, etc.), the recoverability is tested by comparing the carrying
amount and the related recoverable amount determined adopting the criteria indicated in the paragraph “Impairment of
non-financial assets”. The losses deriving from the application of the equity method exceeding the carrying amount of the
investment, recorded in the income statement as item “Gains (losses) on equity investments”, are allocated to any financial
receivables granted to the investee whose repayment is not planned or it is not probable in the foreseeable future (the so-called
long-term interest) and which basically represent a further investment in the company.
If it does not have a significant impact on the equity and financial position of the Group and its economic results, unconsolidated
subsidiaries, joint ventures and associates are accounted for at cost, adjusted for impairment losses. When the impairment
losses no longer exist, they are reversed, and the reversal of the impairment losses is recognised in the income statement within
“Other gains (losses) on equity investments”.
The disposal of equity investments which results in the loss of the joint control or a relevant influence on the investee entails
recognition in the income statement of: (i) any gains or losses calculated as the difference between the consideration received
and the respective share of carrying amount disposed of; (ii) any gains or losses attributable to the adjustment of any investment
(8) According to the provisions of the Conceptual Framework of International Accounting Standards: “Information is material if omitting, misstating or obscuring it
could influence the economic decisions of users taken on the basis of the financial statements”.
(9) In the case of a step acquisition of an associate (joint control), the investment is accounted for at the amount resulting from the application of the equity method
as if it had been applied from inception; the effect of the "revaluation" of the carrying amount of the investment held prior to the acquisition of the associate (joint
control) is recognised in equity.
\ 215
SAIPEM ANNUAL REPORT 2023
retained at its fair value10; (iii) any amounts recognised in other comprehensive income in relation to the investee that may be
reclassified subsequently to income statement11. Any investment retained in the investee is recognised at its fair value at the
date when joint control or significant influence are lost; it represents the new carrying amount of the investment to be
recognised subsequently.
The investor’s share of any losses of the investee exceeding the carrying amount of the investment and any long-term interest is
recognised in a specific provision to the extent that investor is required to fulfil legal or implicit obligations towards the investee
or to cover its losses.
Business combination
There is an acquisition of business if the contract provides for the acquisition of one (or more than one) input and of a substantial
process that, together, contribute significantly to the ability to create an output. On the contrary, lacking the set of conditions
described above, the case is one of acquisition of a group of assets, which determines the capitalisation of the cost of their
acquisition and their depreciation based on the provisions of IAS 16.
Business combination transactions are recognised using the acquisition method. The amount transferred in a business
combination is determined at the date the controlling interest is acquired and is equivalent to the fair value of the assets
transferred, of liabilities incurred or assumed, and of any equity instruments issued by the acquirer. Costs directly attributable to
the transaction are recognised in the income statement when they are incurred.
The equity of investees is determined by attributing to each of the items of the financial position its fair value at the date on
which control is acquired12, except where IFRS provisions require otherwise. Any positive residual difference is recognised as
goodwill. Negative residual differences are taken to the income statement.
In the case of partial control being obtained, the share of equity net of non-controlling interests is determined on the basis of the
relevant share of current value attributed to assets and liabilities on the date on which control of the company was obtained,
excluding any goodwill that can be attributed to the value (the so-called partial goodwill method). Alternatively, the entire amount
of goodwill is recognised that was generated by the acquisition, thus considering also the share attributable to the
non-controlling interests (the so-called full goodwill method); in the latter case the non-controlling interests are stated at their
overall fair value, thus also including the goodwill of the non-controlling interests13. The choice of either the partial goodwill or the
full goodwill method is made for each individual business combination.
Where control of a company is achieved in stages, the purchase cost is determined by adding the fair value of the previously
held ownership interest and the consideration paid for the additional ownership interest. Any difference between the fair value of
the previous ownership interest and its carrying amount is recognised in the income statement. In addition, when control of a
company is obtained, any amounts previously recognised in other comprehensive income in relation to the company are taken
to profit or loss. Amounts that may not be reclassified to profit, or loss are recognised in other equity items.
Where provisional amounts have been recorded for the assets and liabilities of an acquiree during the reporting period in which a
business combination occurs, these amounts are retrospectively adjusted within twelve months of the acquisition date to reflect
new information obtained about facts and circumstances that existed as of the acquisition date.
The acquisition of interests in a joint operation that represents a business is recognised, for applicable aspects, in the same way
as provided for business combinations.
Intragroup transactions
Unrealised intercompany profit arising from transactions between consolidated companies is eliminated, as are intercompany
receivables, payables, income and expenses, guarantees (including independent contract performance bonds), commitments
and risks between consolidated companies. Unrealised profits resulting from transactions with equity-accounted investees are
eliminated in proportion to the Group’s interest. In both cases, intragroup losses are not eliminated since they are considered an
impairment indicator of the assets transferred.
Translation criteria
The financial statements of companies having a functional currency other than euro, which is the functional currency of the
parent company, as well as the currency used in the consolidated financial statements of the Group, are converted into euro
applying: (i) closing spot rates for assets and liabilities; (ii) historical exchange rates to equity; (iii) the average rates for the period
to the income statement and the statement of cash flows (source: Banca d’Italia).
Exchange differences resulting from the translation of the financial statements of investees having a functional currency other
than euro, deriving from the application of different exchange rates for assets and liabilities, equity and the income statement,
are recognised in equity under the item “Translation reserve” (included in “Other reserves”) for the portion attributable to the
owners of the parent14.
Cumulative exchange differences are charged to the income statement when an investment is fully disposed of, i.e. when
control, joint control or significant influence on the investee is lost. In such circumstances, the differences are taken to the
income statement under the item “Other gains (losses) on equity investments”. In the event of a partial disposal that does not
result in the loss of control, the portion of exchange differences relating to the interest sold is recognised under non-controlling
interests in equity. In the event of a partial disposal that does not result in the loss of joint control or significant influence, the
(10) If the investment retained continues to be measured using the equity method, it is not remeasured at fair value.
(11) Conversely, any amount recognised in other comprehensive income relating to the former joint venture or associate that may not be reclassified to income
statement are transferred to retained earnings (losses).
(12) The criteria used for determining fair value are described in the section “Fair value measurement” below.
(13) The decision to apply the partial or full goodwill method is also made for business combinations where negative goodwill is taken to the income statement (i.e. a
gain on bargain purchase).
(14) The share of non-controlling interests in the cumulate exchange rate differences resulting from the translation of subsidiaries’ financial statements having a
functional currency other than the euro is recognised under “Non-controlling interest” in equity.
\ 216
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
portion of exchange differences relating to the interest disposed of is taken to the income statement. The repayment of the
capital, carried out by a subsidiary having a functional currency other than euro, which does not result in a change in the equity
investment held, entails charging the corresponding portion of the exchange rate differences to the income statement.
The financial statements translated into euros are those denominated in the functional currency, i.e. the local currency or the
currency in which most financial transactions and assets and liabilities are denominated.
The exchange rates that have been applied for the translation of financial statements in foreign currencies are as follows:
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US Dollar
British Pound Sterling
Algerian Dinar
Angolan Kwanza
Argentine Peso
Australian Dollar
Brazilian Real
Canadian Dollar
Egyptian Pound
Indian Rupee
Indonesian Rupiah
Kazakhstan Tenge
Malaysian Ringgit
New Ghana Cedi
New Romanian Leu
Nigerian Naira
Norwegian Kroner
Peruvian Nuevo Sol
Qatar Riyal
Russian Rouble
Saudi Arabian Riyal
Singapore Dollar
Swiss Franc
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0.86905
148.2657
920.402
892.9239
1.6263
5.3618
1.4642
34.1589
91.9045
17,079.71
502.48
5.0775
13.2254
4.9756
974.0907
11.2405
4.0818
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98.5958
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314.1127
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33.1581
89.3001
16,479.62
493.57
4.932
12.6196
4.9467
695.0115
11.4248
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92.4209
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492.9
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10.8621
4.9495
477.9221
10.5138
4.0459
3.8824
79.0077
3.9998
1.43
0.9847
3 Accounting policies
The main accounting policies used for the preparation of the consolidated financial statements are shown below.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits and financial assets with original maturities of 90 days or
less that are readily convertible to cash amounts, and which are subject to an insignificant risk of changes in value.
Inventories
The inventories, excluding consumables intended for project implementation – which do not go through inventory but are
recorded in the income statement under direct contract costs – are measured considering the lower between purchase cost
and net realisable value, which is the amount the company expects to obtain from their sale in the ordinary course of business.
The cost of inventories is determined by applying the weighted average cost method, while market value – given that the
inventories are mainly spare parts – is taken as the lower of replacement cost or net realisable value.
Spare parts might be impaired (partially or entirely) in line with the rationalisation of the asset they refer to due to the total of
reduced possibility of using them. Saipem makes periodic audits on obsolescence items in storage that were last purchased
(ageing date) more than five years ago for the purpose of justifying maintenance in inventory or impairing them to the income
statement. In any case, for materials not considered obsolete, last purchased more than five years ago, a provision for slow
moving material is established, with amounts which increase in percentage with ageing.
Contract assets and contract liabilities
Contract assets and contract liabilities from work in progress assessment are recognised on the basis of contractual amounts,
defined with reasonable certainty with customers, in relation to the progress of work.
Given the nature of the contracts (fixed price) and the type of work, progress is determined through the use of an input method
based on the percentage of costs incurred with respect to the total contractually estimated costs (cost-to-cost method).
To correctly apply the economic effects of using this method on core business revenue, differences between amounts earned
based on the stage of completion of projects and recognised revenue are included under contract assets from work in progress
assessment if positive, or under contract liabilities from work in progress assessment if negative.
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SAIPEM ANNUAL REPORT 2023
With regard to the particular type of reimbursable service contracts, given their nature, revenue is recognised by adopting an
output-based method by applying to costs incurred a contractually agreed margin.
The valuation of contract assets and liabilities arising from work in progress assessment takes into account all costs directly
attributable to the contract, as well as contractual risks, revision clauses when they have a high probability of being recognised,
any expected incentives (when the achievement of pre-established performance levels is highly probable and they can be
reliably determined) and any fees arising from legal disputes.
Requests for additional considerations deriving from a change in contractually agreed work (change orders) are included in the
total amount of revenue when there is a high probability that the customer will approve the scope and/or the price of the change.
At the same time, other claims deriving, for example, from additional costs incurred for reasons attributable to the customer are
included in the total amount of revenue only when the counterparty has essentially approved their scope and/or price.
Contractual advances in foreign currency received by customers or paid to suppliers are recognised at the exchange rate on the
date of payment and maintained at that rate until fully recovered.
Contractual advances received are part of Saipem normal operating practice; if advances recognised contemplate a greater
percentage than that used in practice in the sector, any time value of money that leads to the presumption of a significant
financial benefit granted by the customer is determined.
Property, plant and equipment (tangible assets)
Property, plant and equipment are recognised using the cost method and stated at their purchase or production cost including
any ancillary costs directly attributable to bringing the asset into operation. In addition, when a substantial amount of time is
required to make the asset ready for use, the purchase price or production cost includes borrowing costs that theoretically
would have been avoided for that amount of time had the investment not been made.
Saipem does not carry out revaluation of property, plant and equipment, excepted for property, plant and equipment which were
impaired in previous years, as better explained in the following paragraph “Impairment of non-financial assets”.
Expenditures on renewals, improvements and transformations that extend the useful lives of the related asset are capitalised
when it is likely that they will increase the future economic benefits expected from the asset. Also, items purchased for safety or
environmental reasons are capitalised, even if they do not directly increase the future economic benefits of the existing assets,
as they are necessary for carrying out company business.
The costs of cyclical maintenance incurred for the purpose of obtaining periodical class certification of vessels are capitalised,
as they have a useful life of several years (generally five years). The useful life of parts subject to cyclical maintenance (and
possible replacement), and the relative depreciation schedule are coherent with the planned frequency of periodical inspections.
Depreciation of property, plant and equipment begins when the asset is ready for use, in other words when it is in the place and
in the conditions necessary for it to be able to operate according to the planned modalities.
Property, plant and equipment are depreciated systematically using a straight-line method over their useful life, which is an
estimate of the period over which the assets will be used by the entity. When the tangible asset comprises more than one
significant part with different useful lives, each component is depreciated separately. The depreciable amount of an asset is its
carrying amount less the estimated net disposal value at the end of its useful life, if this value is significant and can be reasonably
determined. Land is not depreciated, even were purchased with a building. Property, plant and equipment held for sale are not
depreciated either (see paragraph “Assets held for sale and discontinued operations”). Changes to depreciation methods
related to a review of the expected useful life of an asset, the net residual value or the expected pattern of consumption of the
future economic benefits flowing from an asset are recognised in the income statement.
All parts of the vessels are depreciated over the same useful life as determined on the basis of independent reporting by
technical experts. The decision to consider the same useful life for all parts of the vessels is based on the fact that the main
parts are subject to periodical activities of cyclical maintenance.
Cyclical maintenance carried out near the end of the useful life of a vessel extends its life (and thus require reprogramming of
depreciation on the residual value) for as long as the useful life of the last cyclical maintenance.
Replacement costs of identifiable components in complex assets are capitalised and depreciated over their useful life. The
residual carrying amount of the component that has been replaced is charged to the income statement.
Improvements to leased assets are depreciated over the useful life of the improvements or, if shorter, over the residual duration
of the lease, taking into account the possible period of renewal if the renewal depends only on the lessor and is theoretically
certain. Ordinary maintenance and repair expenses, not including the replacement of identifiable components and that restore
but do not increase the performance of the assets, are charged to the income statement for the year in which the expenses are
incurred.
Property, plant and equipment are eliminated from the accounts when they are disposed of through alienation or write-off or
when no future economic benefit is expected from their use or disposal; the relative profit or loss is reported in the income
statement.
Property, plant and equipment destined for specific operating projects, for which no further future use is envisaged due to the
characteristics of the asset itself or the high usage sustained during the execution of the project, are depreciated over the duration
of the project.
Impairment losses of tangible assets are recognised if events or changes in circumstances indicate that their carrying amount
may not be recoverable.
Leases
A contract is, or contains, a lease agreement if, in exchange for consideration, it grants the lessee the right to control the use of an
identified asset for a period of time.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
It is defined a single model of recognition of lease contracts based on the recognition by the lessee of a “Right-of-Use” asset
representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments
provided by the contract (“Lease Liability”).
After initial recognition, the “Right-of-Use” asset is reduced by accumulated depreciation, any impairment losses and the effects
associated with any remeasurement of the “Lease Liability”.
Depreciation rates are constant and are applied over the lease term, taking into account renewal/termination which are highly
probable for the year. Only if the lease provides for the exercise of a reasonably certain purchase option is the “Right-of-Use”
asset depreciated systematically over the useful life of the underlying asset.
The “Lease Liability” is initially measured at the present value of the lease payments not yet made at the commencement date.
The present value of the aforementioned lease payments is calculated by adopting a discount rate equal to the interest rate
implicit in the lease or, if this is not readily determined, using the incremental borrowing rate of the lessee. The incremental
borrowing rate of the lessee is defined by taking into account the intervals and duration of the payments provided for in the lease
contract, the currency in which they are denominated and the characteristics of the lessee’s economic environment.
After initial recognition, the ‘Lease Liability’ is measured at amortised cost (i.e. increasing its carrying amount to take into account
the interest on the liability and decreasing it to take into account the payments made) using the effective interest rate and is
restated, against the registration value of the related “Right-of-Use” asset, to take into account any changes to the lease
following contractual renegotiations, changes in indices or rates, changes relating to the exercise of contractually envisaged
options for renewal, early withdrawal or purchase of the leased asset.
For short-term leases and leases where the underlying asset is of low value, Saipem applies the exception to recognition
provided for in the standard.
For the lessor the distinction between operating and financial leases is maintained.
If there are subleases, the lessee as intermediate lessor shall classify the sublease as a finance lease or an operating lease as
follows: (a) if the principal lease is a short-term lease, the sublease shall be classified as an operating lease by recognising the
income from the sublease in the income statement; (b) otherwise, the sublease shall be classified by reference to the asset
consisting of the Right-of-Use under the principal lease, rather than by reference to the underlying asset, i.e. by reference to the
term of the sublease; if the latter covers the term of the principal lease, the sublease shall be treated as a finance lease, with a
financial receivable being recognised in place of the Right-of-Use under the principal lease.
The accounting of lease contracts requires the lessee to recognise:
≥ in the statements of financial position: (i) the Right-of-Use assets, recognised by Saipem in the specific item “Right-of-Use of
leased assets” distinct from property, plant and equipment, and intangible assets, and divided by class of asset in the Notes to
the financial statements, and from financial receivables relating to finance subleases recorded by Saipem in the specific item
“Lease assets”; (ii) the financial liabilities relating to the obligation to make the payments envisaged by the contract (“Lease
liabilities”), recorded by Saipem in the specific item “Lease liabilities”, dividing the amount between the non-current and current
portions;
≥ in the income statement: (i) the depreciation and amortisation of the Right-of-Use assets (within the operating expenses)
subdivided by class of assets in the Notes to the financial statements and of the interest expense accrued on the Lease
Liability. The income statement also includes the lease contract payments that meet short-term and low-value requirements
and variable payments linked to the use of assets, not included in determining the Right-of-Use assets/Lease Liability;
≥ the following effects arise in the statement of cash flows: (a) a modification of the net cash flows from operating activities that
includes interest expenses on the "Lease Liability"; (b) a modification of the net cash flows from financing activities that
includes disbursement connected with repayment of the principal amount of the “Lease Liability”.
The main types of contracts covered by the definition of lease, which affect most of the Group's operations, relate to the
following asset categories:
≥ vessels for the performance of projects by offshore business;
≥ real estate for offices:
≥ industrial areas and construction yards to support projects:
≥ equipment in support of the projects:
≥ vehicles and office equipment.
Regarding contracts for services signed by Group companies, an analysis is made to identify any possible “embedded leases”.
Intangible assets
Intangible assets are identifiable assets without physical substance, controlled by the entity and capable of producing future
economic benefits, and goodwill. Identifiability is defined by reference to the possibility of distinguishing the acquired intangible
asset from goodwill; this requirement is normally satisfied when: (i) the intangible asset arises from legal or contractual rights, or
(ii) the asset is separable, i.e. it can be sold, transferred, leased or exchanged independently or as an integral part of other assets. An
entity controls an intangible asset if it has the power to obtain the future economic benefits deriving from the asset and to restrict
the access of others to those benefits. Intangible assets are stated at purchase or production cost as determined with the criteria
used for property, plant and equipment.
Saipem does not makes revaluation of intangible assets.
Intangible assets with a finite useful life are amortised systematically over their useful life, which is an estimate of the period over
which the assets will be used by the entity. The amount to be amortised is determined in accordance with the criteria described
in the section “Property, plant and equipment”.
Goodwill and other intangible assets with an indefinite useful life are not amortised. The recoverability of their carrying amount is
tested at least annually and whenever events occur indicating a reduction in their value, as described in section “Impairment of
non-financial assets”.
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SAIPEM ANNUAL REPORT 2023
With reference to the configuration and customisation costs of software deriving from contracts with service providers through
which the company obtains the right of access to certain applications, those are recognised as intangible asset only when the
agreement allows the client to obtain future economic benefits and limit the access to others.
Intangible assets are eliminated at the moment of their disposal through disposal or when no future economic benefit is
expected from their use or disposal; the relative profit or loss is reported in the income statement.
Impairment of non-financial assets
The recoverability of non-financial assets – that is, tangible assets, intangible assets and Right-of-Use of leased assets – is
assessed when events or changes in circumstances suggest that the carrying amount in the financial statements is not
recoverable. The recoverability is assessed by comparing their carrying amount with the relative recoverable amount
represented by the higher of the fair value less disposal costs and the value in use. Irrespective of any indication of impairment,
the assessment of the recoverability of goodwill is carried out at least annually.
The recoverability assessment is carried out for each cash-generating unit (CGU) corresponding to a single asset or to the
smallest identifiable group of assets that generates independent cash inflows from their continuous use.
Value in use is determined by discounting to present value the expected cash flows from the use of the CGU and, if significant
and reasonably determinable, from disposal at the end of its useful life, net of costs to sell. Expected cash flows are determined,
taking also into account actual results, on the basis of reasonable and documented assumptions that represent the best
estimate of the future economic conditions during the remaining useful life of the CGU, giving more importance to independent
assumptions while taking into account the specificities of Saipem’s business. Discounting is carried out at a rate that reflects
current market assessments of the time value of money and the risks specific to the asset that are not reflected in the estimate
of future cash flows. Please note that where appropriate, the specific incremental component of so-called “country risk” is
included in the estimate of expected cash flows. Specifically, the discount rate used is the Weighted Average Cost of Capital
(WACC) defined on the basis of the Capital Asset Pricing Model (CAPM) methodology.
Value in use is determined using post-tax cash flows, discounted at a post-tax discount rate as this method produces outcomes
which are equivalent to those resulting from discounting pre-tax cash flows at a pre-tax discount rate deriving, through an
iteration process, from a post-tax valuation.
In order to verify the recoverability of the Right-of-Use related to leased assets, consideration is given to: (i) the allocation of the
Right-of-Use assets of the leased assets to the CGUs to which they belong; (ii) the duration of the underlying leasing contract
with respect to the time horizon considered in determining the cash flows of the CGU; (iii) the value in use of a CGU containing a
Right-of-Use.
With regard to goodwill, if the carrying amount of the CGU, including goodwill allocated thereto determined by taking into
account any impairment of current and non-current assets that are part of the CGU, exceeds the CGU’s recoverable amount, the
excess is recognised as impairment. The impairment loss is first allocated to reduce the carrying amount of goodwill. Any
remaining excess is allocated on a pro-rata basis to the carrying amount of the other assets with a finite useful life that form the
CGU.
When the reasons for impairment losses made in the past cease to exist, the value of assets is reversed, and the adjustment is
recognised in the income statement as a revaluation (reversal of impairment). The reversal is carried out at the lower of the
recoverable amount and the original carrying amount before previous impairment losses, less the depreciation rates that would
have been charged had no impairment loss been recognised. Impairment losses against goodwill may not be reversed15.
Costs of technological development activities
Costs of technological development activities are capitalised when the entity can demonstrate:
(a) that it has the technical capacity to complete the intangible asset and use it or sell it;
(b) that it has the intention to complete the intangible asset and make it available for use or sale;
(c) that it has the capacity to use or sell the intangible asset;
(d) how the intangible asset will generate probable future economic benefits;
(e) that the technical, financial and other resources are available to complete development of the intangible asset and use it or
sell it;
(f) that it can reliably measure the cost attributable to the intangible asset during development.
Grants
Capital grants are recognised when there is a reasonable certainty that the conditions for their award will be met and are
recognised systematically in the income statement as a reduction in the purchase price or production cost of the assets to
which they relate, over their useful lives.
Grants related to income are recognised in the income statement over the periods necessary to match them with the related
costs which they are intended to compensate.
Financial assets
Based on the characteristics of the instrument and the business model adopted in their management, financial assets are
classified as follows: (i) financial assets measured at amortised cost; (ii) financial assets measured at fair value with the effects
recognised in other comprehensive income (hereinafter also OCI); (iii) financial assets measured at fair value through profit or
loss. Subsequent to initial recognition, their classification is maintained, unless the Group changes its business model for their
management.
(15) Impairment losses reported for an interim period are not reversed even if no loss, or a smaller loss, would have been recognised had the impairment been
assessed based on the conditions of a subsequent interim period.
\ 220
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Initial recognition is made at fair value, net of the costs directly attributable to the acquisition or issue of the financial asset. For
trade receivables lacking a significant financial component, the initial valuation is represented by the transaction price.
Subsequent to the initial recognition, the financial assets that generate contractual cash flows exclusively representative of
payments of capital and interest are measured at the amortised cost if such assets are held for the purpose of collecting the
contractual cash flows (so-called “hold to collect” business model).
The application of the amortised cost method requires the recognition in the income statement of the interest income,
determined on the basis of the effective interest rate, of the exchange rate differences and of any possible impairment losses16
(see section “Impairment losses on financial assets”).
On the other hand, financial assets representing debt instruments whose business model envisages the possibility of both
collecting the contractual cash flows and realising the value from sale (“hold to collect and sell” business model) are measured at
fair value with the effects recognised in OCI (hereinafter also FVTOCI). In this case, the following are recognised: (i) interest
income, calculated using the effective interest rate, exchange rate differences and impairments (see point "Impairment losses on
financial assets") are recognised in the income statement; (ii) changes in the fair value of the instrument are recognised in equity,
under the item OCI. The total amount of variations in fair value, recognised in the equity reserve that comprises the other
components of the statement of comprehensive income, is reversed to the income statement upon derecognition of the
instrument.
A financial asset representative of a debt instrument which has not been evaluated at the amortised cost or at FVTOCI is
evaluated at fair value with attribution of the effects to profit or loss (hereafter FVTPL); financial assets held for trading pertain to
this category. Accrued interest income on financial assets held for trading is included in the total fair value measurement of the
instrument and is recognised as “Financial income (expense)”.
Impairment of financial assets
The assessment of the recoverability of financial assets representative of debt instruments not measured at fair value with
effects to the income statement is made on the basis of the so-called “expected credit loss model”.
In particular, expected losses are generally determined on the basis of the product of: (i) the exposure to the counterparty net of
related mitigations (so-called Exposure at Default or EAD); (ii) the probability that the counterparty will default on its payment
obligation (so-called Probability of default or PD); (iii) the estimate, in percentage terms, of the amount of credit that will not be
recovered in the event of default (so-called loss given default or LGD).
The management model adopted by the Group envisages the simplified approach for trade receivables as they do not contain a
significant financial component. This approach requires the valuation of the provision to cover losses for an amount equal to the
expected losses over the entire life of the receivable. This approach uses the customers’s probability of default for the
quantification of expected credit losses, based on observable market data and on assessments collected by info-providers.
Alongside the allocations made to the loss allowance after reviewing each receivable on the basis of their recoverability, an
assessment is made of the creditworthiness of the customer. This assessment is performed on the portfolio of performing
exposure and on exposures that are past due to quantify and recognise the effects in interim reporting.
Specifically, the Saipem model operates as follows:
≥ the Exposure at Default (EAD) of Saipem is applied to trade receivables (including allocations) and contract assets from work in
progress and considers the effects of mitigation capable of reducing the exposure (debit items that can be used to
compensate, advance payments, etc.), excluding in particular disputed receivables from the calculation as subject to specific
technical-legal valuations. Receivables of a financial nature, as well as cash on hand, are also included in the assessment;
≥ with regard to identification of the time of default, the methodology determines it conventionally as the shorter between the
date in which the customer’s insolvency is declared and the term of 365 days from the receivable due date. This term is
coherent with the dynamics of the active business cycle of contract works in which Saipem operates;
≥ the Probability of Default (PD) is calculated on the observable market data (credit spread on bond issues, Credit Default Swaps,
etc.) gathered by qualified info-providers. It is considered equal to 100% at the time of default and on receivables that are
more than 12 months past due;
≥ to quantify the Loss Given Default (LGD), the approach applied is based on the market standards which consider the Recovery
Ratio (RR) 40% of the exposure; it follows that the LGD is calibrated at (100%-RR) that is (100%-40%) → 60%.
Trade receivables and other receivables are presented in the statement of financial position net of the relative loss allowance.
Impairment losses of these receivables are recognised in the income statement, net of any reversal of value, under “Net
reversals of impairment losses (impairment losses) on trade receivables and other assets”.
Non-controlling interests
Financial assets representing non-controlling interests, as they are not held for purposes of trading, are measured at fair value
with assignment of the effects to the equity reserve relating to components of other comprehensive income, without providing
for their reassignment to the income statement in case of sale; on the other hand, any dividends deriving from those
investments are recognised to the income statement under “Gains (losses) on equity investments”. Measurement at cost of a
non-controlling interests is permitted in the limited cases in which the cost is an adequate estimate of the fair value.
Derivative financial instruments and hedge accounting
A derivative is a financial instrument which has the following characteristics: (i) its value changes in response to the changes in a
specified interest rate, price of a security or asset, exchange rate, a price or rate index, a credit rating or other variable; (ii) it
requires no or little initial net investment; (iii) it is settled at a future date.
Derivative financial instruments, including embedded derivatives that are separated from the host contract, are assets and
liabilities recognised at their fair value.
(16) Receivables and other financial assets valued at the amortised cost are reported net of the write-down allowance.
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SAIPEM ANNUAL REPORT 2023
Consistently with the economic reason underlying the hedging, Saipem classifies derivatives as hedging instruments whenever
possible. The fair value of derivative financial instruments incorporates the adjustments that reflect the non-performance risk of the
counterparties of the transaction (see paragraph “Fair value measurement”). The designation of fair value as hedging instruments in
derivatives excludes such adjustments and is only limited to the spot component of the contracts.
In particular, the companies of the Group enter into the intercompany derivatives with Saipem Finance International BV (SAFI)
with the objective of hedging the currency risk arising from future and highly probable revenue and costs in foreign currency.
SAFI, in turn, in an operational optimisation perspective, performs a role of consolidation and netting of the required derivatives
and proceeds with their negotiation on the market.
The intragroup derivatives negotiated by the companies with SAFI are considered cash flow hedges for highly probable forecast
transactions whenever the conditions are met for the application of hedge accounting. The hedged item is identified in the
revenue and costs in the contract’s currency.
As part of the strategy and goals defined for risk management, the qualification of transactions as hedges requires: (i) the
existence of an economic relationship between the hedged item and the hedging instrument; (ii) that credit risk effect does not
dominate value changes resulting from the economic relationship; (iii) the definition of a hedge ratio coherent with the objectives
of risk management, in the frame of the defined risk management strategy, providing where necessary for the appropriate
rebalancing actions.
The amendment of risk management objectives or the elimination of the conditions outlined above for hedge accounting
qualification, will result in the termination, either total or partial, of the hedge.
When the derivatives are aimed at hedging the risk of changes in cash flows of the hedged item (cash flow hedge; for example
hedging the variability in cash flows of assets/liabilities due to exchange rate fluctuations), the changes in the fair value of the
derivatives considered effective, limited to the spot component of the contracts, are initially recognised in the equity reserve
pertaining to the other items of comprehensive income and are subsequently recognised in the income statement consistent
with the economic effects of the hedged item.
Derivative financial instruments are also adopted by the Saipem Group to hedge the risk arising from the expected purchase of
commodities as part of project activities and the interest rate risk arising from loans at variable rate or to stabilise the impact of
the cost of currency hedges put in place by the Group.
Even in these cases, when possible, Saipem designates these derivative financial instruments (cash flow hedges) the fair value of
which is initially recorded in the equity reserve relating to other comprehensive income and subsequently reclassified to the
income statement as the economic effects of the hedged item occur.
Changes in the fair value of derivatives which do not satisfy the conditions for being qualified as hedges, including any ineffective
components of hedging derivatives, are directly recognised in the income statement. Specifically, changes in the fair value of
non-hedging interest rate and foreign currency derivatives are recognised in the income statement under “Financial income
(expense)”; conversely, changes in the fair value of non-hedging commodity derivatives are recognised in the income statement
under “Other operating income (expense)”.
Convertible bonds
Convertible bonds are compound financial instruments consisting of two components: a financial liability (a contractual
agreement to deliver cash or other financial asset) and an equity instrument, that is, a call option that gives the holder the right to
convert it into a fix quantity of ordinary shares for a certain period of time. At initial recognition, the financial liability is the present
value of future cash flows, discounted at the rate payable for a liability similar in duration without the equity component (fair value
of the liability), and the value of the option, recorded in equity, is defined as the difference between the consideration received at
the time of issue of the compound instrument and the fair value of the financial liability. In the years after initial recognition, the
value of the conversion option in shares does not change, and the fair value of the financial liability is measured at amortised
cost.
Financial liabilities
Financial liabilities, other than derivative instruments, are initially recognised at the fair value of the amount received, net of direct
transaction costs, and are subsequently measured using the amortised cost method (see paragraph “Financial assets”).
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset in the statement of financial position when they can be legally offset in the current year
and it is intended to offset on a net basis (i.e., to realise the asset and remove the liability simultaneously).
Derecognition of financial assets and liabilities
Financial assets that have been transferred are derecognised from the statement of financial position when the contractual rights to
the cash flows from the asset are extinguished or expire or are transferred outright to third parties. Financial liabilities are
derecognised when they have been settled, or when the contractual condition has been fulfilled or cancelled or when it has expired.
Assets held for sale and discontinued operations
Non-current assets, current and non-current assets and liabilities included within disposal groups, whose carrying amount will be
recovered principally through a sale transaction rather than through their continuing use, are classified as held for sale. This
condition is considered met when the sale is highly probable, and the asset or disposal group is available for immediate sale in its
current condition. When the sale of a subsidiary is planned and this will lead to loss of control, all of its assets and liabilities are
classified as held for sale. This applies whether or not an interest is retained in the former subsidiary after the sale.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Non-current assets held for sale, current and non-current assets included within disposal groups and liabilities directly
associated with them are recognised in the statement of financial position separately from the entity’s other assets and
liabilities.
Immediately prior to classification as being held for sale, the non-current assets and/or assets and liabilities included within a
disposal group are measured according to the accounting standards applicable to them. Subsequently, non-current assets held
for sale are not depreciated and are measured at the lower of the fair value less costs to sell and their carrying amount.
Any difference between the carrying amount of non-current assets and the fair value less costs to sell is taken to the income
statement as an impairment loss; any subsequent reversal is recognised up to the previous impairment losses, including those
recognised prior to qualification of the asset as held for sale.
Non-current assets classified as held for sale and disposal groups constitute a discontinued operation if, either: (i) they
represent a significant stand-alone line of business or a significant geographic area of operations; (ii) they are part of a plan to
dispose of a significant stand-alone line of business or a significant geographic area of operations; or (iii) they are a subsidiary
acquired exclusively for the purpose of selling it. Profit or loss of discontinued operations, as well as any gains or losses on their
disposal are reported separately in the income statement, net of any tax effects. The results of discontinued operations are also
restated in the comparative figures for prior years.
When events occur that make it impossible to classify non-current assets or disposal groups as held for sale, they are
reclassified to the respective items of the statement of financial position and recognised at the lower between: (i) the carrying
amount at the date of classification as held for sale, adjusted for depreciation, impairment losses and reversals of impairment
loss that would have been recognised had the assets or disposal group not been classified as held for sale; and (ii) the
recoverable amount at the date of reclassification. Likewise, in case of interruption of the plan of sale, recalculation of the values
from the time of classification as held for sale/discontinued operations also involves the equity investments, or their shares,
previously classified as held for sale/discontinued operations.
Provisions for risks and charges, contingent assets and liabilities
Provisions for risks and charges relate to risks and charges of a definite nature and whose existence is certain or probable but
for which at year-end the timing or amount of future expenditure is uncertain. Provisions are recognised when: (i) there is a
present obligation, either legal or constructive, as a result of a past event; (ii) it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation; (iii) a reliable estimate can be made of the amount of the
obligation. The amount recognised for provisions represent the best estimate of the expenditure reasonably required to settle
the obligation or to transfer it to third parties at the year-end date. The amount recognised for onerous contracts is the lower of
the cost necessary to fulfil the contract obligations, net of the economic benefits expected to be received under it, and the
costs incurred for contract termination. The revised estimates of the provisions are assigned to the same item of the income
statement previously used for the provision.
The losses expected to complete a contract are recognised in their entirety in the year in which they are considered probable
and are provided for in the provisions for risks and charges.
The costs that the entity expects to bear to carry out restructuring plans are recognised in the year in which the entity formally
defines the plan and the interested parties have developed a valid expectation that the restructuring will occur.
Contingent assets and liabilities, not recognised in the financial statements, are described as required in the Notes to the
consolidated financial statements.
Contingent assets, that is, possible assets that arise from past events, whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, are periodically
reassessed in order to evaluate the probability or virtual certainty by the entity of obtaining economic benefits.
The contingent liabilities represented by: (i) possible, but not probable obligations arising from past events, whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the entity; (ii) present obligations arising from past events whose amount cannot be reliably measured or whose settlement will
probably be not onerous, are periodically reassessed to determine whether the use of resources to produce economic benefits
has become probable.
Employee benefits
Employee benefits are the remuneration paid by the entity for the service provided by the employee or by virtue of the
termination of employment.
Post-employment benefits are classified on the basis of plans, whether formal or not, as either “defined contribution plans” or
“defined benefit plans”, depending on their characteristics. In the first case, the entity’s obligation, which only consists of making
payments to the State or to a trust or fund, is determined on the basis of the contributions due.
The liabilities arising from defined benefit plans, net of any plan assets, are determined on the basis of actuarial assumptions and
recognised on an accruals basis during the employment period required to obtain the benefits.
The net interest includes the expected return on plan assets and the interest cost which are recognised in profit or loss. Net
interest is determined by applying the discount rate defined for liabilities, net of any plan assets, to the liabilities. The net interest
on defined benefit plans is posted to “Financial income (expense)”.
Remeasurements of the net defined benefit liability, which comprise actuarial gains (losses) arising from changes in the actuarial
assumptions used or from past experience and the return on plan assets excluding amounts included in net interest, are
recognised in the statement of comprehensive income. Remeasurements of net liabilities for defined benefits, recognised in the
equity reserve pertaining to the other components of the statement of comprehensive income, are not subsequently
reclassified to the income statement.
Long-term benefits obligations are determined by adopting actuarial assumptions. The effects of remeasurement are taken to
profit or loss in their entirety.
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Share-based payments
Coherently with the substantial nature of retribution that it has, personnel expenses include the costs with share-based incentive
plans. The cost of the incentive is calculated with reference to the fair value of the instruments attributed and to the forecast of
the number of shares that will effectively be assigned; the portion applicable to the year is determined pro-rata temporis over the
period to which the incentive refers (i.e., vesting period and possible co-investment period17), that is the period between the
grant date and the vesting date.
The plans provide as conditions for the distribution of the shares the attainment of the business and/or market goals; when the
assignment of the benefit is also connected to conditions other than those of the market, the estimate relative to these
conditions is reflected by adjusting, along the vesting period, the number of shares expected to be effectively granted.
The fair value of the shares underlying the incentive plan is determined according to the provisions of the IFRS, particularly by
IFRS 2, using models provided by info-providers and is not subject to adjustment in subsequent years. At the end of the vesting
period, in the event that the plan does not allocate shares to participants for failure to meet performance conditions, the share of
the cost relating to market conditions is not reversed to income statement.
Treasury shares
Treasury shares include those held to service share-based incentive plans and are recognised at cost and recognised as a
reduction in equity. Gains or losses from any subsequent sale of treasury shares are recognised as an increase (or decrease) in
equity.
Profit (loss) per share
Basic profit (loss) per share shall be calculated by dividing the Group’s profit or loss attributable to ordinary equity holders of the
parent entity by the weighted average of ordinary shares outstanding during the period, excluding treasury shares.
For the purpose of calculating diluted profit (loss) per share, the Group’s profit or loss attributable to ordinary equity holders of
the parent entity, as well as the weighted average of ordinary shares outstanding during the period, are adjusted to take into
account the effects of all potential ordinary shares with dilutive effect. The number of ordinary shares is given by the weighted
average of ordinary shares calculated in accordance with basic profit (loss) per share plus the weighted average of ordinary
shares that may be issued at the time of conversion into ordinary shares of all potential ordinary shares with dilutive effect.
The potential ordinary shares are considered to have a dilutive effect when their conversion into ordinary shares reduces profit
per share or increases loss per share deriving from operating activities. Conversely, the potential ordinary shares are considered
to have an antidilutive effect when their conversion into ordinary shares increases profit per share or reduces loss per share
deriving from operating activities.
Revenue from contracts with customers
The recognition of revenue from contracts with customers is based on the following five step model: (i) identification of the
contract with the customer; (ii) identification of the performance obligations, represented by the contractual promises to transfer
goods and/or services to the customer; (iii) determination of the transaction price; (iv) allocation of the transaction price to the
performance obligations identified on the basis of the “stand alone” selling price of each distinct good or service; (v) recognition
of the revenue when the relative performance obligation has been satisfied, at the time of transfer to the customer of the
promised goods or services; the obligation is considered to have been satisfied when the customer obtains control of the goods
or services, which may be satisfied over time as in the case of contract assets from work in progress, or at a point in time.
Given the nature of the contracts and the type of work, work progress is determined through the use of an input method based
on the percentage of costs incurred with respect to the total contractually estimated costs (cost-to-cost method); the resulting
income is recognised as overtime. This method is applied in particular to Engineering & Construction contracts.
With regard to the particular type of reimbursable service contracts, given their nature, revenue is recognised by invoicing the
customer for costs incurred plus a contractually agreed margin.
Contract revenue comprises the initial amount of revenue agreed in the contract, requests for additional payments arising from
changes to contractually agreed work (change orders) and requested price revisions arising from requests for additional
payments due to higher costs incurred for reasons attributable to the customer (claims). Change orders and claims (pending
revenue) are included in the amount of revenue when the changes to the agreed works and/or price has a high probability of
recognition, even if their definition has not yet been agreed. Any pending revenue reported for a period longer than one year,
with no changes in the negotiations with the customer, is impaired, despite the confidence in recovery of the business. Amounts
higher than €30 million are reported only if supported by outside technical-legal expert opinions.
With regard to drilling services, the different rates provided for in the contract are competed in relation to: (i) the different
operating phases covered by the performance obligation
if
contemplated contractually, regardless of the number of days of effective use of the equipment; (ii) any contract extensions,
where an amendment of the price does not require stipulation of a new contract but continuation of the original one.
In the presence of contracts for the concession of licences and patents, the revenue must be recognised depending on
whether it concerns the transfer of a “Right-of-Use” or of a “right of access”.
In the former case, there is a performance obligation toward the customer which is satisfied upon issue, which requires
recognition of the revenue (“at a point in time”), while in the latter case the right to access by the customer during the period of
operation of the licence creates a performance obligation that is satisfied over a period of time, and the revenue is thus likewise
recognised (“over time”).
(so-called mobilisation/operation/demobilisation phases)
(17) The vesting period is the period between the date of option grant and the date on which the shares are assigned. The co-investment period is the two-year
period, beginning the first day after the end of the vesting period, applicable only to the beneficiaries who have been identified as strategic resources for having met
performance conditions.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
When hedged by derivative contracts qualifying for “hedge accounting”, contract revenue denominated in foreign currencies are
translated at the contracted rates. Otherwise, they are translated at the exchange rate prevailing at year-end. The same method
is used for any costs in a foreign currency. The allocation of revenues relative to services partially rendered are recognised for
the portion matured, if it is possible to reliably determine stage of completion and there is no significant uncertainty about the
amount and existence of the income; otherwise, they are recognised within the limits of the recoverable costs incurred.
Payments received or to be received on behalf of third parties are not considered revenue.
Expenses
Costs are recognised when relative to goods received and services rendered.
Personnel expenses comprise remuneration paid, provisions made to pension funds, accrued holidays, national insurance and
social security contributions in compliance with national contracts of employment and current legislation.
The costs for the acquisition of new knowledge or discoveries, the study of products or alternative processes, new techniques
or models, the planning and construction of prototypes or any other costs incurred for other scientific research or technological
development activities, are generally considered current costs and expensed as incurred. These costs are capitalised (see also
paragraph “Intangible assets”) only when they meet the requirements listed under “Costs of technological development
activities” above.
Costs directly linked to the purchase of specific equipment and to the use of an asset on a specific project are capitalised and
amortised over the duration of the project and are included in contract assets’ progress.
The costs of preparation of drilling assets are recognised in the year in which the relative revenue is obtained and deferred over
the duration of the project for which they are used.
Bidding costs are fully expensed in the year in which they are incurred.
Exchange differences
Revenue and costs associated with transactions in currencies other than the functional currency are translated into the
functional currency by applying the exchange rate at the date of the transaction.
Monetary assets and liabilities in currencies other than the functional currency of Group companies are converted by applying
the year-end exchange rate. The effect is recognised in the income statement under “Financial income (expense)”.
Non-monetary assets and liabilities denominated in currencies other than the functional currency valued at cost are translated at
the exchange rate as at the date of initial recognition. Non-monetary assets that are measured at fair value (i.e. at their
recoverable amount or realisable value) are translated at the exchange rate applicable on the date of measurement.
Dividends
Dividends are recognised at the date of the Shareholders’ Meeting in which they are approved, except when the sale of shares
before the ex-dividend date is certain.
Income taxes
Current income taxes are determined on the basis of estimated taxable profit. The estimated liability is recognised in “Current tax
liabilities”. Income tax assets and liabilities are measured at the amount expected to be paid to/recovered from the tax
authorities, using tax laws that have been enacted or substantively enacted at year end and the relative tax rates.
Deferred tax assets or liabilities are recognised for temporary differences between the carrying amounts and tax bases of assets
and liabilities, based on tax rates and tax laws applicable for the years in which the temporary difference is cancelled, that have
been approved or substantively approved at the closing date of the year to which the financial statements refer. Deferred tax
assets are recognised when their recovery is considered probable. The recoverability of deferred taxes is considered probable
when it is expected that sufficient taxable profit will be available in the year in which the temporary differences reverse against
which deductible temporary differences can be utilised. Similarly, unused tax assets and deferred tax assets on tax losses are
recognised to the extent that they can be recovered. The recoverability of deferred tax assets is assessed periodically, i.e. at
least once a year.
Tax assets related to uncertain tax positions are recognised when it is considered probable that they will be recovered.
For temporary differences associated with investments in subsidiaries, associates and joint arrangements, deferred tax liabilities
are not recognised if the investor is able to control the timing of the reversal of the temporary difference and it is probable that
the reversal will not occur in the foreseeable future.
Deferred tax assets and liabilities are recorded under non-current assets and liabilities and are offset at single entity level if
related to offsettable taxes. The balance of the offset, if positive, is recognised under “Deferred tax assets” and, if negative,
under “Deferred tax liabilities”.
The effects of uncertain tax treatment with a risk probability are recognised as income tax assets or liabilities.
When the results of transactions are recognised directly in equity, relative current taxes, deferred tax assets and liabilities are
also charged to equity.
IAS 12 “Income taxes” also applies to income taxes deriving from tax legislation to implement the rules of the Pillar Two model,
published by the Organisation for Economic Co-operation and Development (OECD), including the tax legislation implementing
minimum qualifying supplementary domestic taxes. With the document issued by IASB on May 23, 2023 (Amendment to IAS 12
“International Tax Reform - Pillar Two Model Rules”), a mandatory temporary exception to the requirements of the standard that
no specific information shall be collected or disclosed on deferred tax assets and deferred tax liabilities relating to Pillar Two
income taxes. Saipem Group has applied the temporary exception as of December 31, 2023.
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Fair value measurement
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an
orderly transaction that is not a forced sale, liquidation sale or a distressed sale between independent, knowledgeable and willing
market participants at the measurement date.
Fair value is determined based on market conditions at the measurement date and the assumptions that market participants
would use (i.e. it is a “market-based” measurement).
Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market or, in
the absence of a principal market, in the most advantageous market to which the entity has access, regardless of the entity’s
intent to sell the asset or transfer the liability.
When the market price is not directly observable and a price for an identical asset or liability is not observable, the fair value is
calculated by applying another valuation technique that maximises the use of relevant observable inputs and minimises the use
of unobservable inputs. Since fair value is a market-based measurement, it is determined by adopting the assumptions that
market participants would use to determine the price of the asset or liability, including assumptions about risks. As a result, the
intention to hold an asset or settle a liability (or to fulfil otherwise) is not relevant for the purposes of fair value measurement.
Fair value measurements of non-financial assets take into account a market participant’s ability to generate economic benefits
by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest
and best use. The highest and best use is determined from the perspective of market participants, even if the entity intends a
different use. An entity’s current use of a non-financial asset is presumed to be its highest and best use unless market or other
factors suggest that a different use by market participants would maximise the value of the asset.
In the absence of quoted market prices, the fair value of a financial or non-financial liability or an entity’s own equity instruments
is taken as the fair value of the corresponding asset held by another market participant at the measurement date.
The fair value of financial instruments is determined considering the credit risk of the counterparty of a financial asset (so-called
“Credit Valuation Adjustment” or CVA) and the risk of default of a financial liability by the entity (so-called “Debit Valuation
Adjustment” or DVA).
In the absence of available quoted market prices, valuation techniques appropriate in the circumstances are used to measure
fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Financial statements schemes18
Items of the statement of financial position are classified as current and non-current. Items of the income statement are
presented by nature19
The comprehensive income statement shows the net result together with income and expenses that are recognised directly in
equity in accordance with specific provisions of IFRS.
The statement of changes in equity includes comprehensive profit (loss) for the year, transactions with shareholders and other
changes in equity.
The statement of cash flow is prepared using the “indirect method”, whereby the profit for the year is adjusted for the effects of
other non-monetary items.
Changes to accounting standards
The changes to the accounting standards effective as of January 1, 2023, have not had a significant impact on Saipem’s
financial statements. A summary of the main changes of potential interest to the Group is provided below.
With Regulation No. 2021/2036, issued by the European Commission on November 19, 2021, the amendments to IFRS 17
“Insurance Contracts” were endorsed which define the accounting treatment of insurance contracts issued and reinsurance
contracts held. The provisions of IFRS 17, which exceed those currently laid down in IFRS 4 “Insurance Contracts”, aim to help
businesses to implement the standard and to: (i) reduce costs, simplifying the requirements laid down in the standard; (ii) make it
easier to enter the disclosures in the financial statements; (iii) facilitate the transition to the new standard, postponing its entry into
force. The amendments are effective from January 1, 2023. As a result of an analysis performed, this standard is not applicable to
Saipem's consolidated financial statements.
With Regulation No. 2022/357, issued by the European Commission on March 2, 2022, the amendments to IAS 1 and IFRS
Practice Statement 2 “Disclosure of Accounting Policies” were endorsed, requiring individual entities to supply more information
about their accounting policies. The amendments clarify that information on accounting policies is relevant when, considered
together with other information provided in the financial statements, it is reasonably possible to assume that they affect the
decisions of the financial statements users. The description provided in relation to accounting policies must be “entity specific”,
highlighting the specific accounting methods adopted by the company and providing more useful information than a
standardised description or one that merely replicates the IFRS provisions. The changes to the Practice Statement provide
guidance on how to apply the concept of materiality to financial reporting. The amendments are effective from January 1, 2023.
With Regulation No. 2022/357, issued by the European Commission on March 2, 2022, the amendments to IAS 8 “Definition of
Accounting Estimates” where endorsed, which defines the notion of accounting estimates, removing the definition of change in
accounting estimates. In the new understanding, accounting estimates are defined as monetary amounts subject to
measurement uncertainty and that, therefore, they must be estimated using judgements, assumptions, valuation techniques and
(18) Financial statements schemes are the same as those adopted in the 2022 Annual report.
(19) Information regarding financial instruments, applying the classification required by IFRS, is provided under Note 33 “Guarantees, commitments and risks -
Additional information on financial instruments”.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
inputs. Changes in accounting estimates are applied prospectively only to future transactions and other future events, whereas
changes in accounting policies are generally applied retrospectively. The amendments are effective from January 1, 2023.
With Regulation No. 2022/1392, issued by the European Commission on August 11, 2022, the amendments to IAS 12 “Deferred
Tax related to Assets and Liabilities arising from a Single Transaction” were endorsed, which clarifies the methods of accounting
for deferred tax related to assets and liabilities for some transactions, including lease transactions and decommissioning
requirements, which during initial recognition produce temporary taxable and deductible differences of an equal amount, as well
as to IFRS 1 “First-time Adoption of International Financial Reporting Standards”, introducing a specific paragraph on the date of
application of these amendments, and some paragraphs concerning Appendix B of IFRS 1. The amendments are effective from
January 1, 2023. The effect of the aforementioned amendments is described in Note 19 “Deferred tax assets and liabilities”.
With Regulation No. 2022/1491, issued by the European Commission on September 8, 2022, the amendments to IFRS 17
“Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information" were endorsed, which requires that if
an entity applies IFRS 17 following the application of IFRS 9 (classification overlap), the entity must provide qualitative information
that enables users of the financial statements to understand: (i) the extent to which the classification overlap has been applied
(for example, whether it has been applied to all financial assets derecognised in the comparative period); and (ii) whether and to
what extent the impairment provisions of IFRS 9 have been applied. The IASB has therefore added a text block element to the
IFRS taxonomy to reflect this new disclosure requirement. The amendments are effective from January 1, 2023.
With Regulation No. 2023/2468, issued by the European Commission on November 8, 2023, the changes to IAS 12
“International Tax Reform - Pillar Two Model Rules” were endorsed, which introduce a mandatory temporary exception to the
requirements of IAS 12 for the recognition and specific disclosure of deferred tax assets and liabilities arising from the OECD
“Pillar Two Model Rules”, as well as targeted supplementary information. By introducing common rules, Pillar Two aims to ensure
that in every jurisdiction, large multinational Groups with consolidated turnover of at least €750 million are subject to a minimum
15% tax rate. The amendments are effective from January 1, 2023. Supplementary information is available in Note 38 “Income
taxes”.
Financial risk management
The main financial risks identified, monitored and, to the extent specified below, actively managed by Saipem are as follows:
(i)
the market risk arising from exposure to fluctuations in interest rates and exchange rates and exposure to commodity price
volatility;
(ii) the credit risk deriving from the possible default of a counterparty;
(iii) the liquidity risk arising from the lack of adequate financial resources to meet short-term commitments;
(iv) the downgrading risk arising from possibility of a deterioration in the credit rating assigned by the main rating agencies.
The information shown below is based on the report prepared internally for the top Management.
The management, control, and reporting of the financial risks are based on a Financial Risk Policy, issued, and periodically updated
at corporate level with the aim of standardising and coordinating the Saipem Group’s financial risk policies. Specifically, financial
risks are controlled through the periodic calculation of several Key Risk Indicators (KRI) which are subject to specific attention
thresholds periodically updated according to the evolution of the Saipem Group’s business. The control activities established by the
Financial Risk Policy also include escalation procedures to be followed in case the risk thresholds set by the KRIs are exceeded.
For further details on industrial risks, see the “Risk management” section in the Directors’ Report.
(i) Market risk
Market risk is the possibility that changes in exchange rates, interest rates or commodity prices will adversely affect the value of
the Group’s financial assets, liabilities or expected future cash flows. Saipem actively manages market risk in accordance with
the above-mentioned Financial Risk Policy and procedures that provide a centralised model for performing financial activities.
Market risk - Exchange rates
Currency risk derives from the fact that Saipem Group’s operations are conducted in currencies other than euro and that
revenue and/or costs from a significant portion of projects are potentially denominated and settled in non-euro currencies
potentially resulting in the following impacts:
≥ on the Group companies' profit or loss due to the different counter value of costs and revenue denominated in foreign
currency at the time of their recognition compared to the time when the price conditions were set and as a result of the
conversion and subsequent revaluation of trade receivables/payables or financial assets/liabilities denominated in foreign
currencies;
≥ on the consolidated financial statements (profit or loss and equity) due to the conversion of operating income and assets and
liabilities of companies that prepare their financial statements in currencies other than the euro.
The risk management objective of the Saipem Group is the minimisation of the impact deriving from fluctuations in exchange
rates on the Group companies’ profit or loss.
The impacts of exchange rate fluctuations on the Group's consolidated results from the consolidation of the operating results of
companies that prepare their financial statements in a currency other than the Group's functional currency are monitored. The
exchange rate risk arising from the conversion of assets and liabilities of companies that prepare their financial statements in a
currency different form the Group’s functional one is managed, at consolidated level, only with the designation of long-term
operating monetary items in net investment hedge designations.
Saipem adopts a strategy to minimise the exposure to foreign exchange risk through the use of derivative contracts. Hedging
transactions may also be entered into in relation to future underlying contractual commitments, provided these are considered
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as highly probable (so-called highly probable forecast transactions). To this end, different types of derivatives (outright and
swaps in particular) are used. Such derivatives are measured at their fair value on the basis of standard market evaluation
algorithms and market prices/contributions provided by primary info-providers. Planning, coordination and management of this
activity at Group level is the responsibility of the Saipem Finance Department, which closely monitors the correlation between
derivatives and their underlying flows, as well as ensuring their correct accounting representation in compliance with IFRS
accounting standards.
The measurement and control activities of the exchange rate risk are performed by calculating a series of periodically monitored
KRIs. Specifically, KRIs on exchange rate risk are defined as the minimum thresholds to hedge future contractual currency flows and
the maximum thresholds of related potential losses measured with Value at Risk (VaR) models.
For 2023, an exchange rate sensitivity analysis was performed for those currencies other than euro which may potentially
impact exchange risk exposure in order to calculate the effect on the income statement and equity by a hypothetical positive
and negative variations of 10% in the exchange rates of the abovementioned foreign currencies against the euro.
The sensitivity analysis was conducted in relation to the following financial assets and liabilities denominated in currencies other
than the euro:
≥ exchange rate derivatives;
≥ trade receivables and other assets;
≥ financial receivables;
≥ trade payables and other liabilities;
≥ cash and cash equivalents;
≥ current and non-current financial liabilities;
≥ lease liabilities.
For derivative instruments on exchange rates, the sensitivity analysis on the relative fair value is carried out by comparing the
term counter-value fixed in the contracts with the counter-value determined at spot exchange rates, allowing for a 10% positive
or negative variation, and adjusted using interest rate curves consistent with the maturity dates of derivative contracts on the
basis of market prices at the end of the period.
The analysis did not include the effect of exchange rate fluctuations on the measurement of contract assets from long-term
orders assessment because they do not constitute a financial asset under IAS 32.
In light of the above, although Saipem adopts a strategy targeted at minimising exchange risk exposure through the use of
several types of derivatives (outright and swaps), it cannot be excluded that exchange rate fluctuations may significantly
influence the Group’s results and the comparability of results of individual years.
A depreciation of the euro compared to other currencies would produce an overall effect on pre-tax profit of €68 million (-€1
million as of December 31, 2022) and an overall effect on equity, before related tax effect, of -€179 million (-€234 million as of
December 31, 2022).
An appreciation of the euro against other currencies would produce an overall effect on pre-tax profit of -€68 million (€3 million
as of December 31, 2022) and an overall effect on equity, before related tax effect, of €180 million (€236 million as of December
31, 2022).
The increase/decrease with respect to the previous year is essentially due to variations in the exposed financial assets and
liabilities.
The table below shows the effects of the above sensitivity analysis on the items of the statement of financial position and
income statement.
(€ million)
Derivative financial instruments
Trade receivables and other assets
Financial receivables
Trade payables and other liabilities
Cash and cash equivalents
Current financial liabilities
Non-current financial liabilities
Lease liabilities
Total
2023
2022
Δ+10%
Δ-10%
Δ+10%
Δ-10%
Income
statement
(26)
121
31
(104)
73
(6)
-
(21)
68
Equity
(273)
121
31
(104)
73
(6)
-
(21)
(179)
Income
statement
26
(121)
(31)
104
(73)
6
-
21
(68)
Equity
274
(121)
(31)
104
(73)
6
-
21
180
Income
statement
(35)
76
38
(115)
52
(7)
-
(10)
(1)
Equity
(268)
76
38
(115)
52
(7)
-
(10)
(234)
Income
statement
37
(76)
(38)
115
(52)
7
-
10
3
Equity
270
(76)
(38)
115
(52)
7
-
10
236
\ 228
The sensitivity analysis on receivables and payables for the principal currencies was as follows.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Receivables
Total
Payables
Total
Currency
Total
Δ -10%
Δ +10%
Total
Δ -10%
Δ +10%
Dec. 31, 2023
Dec. 31, 2022
USD
KWD
PLN
GBP
NOK
Other currencies
USD
GBP
AED
NOK
JPY
AOA
KWD
Other currencies
1,088
51
15
14
13
26
1,207
717
195
29
20
27
3
32
14
1,037
(109)
(5)
(2)
(1)
(1)
(3)
(121)
72
20
3
2
3
-
3
1
104
109
5
2
1
1
3
121
(72)
(20)
(3)
(2)
(3)
-
(3)
(1)
(104)
642
63
15
5
12
26
763
777
180
36
37
30
7
62
20
1,149
(64)
(6)
(1)
(1)
(1)
(3)
(76)
78
18
3
4
3
1
6
2
115
64
6
1
1
1
3
76
(78)
(18)
(3)
(4)
(3)
(1)
(6)
(2)
(115)
Market risk - Interest rate
Interest rate fluctuations influence the market value of the company’s financial assets and liabilities and the level of net financial
expenses. The objective of risk management is to minimise the interest rate risk when pursuing financial structure objectives
defined in the Financial Risk Policy.
In compliance with the established risk management objectives, the Finance Department of Saipem Group assesses, when
stipulating variable rate financing, to enter into Interest Rate Swap (IRS) transactions in order to manage fluctuations in interest
rates. In addition, the Finance function of the Saipem Group, if applicable and based on adequate internal assessments,
negotiates derivative contracts to fix the interest rate differential and stabilise the impact of the cost of the currency hedging put
in place by the Group.
Planning, coordination and management of this activity at Group level is the responsibility of the Saipem Finance Department,
which closely monitors the correlation between derivatives and their underlying flows, as well as ensuring their correct
accounting representation in compliance with IFRS accounting standards. Although Saipem adopts a strategy targeted at
minimising its exposure to interest rate risk through the pursuit of defined financial structure objectives, it is not to be excluded
that interest rate fluctuations could significantly influence the Group’s results and the comparability of the results of individual
years.
As for the fair value assessment of interest rate derivative instruments that may be implemented in relation to the
aforementioned transactions, it is calculated by the Finance function based on market standard evaluation algorithms and
market quotes/contributions provided by primary info providers.
The Saipem Group measures and controls the interest rate risk by calculating and monitoring a KRI that measures the impact of
a fixed-rate debt, including any related derivative financial instrument, on total debt.
To measure the impact of interest rate risk a sensitivity analysis was performed. The analysis calculated the effect on the income
statement and equity which would result from a positive and negative 100 basis point movement on interest rate levels.
The analysis was performed relating to all relevant financial assets and liabilities exposed to interest rate fluctuations and
regarded in particular the following items:
≥ interest rate derivatives;
≥ cash and cash equivalents;
≥ current and non-current financial liabilities.
For derivative financial instruments on interest rates, the sensitivity analysis on fair value was conducted by discounting the
contractually expected cash flows with the interest rate curves recorded on the basis of period-end market rates, with variations
in excess of and less than 100 basis points. With reference to cash and cash equivalents and to variable rate financial liabilities,
reference was made respectively to the stock at period-end and to changes in exposure expected in the following 12 months.
On this basis, a movement of interest rates has been applied in excess of and less than 100 basis points on interest rates.
A positive change in interest rates would produce an overall effect on pre-tax profit of €1 million (€3 million as of December 31,
2022) and an overall effect on equity, before tax effect, of €1 million (€3 million as of December 31, 2022). A negative change in
interest rates would produce an overall effect on pre-tax profit of -€1 million (-€3 million as of December 31, 2022) and an overall
effect on equity, before tax effect, of -€1 million (-€3 million as of December 31, 2022).
The increase/decrease with respect to the previous year is essentially due to variations in the financial assets and liabilities
exposed to interest rate fluctuations.
\ 229
SAIPEM ANNUAL REPORT 2023
The table below shows the effects of the above sensitivity analysis on the items of the statement of financial position and
income statement.
2023
2022
(€ million)
Cash and cash equivalents
Derivative financial instruments
Current financial liabilities
Non-current financial liabilities
Total
+100 basis points
Income
statement
4
-
-
(3)
1
Equity
4
-
-
(3)
1
-100 basis points
Income
statement
(4)
-
-
3
(1)
Equity
(4)
-
-
3
(1)
+100 basis points
Income
statement
5
-
-
(2)
3
Equity
5
-
-
(2)
3
-100 basis points
Income
statement
(5)
-
-
2
(3)
Equity
(5)
-
-
2
(3)
Market risk - Commodity
Saipem’s results are affected by changes in the prices of oil products (fuel oil, lubricants, bunker oil, etc.) and raw materials (copper,
steel, etc.), since they represent associated costs in the running of vessels, bases and yards and the implementation of projects and
capital expenditures.
In order to reduce its commodity risk, in addition to adopting solutions at a commercial level, Saipem also trades derivatives
(swaps and bullet swaps) in particular on the organised ICE, NYMEX and LME markets where the relevant physical commodity
market is closely correlated to the financial market and the price is efficient.
Regarding commodity price risk management, derivative instruments on commodities were negotiated by Saipem to hedge
underlying contractual commitments. Hedging transactions may also be entered into in relation to future underlying contractual
commitments, provided these are highly probable (so-called highly probable forecast transactions). Despite the hedging
instruments adopted to control and manage commodity risks, Saipem cannot guarantee that they will be either efficient or
adequate or that in future it will still be able to use such instruments.
Commodity derivatives are measured at their fair value by the Finance Department of Saipem on the basis of market standard
evaluation algorithms and market prices/contributions provided by primary info providers.
The Saipem Group measures and controls the interest rate risk by calculating and monitoring a KRI that quantifies the maximum
potential loss measured with VaR models.
Regarding commodity risk hedging instruments, a hypothetical 10% positive change in the underlying prices would not result in
any pre-tax effect on the income, while it would result in an effect on equity, before tax effects, of €3 million. A 10% negative
variation in the underlying rates would produce no effect on pre-tax profit, while it would produce an effect on equity, before tax
effects, of -€3 million.
(ii) Credit risk
Credit risk represents Saipem’s exposure to potential losses deriving from the default of the business counterparty. Regarding
the counterparty risk in commercial contracts, credit management is under the responsibility of the business line and dedicated
specialised corporate functions, on the basis of formalised procedures for assessing and entrusting commercial partners. For
counterparty financial risk deriving from the investment of surplus liquidity, from positions in derivative contracts and from
commodities contracts, Group companies adopt the provisions defined in the Financial Risk Policy. Despite the measures
implemented by the company to avoid risk concentrations and/or activities, it cannot be ruled out that a portion of the Group's
customers may delay or fail to honour payments under the agreed conditions and terms. Any delay or default in payment by the
main customers may imply difficulties in the execution and/or completion of projects, or the need to recover costs and
expenses through legal actions.
Assessment of the recoverability of financial assets with counterparties of a trade and financial nature was made on the basis of
the so-called "expected credit loss model" illustrated in the paragraph titled “Impairment of financial assets”.
The Saipem Group measures and controls the credit risk of commercial counterparties by periodically calculating KRIs to
measure the Probability of Default ("PD") of trade receivables exposures, backlog and guarantees granted. The effect of these
activities is shown in Notes 10 “Trade receivables and other assets” and 12 “Contract assets” below. Credit risk towards financial
counterparties is instead monitored and controlled through the periodic calculation of KRIs aimed at measuring exposure,
maximum lending duration and the breakdown of financial assets by rating class.
(iii) Liquidity risk
Liquidity risk represents the risk that, due to the inability to raise new funds ("funding liquidity risk") or to liquidate assets on the
market ("asset liquidity risk"), the company will be unable to meet its payment commitments, resulting in an impact on the
economic result if the company is forced to incur additional costs to meet its commitments or, as an extreme consequence, a
situation of insolvency that jeopardises the company's ability to continue as a going concern. The objective of the Group’s risk
management is to implement a financial structure which, consistent with the business objectives and the limits defined in the
Financial Risk Policy, guarantees an adequate level of liquidity and of committed credit lines for the entire Group. This objective is
to guarantee sufficient financial resources to cover short-term commitments and maturing obligations, including through
refinancing transactions or early funding, as well as to ensure the availability of an adequate level of financial flexibility for Saipem
Group’s development programmes, pursuing the maintenance of a balance in terms of duration and composition of debt and an
adequate structure of bank credit lines.
The activities of measuring and controlling liquidity risk are carried out through continuous monitoring of estimated cash flows,
the maturity profile of financial liabilities, and the parameters characterizing the main bank financing agreements (so-called
Financial Covenants), as well as through the periodic calculation of specific KRIs. These indicators measure the level of available
\ 230
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
cash expected in the short term, the level of maturity concentration of financial liabilities and derivatives, and the ratios between
financial sources and uses expected in the short and medium term.
With regards to the financing agreements that require the compliance with Financial Covenants and other clauses which include
limitations to the utilisation of financial resources, it should be noted that as of December 31, 2023, the aforementioned clauses
have all been respected.
For the control and efficient use of its liquidity, the Saipem Group avails itself, among other things, of a central cash pooling
system and automatic reporting tools.
On February 10, 2023, Saipem entered into two new credit lines for a total amount of €860 million, consisting of: (i) a new
Revolving Credit Facility of around €470 million, which is not expected to be used, and (ii) a new Senior Unsecured Term Loan of
approximately €390 million, 70% of which is guaranteed by SACE, the Italian Export Credit Agency, under the “Garanzia
SupportItalia” instrument.
Moreover, on August 30, 2023, the company carried out the placement of a convertible bond for €500 million, maturing in
September 2029.
Thanks to the proceeds resulting from the signing of the new financing lines and the placement of the new above-mentioned
convertible bond, Saipem further strengthened its financial structure and liquidity, following which: (i) on November 29, 2023, was
completed the repurchase of €120 million of bonds maturing on January 7, 2025; and (ii) on December 28, 2023, was carried out
the partial repayment of €150 million of the Term Loan guaranteed by SACE.
It should also be noted that on September 8, 2023, Saipem repaid the maturing bond for €500 million.
As of December 31, 2023, the Group structured its financing sources mainly on medium-long term maturities with an average
tenor of 3.10 years; the medium-long term debt maturing in 2024 amounts to €96 million, of which €48 million during the first half
of the year and the remaining amount during the second half of the year.
The maturities for the three ordinary bonds issued by Saipem Finance International BV are due in 2025 (for a residual amount of
€380 million), 2026 and 2028 (each amounting to €500 million).
Based on the above-mentioned financial operations, on the maturity plan of medium-to long-term debt and on the amount of
available cash as of December 31, amounting to €1,323 million, Saipem believes that it has access to more than adequate
sources of funding to meet its foreseeable financial needs.
(iv) Downgrading risk
Saipem and the bonds issued by its subsidiary Saipem Finance International BV are rated by the rating agencies Standard
& Poor’s and Moody’s. On December 2, 2022, the company obtained a “BB+” long-term issuer credit rating with “stable” outlook
from Standard & Poor’s Global Ratings and a senior unsecured rating of “BB+” for the bonds. In addition, on June 14, 2023, the
company received the confirmation from Moody’s of its long-term Corporate Family Rating of “Ba3”, previously assigned on July
19, 2022, with an improvement in the outlook from “stable” to “positive”, as well as confirmation of the senior unsecured debt
rating of “Ba3” for its bonds. The ratings of the bonds issued by Saipem Finance International BV fall within the “non-investment
grade” category, characterised by a higher risk profile and which also includes debt securities particularly exposed to adverse
economic, financial and industry conditions. Any deterioration of Saipem's rating and/or of the bonds issued by Saipem Finance
International BV, which could be caused by a deterioration of the reference markets, of the profitability of the contracts or of
Saipem's liquidity, could result in a higher funding cost as well as a more difficult access to the capital market, with consequent
negative effects on the activity, prospects and economic and financial condition of the company and the Saipem Group.
Future payments for financial liabilities, trade payables and other liabilities
The following table shows the amounts of payments due to financial debts and lease liabilities, with separate disclosure of
principal and interest, and liabilities for derivative financial instruments.
(€ million)
Non-current financial liabilities
Current financial liabilities
Lease liabilities
Fair value of derivative instruments
Total
Interest on loans and borrowings
Interests on lease liabilities
2024
current
portion
131
97
324
17
569
82
46
2025
575
-
165
-
740
72
34
Non-current portion
2026
668
-
106
-
774
52
22
2027
15
-
66
-
81
30
17
2028
500
-
39
-
539
30
14
After
500
-
189
-
689
14
67
Total
2,389
97
889
17
3,392
280
200
The following table shows the due dates of trade payables and other liabilities.
(€ million)
Trade payables
Other liabilities
Maturity
2024
2,668
276
2025-2028
-
-
After
-
-
Total
2,668
276
Future payments for outstanding contractual obligations
Investment commitments for projects for which procurement contracts have already been placed, expiring in 2024, amount to
€99 million.
\ 231
SAIPEM ANNUAL REPORT 2023
4 Accounting estimates and significant judgements
The preparation of financial statements and interim reports in accordance with generally accepted accounting standards
requires Management to make accounting estimates based on complex and/or subjective judgements, past experience and
assumptions deemed reasonable and realistic based on the information available at the time of the estimate. The use of these
accounting estimates affects the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the reporting date and the reported amounts of income and expenses during the reporting period. Considering the sector in
which the Group operates, the estimates made for determining long-term contract revenue and costs, and the relative work in
progress, are especially important. As a consequence, actual results may differ from these estimates given the uncertainty
surrounding the assumptions and conditions upon which the estimates are based.
The accounting estimates and significant judgments formulated by the Management for the preparation of the consolidated
financial statements as of December 31, 2023, are influenced not only by the current macroeconomic environment
characterised by the impacts resulting from the increase in interest rates, inflation, and geopolitical risks related to the conflict in
Israel and the ongoing Russo-Ukrainian crisis, but also by the effects of ongoing initiatives to mitigate the consequences of
climate change and the potential impacts resulting from the energy transition, which in the medium and long term can
significantly affect business models, cash flows, financial position, and the financial and economic performance of the Group.
Critical accounting estimates in the process of preparing financial statements and interim accounting reports involve a high
degree of reliance on subjective judgements, assumptions and estimates regarding matters that are inherently uncertain and
complex are shown below. Changes in the conditions underlying the judgments and assumptions made may have a significant
effect on future results.
References to the notes to the financial statements containing the accounting information at the end of the reporting period are
provided below in relation to the financial statement items subject to estimation and judgement.
MACROECONOMIC SCENARIO
The current market framework confirms recovery trend in Saipem’s reference markets, in line with the expected growth in terms
of macroeconomic indicators and overall energy demand. However, the persisting elements of instability also in 2023, such as
the outbreak of the Israel-Palestinian crisis, the ongoing war in Ukraine, and the still high levels of inflation, have increased global
economic instability, requiring therefore further attention by the Management when formulating accounting estimates and
significant judgements. As a result, certain areas of the financial statements, also related to the increased uncertainty in
estimates, may be affected by recent macroeconomic events and circumstances.
As regards the trend in oil and natural gas prices, the Company believes that short-term volatility in these prices may have a
limited impact on the Group's results given the nature of Saipem's activities, which are characterised by multi-year contracts with
execution times of several years, depending on the complexity of the project. In the longer term, given the multi-year growth
cycle that the oil and gas market is going through and the consolidation of opportunities in the area of energy transition and
clean technologies, the international situation is confirmed to be improving.
In relation to Saipem projects that envisaged operations in Russia and/or with Russian clients, there are no residual activities and
the related contractual relationships with clients have been completed and are currently being formalised in full compliance with
EU regulations.
The Company confirms that it operates in full compliance with the provisions established by European and national institutions
with respect to the Russian Federation.
It should be noted that there are no activities handled by Saipem, nor personnel in any Ukrainian territory affected by the conflict.
The 2024-2027 Strategic Plan, in line with previous Plans, does not envisage the acquisition of new contracts in Russia.
In terms of the activities in Israel, it should be noted that Saipem has a contract for the construction of an Ammonia unit, as part
of the Ammonia Plant project on behalf of the Haifa Group, at the Mishor Rotem site, whose engineering and procurement
activities are nearing completion. After starting the civil/mechanical construction activities, the works on site were slowed down
due to the events of October 7, 2023 related to the conflict between the State of Israel and Hamas. In agreement with the client,
work is continuing as much as possible under the circumstances.
CLIMATE CHANGE EFFECTS
Climate change and the transition to a low-carbon economy are having an increasing impact on the global economy and the
energy sector.
Saipem, world leader in the engineering and construction of large projects in the energy and infrastructure sectors, both
offshore and onshore, aims at being a protagonist of the energy transition.
≥ by supporting the decarbonisation process of its clients and proposing solutions to reduce their carbon footprint such as low
impact technologies. In particular, the Group has proven experience in the construction of fixed offshore installations in the
Offshore Wind sector, with a series of completed projects, as well as a series of ready-to-market technologies regarding
floating wind, carbon capture, biofuels and the production of green fertilisers;
≥ by reducing its carbon footprint improving the efficiency of its assets and activities, approaching the use of alternative fuels,
pursuing the electrification and increasing the use of renewable energy, as required by the Net Zero plan.
The Group is nonetheless aware that these changes can have a direct and indirect impact on its business activities and
consequently on its consolidated financial statements, in terms of results and the value of its assets and liabilities. The risks
related to climate change, to which Saipem's activities are inherently exposed, can be classified into the following categories:.
≥ physical risks, i.e., risks arising from physically observable climatic phenomena (e.g., flooding of construction sites, worsening
weather and sea conditions in the offshore operating areas);
\ 232
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
≥ transition risks, i.e., risks arising from the evolution to a low-carbon economy. These risks are classified into: (i) technological
risks, relating to the potential acquisition of projects with the use of new technologies and potential impact on operating costs
in the execution of transition projects; (ii) regulatory risks, related to new laws and regulations with which Saipem must readily
comply and which may lead to higher operating costs; (iii) market risks, in terms of lack of business opportunities due to
difficulties in accessing bank guarantees.
For details, please refer to the section “Net Zero Programme” and “Climate-related risks and opportunities” in the Consolidated
Non-Financial Statements 2023.
Significant accounting estimates and judgements made by Management in preparing the consolidated financial statements
could be affected by actions taken to limit the effects of climate change. Climate risks may in fact affect the recoverable amount
of property, plant and equipment and the Group's goodwill; therefore, the energy transition may reduce the expected useful life
of assets used in the oil and gas industry, thereby accelerating the depreciation expense of assets employed in this sector.
Saipem has considered the potential consequences of the energy transition on the recoverable value of CGUs in the medium to
long term, which will have an impact first and foremost on the increased demand for energy from renewable sources. In this
regard, the Strategic Plan 2024-2027 envisages a shift in the portfolio mix towards non-oil-related activities, with acquisitions of
green projects linked to the energy transition accounting for approximately 34% (compared to approximately 25% in the
previous Strategic Plan 2023-2026). Additionally, there is a pathway of investments in new enabling technologies, including Blue
Solutions, Renewable Refining, CO2 Management, and Offshore Wind. Furthermore, in line with the previous Strategic Plan, this
Plan envisages significant acquisitions in the natural gas business, which is considered one of the elements that will support the
gradual evolution towards sustainable energy sources. Finally, the energy transition envisages in the long term the elimination of
coal among energy sources, a sector in which the Group does not operate. It should however be noted that the speed of
adoption of technologies related to the energy transition, especially in certain areas of the world, may be slower than current
forecasts; the slowdown could be mitigated by the Group’s proven ability to continue operating in its traditional business.
Saipem is increasingly positioned in non-oil sectors, valuing its traditional assets where possible; at the same time, it is expected
that part of the assets will be fully depreciated in the medium to long term, a period in which demand for services in the oil sector
is expected to remain significant.
Management will continue to review demand assumptions as the energy transition process progresses, which could lead to
specific impairments of its non-financial assets in the future.
In addition, new laws or regulations introduced in response to climate change may give rise to new obligations that did not
previously exist; consequently, Management monitors the evolution of relevant regulations in order to assess whether such
obligations, even implicit ones, require the recognition of specific provisions or otherwise the disclosure of related contingent
liabilities.
REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES (Note 12 “Contract assets”, Note 22 “Contract liabilities”,
Note 34 “Revenue”)
The processes and methods for recognising revenue and measuring contract assets and liabilities from long-term work in
progress are based on the estimate of total lifetime revenue and costs of long-term projects, the appreciation of which is
influenced by significant valuations that by their nature imply recourse to the judgement of the Directors, specifically with
reference to the forecast of costs to complete each project, including the estimate of the risks and contractual penalties, where
applicable, to the evaluation of contractual changes envisaged or being negotiated and any changes in estimates compared to
the previous year. In particular, in evaluating contract assets from work in progress, account is taken of the requests of additional
costs with respect to those contractually agreed, if substantially approved by the customer in their scope and/or price.
IMPAIRMENT OF FINANCIAL ASSETS (Note 9 “Other financial assets”)
Checking, classification and measurement of the counterparty credit risk for the purpose of calculating the impairment of
financial assets is a detailed, complex process that requires the Management to provide a professional opinion.
In a manner similar to impairment processes involving other items of the financial statements, the estimates made, although
based on the best information available and on the adoption of adequate methods and evaluation techniques, are intrinsically
characterised by elements of uncertainty and by the exercise of a professional opinion and could generate forecasts of
recoverable amounts different from those that will be effectively realised.
IMPAIRMENT OF NON-FINANCIAL ASSETS (Note 15 “Property, plant and equipment”, Note 16 “Intangible assets”)
Impairment losses of non-financial assets are recognised if events or changes in circumstances indicate that their carrying
amount may not be recoverable.
Impairment can be recognised in the event of significant prolonged changes in the outlook for the market segment in which the
non-financial asset is used. The decision as to whether to proceed with an impairment loss and its quantification depend on
assessments made by Management based on complex and highly uncertain factors, such as the future performance of the
reference market, the impact of inflation and of technological advances on operating expenses, the conditions of supply and
demand on a global or regional scale, the evolution of the operations and business activities, the business insight deriving from
discussions and the interactions of a strategic or commercial nature by the business line with customers, partners, suppliers and
competitors.
The amount of an impairment loss of a non-financial asset is determined by comparing the carrying amount of the asset with its
recoverable amount; the higher of fair value less disposal costs and value in use calculated as the present value of the future
cash flows expected to be derived from the use of the asset net of disposal costs. This assessment is carried out at the level of
the smallest group of assets (cash generating unit or CGU) that generates cash inflows that are largely independent of the cash
flows generated by other assets or groups of assets and on the basis of which Management assesses the profitability of the
business.
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SAIPEM ANNUAL REPORT 2023
The impairment test procedure of the Group's CGUs provides for the determination of WACCs differentiated by business
segment, in order to reflect the specific risks of the individual business segments to which the CGUs under test belong.
The cash flows expected for each CGU are quantified on the basis of the last Strategic Plan, also with reference to the actual
results, prepared by the Management and approved by the BoD. The Strategic Plan contains the forecasts, developed by the
Management in light of the information available at the time of the estimate, with regard to the volumes of business, operating
expenses, margins, investments coherent with strategic guidelines, as well as the industrial, commercial and strategic
positioning of the specific business line and also taking account of the market situation (including the performance of the main
monetary variables such as exchange rates and inflation). Thus the Strategic Plan forecasts (as well as the long-term forecasts
after the plan period), while based on complex assumptions that by their nature imply recourse to the opinion of the directors,
are grounded in reasonably objective foundations (which, in other words, take account of the market context and specific
characteristics of Saipem) and are not conditioned on the occurrence of a specific event (such as the success of new
technology) in order to express, at the same time, the best estimate of the Management and expected average flows.
Finally, in accordance with IAS 36, the cash flows used for impairment test do not take into account any cash inflows and/or
outflows arising from: (i) a future restructuring that has not yet been approved or to which the entity is not yet committed; or (ii)
the improvement or optimisation of business performance based on initiatives still to be undertaken or approved, or for which
there is still no commitment towards third parties for the increase of production capacity with respect to current capacity.
The cash flows thus determined are discounted using the rates approved by the Board of Directors.
For assets other than independent CGUs (i.e. Offshore vessels and construction yards) and that show impairment indicators, the
sustainability of the residual technical-economic life of the asset is verified to determine whether there is any need to report a
write-down pursuant to IAS 16, before performing the impairment test at the level of the CGU to which it pertains.
Goodwill and other intangible assets with an indefinite useful life are not amortised. The recoverability of their carrying amount is
tested at least annually and whenever events occur indicating a reduction in their value. Goodwill is also tested for impairment at
the level of the CGU to which goodwill relates. If the carrying amount of the CGU, including goodwill allocated thereto, exceeds
its recoverable amount, the excess is recognised as impairment. The impairment loss is first allocated to reduce the carrying
amount of goodwill. Any remaining excess is allocated on a pro-rata basis to the carrying amount of the other assets with a finite
useful life that form the CGU.
LEASING (Note 17 “Right-of-use assets, lease assets and lease liabilities”)
The complexity of the contractual situations and their multi-year duration requires a series of complex judgement by the
Company Management in order to define the assumptions to be made for the identification and assessment of particular
aspects impacting on accounting recognition and on-balance sheet exposure, such as:
≥ determining with reasonable certainty whether or not to exercise an extension option and/or termination option provided for in
a lease contract, which affects the assessment of the periods covered by extension options (or early termination) for
determining the duration of the contract. In this connection, the reasonable certainty of being able to exercise these options is
ascertained as of the commencement date, in consideration of all the facts and circumstances that generate an economic
incentive to exercise them, as well as when significant events or changes in the circumstances under the control of the lessee
occur, that affect the assessment previously made;
≥ the identification of variable payments and their characteristics for the purposes of estimating their inclusion, or not, in the
determination of the Lease Liability and the Right-of-Use asset (variable payments linked to the use of the asset or turnover
are charged to the income statement and therefore they do not participate in their determination);
≥ the discount rate used to determine the Lease Liability, represented by the lessee’s incremental borrowing rate. This rate is
defined taking into account the duration of the leases, the currency in which they are denominated and the characteristics of
the economic environment in which the lessee operates. The present value of payments owed on a lease is determined by
using a discount rate that reflects the incremental borrowing rate of Saipem and is defined on the basis of the euro benchmark
zero coupon yield curve adjusted for Saipem risk. The rate is determined also taking account of the risk related to the currency
of denomination and duration of the underlying contract.
As regards the impairment test for the lessee, the Right-of-Use assets are to be included in the impairment test to assess any
reductions in value pursuant to IAS 36, similarly to the other company-owned assets. In order to verify the recoverability of the
Right-of-Use, consideration is given to: (i) the allocation of the Right-of-Use assets of the leased assets to the CGUs to which
they belong; (ii) the duration of the underlying leasing contract with respect to the time horizon considered in determining the
cash flows of the CGU; (iii) the value in use of a CGU containing a Right-of-Use.
In carrying out the impairment test, Saipem: (i) uses discount rates that reflect the financial leverage of the lease contracts;
(ii) considers the Right-of-Use in the net invested capital tested; (iii) determines the Value in Use excluding the related lease
payments.
BUSINESS COMBINATION (Note 2 “Basis of consolidation and equity investments - Business combination”)
Accounting for business combinations requires the difference between the purchase price and the net carrying amount of an
acquired business to be allocated to the various assets and liabilities of the acquired business. For most assets and liabilities, the
difference is allocated by measuring said assets and liabilities at fair value. Any positive residual difference is recognised as
goodwill. Negative residual differences are taken to the income statement. The allocation on a provisional basis of the price paid
is subject to revision/update within 12 months following the acquisition, taking into consideration new information on facts and
circumstances existing at the date of acquisition. Management uses available information to make these allocations and, for
major business combinations, typically engages an independent appraisal firm. The allocation process, which requires, based on
the information available, exercising a complex judgement by the Management, is also relevant for the purposes of applying the
equity method.
\ 234
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PROVISIONS FOR RISKS AND CHARGES (Note 26 “Provisions for risks and charges”)
Saipem and some Group companies are part of judicial and administrative proceedings for which they assess the possibility to
accrue for risks primarily related to litigation and tax issues. The process and methods for assessing the risks associated with
these proceedings are based on complex elements that by their nature imply recourse to the judgement of the directors,
specifically with reference to the assessment of uncertainties related to forecasting the results of the proceedings, their
classification to the provisions or liabilities, taking into account the assessment information acquired by the internal legal
department and by external legal advisers.
Estimating the value to be allocated is a result of a complex process that includes subjective judgements by the Management.
EMPLOYEE BENEFITS (Note 27 “Employee benefits”)
Defined benefit plans are measured with reference to uncertain events and based upon actuarial assumptions including, among
others, discount rates, expected rates of salary increases, mortality rates, retirement ages and future trends in covered medical
costs.
The main assumptions used to quantify these benefits are determined as follows: (i) the discount and inflation rates, which
represent the rates at which the obligation to employees could actually be fulfilled, are based on the rates that accrue on
high-quality corporate bonds (or, in the absence of a "deep market" in such bonds, on the yields on government bonds) and on
the inflationary expectations of the countries concerned or of the reference currency area; (ii) the future salary levels of individual
employees are determined based on inflation rate assumptions, productivity, seniority and promotion; (iii) the future cost of
health benefits is determined on the basis of current and past trends in the costs of health benefits, including assumptions
about the inflationary growth of those costs, and changes in the health status of beneficiaries; (iv) demographic assumptions
reflect the best estimate of trends in variables such as mortality, turnover and disability relative to the population of beneficiaries.
Changes in the net employee benefit liability (asset) related to remeasurements routinely occur and comprise, among other
things, changes in actuarial assumptions, the effects of differences between the previous actuarial assumptions and what has
actually occurred and differences in the return on plan assets with respect to the amounts included in net interest.
RECEIVABLES (Note 10 “Trade receivables and other assets”)
The recoverability of the carrying amount of receivables and the need to recognise an impairment loss on them is determined on
the basis of the so-called “expected credit loss model” illustrated in section “Impairment of financial assets”. This process also
involves complex and/or subjective judgements by Management. The factors considered in the context of these judgements
concern, among other things, the creditworthiness of the counterparty where available, the amount and timing of expected
future payments, any credit risk mitigation instruments implemented, as well as any actions set up or planned for debt recovery.
FAIR VALUE (Note 8 “Financial assets measured at fair value through OCI”, Note 29 “Derivative financial instruments”)
The determination of the fair value of financial and non-financial instruments is a detailed process characterised by the use of
complex methods and techniques of assessment and that requires the collection of updated information from the reference
markets and/or the use of internal input data.
Like for the other estimates, determination of the fair value, although based on the best information available and on the
adoption of adequate measurement methods and techniques, is intrinsically characterised by elements of uncertainty and by
the exercise of professional judgement and could generate forecasts of values different from those that will be effectively
realised.
5 Recently issued accounting standards effective from 2024 and following years
Accounting standards and interpretations issued by the IASB/IFRIC and endorsed by the European Commission
With Regulation No. 2023/2822, issued by the European Commission on December 19, 2023, the amendments to IAS 1
“Classification of Liabilities as Current or Non-current” and “Non-Current Liabilities with Covenants” have been endorsed. The
amendments provide clarification on the classification of liabilities as current or non-current and clarify the concept of extinction;
they specify how an entity classifies a liability arising from a funding agreement with covenants as current or non-current, and
define the information to be provided when an entity has financing agreements with covenants that may require the financing
agreement to become due within twelve months of the reference period. The amendments are effective from January 1, 2024.
With Regulation No. 2023/2579, issued by the European Commission on November 20, 2023, the amendments to IFRS 16
“Lease Liability in a Sale and Leaseback” were endorsed, which requires the seller-lessee to value the Right-of-Use asset arising
from a sale and leaseback transaction based on the percentage of the previous carrying amount of the asset held by the
seller-lessee. Thus, in a sale and leaseback transaction, the seller-lessee will only recognise the amount of any gain or loss on
the rights transferred to the buyer-lessor. Therefore, the initial measurement of the lease liabilities arising from a sale and
leaseback transaction is a reflection of the manner in which the seller-lessee measures the Right-of-Use asset and the gain or
loss recognised at the date of the transaction. The amendments are effective from January 1, 2024.
At the present, Saipem believes that the amendments described above will have no significant impact.
Accounting standards and interpretations issued by the IASB/IFRIC and not yet endorsed
by the European Commission
On May 25, 2023, the IASB issued the Amendment to IAS 7 and IFRS 7 “Supplier Finance Arrangements”, which requires entities
to provide additional information on supplier finance contracts allowing the users of the financial statements to assess how
\ 235
SAIPEM ANNUAL REPORT 2023
these supplier contracts affect liabilities and cash flows and to understand the effect on the exposure to liquidity risks. The
amendments will be effective on or after January 1, 2024.
On August 15, 2023, the IASB issued the document “Amendment to IAS 21 ‘The Effects of Changes in Foreign Exchange Rates:
Lack of Exchangeability’”, which clarifies when a currency is convertible into another currency and, consequently, when it is not.
Moreover, it clarifies how an entity determines the exchange rate to be applied when a currency is not convertible, and the
information to be provided. The amendments will be effective on or after January 1, 2025.
At the present, Saipem is assessing the possible impacts of the above-mentioned amendments.
\ 236
6
Consolidation scope as of December 31, 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Parent company
y
n
a
p
m
o
C
Saipem SpA
e
c
i
f
f
o
d
e
r
e
t
s
g
e
R
Milan
i
Subsidiaries
Italy
y
n
a
p
m
o
C
Denuke Scarl (**)
International Energy
Services SpA (**) (***)
Saipem Offshore Construction SpA
Servizi Energia Italia SpA
Smacemex Scarl (**)
e
c
i
f
f
o
d
e
r
e
t
s
g
e
R
San Donato Milanese
i
San Donato Milanese
San Donato Milanese
San Donato Milanese
San Donato Milanese
SnamprogettiChiyoda sas
di Saipem SpA
Milan
Outside Italy
Andromeda Consultoria Técnica e
Representações Ltda
Boscongo SA
ERS - Equipment Rental
& Services BV
Global Projects Services AG
Moss Maritime AS
North Caspian Service Co
Petrex SA
PT Saipem Indonesia
Saimexicana SA de Cv
Saipem (Beijing) Technical
Services Co Ltd
Rio de Janeiro
(Brazil)
Pointe-Noire
(Congo)
Schiedam
(The Netherlands)
Zurich
(Switzerland)
Lysaker
(Norway)
Almaty
(Kazakhstan)
Lima
(Peru)
Jakarta
(Indonesia)
Delegacion
Cuauhtemoc
(Mexico)
Beijing
(China)
y
b
d
e
t
a
d
i
l
o
s
n
o
c
)
%
(
n
o
i
t
a
d
i
l
o
s
n
o
C
r
o
d
o
h
t
e
m
m
e
p
a
S
i
g
n
i
t
n
u
o
c
c
a
)
*
(
y
c
i
l
o
p
y
c
n
e
r
r
u
C
l
a
t
i
p
a
c
e
r
a
h
S
l
s
r
e
d
o
h
e
r
a
h
S
EUR 501,669,790.83 Eni SpA
CDP Equity SpA
Saipem SpA
Norges Bank
Third parties
y
c
n
e
r
r
u
C
EUR
EUR
EUR
EUR
EUR
EUR
l
a
t
i
p
a
c
e
r
a
h
S
l
s
r
e
d
o
h
e
r
a
h
S
10,000 Saipem SpA
Third parties
50,000 Saipem SpA
20,000,000 Saipem SpA
20,000,000 Saipem SpA
10,000 Saipem SpA
Third parties
10,000 Saipem SpA
Third parties
d
e
n
w
o
%
31.19
12.82
0.02
3.15
52.82
d
e
n
w
o
%
55.00
45.00
100.00
100.00
100.00
60.00
40.00
99.90
0.10
y
b
d
e
t
a
d
)
%
(
i
i
l
o
s
n
o
c
m
e
p
a
S
55.00
100.00
100.00
100.00
60.00
99.90
BRL
20,494,210 Saipem SpA
Snamprogetti Netherlands BV
XAF
6,190,600,500 Saipem SA
99.00
1.00
100.00
100.00
100.00
EUR
CHF
90,760 Saipem International BV
100.00
100.00
5,000,000 Saipem International BV
100.00
100.00
NOK
40,000,000 Saipem International BV
100.00
100.00
KZT
375,350,000 Saipem International BV
100.00
100.00
PEN
469,359,045 Saipem International BV
100.00
100.00
USD
372,778,100 Saipem International BV
MXN
6,424,970,342 Saipem SA
Third parties
99.99
0.01
100.00
99.99
100.00
USD
6,700,000 Saipem International BV
100.00
100.00
(*)
(**)
(***)
F.C. = full consolidation, J.O. = joint operation, E.M. = equity method, Co. = cost method
In liquidation
Dormant during the year
n
o
i
t
a
d
i
l
o
s
n
o
C
r
o
d
o
h
t
e
m
g
n
i
t
n
u
o
c
c
a
)
*
(
y
c
i
l
o
p
F.C.
F.C.
F.C.
F.C.
Co.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
\ 237
SAIPEM ANNUAL REPORT 2023
y
n
a
p
m
o
C
Saipem (Malaysia) Sdn Bhd (**) (***)
Saipem (Nigeria) Ltd
Saipem (Portugal) Comércio Marítimo,
Sociedade Unipessoal Lda
Saipem America Inc
Saipem Argentina de Perforaciones,
Montajes y Proyectos Sociedad Anónima,
Minera, Industrial, Comercial y
Financiera (**) (***)
Saipem Asia Sdn Bhd
Saipem Australia Pty Ltd
Saipem Canada Inc
Saipem Contracting Algérie SpA
Saipem Contracting Netherlands BV
Saipem Contracting Nigeria Ltd
Saipem do Brasil Serviçõs
de Petroleo Ltda
Saipem Drilling Norway AS
Saipem East Africa Ltd (**)
Saipem Finance International BV
Saipem Guyana Inc
Saipem India Projects Private Ltd
Saipem Ingenieria
Y Construcciones SLU
Saipem International BV
Saipem Ltd
Saipem Luxembourg SA
i
e
c
i
f
f
o
d
e
r
e
t
s
g
e
R
Petaling Jaya
(Malaysia)
Lagos
(Nigeria)
Caniçal
(Portugal)
Wilmington
(USA)
Buenos Aires
(Argentina)
Petaling Jaya
(Malaysia)
West Perth
(Australia)
Montreal
(Canada)
Algiers
(Algeria)
Amsterdam
(The Netherlands)
Lagos
(Nigeria)
Rio de Janeiro
(Brazil)
Stavanger
(Norway)
Kampala
(Uganda)
Amsterdam
(The Netherlands)
Georgetown
(Guyana)
Chennai
(India)
Madrid
(Spain)
Amsterdam
(The Netherlands)
Kingston upon Thames
Surrey
(United Kingdom)
Luxembourg
(Luxembourg)
y
c
n
e
r
r
u
C
l
a
t
i
p
a
c
e
r
a
h
S
l
s
r
e
d
o
h
e
r
a
h
S
MYR
88,233,500 Saipem International BV
NGN
259,200,000 Saipem International BV
Third parties
EUR
299,300,000 Saipem International BV
d
e
t
a
d
i
l
o
s
n
o
c
)
%
(
i
m
e
p
a
S
y
b
100.00
89.41
100.00
d
e
n
w
o
%
100.00
89.41
10.59
100.00
USD
ARS
1,000 Saipem International BV
100.00
100.00
1,805,300 Saipem International BV
Third parties
99.90
0.10
99.90
MYR
238,116,500 Saipem International BV
100.00
100.00
AUD
486,800,001 Saipem International BV
100.00
100.00
CAD
DZD
EUR
100,100 Saipem International BV
100.00
100.00
1,101,000 Sofresid SA
100.00
100.00
20,000 Saipem International BV
100.00
100.00
NGN
827,000,000 Saipem International BV
Third parties
BRL
469,661,512 Saipem International BV
97.94
2.06
100.00
97.94
100.00
NOK
120,000 Saipem International BV
100.00
100.00
UGX
3,791,000,000 Saipem International BV
Snamprogetti Netherlands BV
EUR
GYD
1,000,000 Saipem International BV
Saipem SpA
200,000 Saipem Ltd
51.00
49.00
75.00
25.00
100.00
100.00
100.00
100.00
INR
526,902,060 Saipem SA
100.00
100.00
EUR
80,000 Saipem International BV
100.00
100.00
EUR
172,444,000 Saipem SpA
100.00
100.00
EUR
1,107,500,000 Saipem International BV
100.00
100.00
EUR
31,002 Saipem SpA
100.00
100.00
y
c
i
l
n
o
i
t
a
d
i
l
o
s
n
o
C
r
o
d
o
h
t
e
m
o
p
g
n
i
t
n
u
o
c
c
a
)
*
(
F.C.
F.C.
F.C.
F.C.
Co.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
(*)
(**)
(***)
F.C. = full consolidation, J.O. = joint operation, E.M. = equity method, Co. = cost method
In liquidation
Dormant during the year
\ 238
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
d
e
n
w
o
%
99.92
0.04
0.04
99.98
0.02
100.00
99.00
1.00
100.00
y
n
a
p
m
o
C
Saipem Misr
for Petroleum Services (S.A.E.)
e
c
i
f
f
o
d
e
r
e
t
s
g
e
R
Port Said
(Egypt)
i
y
c
n
e
r
r
u
C
EUR
l
a
t
i
p
a
c
e
r
a
h
S
l
s
r
e
d
o
h
e
r
a
h
S
2,000,000 Saipem International BV
ERS - Equipment Rental
& Services BV
Saipem (Portugal) Comércio
Marítimo, Sociedade Unipessoal
Lda
d
e
t
a
d
i
l
o
s
n
o
c
)
%
(
i
m
e
p
a
S
y
b
y
c
i
l
n
o
i
t
a
d
i
l
o
s
n
o
C
r
o
d
o
h
t
e
m
o
p
g
n
i
t
n
u
o
c
c
a
)
*
(
100.00
F.C.
Saipem Moçambique Lda
Saipem Norge AS
Saipem Romania Srl
Saipem SA
Saipem Singapore Pte Ltd
Saiwest Ltd
Sajer Iraq Co for Petroleum Services,
Trading, General Contracting
& Transport Llc
Saudi Arabian Saipem Ltd
Sigurd Rück AG
Snamprogetti Engineering
& Contracting Co Ltd
Snamprogetti Netherlands BV
Snamprogetti Saudi Arabia Co Ltd Llc
Sofresid SA
Maputo
(Mozambique)
Stavanger
(Norway)
Aricestii Rahtivani
(Romania)
Montigny le Bretonneux
(France)
Singapore
(Singapore)
Accra
(Ghana)
Baghdad
(Iraq)
Dhahran
(Saudi Arabia)
Zurich
(Switzerland)
Dhahran
(Saudi Arabia)
Amsterdam
(The Netherlands)
Dhahran
(Saudi Arabia)
Montigny le Bretonneux
(France)
MZN
535,075,000 Saipem SA
NOK
Saipem International BV
100,000 Saipem International BV
RON
29,004,600 Snamprogetti Netherlands BV
Saipem International BV
EUR
19,870,122 Saipem SpA
100.00
100.00
100.00
100.00
SGD
306,090,000 Saipem SA
100.00
100.00
GHS
937,500 Saipem SA
Third parties
IQD
300,000,000 Saipem International BV
Third parties
49.00
51.00
60.00
40.00
49.00
60.00
SAR
155,000,000 Saipem International BV
100.00
100.00
CHF
25,000,000 Saipem International BV
100.00
100.00
SAR
10,000,000 Snamprogetti Netherlands BV
100.00
100.00
EUR
203,000 Saipem SpA
100.00
100.00
SAR
10,000,000 Saipem International BV
Snamprogetti Netherlands BV
EUR
37,000 Saipem SA
95.00
5.00
100.00
100.00
100.00
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
F.C.
\ 239
(*)
F.C. = full consolidation, J.O. = joint operation, E.M. = equity method, Co. = cost method
SAIPEM ANNUAL REPORT 2023
Associates and jointly controlled companies
Italy
y
n
a
p
m
o
C
ASG Scarl
CCS JV Scarl Δ
CEPAV (Consorzio Eni
per l’Alta Velocità) Due
CEPAV (Consorzio Eni
per l’Alta Velocità) Uno
Consorzio Florentia Δ
e
c
i
f
f
o
d
e
r
e
t
s
g
e
R
San Donato Milanese
i
San Donato Milanese
Milan
Milan
Parma
Consorzio F.S.B. Δ
Venice - Marghera
Consorzio Sapro Δ
San Giovanni Teatino
La Bozzoliana Scarl
La Catulliana Scarl
Parma
Parma
Puglia Green Hydrogen Valley - PGHyV Srl Bari
Rosetti Marino SpA
Ravenna
SCD JV Scarl Δ
San Donato Milanese
Ship Recycling Scarl (**) Δ
Genoa
Outside Italy
Gydan Yard Management Services
(Shanghai) Co Ltd
Gygaz Snc
Hazira Cryogenic Engineering
& Construction Management
Private Ltd Δ
KCA Deutag International Ltd
KWANDA Suporte Logistico Lda
Petromar Lda Δ
PSS Netherlands BV Δ
Sabella SA
Saipem Dangote E&C Ltd (***) Δ
Saipem - Hyperion Eastmed
Engineering Ltd Δ
Saipem Nasser Saeed Al-Hajri
Contracting Co Llc Δ
Shanghai
(China)
Nanterre
(France)
Mumbai
(India)
St. Helier
(Jersey)
Luanda
(Angola)
Luanda
(Angola)
Leiden
(The Netherlands)
Quimper
(France)
Victoria Island - Lagos
(Nigeria)
Nicosia
(Cyprus)
Dhahran
(Saudi Arabia)
y
c
n
e
r
r
u
C
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
CNY
EUR
INR
USD
l
a
t
i
p
a
c
e
r
a
h
S
l
s
r
e
d
o
h
e
r
a
h
S
50,864 Saipem SpA
Third parties
150,000 Servizi Energia Italia SpA
Third parties
51,646 Saipem SpA
Third parties
51,646 Saipem SpA
Third parties
10,000 Saipem SpA
Third parties
15,000 Saipem SpA
Third parties
10,329 Saipem SpA
Third parties
10,000 Saipem SpA
Third parties
10,000 Saipem SpA
Third parties
2,750,471 Saipem SpA
Third parties
4,000,000 Saipem SA
Third parties
100,000 Servizi Energia Italia SpA
Third parties
10,000 Saipem SpA
Third parties
1,600,000 Saipem (Beijing) Technical
Services Co Ltd
Third parties
10,000 Sofresid SA
Third parties
500,000 Saipem SA
Third parties
116,536 Saipem International BV
Third parties
AOA
25,510,204 Saipem SA
USD
EUR
EUR
Third parties
357,143 Saipem SA
Third parties
30,000 Saipem SpA
Third parties
12,946,722 Saipem SA
Third parties
NGN
100,000,000 Saipem International BV
EUR
SAR
Third parties
85,000 Saipem International BV
Third parties
7,500,000 Saipem International BV
Third parties
d
e
t
a
d
i
l
o
s
n
o
c
)
%
(
i
m
e
p
a
S
y
b
55.41
75.00
59.09
50.36
49.00
29.05
51.00
30.00
49.00
10.00
20.00
60.00
51.00
y
c
i
l
n
o
i
t
a
d
i
l
o
s
n
o
C
r
o
d
o
h
t
e
m
o
p
g
n
i
t
n
u
o
c
c
a
)
*
(
E.M.
E.M.
E.M.
E.M.
E.M.
Co.
Co.
E.M.
E.M.
E.M.
E.M.
E.M.
J.O.
15.15
E.M.
7.50
55.00
10.00
49.00
70.00
36.00
8.96
49.00
45.00
50.00
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
d
e
n
w
o
%
55.41
44.59
75.00
25.00
59.09
40.91
50.36
49.64
49.00
51.00
29.05
70.95
51.00
49.00
30.00
70.00
49.00
51.00
10.00
90.00
20.00
80.00
60.00
40.00
51.00
49.00
15.15
84.85
7.50
92.50
55.00
45.00
9.96
90.04
49.00
51.00
70.00
30.00
36.00
64.00
8.96
91.04
49.00
51.00
45.00
55.00
50.00
50.00
(*)
(**)
(***)
Δ
F.C. = full consolidation, J.O. = joint operation, E.M. = equity method, Co. = cost method
In liquidation
Dormant during the year
Jointly controlled companies
\ 240
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
y
n
a
p
m
o
C
Saipem Taqa Al Rushaid
Fabricators Co Ltd
Saipon Snc Δ †
SAME Netherlands BV Δ
Saren BV Δ
Société pour la Réalisation du Port de
Tanger Méditerranée (***) Δ
Southern Gas Constructors Ltd Δ
Sud-Soyo Urban
Development Lda (***) Δ
TMBYS SAS (***) Δ
TSGI Mühendislik İnşaat Ltd Şirketi Δ
i
e
c
i
f
f
o
d
e
r
e
t
s
g
e
R
Dammam
(Saudi Arabia)
Montigny le Bretonneux
(France)
Amsterdam
(The Netherlands)
Amsterdam
(The Netherlands)
Anjra
(Morocco)
Lagos
(Nigeria)
Soyo
(Angola)
Guyancourt
(France)
Istanbul
(Turkey)
TSKJ II - Construções Internacionais,
Sociedade Unipessoal, Lda
TSKJ - Servições de Engenharia Lda
Funchal
(Portugal)
Funchal
(Portugal)
y
c
n
e
r
r
u
C
SAR
EUR
EUR
EUR
EUR
NGN
l
a
t
i
p
a
c
e
r
a
h
S
l
s
r
e
d
o
h
e
r
a
h
S
40,000,000 Saipem International BV
Third parties
20,000 Saipem SA
Third parties
50,000 Servizi Energia Italia SpA
Third parties
20,000 Servizi Energia Italia SpA
Third parties
33,000 Saipem SA
Third parties
10,000,000 Saipem International BV
Third parties
AOA
20,000,000 Saipem SA
EUR
TRY
EUR
EUR
Third parties
30,000 Saipem SA
Third parties
10,000 Saipem Ingenieria
Y Construcciones, SLU
Third parties
5,000 TSKJ - Servições de Engenharia
Lda
5,000 Snamprogetti Netherlands BV
Third parties
d
e
n
w
o
%
40.00
60.00
60.00
40.00
58.00
42.00
50.00
50.00
33.33
66.67
50.00
50.00
49.00
51.00
33.33
66.67
33.33
66.67
100.00
25.00
75.00
d
e
t
a
d
i
l
o
s
n
o
c
)
%
(
i
m
e
p
a
S
y
b
40.00
60.00
58.00
50.00
33.33
50.00
49.00
33.33
33.33
25.00
25.00
y
c
i
l
n
o
i
t
a
d
i
l
o
s
n
o
C
r
o
d
o
h
t
e
m
o
p
g
n
i
t
n
u
o
c
c
a
)
*
(
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
E.M.
As of December 31, 2023, the companies of Saipem SpA can be broken down as follows:
Subsidiaries/Joint operations and their participating interests
Full consolidation
Consolidated as joint operations
Participating interests held by consolidated companies (1)
Accounted for using the equity method
Accounted for using the cost method
Total companies
Subsidiaries
Outside
Italy
44
44
-
1
-
1
45
Italy
5
5
-
1
-
1
6
Total
49
49
-
2
-
2
51
Associates and jointly controlled
companies
Outside
Italy
-
-
-
22
22
-
22
Italy
1
-
1
12
10
2
13
Total
1
-
1
34
32
2
35
(1) The investments held by subsidiaries accounted for using the equity method or the cost/joint operation method concern immaterial entities and entities whose consolidation would not have a material
impact.
(*)
(***)
Δ
†
F.C. = full consolidation, J.O. = joint operation, E.M. = equity method, Co. = cost method
Dormant during the year
Jointly controlled companies
Non relevant joint operation.
\ 241
SAIPEM ANNUAL REPORT 2023
Changes in the consolidation scope
In 2023, the Group's scope of consolidation changed as follows with respect to the 2022 Annual Report.
New incorporations, disposals, liquidations, mergers, changes in amount held or consolidation method:
≥ the company Saipem Nasser Saeed Al-Hajri Contracting Co Llc, with registered offices in Saudi Arabia, was incorporated
and accounted for using the equity method;
≥ International Energy Services South America Co Ltd, previously consolidated with the full consolidation method, was sold
to third parties;
≥ International Energy Services SpA, consolidated with the full consolidation method, was placed in liquidation;
≥ Gydan Lng Ltd, previously Gydan Lng Sarl, accounted for using the equity method, was sold to third parties;
≥ Novarctic Ltd, previously Novarctic Sarl, accounted for using the equity method, was sold to third parties;
≥ European Maritime Construction sas, previously consolidated with the full consolidation method, was removed from the
Register of Companies;
≥ ER SAI Caspian Contractor Llc, previously consolidated with the full consolidation method, was sold to third parties;
≥ Denuke Scarl, consolidated with the full consolidation method, was placed in liquidation;
≥ Saipem Offshore México SA de Cv, previously consolidated with the full consolidation method, was merged by incorporation
into Saimexicana SA de Cv;
≥ Saren Llc, previously accounted for using the equity method, was removed from the Register of Companies;
≥ Sofresid Engineering SA transferred to Saipem SA its entire equity investment in Sabella SA, which following the capital
increase is as follows: 8.86% owned by Saipem SA and 91.04% by third parties;
≥ Sofresid Engineering SA, previously consolidated with the full consolidation method, was sold to third parties;
≥ Saren Heavy Industries İnşaat Ve Ticaret Anonim Şirketi, previously accounted for using the equity method, was sold to
third parties;
≥ Saipem Maritime Asset Management Luxembourg Sàrl, previously consolidated with the full consolidation method was
merged by incorporation into Saipem Luxembourg SA, which consequently is owned 100% by Saipem SpA;
≥ La Bozzoliana Scarl was incorporated with registered offices in Italy and accounted for using the equity method;
≥ Saipem (Malaysia) Sdn Bhd, consolidated with the full consolidation method , was placed in liquidation;
≥ Xodus Subsea Ltd, previously accounted for using the equity method, was removed from the Register of Companies;
≥ Saipem East Africa Ltd, consolidated with the full consolidation method, was placed in liquidation;
≥ La Catulliana Scarl was incorporated with registered offices in Italy and accounted for using the equity method;
≥ Mangrove Gas Netherlands BV, previously accounted for using the equity method, was removed from the Register of
Companies;
≥ Gygaz Snc, following the sale of shares to third parties by Sofresid SA, is owned as follows: 7.50% by Sofresid SA and 92.50%
by third parties.
Changes in company name or share transfers with no impact on the consolidation:
≥ Global Petroprojects Services AG, consolidated with the full consolidation method, changed its company name to Global
Projects Services AG;
≥ Alboran Hydrogen Brindisi Srl, accounted for using the equity method, changed its company name to Puglia Green Hydrogen
Valley - PGHyV Srl.
\ 242
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7
Cash and cash equivalents
Cash and cash equivalents amounted to €2,136 million, an increase of €84 million compared to December 31, 2022 (€2,052
million).
Cash and cash equivalents at the end of the year, denominated in euros for 45%, US dollars for 30%, Saudi Riyal for 14%, and
other currencies for 11%, earned interest at an average rate of 2.13%. Cash and cash equivalents included cash and cash on
hand of €4 million (€2 million as of December 31, 2022).
Cash at the end of the year included, for a total of €814 million: (i) cash and cash equivalents of €660 million in the current
accounts of partnership or joint venture projects; (ii) cash and cash equivalents of €151 million in current accounts denominated
in currencies subject to transfer and/or convertibility restrictions; (iii) cash and cash equivalents amounting to €3 million in
current accounts frozen or subject to restrictions.
The breakdown of cash and cash equivalents of Saipem and other Group companies as of December 31, 2023 by geographical
segment (based on the country of domicile of the relevant company) was as follows:
(€ million)
Italy
Rest of Europe
CIS
Middle East
Far East and Oceania
North Africa
Sub-Saharan Africa
Americas
Total
Dec. 31, 2023
870
241
2
523
195
6
88
211
2,136
Dec. 31, 2022
916
305
33
361
128
5
203
101
2,052
8
Financial assets measured at fair value through OCI
Financial assets measured at fair value through OCI amounted to €86 million (€75 million as of December 31, 2022), and were as
follows:
(€ million)
Securities for non-operating purposes
Listed bonds issued by sovereign states/supranational institutions
Listed bonds issued by industrial companies
Total
Dec. 31, 2023
Dec. 31, 2022
5
81
86
8
67
75
Listed bonds issued by sovereign states/supranational institutions, amounting to €5 million as of December 31, 2023, were as
follows:
(€ million)
Fixed rate bonds
Eurobond
Total
t
n
u
o
m
a
l
a
n
o
i
t
o
N
5
5
e
u
a
v
l
r
i
a
F
5
5
f
o
e
t
a
r
)
%
l
i
a
n
m
o
N
(
n
r
u
t
e
r
s
'
r
o
o
P
&
d
r
a
d
n
a
t
S
g
n
i
t
a
r
y
t
i
r
u
t
a
M
0.00
2026
AAA
Listed bonds issued by industrial companies, amounting to €81 million as of December 31, 2023, were as follows:
(€ million)
Fixed rate bonds
Listed bonds issued by industrial companies
Total
t
n
u
o
m
a
l
a
n
o
i
t
o
N
85
85
e
u
a
v
l
r
i
a
F
81
81
f
o
e
t
a
r
)
%
l
i
a
n
m
o
N
(
n
r
u
t
e
r
s
'
r
o
o
P
&
d
r
a
d
n
a
t
S
g
n
i
t
a
r
y
t
i
r
u
t
a
M
0.13-3.64
2024-2028
AA/BBB
The fair value of bonds is determined on the basis of market prices. The fair value hierarchy is level 1, that is, based on quotations
in active markets.
The bonds measured at fair value through OCI are held both to collect contractual cash flows and for the cash flows deriving
from the possible sale of the instrument before contractual maturity.
\ 243
SAIPEM ANNUAL REPORT 2023
Listed bonds issued by sovereign states/supranational institutions and by industrial companies held by one of the Group’s
companies fall within the scope of analysis for the determination of expected losses.
Given the high creditworthiness of the issuers (investment grade), the impact of expected losses on the bonds in question as of
December 31, 2023 is irrelevant.
9 Other financial assets
Other current financial assets
Other current financial assets of €387 million (€495 million as of December 31, 2022) consist of the following:
(€ million)
Financial receivables for operating purposes
Financial receivables for non-operating purposes
Total
Dec. 31, 2023
1
386
387
Dec. 31, 2022
1
494
495
Financial receivables for operating purposes concerned receivables claimed by Saipem SpA against Eni SpA.
Financial receivables for non-operating purposes of €386 million (€494 million as of December 31, 2022) related almost entirely
to the subsidiary Servizi Energia Italia SpA's share of the cash and cash equivalents recognised primarily in the financial
statements of CCS JV Scarl, which is carrying out a project in Mozambique (€277 million), and of SCD JV Scarl, which is working
on a project in Nigeria (€102 million).
Other current financial assets from related parties are detailed in Note 43 “Related party transactions”.
Other non-current financial assets
Other non-current financial assets for non-operating purposes, equal to €1 million (€65 million as of December 31, 2022),
include the amounts of two blocked accounts of the subsidiary Saipem Contracting Algérie SpA (€1 million before discounting),
due to the protracted proceedings in Algeria. The company has reflected the items relating to the disputes in Algeria in the
financial statements in view of the evolution of the same.
10 Trade receivables and other assets
Trade receivables and other assets of €2,441 million (€2,182 million as of December 31, 2022) can be broken down as follows.
(€ million)
Trade receivables
Advances for services
Other receivables
Total
Dec. 31, 2023
1,906
340
195
2,441
Dec. 31, 2022
1,676
370
136
2,182
Trade receivables amounted to €1,906 million, representing an increase of €230 million compared to 2022.
Receivables are stated net of a loss allowance of €688 million, whose movements are shown below:
(€ million)
Trade receivables
Other receivables
Total
2
2
0
2
,
1
3
.
c
e
D
723
30
753
l
s
a
u
r
c
c
A
31
-
31
s
n
o
i
t
a
s
i
l
i
t
U
(31)
-
(31)
s
e
c
n
e
r
e
f
f
i
d
e
g
n
a
h
c
x
E
(17)
-
(17)
s
e
g
n
a
h
c
r
e
h
t
O
(24)
(24)
(48)
3
2
0
2
,
1
3
.
c
e
D
682
6
688
Credit exposure to the top five customers, which are the major Oil Companies in the reference sector, is in line with the Group’s
operations and makes up around 36% of total trade receivables.
The Group continues to focus on monitoring revenues.
The recoverability of trade receivables is checked using the so-called “expected credit loss model”.
Below is the credit schedule gross of the creditworthiness assessment.
Trade receivables neither past due nor impaired amount to €1,624 million (€1,415 million as of December 31, 2022), whereas
receivables that are past due and are not impaired amount to €383 million (€354 million as of December 31, 2022), of which
€190 million are from 1 to 90 days past due (€128 million as of December 31, 2022), €37 million are from 3 to 6 months past due
(€17 million the previous as of December 31, 2022), €7 million are from 6 to 12 months past due (€73 million as of December 31,
2022), €149 million are past due for more than 12 months (€136 million as of December 31, 2022). These receivables mainly
concern counterparties with high creditworthiness.
\ 244
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023, the effect of expected losses on trade receivables, determined on the basis of customers'
creditworthiness, amounted to €101 million (€93 million as of December 31, 2022) out of the total loss allowance of €682 million
(€723 million as of December 31, 2022).
As of December 31, 2023, Saipem had factored €29 million in unexpired trade receivables on a non-recourse, non-notification
basis (€77 million as of December 31, 2022). Saipem SpA is responsible for managing the collection of the receivables assigned
without notice and for transferring the sums collected to the factors.
Trade receivables included retentions guaranteeing contracts of €141 million (€164 million as of December 31, 2022), of which
€49 million due within twelve months and €92 million beyond twelve months.
As of December 31, 2023, there were no unimpaired receivables referring to litigated projects as there were as of December 31,
2022.
Advances for services not yet rendered amounted to €340 million as of December 31, 2023, relating almost entirely to advances
to suppliers on ongoing operational projects, a decrease of €30 million compared to the previous year.
Other receivables of €195 million were as follows:
(€ million)
Receivables from:
- employees
- guarantee deposits
- social security institutions
Other
Total
Dec. 31, 2023
Dec. 31, 2022
44
15
4
132
195
46
17
3
70
136
Other receivables of €195 million were stated net of the loss allowance of €6 million.
Other changes of €48 million are mainly related to the write-off of receivables for long completed projects.
Trade and other receivables with related parties are detailed in Note 43 “Related party transactions”.
The fair value of trade receivables and other assets did not differ significantly from their carrying amount due to the short period
of time elapsed between their date of origination and their due date.
Trade receivables in currency other than the euro amounted to €1,466 million (€1,215 million as of December 31, 2022), divided
percentage-wise among the following main currencies:
≥ US Dollar, 75% (64% as of December 31, 2022);
≥ Saudi Riyal, 10% (18% as of December 31, 2022);
≥ Indonesian Rupiah, 5% (9% as of December 31, 2022);
≥ other currencies, 10% (9% as of December 31, 2022).
11 Inventories
Inventories of €256 million (€211 million as of December 31, 2022) increased by €45 million compared to the year 2022.
(€ million)
Raw and ancillary materials and consumables
Total
Dec. 31, 2023
256
256
Dec. 31, 2022
211
211
“Raw and ancillary materials and consumables” include spare parts for drilling and construction activities, as well as consumables
for internal use and not for sale. The item is stated net of an impairment provision of €96 million.
(€ million)
Impairment provision for raw and ancillary materials and consumables
Total
12 Contract assets
2
2
0
2
,
1
3
.
c
e
D
109
109
l
s
a
u
r
c
c
A
11
11
s
n
o
i
t
a
s
i
l
i
t
U
(19)
(19)
s
e
g
n
a
h
c
r
e
h
t
O
(5)
(5)
3
2
0
2
,
1
3
.
c
e
D
96
96
Contract assets amounted to €1,925 million (€1,860 million as of December 31, 2022) and were made up as follows:
(€ million)
Contract assets (from work in progress)
Impairment provision for contract assets (from work in progress)
Total
Dec. 31, 2023
1,936
(11)
1,925
Dec. 31, 2022
1,872
(12)
1,860
\ 245
SAIPEM ANNUAL REPORT 2023
Contract assets (from work in progress), amounting to €1,936 million, increase by €64 million due to the recognition of revenue
based on the operational progress of projects to be invoiced over 2024 for €735 million, to which is added the impact of
exchange rate effects and other changes for €2 million, an amount largely offset by €671 million resulting from the recognition of
milestones by customers and from impairment losses deriving from continuous legal and commercial monitoring of the amounts
of claims and change orders considered over the entire life for the purpose of contract valuation for €2 million.
The effects relative to IFRS 9 applied to contract assets amounted to €11 million.
13 Tax assets and liabilities
Current income tax assets and liabilities
Current income tax assets and liabilities consisted of the following:
(€ million)
Italian tax authorities
Foreign tax authorities
Current income taxes
Dec. 31, 2023
Dec. 31, 2022
Assets
74
311
385
Liabilities
-
74
74
Assets
43
270
313
Liabilities
1
85
86
The increase in current income tax assets of €72 million in mainly due to right to the reimbursement of income tax to the Italian
revenue agency following the favourable resolution of a tax dispute and advances paid to foreign financial administrations as a
result of increased volumes of business carried out in those jurisdictions.
Other current tax assets and liabilities
Other current tax assets and liabilities are made up as follows:
(€ million)
Italian tax authorities
Foreign tax authorities
Total other current taxes
Dec. 31, 2023
Dec. 31, 2022
Assets
10
136
146
Liabilities
16
176
192
Assets
8
133
141
Liabilities
23
138
161
Other current tax assets from Italian tax authorities amounting to €10 million (€8 million as of December 31, 2022) relate to VAT
assets for €2 million (€4 million as of December 31, 2022) and to other tax assets for €8 million (€4 million as of December 31,
2022).
Other current tax assets from foreign tax authorities, amounting to €136 million (€133 million as of December 31, 2022), consist
of €117 million in VAT credits (€98 million as of December 31, 2022) and to other tax assets for €19 million (€35 million as of
December 31, 2022).
Other current tax liabilities from Italian tax authorities, amounting to €16 million (€23 million as of December 31, 2022), consist of
€3 million in VAT payable (€2 million the previous year) and to other tax assets for €13 million (€21 million as of December 31,
2022).
Other current tax liabilities from foreign tax authorities, amounting to €176 million (€138 million as of December 31, 2022),
consist of €140 million in VAT payable (€99 million as of December 31, 2022) and to other tax assets for €36 million (€39 million
as of December 31, 2022).
Non-current income tax assets and liabilities
Non-current income tax assets and liabilities are made up as follows:
(€ million)
Italian tax authorities
Foreign tax authorities
Total non-current income taxes
Dec. 31, 2023
Dec. 31, 2022
Assets
-
5
5
Liabilities
-
20
20
Assets
-
5
5
Liabilities
-
23
23
Non-current income tax assets refer to income tax receivables due beyond 12 months. Non-current income tax liabilities refer to
uncertain tax situations. The Saipem Group operates in numerous countries with complex tax laws to which it also adheres
thanks to the support of local tax consultants, adopting a conduct which ensures the maximum compliance with the fiscal
legislation in force and established practice. It is therefore expected that no significant additional liabilities will arise compared to
what is already accounted for, which represent the best estimate of all fiscal uncertainties recorded by the Group.
\ 246
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14 Other current assets
Other current assets amounted to €244 million (€272 million as of December 31, 2022) and were made up as follows:
(€ million)
Fair value of derivative financial instruments
Other assets
Total
Dec. 31, 2023
64
180
244
Dec. 31, 2022
133
139
272
The decrease of fair value on derivatives of €69 million is attributable mainly to the euros/US dollars exchange rate, as well as all
the other currencies linked to the US dollar.
For information on the fair value of derivative financial instruments see Note 29 “Derivative financial instruments”.
Other assets €180 million, an increase of €41 million compared to December 31, 2022, and consisted mainly of costs not
attributable to the financial year for the preparation of vessels to be used on contracts, for insurance policies, and costs for lease
contracts.
Other current assets from related parties are detailed in Note 43 “Related party transactions".
15 Property, plant and equipment
Property, plant and equipment amounted to €2,960 million (€2,879 million as of December 31, 2022) consisted of the following:
(€ million)
Dec. 31, 2023
Opening net balance
Capital expenditure
Depreciation and amortisation
Net reversals of impairment losses
Disposals
Discontinued operations
Assets held for sale
Change in the consolidation scope
Sale of business
Exchange differences
Other changes
Closing net balance
Closing gross balance
Depreciation and impairment losses
Dec. 31, 2022
Opening net balance
Capital expenditure
Depreciation and amortisation (a)
Net reversals of impairment losses (b)
Disposals
Discontinued operations
Assets held for sale
Change in the consolidation scope
Sale of business
Exchange differences
Other changes
Closing net balance
Closing gross balance
Depreciation and impairment losses
d
n
a
L
56
-
-
-
-
-
-
(14)
-
2
-
44
44
-
52
-
-
-
-
(1)
-
-
-
5
-
56
56
-
s
g
n
d
i
l
i
u
B
59
3
(28)
(11)
-
-
-
-
-
(1)
16
38
692
654
103
3
(39)
(1)
-
(6)
-
-
(15)
4
10
59
918
859
t
n
e
m
p
u
q
e
i
d
n
a
t
n
a
P
l
2,602
316
(281)
(16)
(7)
-
-
(5)
-
(8)
71
2,672
8,696
6,024
2,784
438
(282)
(2)
(3)
(135)
(63)
-
(206)
13
58
2,602
9,079
6,477
d
n
a
l
a
i
r
t
s
u
d
n
I
l
i
a
c
r
e
m
m
o
c
t
n
e
m
p
u
q
e
i
24
6
(14)
-
-
-
-
-
-
(1)
-
15
313
298
53
11
(19)
(1)
-
(7)
-
-
(11)
(1)
(1)
24
319
295
s
t
e
s
s
a
r
e
h
t
O
14
7
(4)
-
-
-
-
-
-
-
1
18
94
76
7
10
(3)
-
-
-
-
-
-
-
-
14
99
85
r
e
d
n
u
s
t
e
s
s
A
n
o
i
t
c
u
r
t
s
n
o
c
s
e
c
n
a
v
d
a
d
n
a
124
140
-
-
-
-
-
-
-
-
(91)
173
173
-
114
78
-
-
-
-
-
-
-
1
(69)
124
124
-
l
a
t
o
T
2,879
472
(327)
(27)
(7)
-
-
(19)
-
(8)
(3)
2,960
10,012
7,052
3,113
540
(343)
(4)
(3)
(149)
(63)
-
(232)
22
(2)
2,879
10,595
7,716
(a) Amortisation includes the amount of €49 million relating to Discontinued operations.
(b) Net reversals of impairment losses include the amount of €3 million relating to Discontinued operations
The capital expenditure in 2023, including the purchase of the jack-up Sea Lion 7 (now Perro Negro 10), amounted to €472
million (€540 million in 2022), and was as follows.
\ 247
SAIPEM ANNUAL REPORT 2023
≥ €254 million for Asset Based Services: extraordinary maintenance and reinforcement works related to vessel Saipem 7000,
and maintenance and upgrading works on existing vessels, in particular pipe-laying vessel Castorone and vessel FDS 2;
≥ €17 million for Energy Carriers: purchase and maintenance of equipment;
≥ €201 million for Offshore Drilling: in addition to the abovementioned purchase of the jack-up Sea Lion 7, maintenance and
upgrading works on the semisubmersible Scarabeo 9, and upgrading of leased jack-ups Perro Negro 12 and Perro Negro 13.(cid:1)
No financial expenses were capitalised during the year.
The total commitment on current items of capital expenditure as of December 31, 2023 is indicated in Note 3 “Accounting
policies” in the “Future payments for outstanding contractual obligations” section.
The main depreciation rates were as follows:
(%)
Buildings
Plant and equipment
Industrial and commercial equipment
Other assets
2.50-15.00
7.00-25.00
3.33-50.00
12.00-20.00
Impairment losses relating to buildings, plants and equipment amounted to €27 million.
The change in the consolidation scope for €19 million relates to the sale of the company ER SAI Caspian Contractor Llc to third
parties.
Net exchange difference due to the translation of financial statements prepared in currencies other than euro, amounted to €-8
million.
As of December 31, 2023, all property, plant and equipment were unencumbered by collateral.
As of December 31, 2023, no impairment losses were recorded following the impairment test.
Impairment
In monitoring impairment indicators, the Group considers, among other factors, the relationship between its market
capitalisation and equity. As of December 31, 2023, the Group's market capitalisation was €641 million higher than the figure for
equity in the third forecast.
In accordance with accounting policies and the impairment methodology as of December 31, 2023, approved by the Board of
Directors on January 24, 2024, the impairment test concerned the verification of recoverable amount of the Cash Generating
Units (CGUs) to which goodwill is allocated (Asset Based Services, Energy Carriers, Robotics & Industrialized Solutions); for the
remaining CGUs, the impairment indicators defined by the methodology were analysed, and they highlighted the need to verify
the recoverable amount of a single CGU within the Offshore Drilling business line.
The recoverability of the CGUs carrying amounts was assessed by comparing the carrying amount of each CGU with its
recoverable amount, determined on the basis of the value in use obtained by discounting the future cash flows generated by
each CGU at the weighted average cost of capital ("WACC") specific to each business in which the individual CGU operates.
Planned cash flows for the estimate of recoverable amounts of single Cash Generating Units are determined on the basis of the
best applicable medium-term estimate made by the Company Management and not influenced by any specific event. This
outlook considers future expectations by management regarding the reference market, as well as the results.
Cash flow estimation, in accordance with the provisions of IAS 36, does not consider cash inflows or outflows resulting from: (i) a
future restructuring still to be approved or to which the Group is not committed yet, or (ii) the improvement or optimisation of
business performance on the basis of initiatives still to be undertaken or approved, or for which there is still no commitment
towards third parties for the increase of production capacity with respect to current capacity.
The valuation scenario related to the impairment test was established considering: (i) in terms of forecast flows, the estimates
reported in the Plan, approved by the Board of Directors on February 28, 2024; (ii) WACC estimates calculated internally for each
CGU using an analytical method (weighted average value of the Group's WACC equal to 9.6%); (iii) growth rate beyond the last
forecast period, in line with the median of the analyst consensus.
The following table shows the discount rates calculated by the Company with reference to each business segment, and for
completeness the rates used as of December 31, 2022 are also shown:
(%)
Asset Based Services
Energy Carriers
Sustainable Infrastructures
Robotics & Industrialized Solutions
Offshore Drilling
3
2
0
2
,
1
3
.
c
e
D
C
C
A
W
10.0
10.8
10.8
10.8
8.8
2
2
0
2
,
1
3
.
c
e
D
C
C
A
W
10.3
10.6
10.6
10.6
8.4
The discount rates used (WACC) reflect market assessments of the time value of money and the systematic risks specific to the
activities of the individual CGUs that are not reflected in the estimate of future cash flows and have been estimated for each
business segment taking into account: (i) a cost of debt estimated from the ten-year market base rates plus credit spread
relating to a panel of operators assembled to take into consideration the specific business segment; (ii) median leverage of the
same panel of operators estimated on a multi-year historical horizon; (iii) the median beta of the securities of companies
\ 248
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
belonging to the same panel estimated on a multi-year historical horizon. Post-tax cash flows and discount rates were used as
they produce outcomes which are equivalent to those resulting from a valuation using pre-tax cash flows and discount rates.
The assumptions consider an interest rate, which reflects the current market conditions, the risks of individual assets already
included in the cash flow, as well as the long-term growth expectations in the businesses.
For the years following the last year of the Plan, the cash flows were calculated on the basis of a terminal value, determined:
≥ for the Asset Based Services, Energy Carriers, and Robotics & Industrialized Solutions CGUs, based on the perpetuity method,
a long-term growth rate was applied to the ‘normalized’ terminal cash flows (to consider business dynamics and sector
cyclicity). The rate was 1.5% for the Asset Based Service CGU, 1% for the Robotics & Industrialized Solutions CGU, and 0.5%
for the Energy Carriers CGU;
≥ for Offshore Drilling rigs, for the period beyond the Plan horizon (on the basis of the residual economic and technical life of the
individual assets, or, if earlier, the expected expiry date of the last cyclical maintenance), the following was taken into
consideration: (i) long-term lease rates defined as part of the planning process, by the related business line, through an
estimate procedure based on managerial assessments on collected information (both internal and external), inflated by 0.5%
over the projection period; in particular the long-term lease rates of the Offshore Drilling CGUs have been defined using the
latest available reports processed by external sources, normally used by the business line as a reference benchmark;
(ii) “normalised” idle days; (iii) operating costs based on figures of the last year of the plan, inflated by 0.5%; (iv) capital
expenditures and related plant down times for cyclical maintenance and replacements estimated by the business lines on the
basis of the planned schedule for cyclical and intermediate maintenance.
The impairment test carried out on December 31, 2023 did not show the need to make any write-downs. Below is a summary
table with the overall results of the test on each CGU (for the Offshore Drilling, the result relates to the single CGU on which the
impairment test was carried out):
(€ million)
Headroom (impairment loss)
d
e
s
a
B
t
e
s
s
A
s
e
c
i
v
r
e
S
s
r
e
i
r
r
a
C
y
g
r
e
n
E
2,297
783
8
o
r
g
e
N
o
r
r
e
P
20
d
e
z
i
l
a
i
r
t
s
u
d
n
I
&
s
n
o
i
t
u
o
S
l
s
c
i
t
o
b
o
R
10
Below are the sensitivity analyses relating to the Offshore Drilling rigs CGUs, while those relating to the Asset Based Services,
Robotics and Industrialized Solutions and the Energy Carriers CGUs are detailed in Note 16 “Intangible assets”.
Sensitivity analysis of the CGUs referring to Offshore Drilling rigs
The key assumptions adopted in assessing the recoverable amounts of the CGUs representing the Group’s vessels related
mainly to the operating result of the CGUs (based on a combination of various factors, including lease rates and exchange rates)
and the discount rate applied to the cash flows. The effects of the sensitivity analysis on the parameters used for the estimate
will be analysed below on the recoverable amount of these CGUs.
In particular, for the CGU on which the impairment test was developed:
≥ an increase in the discount rate of 1% would not produce impairment losses;
≥ decreases in long-term day rates of 10% compared with the rates assumed in the plan projections would not produce
impairment losses;
≥ decreases in long-term day rates of 20% compared with the rates assumed in the plan projections would not produce
impairment losses;
≥ an increase in long-term euro/dollar exchange rate of 0.1 compared to the scenario assumed in plan projections amounting to
1.3, would not produce any impairment losses.
\ 249
SAIPEM ANNUAL REPORT 2023
16 Intangible assets
Intangible assets amounted to €666 million (€691 million as of December 31, 2022) and consisted of the following:
(€ million)
Dec. 31, 2023
Opening net balance
Capital expenditure
Depreciation and amortisation
Net reversals of impairment losses
Exchange differences and other changes
Closing net balance
Closing gross balance
Depreciation and impairment losses
Dec. 31, 2022
Opening net balance
Capital expenditure
Depreciation and amortisation
Net reversals of impairment losses
Exchange differences and other changes
Closing net balance
Closing gross balance
Depreciation and impairment losses
s
t
s
o
c
t
n
e
m
p
o
e
v
e
D
l
-
-
-
-
-
-
8
8
-
-
-
-
-
-
8
8
s
t
n
e
t
a
p
l
a
i
r
t
s
u
d
n
I
l
a
u
t
c
e
l
l
e
t
n
i
d
n
a
s
t
h
g
i
r
y
t
r
e
p
o
r
p
s
e
c
n
e
c
i
l
i
,
s
n
o
s
s
e
c
n
o
C
s
k
r
a
m
e
d
a
r
t
d
n
a
r
e
d
n
u
s
t
e
s
s
A
n
o
i
t
c
u
r
t
s
n
o
c
s
e
c
n
a
v
d
a
d
n
a
20
1
(11)
(2)
6
14
254
240
20
1
(13)
-
12
20
251
231
1
-
-
-
-
1
19
18
2
-
(1)
-
-
1
18
17
5
9
-
-
(5)
9
9
-
8
9
-
-
(12)
5
5
-
s
t
e
s
s
a
e
b
g
n
a
t
n
l
i
i
l
a
t
o
T
e
f
i
l
l
u
f
e
s
u
e
t
i
n
i
f
e
d
h
t
i
w
28
10
(11)
(2)
-
25
300
275
32
10
(14)
-
-
28
293
265
i
l
e
b
g
n
a
t
n
i
r
e
h
t
O
s
t
e
s
s
a
2
-
-
-
(1)
1
10
9
2
-
-
-
-
2
11
9
i
l
e
b
g
n
a
t
n
i
l
a
t
o
T
s
t
e
s
s
a
691
10
(11)
(2)
(22)
666
699
10
(14)
-
(4)
691
-
-
l
l
i
w
d
o
o
G
663
-
-
-
(22)
641
667
-
-
-
(4)
663
-
-
Industrial patents and intellectual property rights of €14 million include mainly the costs incurred for the implementation in the
parent company of various application systems.
The main depreciation rates were as follows:
(%)
Development costs
Industrial patents and intellectual property rights
Concessions, licences, trademarks and similar rights
Other intangible assets
20.00-20.00
6.66-33.30
20.00-20.00
20.00-33.00
Goodwill of €641 million refers to the difference between the purchase price, including ancillary charges, and shareholders'
equity at the respective dates of new contracts of control of Saipem SA (€631 million) and Moss Maritime Group (€10 million).
The decrease of €22 million related almost entirely to the sale of Sofresid Engineering SA to third parties.
In order to determine the recoverable amount, the goodwill was allocated to the following CGUs, in line with the new
organisational structure adopted by the Company:
(€ million)
Asset Based Services
Energy Carriers
Robotics & Industrialized Solutions
Total
Dec. 31, 2023
403
228
10
641
Dec. 31, 2022
403
228
32
663
The recoverable amount of the CGUs, to which goodwill is allocated, was determined based on value in use, calculated by
discounting the future cash flows expected to be generated by each CGU.
The basis of the cash flow estimate, the discount rate used and the terminal growth rate for the estimate of the recoverable
amount of the CGUs are described in the “Impairment” section of Note 15 “Property, plant and equipment”.
\ 250
The table below shows, as of December 31, 2023, the amounts by which the recoverable amounts of the Asset Based Services,
Robotics & Industrialized Solutions, and Energy Carries CGUs exceed their carrying amounts, including allocated goodwill.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Goodwill
Amount by which recoverable amount exceeds carrying amount
d
e
s
a
B
t
e
s
s
A
s
e
c
i
v
r
e
S
403
2,297
s
e
i
r
r
a
C
y
r
g
r
e
n
E
228
783
d
e
z
i
l
a
i
r
t
s
u
d
n
I
&
s
s
c
i
t
o
b
o
R
s
n
o
i
t
u
o
S
l
10
10
l
a
t
o
T
641
3,090
The key assumptions adopted for assessing recoverable amounts were principally the operating results of the CGU (based on a
combination of various factors, e.g., sales volumes, service prices, project profit margins, cost structure), the discount rate, the
growth rates adopted to determine the terminal value and working capital projections. The effects of changes in these
parameters in relation to the amount by which recoverable amount exceeds the carrying amounts (including goodwill) for each of
the CGUs to which goodwill was allocated are described below.
Sensitivity analysis on the Asset Based Services CGU
The excess of the recoverable amount of the Asset Based Services CGU over its carrying amount, including the allocated
portion of goodwill, is reduced to zero under the following circumstance:
≥ decrease by 56.7% in the operating result, over the entire plan period and in perpetuity;
≥ use of a discount rate of 23.0%;
≥ use of a negative terminal growth rate of -20.3%.
In addition, the excess of the recoverable amount over the value of net capital employed referred to the Asset Based Services
CGU would increase if working capital cash flows were reduced to zero.
In view of the context of long-term uncertainty, including impact of the energy transition, sensitivity analyses were expanded for
the CGU, verifying that the use of a zero growth rate would reduce the excess recoverable amount on the book value of around
20%; moreover, the excess recoverable amount obtained in the impairment test equals zero when the operating result in
perpetuity is reduced by 78%.
Sensitivity analysis on the Energy Carriers CGU
The excess of the recoverable amount of the Energy Carriers CGU over its carrying amount, including the allocated portion of
goodwill, is never reduced to zero for any variation of the discount rate and terminal growth rate or for a reduction of the
operating result along the entire period of the plan and in perpetuity.
In addition, the excess of the recoverable amount over the value of net capital employed referred to the Energy Carriers CGU
would increase if working capital cash flows were reduced to zero.
Sensitivity analysis on the Robotics & Industrialized Solutions CGU
The excess of the recoverable amount of the Robotics & Industrialized Solutions CGU over its carrying amount, including the
allocated portion of goodwill, is reduced to zero under the following circumstance:
≥ decrease by 12.1% in the operating result, over the entire plan period and in perpetuity;
≥ use of a discount rate of 11.5%;
≥ use of a terminal growth rate of 0.2%.
In addition, the excess of the recoverable amount over the value of net capital employed referred to the Robotics & Industrialized
Solutions CGU would increase if working capital cash flows were reduced to zero.
\ 251
SAIPEM ANNUAL REPORT 2023
17 Right-of-Use assets, lease assets and lease liabilities
Movements in Right-of-Use assets, financial assets and liabilities for leasing as of December 31 are shown below:
(€ million)
Dec. 31, 2023
Opening balance
Increases
Decreases and cancellations
Depreciation and amortisation
Net reversals of impairment losses
Exchange differences
Interest
Other changes
Closing balance
Dec. 31, 2022
Opening balance
Increases
Decreases and cancellations
Depreciation and amortisation (a)
Net reversals of impairment losses
Exchange differences
Interest
Other changes
Closing balance
Right-of-Use assets
Current
Non-current
Current
Non-current
Lease assets
Lease liabilities
258
312
(18)
(122)
-
(2)
-
-
428
261
164
(28)
(141)
-
2
-
-
258
26
-
(35)
-
-
(1)
14
94
98
30
-
(30)
-
-
1
3
22
26
57
195
-
-
-
(3)
-
(94)
155
46
42
(11)
-
-
2
-
(22)
57
139
-
(182)
-
-
(4)
42
304
299
147
-
(180)
-
-
3
21
148
139
264
499
(18)
-
-
(10)
-
(304)
431
247
203
(44)
-
-
6
-
(148)
264
(a) Amortisation includes €5 million relating to discontinued operations.
During the year, Right-of-Use assets showed an increase of €170 million compared to December 31, 2022, mainly due to new
contracts, changes in existing contracts and their depreciation.
In particular, increases for €312 million are mainly related to new lease contracts on vessels.
The net decrease of €165 million (-€200 million of lease liabilities and -€35 million of lease assets) related to the payment of fees
for the period and the closure of certain contracts.
As of December 31, 2023, no Right-of-Use asset is a stand-alone CGU. For the purposes of determining recoverable amount,
the Right-of-Use assets have been allocated to the relevant CGUs and tested as described under “Impairment” in Note 15
“Property, plant and equipment”.
On the basis of business assessments, renewal options mainly relating to land and property totalling €19 million (€5 million as of
December 31, 2022) are not considered in the determination of the total lease term and lease liability as of December 31, 2023.
The breakdown of renewal options by year is as follows:
(€ million)
Renewal options
2024
-
2025
-
2026
1
2027
1
2028
1
2029
2
After
14
Total
19
Lease assets refer to subleases of vessels for the offshore drilling business, registered as replacement of the “Right-of-Use”
asset relating to the main lease.
Other changes in lease liabilities mainly reflect the reclassification of liabilities from non-current to current.
\ 252
Right-of-Use assets as of December 31 are broken down by type in the table below:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Dec. 31, 2023
Opening net balance
Increases
Decreases and cancellations
Depreciation and amortisation
Net reversals of impairment losses
Exchange differences
Other changes
Closing net balance
Closing gross balance
Depreciation and impairment losses
Dec. 31, 2022
Opening net balance
Increases
Decreases and cancellations
Depreciation and amortisation
Net reversals of impairment losses
Exchange differences
Other changes
Closing net balance
Closing gross balance
Depreciation and impairment losses
d
n
a
L
25
13
-
(6)
-
(1)
-
31
58
27
21
14
(5)
(6)
-
1
-
25
46
21
s
g
n
d
i
l
i
u
B
173
77
(16)
(40)
-
(1)
-
193
323
130
157
83
(17)
(50)
-
-
-
173
290
117
t
n
e
m
p
u
q
e
i
d
n
a
t
n
a
P
l
40
195
-
(58)
-
-
-
177
317
140
61
45
-
(67)
-
1
-
40
179
139
d
n
a
l
a
i
r
t
s
u
d
n
I
l
i
a
c
r
e
m
m
o
c
t
n
e
m
p
u
q
e
i
13
22
(1)
(15)
-
-
-
19
41
22
13
17
(5)
(12)
-
-
-
13
28
15
s
t
e
s
s
a
r
e
h
t
O
7
5
(1)
(3)
-
-
-
8
14
6
9
5
(1)
(6)
-
-
-
7
12
5
l
a
t
o
T
258
312
(18)
(122)
-
(2)
-
428
753
325
261
164
(28)
(141)
-
2
-
258
555
297
The analysis by maturity of net lease liabilities as of December 31, 2023 is as follows:
(€ million)
Lease liabilities
Lease assets
Total
2024
current
portion
299
98
201
Non-current portion
2025
147
72
75
2026
79
52
27
2027
46
22
24
2028
42
9
33
After
117
-
117
Total
730
253
477
The average marginal loan rate used for discounting Right-of-Use assets and lease financial liabilities as of December 31, 2023,
was 8.2% (8.6% as of December 31, 2022).
Financial lease transactions with related parties are detailed in Note 43 “Related party transactions”.
\ 253
SAIPEM ANNUAL REPORT 2023
18 Equity investments
Equity investments accounted for using the equity method
Equity-accounted investments were valued at €211 million (€229 million as of December 31, 2022), as follows:
(€ million)
Dec. 31, 2023
Investments in subsidiaries
Investments in joint ventures
Investments in associates
Total
Dec. 31, 2022
Investments in subsidiaries
Investments in joint ventures
Investments in associates
Total
g
n
i
y
r
r
a
c
g
n
n
e
p
O
i
t
n
u
o
m
a
-
65
164
229
-
78
79
157
s
n
o
i
t
p
i
r
c
s
b
u
s
d
n
a
s
n
o
i
t
i
s
u
q
c
A
i
s
t
n
e
m
e
s
r
u
b
m
e
r
i
d
n
a
s
e
a
S
l
d
e
t
n
u
o
c
c
a
-
y
t
i
u
q
e
f
o
t
i
f
o
r
p
f
o
e
r
a
h
S
s
e
e
t
s
e
v
n
i
d
e
t
n
u
o
c
c
a
-
s
s
o
l
f
o
e
r
a
h
S
y
t
i
u
q
e
f
o
s
e
e
t
s
e
v
n
i
-
1
-
1
-
-
-
-
-
(1)
-
(1)
-
(10)
-
(10)
-
4
56
60
-
12
16
28
-
(1)
(3)
(4)
-
(13)
(8)
(21)
e
p
o
c
s
n
o
i
t
a
d
i
l
o
s
n
o
c
e
h
t
n
i
e
g
n
a
h
C
s
e
c
n
e
r
e
f
f
i
d
e
g
n
a
h
c
x
E
l
i
a
c
n
a
n
i
f
f
o
s
t
n
e
m
e
v
o
M
s
e
v
r
e
s
e
r
n
i
-
-
-
-
-
-
-
-
-
(3)
(3)
(6)
-
1
3
4
-
(1)
-
(1)
-
-
-
-
s
d
n
e
d
i
v
i
d
r
o
f
n
o
i
t
c
u
d
e
D
-
-
(69)
(69)
-
(3)
(16)
(19)
s
e
g
n
a
h
c
r
e
h
t
O
-
-
2
2
-
-
90
90
g
n
i
y
r
r
a
c
g
n
s
o
C
l
i
t
n
u
o
m
a
-
64
147
211
-
65
164
229
e
c
n
a
w
o
l
l
a
s
s
o
L
-
-
-
-
-
-
-
-
Equity investments accounted for using the equity method are listed in Note 6 “Consolidation scope as of December 31, 2023”.
The share of profit of equity-accounted investees of €60 million includes profits for the period of €4 million recorded by joint
ventures and €56 million by associates.
The share of loss of equity-accounted investees of €4 million includes losses for the period of €1 million recorded by joint
ventures and €3 million by associates.
Deductions following the distribution of dividends of €69 million pertain to associates.
Other changes include capital gains from the disposal of associates to third parties for a total of €2 million.
The carrying amount of equity investments accounted for using the equity method related to the following companies:
(€ million)
KCA Deutag International Ltd
Petromar Lda
Saipem Taqa Al Rushaid Fabricators Co Ltd
Rosetti Marino SpA
Gygaz Snc
Other
Total equity investments accounted for using the equity method
)
%
(
e
r
a
h
s
p
u
o
r
G
10.00
70.00
40.00
20.00
7.50
t
n
u
o
m
a
g
n
i
y
r
r
a
C
r
e
b
m
e
c
e
D
f
o
s
a
3
2
0
2
,
1
3
85
61
21
20
19
5
211
t
n
u
o
m
a
g
n
i
y
r
r
a
C
r
e
b
m
e
c
e
D
f
o
s
a
2
2
0
2
,
1
3
88
61
23
13
25
19
229
The total of equity investments accounted for using the equity method does not include the loss allowance mentioned in Note
26, “Provisions for risks and charges”.
Other equity investments
The other equity investments are not individually significant as of December 31, 2023.
Other information on equity investments
The table below summarises key financial data from the IFRS financial statements of non-consolidated subsidiaries, joint
ventures and associates accounted for using the equity method or measured at cost, in proportion to the Group interest held:
(€ million)
Total assets
Cash and cash equivalents
Total liabilities
Net revenue
Operating profit (loss)
Profit (loss) for the year
\ 254
Dec. 31, 2023
Joint
ventures
277
122
262
263
71
45
Subsidiaries
4
-
4
-
-
-
Associates
873
95
776
766
94
62
Dec. 31, 2022
Joint
ventures
530
127
557
558
(95)
(76)
Subsidiaries
4
-
4
-
-
-
Associates
1,509
272
1,391
777
14
11
The table below shows the financial and economic data relating to joint ventures (full amounts at 100%).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Current assets
Cash and cash equivalents
- of which current lease assets
Non-current assets
- of which non-current lease assets
Total assets
Current liabilities
- of which current financial liabilities
- of which current portion of non-current lease liabilities
Non-current liabilities
- of which non-current financial liabilities
- of which non-current lease liabilities
Total liabilities
Equity
Carrying amount of equity investment
Revenue and other operating income
Operating expenses
Depreciation, amortisation and impairment losses
Operating profit (loss)
Financial income (expense)
Gains (losses) on equity investments
Pre-tax profit (loss)
Income taxes
Profit (loss) for the year
Other items of comprehensive income
Comprehensive income (loss) for the year
Profit (loss) attributable to the owners of the parent
Dividends to the Group approved by joint ventures
Dec. 31, 2023 Dec. 31, 2022
986
288
-
70
-
1,056
1,170
2
7
16
-
3
1,186
(130)
(27)
1,161
(1,371)
(32)
(242)
14
-
(228)
22
(206)
1
(205)
(76)
3
457
219
-
38
-
495
526
10
-
10
-
-
536
(41)
15
535
(385)
(14)
136
(17)
-
119
(26)
93
(3)
90
45
-
\ 255
SAIPEM ANNUAL REPORT 2023
The table below shows the financial and economic data relating to associates (full amounts at 100%).
(€ million)
Current assets
Cash and cash equivalents
- of which current lease assets
Non-current assets
- of which non-current lease assets
Total assets
Current liabilities
- of which current financial liabilities
- of which current portion of non-current lease liabilities
Non-current liabilities
- of which non-current financial liabilities
- of which non-current lease liabilities
Total liabilities
Equity
Carrying amount of equity investment
Revenue and other operating income
Operating expenses
Depreciation, amortisation and impairment losses
Operating profit (loss)
Financial income (expense)
Gains (losses) on equity investments
Pre-tax profit (loss)
Income taxes
Profit (loss) for the year
Other items of comprehensive income
Comprehensive income (loss) for the year
Profit (loss) attributable to the owners of the parent
Dividends to the Group approved by associates
Dec. 31, 2023 Dec. 31, 2022
5,391
1,368
-
1,215
83
6,606
4,933
41
37
858
170
59
5,791
815
155
2,907
(2,846)
(32)
29
17
-
46
(27)
19
7
26
11
16
2,699
715
-
1,595
95
4,294
1,963
38
50
1,547
826
53
3,510
784
147
4,168
3,161
(158)
849
(134)
-
715
(36)
679
(29)
650
62
69
19 Deferred tax assets and liabilities
Deferred tax assets of €257 million (€345 million as of December 31, 2022) are shown net of €135 million in offsettable deferred
tax liabilities.
Deferred tax liabilities of €6 million (€3 million as of December 31, 2022) are shown net of €135 million in offsettable deferred tax
assets.
Movements in deferred tax assets and deferred tax liabilities were as follows:
(€ million)
Deferred tax assets
Deferred tax liabilities
Total net deferred tax assets (liabilities)
2
2
0
2
,
1
3
.
c
e
D
345
(3)
342
l
s
a
u
r
c
c
A
72
(25)
47
s
n
o
i
t
a
s
i
l
i
t
U
(142)
31
(111)
s
e
c
n
e
r
e
f
f
i
d
e
g
n
a
h
c
x
E
(4)
2
(2)
s
e
g
n
a
h
c
r
e
h
t
O
(14)
(11)
(25)
3
2
0
2
,
1
3
.
c
e
D
257
(6)
251
The item "Other changes" in deferred tax assets, decreasing by €14 million, includes: (i) the offsetting at the individual company
level of deferred tax assets with deferred tax liabilities (positive for €2 million); (ii) the recognition (negative for €20 million) against
equity reserves of the tax effect related to the fair value assessment of derivative hedging contracts (cash flow hedge); (iii) the
recognition (positive for €3 million) against equity reserves of the tax effect related to revaluations of defined benefit plans for
employees; (iv) other changes (positive for €1 million).
The item "Other changes" in deferred tax liabilities, increasing by €11 million, includes: (i) the offsetting at the individual company
level of deferred tax assets with deferred tax liabilities (positive for €2 million); (ii) the recognition (positive for €9 million) against
equity reserves of the tax effect related to the fair value assessment of derivative hedging contracts (cash flow hedge); (iii) the
recognition (positive for €1 million) against equity reserves of the tax effect related to the fair value assessment of financial
assets with OCI effects; (iv) other changes (negative for €1 million).
\ 256
Net deferred tax assets are broken down below.
(€ million)
Gross deferred tax assets
Offsettable deferred tax liabilities
Deferred tax assets
Gross deferred tax liabilities
Offsettable deferred tax assets
Deferred tax liabilities
Net deferred tax assets (liabilities)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Situation as of
Dec. 31, 2023
392
(135)
257
(141)
135
(6)
251
Jan. 1, 2023 Dec. 31, 2022
428
(83)
345
(86)
83
(3)
342
482
(137)
345
(140)
137
(3)
342
The situation as of January 1, 2023 includes the effects of the application of changes to IAS 12 “Deferred Tax related to Assets
and Liabilities arising from a Single Transaction” as reported in the Accounting policies section "Changes to accounting
standards". Deferred tax assets and liabilities relating to lease operations are entirely offsettable.
The most significant temporary differences giving rise to net deferred tax assets (liabilities) are as follows:
(€ million)
Deferred tax assets:
- accruals to loss allowance and non-deductible
risks and charges
- non-deductible depreciation
- hedging derivatives
- employee benefits
- tax losses carried forward
- project progress rate
- leasing IFRS 16
- other
less:
Offsettable deferred tax liabilities
Deferred tax assets
Deferred tax liabilities:
- advance and excess depreciation
- hedging derivatives
- employee benefits
- non-distributed reserves held by investees
- project progress rate
- leasing IFRS 16
- other
less:
Offsettable deferred tax assets
Deferred tax liabilities
Net deferred tax assets (liabilities)
2
2
0
2
,
1
3
.
c
e
D
128
42
46
26
60
61
2
63
428
(83)
345
(33)
(18)
(1)
(12)
(7)
(1)
(14)
(86)
83
(3)
342
s
e
g
n
a
h
c
f
o
s
t
c
e
f
f
E
2
1
S
A
I
o
t
3
2
0
2
,
1
.
n
a
J
f
o
s
a
n
o
i
t
a
u
t
i
S
-
-
-
-
-
-
54
-
54
(54)
-
-
-
-
-
-
(54)
-
(54)
54
-
-
128
42
46
26
60
61
56
63
482
(137)
345
(33)
(18)
(1)
(12)
(7)
(55)
(14)
(140)
137
(3)
342
l
s
a
u
r
c
c
A
35
7
-
2
5
3
17
3
72
-
72
(2)
(3)
(2)
(6)
(3)
(4)
(5)
(25)
-
(25)
47
s
n
o
i
t
a
s
i
l
i
t
U
(43)
(20)
(13)
(6)
(12)
(32)
(14)
(2)
(142)
-
(142)
10
16
-
-
2
2
1
31
-
31
(111)
s
e
c
n
e
r
e
f
f
i
d
e
g
n
a
h
c
x
E
-
(1)
-
-
(1)
-
(1)
(1)
(4)
-
(4)
1
-
-
-
-
1
-
2
-
2
(2)
s
e
g
n
a
h
c
r
e
h
t
O
-
-
(20)
3
1
-
-
-
(16)
2
(14)
-
(8)
-
-
-
-
(1)
(9)
(2)
(11)
(25)
3
2
0
2
,
1
3
.
c
e
D
120
28
13
25
53
32
58
63
392
(135)
257
(24)
(13)
(3)
(18)
(8)
(56)
(19)
(141)
135
(6)
251
Unrecognised deferred tax assets of €1,597 million (€1,459 million as of December 31, 2022) mainly concern tax losses that it
will probably not be possible to utilise against future taxable income in the next four years.
Tax losses
Tax losses amounted to €6,799 million (€6,614 million as of December 31, 2022), of which €5,056 million can be carried forward
indefinitely. Tax recovery corresponds to a tax rate of 24% for Italian companies and to an average tax rate of 22.1% for foreign
companies.
\ 257
SAIPEM ANNUAL REPORT 2023
Tax losses related mainly to foreign companies and can be used in the following periods:
(€ million)
2024
2025
2026
2027
2028
After 2028
Indefinitely
Total
y
l
a
t
I
-
-
-
-
-
-
1,871
1,871
i
e
d
s
t
u
O
y
l
a
t
I
29
38
59
3
34
1,580
3,185
4,928
Tax losses for which deferred tax assets have not been recognised, in accordance with IAS 12, amounted to €6,558 million.
Deferred tax assets recognised in the financial statements as of December 31, 2023 relating to tax losses amounted to €53
million and are considered recoverable in the next four years.
Taxes are shown in Note 38 “Income taxes”.
20 Other non-current assets
Other non-current assets amounted to €52 million (€30 million as of December 31, 2022) and consisted of the following:
(€ million)
Fair value of derivative financial instruments
Other receivables
Other assets
Total
Dec. 31, 2023
3
25
24
52
Dec. 31, 2022
-
10
20
30
For information on the fair value of derivative financial instruments see Note 29 “Derivative financial instruments”.
Other receivables as of December 31, 2023 amounted to €25 million, an increase of €15 million compared to December 31,
2022, and related to guarantee deposits of various kinds, mainly for property leases and the preliminary phase of legal
proceedings.
Other assets as of December 31, 2023 amounted to €24 million, an increase of €4 million compared to December 31, 2022, and
mainly included costs not pertaining to the financial year, mainly related to insurance policies and costs for lease contracts.
Other non-current financial assets from related parties are detailed in Note 43 “Related party transactions”.
21 Trade payables and other liabilities
Trade payables and other liabilities amounted to €2,944 million (€2,907 million as of December 31, 2022) and consisted of the
following:
(€ million)
Trade payables
Other liabilities
Total
Dec. 31, 2023
2,668
276
2,944
Dec. 31, 2022
2,630
277
2,907
Trade payables amounted to €2,668 million, representing an increase of €38 million compared to December 31, 2022.
Trade and other liabilities with related parties are detailed in Note 43 “Related party transactions”.
Other liabilities of €276 million were as follows:
(€ million)
Liabilities to:
- employees
- social security institutions
- insurance companies
- consultants and professionals
- directors and statutory auditors
Other
Total
\ 258
Dec. 31, 2023
Dec. 31, 2022
155
62
3
2
1
53
276
154
62
2
3
1
55
277
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The fair value of trade payables and other liabilities did not differ significantly from their carrying amount due to the short period
of time elapsed between their date of origination and their due date.
22 Contract liabilities
Contract liabilities of €3,088 million (€2,613 million as of December 31, 2022) consisted of the following:
(€ million)
Contract liabilities (from work in progress)
Advances from customers
Total
Dec. 31, 2023
2,301
787
3,088
Dec. 31, 2022
1,880
733
2,613
Contract liabilities (from work in progress) of €2,301 million (€1,880 million as of December 31, 2022) relate to adjustments in
revenue invoiced on long-term contracts in order to comply with the accruals principle, in accordance with the accounting
policies based on the contractual amounts accrued.
Specifically, contract liabilities (from work in progress) increased by €421 million due to adjustments to revenues invoiced during
the year following the evaluation based on the operational progress of projects for €1.168 billion, partly offset by the impact of
exchange rate effects and other changes for €20 million, and by the recognition as revenues for the current year of €727 million
adjusted at the end of the previous year.
Advances from customers of €787 million (€733 million as of December 31, 2022) refer mainly to amounts received at the
signing of contracts, in previous years and during the financial year, and gradually reduced when contractual milestones are met.
Contract liabilities with related parties are detailed in Note 43 “Related party transactions”.
23 Other current liabilities
Other current liabilities amounted to €33 million (€107 million as of December 31, 2022) and were made up as follows:
(€ million)
Fair value of derivative financial instruments
Other liabilities
Total
Dec. 31, 2023
17
16
33
Dec. 31, 2022
94
13
107
The decrease of fair value on derivatives of €77 million is attributable mainly to the EUR/USD exchange rate, as well as all the
other currencies linked to the latter.
For information on the fair value of derivative financial instruments see Note 29 “Derivative financial instruments”.
Other liabilities amount to €16 million, an increase of €3 million since December 31, 2022.
Other liabilities with related parties are detailed in Note 43 “Related party transactions”.
24 Financial liabilities
Financial liabilities were as follows:
(€ million)
Banks
Bonds
Other financial institutions
Total
Dec. 31, 2023
Current
portion of
non-current
financial
liabilities
96
32
-
128
Non-
current
financial
liabilities
374
1,794
-
2,168
Current
financial
liabilities
63
-
34
97
Total
533
1,826
34
2,393
Dec. 31, 2022
Current
portion of
non-current
financial
liabilities
206
536
-
742
Non-current
financial
liabilities
234
1,495
-
1,729
Current
financial
liabilities
82
-
77
159
Total
522
2,031
77
2,630
As of December 31, 2023, there are bank loan agreements containing Financial Covenant clauses that require compliance with
the ratio of net financial debt to EBITDA (as defined in the respective loan agreements), not to exceed 3.5 times. As of December
31, 2023, the Company satisfied all conditions on the use of borrowings, including these financial covenants, change of control
clauses, and negative pledge and cross-default clauses.
The item “Bonds” includes three ordinary bonds, with a total nominal value of €1,380 million (carrying value of €1,405 million at
December 31, 2023), and one convertible bond, with a notional value of €500 million, placed on August 30, 2023 (carrying value
of €421 million as of December 31, 2023).
\ 259
SAIPEM ANNUAL REPORT 2023
The analysis by maturity of non-current financial liabilities as of December 31, 2023, is as follows:
(€ million)
e
p
y
T
Banks
Bonds
Total
y
t
i
r
u
t
a
M
e
g
n
a
r
2025-2027
2025-2029
5
2
0
2
191
353
544
6
2
0
2
168
479
647
7
2
0
2
15
-
15
8
2
0
2
-
479
479
t
n
e
r
r
u
c
-
n
o
n
l
i
a
c
n
a
n
i
f
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
T
374
1,794
2,168
r
e
t
f
A
-
483
483
With reference to future contractual payments due, the maturities of non-current financial liabilities were analysed as follows:
(€ million)
Banks
Bonds
Other financial institutions
Total
Carrying amount
as of
Dec. 31, 2023
470
1,826
-
2,296
Current
portion
Dec. 31, 2024
98
33
-
131
Long-term maturity
2025
195
380
-
575
2026
168
500
-
668
2027
15
-
-
15
2028
-
500
-
500
Total future
payments as of
Dec. 31, 2023
476
1;913
-
2,389
After
-
500
-
500
The difference of €93 million between the carrying amount of the non-current financial liabilities recognised in the financial
statements as of December 31, 2023 and the total of future payments is because of the measurement using the amortised cost
method.
The analysis of financial liabilities by currency with an indication of the interest rate is as follows:
(€ million)
Currency
Euro
US dollar
Other
Total
Dec. 31, 2023
Dec. 31, 2022
Interest rate %
Interest rate %
Interest rate %
Interest rate %
Current
financial
liabilities
34
-
63
97
to
0.00
-
from
0.00
-
variable
Non-current
financial liabilities
(including current
portion)
2,296
-
-
2,296
from
1.34
to
7.58
Current
financial
liabilities
77
-
82
159
from
to
0.00 0.00
-
-
variable
Non-current
financial liabilities
(including
current portion)
2,471
-
-
2,471
from
1.38
to
4.80
Non-current financial liabilities, including the current portion, mature between 2024 and 2029.
As of December 31, 2023, Saipem had unused uncommitted short-term credit lines amounting to €114 million (€169 million as
of December 31, 2022) and unused committed short-term credit lines amounting to €473 million (no undrawn committed
long-term credit line as of December 31, 2022).
Commission fees on unused lines of credit were not significant.
There were no financial liabilities secured by mortgages or liens on real estate of consolidated companies and by pledges on
securities.
The fair value of non-current financial liabilities, including the current portion, amounted to €2,383 million (€2,316 million as of
December 31, 2022) and was calculated by discounting the present value of future cash flows in the main currencies of the loan
at the following, approximate rates:
(%)
(€)
2023
3.91-4.84
2022
5.77-6.97
The market value of listed financial instruments was calculated using the closing stock price at the last available date of the year.
The following table lists the comparison between the notional value, the carrying amount and the fair value of non-current
financial liabilities:
Notional amount
474
1,880
-
2,354
Dec. 31, 2023
Carrying amount
470
1,826
-
2,296
Fair value
480
1,903
-
2,383
Notional amount
444
2,000
-
2,444
Dec. 31, 2022
Carrying amount
440
2,031
-
2,471
Fair value
429
1,887
-
2,316
(€ million)
Banks
Bonds
Other financial institutions
Total
\ 260
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the “Disclosure Initiative” (IAS 7), the following is a reconciliation between changes in financial liabilities and
cash flows from financing activities:
(€ million)
Current financial liabilities
Non-current financial liabilities,
including current portion
Net lease liabilities (assets)
Total net liabilities
from financing activities
Non-cash changes
Dec. 31, 2022
159
2,471
320
Change in
cash flows
(60)
(175)
(127)
2,950
(356)
Acquisitions
-
Exchange
differences
of financial
(2)
Change
in fair value
-
Other
non-cash
changes
-
Dec. 31, 2023
97
-
-
-
-
(2)
(4)
-
-
-
-
286
286
2,296
477
2,870
Financial liabilities to related parties are shown in Note 43 “Related party transactions”.
25 Analysis of net financial debt
The financial debt statement prepared according to the provisions established in the Consob document 5/21 of April 29, 2021,
which implements the ESMA guidelines, is presented below.
(€ million)
A. Cash and cash equivalents
B. Cash equivalents
C. Other current financial assets:
- Financial assets measured
at fair value through OCI
- Financial receivables
D. Liquidity (A+B+C)
E. Current financial debt:
- Current financial liabilities
with banks
- Current financial liabilities
with related parties
- Other current financial liabilities
- Lease liabilities
F. Current portion of the non-current
financial debt:
- Non-current financial liabilities
with banks
- Bonds
G. Current debt (E+F)
H. Net current financial debt (G-D)
I. Non-current financial debt:
- Non-current financial liabilities with banks
- Non-current financial liabilities
with related parties
- Lease liabilities
J. Debt instruments:
- Bonds
K. Trade payables and other
non-current payables
L. Non-current debt (I+J+K)
M. Total net financial debt as set out
in Consob document No. 5/21,
April 29, 2021 (H+L)
Dec. 31, 2023
Non-
current
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
805
374
-
431
1,794
1,794
-
2,599
Current
2,136
-
472
86
386
2,608
396
63
1
33
299
128
96
32
524
(2,084)
-
-
-
-
-
-
-
-
Total
2,136
-
472
86
386
2,608
396
63
1
33
299
128
96
32
524
(2,084)
805
374
-
431
1,794
1,794
-
2,599
Dec. 31, 2022
Non-
current
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
498
234
-
264
1,495
1,495
-
1,993
Current
2,052
-
569
75
494
2,621
298
82
1
76
139
742
206
536
1,040
(1,581)
-
-
-
-
-
-
-
-
Total
2,052
-
569
75
494
2,621
298
82
1
76
139
742
206
536
1,040
(1,581)
498
234
-
264
1,495
1,495
-
1,993
(2,084)
2,599
515
(1,581)
1,993
412
Net financial debt does not include the fair value of derivatives indicated in Note 14 “Other current assets”, Note 20 “Other
non-current assets”, Note 23 “Other current liabilities”, and Note 28 “Other non-current liabilities”.
\ 261
SAIPEM ANNUAL REPORT 2023
Reconciliation of net financial debt
(€ million)
M. Total net financial debt as set out
in Consob document No. 5/21,
April 29, 2021 (H+L)
N. Non-current financial assets
O. Lease assets
P. Net financial debt (M-N-O)
Dec. 31, 2023
Non-
current
Current
Total
Current
Dec. 31, 2022
Non-
current
(2,084)
-
98
(2.182)
2,599
1
155
2.443
515
1
253
261
(1,581)
-
26
(1,607)
1,993
65
57
1,871
Total
412
65
83
264
The pre-IFRS 16 net financial position as of December 31, 2023 was positive at €216 million, including the positive impact of €72
million from the convertible bond issue. Net debt, including IFRS 16 lease liability of €477 million, amounted to €261 million.
Pre-IFRS 16 gross debt as of December 31, 2023, amounted to €2,393 million, liquidity to €2,609 million of which available cash
for €1,323 million.
Financial receivables are explained in Note 9 “Other financial assets”.
26 Provisions for risks and charges
Provisions for risks and charges amounted to €767 million (€1,148 million as of December 31, 2022) and consisted of the
following:
(€ million)
Dec. 31, 2023
Provision for taxes
Provision for litigation
Provision for losses on investments
Provision for contractual expenses
and losses on long-term contracts
Provision for redundancy incentives
Other provisions
Total
Dec. 31, 2022
Provision for taxes
Provision for litigation
Provision for losses on investments
Provision for contractual expenses
and losses on long-term contracts
Provision for redundancy incentives
Other provisions
Total
l
e
c
n
a
a
b
g
n
n
e
p
O
i
9
234
101
745
1
58
1,148
14
265
30
973
17
54
1,353
l
s
a
u
r
c
c
A
-
7
-
111
-
31
149
2
15
75
115
1
27
235
s
n
o
i
t
a
s
i
l
i
t
U
-
(72)
(51)
(391)
(3)
(21)
(538)
(7)
(55)
(3)
(344)
(19)
(24)
(452)
s
e
g
n
a
h
c
r
e
h
t
O
-
13
(1)
(2)
3
(5)
8
-
9
(1)
1
2
1
12
l
e
c
n
a
a
b
g
n
s
o
C
l
i
9
182
49
463
1
63
767
9
234
101
745
1
58
1,148
The provisions for taxes amounted to €9 million and related principally to disputes concerning indirect taxes with foreign tax
authorities and also take into account the results of recent assessments.
The Group operates in numerous countries with complex tax laws to which it adheres thanks also to the support of local tax
consultants. In some of these jurisdictions, the Group is handling, through appeals, some requests made by the tax authorities,
from which the Directors believe that no further significant charges will arise with respect to what has already been accrued.
The provision for litigation amounted to €182 million and consisted of provisions set aside by Saipem SpA and a number of
foreign subsidiaries in relation to ongoing litigation, of which €8 million were for litigation with employees. The provision mainly
includes an estimate of contingent liabilities arising from settlements and legal proceedings. Specifically, the provision includes
the equivalent of around €142 million for litigations in Algeria regarding a contract completed some time ago; for further
information, see "Legal proceedings" in Note 33 “Guarantees, commitments and risks”.
The provisions for losses on investments amounted to €49 million and related to provisions for losses of investees
accounted for using the equity method. The use of the provision is attributable mainly to the negotiations ongoing with a client to
close a project in Russia, whose contractual relations have come to an end and are being formalised.
The provision for contractual expenses and losses on long-term contracts amounts to €463 million and includes estimated
losses of €443 million and final project costs of €20 million related mainly to Engineering & Construction projects.
The provision for redundancy incentives amounted to €1 million attributable to Saipem SpA.
Other provisions amounted to €63 million and are for other contingencies.
\ 262
27 Employee benefits
Employee benefits amount to €193 million (€183 million as of December 31, 2022) and consisted of the following:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
TFR
Foreign defined benefit plans
FISDE and other health plans
Other long-term employee benefits
Total
Dec. 31, 2023
25
72
21
75
193
Dec. 31, 2022
25
67
22
69
183
Post-employment benefits (“TFR”), regulated by Article 2120 of the Italian Civil Code, relate to the statutory provisions, estimated
using actuarial hypotheses, to be paid to employees by Italian companies upon termination of the employment relationship.
Foreign defined benefit plans relate to the following:
≥ defined pension benefit plans of foreign companies located, primarily, in Saudi Arabia, France, Switzerland, the United Arab
Emirates, India, and the United Kingdom;
≥ pension provisions and similar obligations for personnel employed abroad, to whom local legislation applies.
On the basis of the length of service and the salary paid in the last year of service, or the average annual salary paid in a
determined period preceding termination, an amount representing the company’s obligation to employees is set aside.
The supplementary medical reserve for Eni managers (FISDE) includes liabilities and welfare costs calculated on the basis of the
contributions paid or to be paid by the company for retired managers.
Other provisions for long-term employee benefits relate mainly to long-term incentive plans, jubilee awards, the voluntary
redundancy incentive plan (Article 4, Italian Law No. 92/2012) and other long-term plans.
The long-term incentive plans cover the estimate, determined based on actuarial assumptions, of the amount to be paid to
beneficiaries provided that they remain employed for the period established by each plan following the allocation of the relevant
incentive; the cost is allocated pro-rata temporis over the vesting period. Jubilee awards are benefits due following the
attainment of a minimum period of service; at the Italian companies they consist of remuneration in welfare credit.
The voluntary redundancy incentive plan, allocated following agreements which implemented the provisions of Article 4 of Italian
Law No. 92/2012 between Saipem SpA and the representatives of the main Trade Union organisations in order to implement, in
the least traumatic way possible, a correct restructuring of personnel, includes the actuarial estimate of expenses for offers
early, consensual termination of the employment relationship.
\ 263
SAIPEM ANNUAL REPORT 2023
Employee benefits calculated using actuarial techniques are analysed as follows:
(€ million)
Present value of benefit obligation
at the start of the year
Current cost
Interest expense
Remeasurements:
- actuarial gains and losses arising
from changes in demographic
assumptions
- actuarial gains and losses arising
from changes in financial
assumptions
- experience adjustments
Past service cost and gains/losses
from termination
Contributions to plan:
- employee contributions
- employer contributions
Benefits paid
Discontinued operations
Sale of business
Change in the consolidation scope
Exchange differences
and other changes
Present value of benefit
obligation at end of the year (a)
Plan assets at start of the year
Interest income
Return on plan assets
Past service cost and gains/losses
from termination
Contributions to plan:
- employee contributions
- employer contributions
Benefits paid
Exchange differences
and other changes
Plan assets at end of the year (b)
Net liability (c=a-b)
Additional liability to be recognised
pre IFRIC 14 at start of the year
Increase/decrease
Additional liability to be recognised
per IFRIC 14 at end of the year (d)
Changes in the maximum limit of
plan assets (e)
Net liability recognised (f=c+d+e)
TFR
25
-
1
1
-
-
1
-
-
-
-
(2)
-
-
-
-
25
-
-
-
-
-
-
-
-
-
-
25
-
-
-
-
25
Dec. 31, 2023
Foreign
defined
benefit
plans
FISDE and
other
foreign
health plans
Other
long-term
employee
benefits
69
4
2
6
-
4
2
16
-
-
-
(20)
-
-
(2)
-
75
-
-
-
-
-
-
-
-
-
-
75
-
-
-
126
10
5
10
22
-
1
(1)
(1)
(1)
8
3
-
-
-
-
(10)
-
-
(3)
-
138
61
2
-
-
-
-
8
(4)
1
68
70
2
(2)
-
2
72
-
-
-
-
-
-
(1)
-
-
-
-
21
-
-
-
-
-
-
-
-
-
-
21
-
-
-
-
21
Dec. 31, 2022
FISDE and
other
foreign
health
plans
Foreign
defined
benefit
plans
Other
long-term
employee
benefits
177
18
3
(41)
32
1
1
(11)
69
27
-
(5)
Total
311
46
4
(60)
Total
242
14
9
16
TFR
33
-
-
(3)
(2)
-
-
(3)
-
(3)
12
6
16
-
-
-
(33)
-
-
(5)
-
259
61
2
-
-
-
-
8
(4)
1
68
191
2
(2)
-
(5)
2
-
-
-
-
(5)
-
-
-
-
25
-
-
-
-
-
-
-
-
-
-
25
-
-
-
-
25
(32)
(9)
-
-
-
-
(16)
(2)
(14)
-
1
126
80
1
(20)
-
-
-
6
(4)
(2)
61
65
7
(5)
2
-
67
(7)
(1)
-
-
-
-
(1)
-
-
-
-
22
-
-
-
-
-
-
-
-
-
-
22
-
-
-
-
22
(7)
2
(3)
-
-
-
(19)
-
-
-
-
69
-
-
-
-
-
-
-
-
-
-
69
-
-
-
(51)
(6)
(3)
-
-
-
(41)
(2)
(14)
-
1
242
80
1
(20)
-
-
-
6
(4)
(2)
61
181
7
(5)
2
-
69
-
183
-
75
2
193
Other provisions for long-term employee benefits of €75 million (€69 million as of December 31, 2022) relate to the voluntary
redundancy incentive plan for €26 million (€40 million as of December 31, 2022), long-term incentive plans for €21 million (€3
million as of December 31, 2022), other foreign long-term plans for €26 million (€24 million as of December 31, 2022), and
jubilee awards for €2 million (€2 million as of December 31, 2022).
\ 264
Costs for employee benefits determined using actuarial assumptions and charged to the income statement are detailed below:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Current cost
Past service cost and
gains/losses from termination
Net interest expense (income):
- interest expense on bond
- interest income on plan assets
Total net interest expense (income)
of which recognised in personnel cost
of which recognised in financial
income (expense)
Remeasurements of long-term plans
Total
of which recognised in personnel cost
of which recognised in financial
income (expense)
TFR
-
-
1
-
1
-
1
-
1
-
1
Dec. 31, 2023
Foreign
defined
benefit
plans
10
FISDE
and other
foreign
health
plans
-
Other
long-term
employee
benefits
4
Dec. 31, 2022
Foreign
defined
benefit
plans
18
FISDE
and other
foreign
health
plans
1
Other
long-term
employee
benefits
27
Total
14
TFR
-
-
5
2
3
-
3
-
13
10
3
-
1
-
1
-
1
-
1
-
1
16
16
2
-
2
2
-
6
28
28
-
9
2
7
2
5
6
43
38
5
-
-
-
-
-
-
-
-
-
-
-
3
1
2
-
2
-
20
18
2
-
1
-
1
-
1
-
2
1
1
(3)
-
-
-
-
-
(5)
19
19
-
Costs for defined benefit plans recognised in other comprehensive income were as follows:
Total
46
(3)
4
1
3
-
3
(5)
41
38
3
Total
(€ million)
Remeasurements:
- actuarial gains and losses arising from
changes in demographic assumptions
- actuarial gains and losses arising from
changes in financial assumptions
- experience adjustments
- return on plan assets
Additional liability to be recognised per IFRIC 14
Changes in the maximum limit of plan assets
Total
Foreign defined benefit plan assets are as follows:
(€ million)
Plan assets:
- prices quoted in active markets
- prices not quoted in active markets
Total
TFR
-
-
1
-
-
-
1
s
t
n
e
m
u
r
t
s
n
I
y
t
i
u
q
E
-
-
-
h
s
a
c
d
n
a
h
s
a
C
l
s
t
n
e
a
v
i
u
q
e
2
-
2
2023
Foreign
defined
benefit
plans
FISDE
and other
foreign
health
plans
2022
Foreign
defined
benefit
plans
FISDE
and other
foreign
health
plans
Total
TFR
(1)
8
3
-
(2)
2
10
(1)
-
-
-
-
-
(1)
(2)
8
4
-
(2)
2
10
-
(5)
2
-
-
-
(3)
-
(3)
(3)
(32)
(9)
20
(5)
-
(26)
(7)
(1)
-
-
-
(11)
(44)
(8)
20
(5)
-
(40)
s
t
n
e
m
u
r
t
s
n
i
t
b
e
D
-
5
5
y
t
r
e
p
o
r
P
-
-
-
s
e
v
i
t
a
v
i
r
e
D
-
25
25
s
d
n
u
f
l
a
u
t
u
M
-
5
5
l
y
b
d
e
h
s
t
e
s
s
A
e
c
n
a
r
u
s
n
i
i
s
e
n
a
p
m
o
c
-
13
13
t
b
e
d
d
e
r
u
t
c
u
r
t
S
s
e
i
t
i
r
u
c
e
s
-
-
-
s
t
e
s
s
a
r
e
h
t
O
16
2
18
l
a
t
o
T
18
50
68
\ 265
SAIPEM ANNUAL REPORT 2023
The main actuarial assumptions used to measure benefit obligations at year end and to estimate costs for the following year are
as follows:
Year 2023
Main actuarial assumptions:
- discount rate
- growth rate of salary increase
- expected rates of return on plan assets
- inflation rate
- life expectancy at age 65
Year 2022
Main actuarial assumptions:
- discount rate
- growth rate of salary increase
- expected rates of return on plan assets
- inflation rate
- life expectancy at age 65
Below are the main actuarial assumptions by geographical area:
Year 2023
Discount rate
Growth rate of salary increase
Inflation rate
Life expectancy at age 65
Year 2022
Discount rate
Growth rate of salary increase
Inflation rate
Life expectancy at age 65
(%)
(%)
(%)
(%)
(years)
(%)
(%)
(%)
(%)
(years)
(%)
(%)
(%)
(years)
(%)
(%)
(%)
(years)
l
s
n
a
p
t
i
f
e
n
e
b
i
n
g
e
r
o
F
d
e
n
i
f
e
d
i
n
g
e
r
o
f
r
e
h
t
o
l
s
n
a
p
h
t
l
a
e
h
d
n
a
E
D
S
I
F
s
t
i
f
e
n
e
b
e
e
y
o
p
m
e
l
m
r
e
t
-
g
n
o
l
r
e
h
t
O
1.35-16.60
0.84-12.00
1.35-4.50
1.25-15.30
12-24
2.10-20.00
0.84-10.00
2.10-7.25
1.25-12.55
12-24
e
p
o
r
u
E
f
o
t
s
e
R
3.30-7.09
6.00
7.09
2.00-4.00
-
3.10-7.09
2.50-6.00
-
15.30
-
3.70-7.25
6.00
-
2.40-4.00
-
3.20-7.25
1.00-6.00
-
1.00-12.55
-
a
c
i
r
f
A
r
e
h
t
O
R
F
T
3.30
2.50
-
2.00
-
3.70
2.90
-
2.40
-
e
n
o
z
o
r
u
E
3.10-3.30
2.50
2.00-2.20
-
3.20-3.70
2.50-2.90
2.00-2.40
-
1.35-4.50
1.50-3.50
1.25-3.00
22-24
2.10-4.90
1.50-3.75
1.25-3.20
22-24
3.20-16.60
5.60-12.00
3.10-15.30
-
3.70-20.00
1.00-10.00
3.00-12.55
-
2.50-9.20
0.84-10.00
2.00-4.00
12-14
2.10-9.32
0.84-10.00
2.00-4.00
12-14
The discount rate used was determined based on market yields on primary corporate bonds (AA rating) in countries with a
sufficiently deep market, or based on government bond yields if this is not the case.
The inflation rates used were based on long-term forecasts prepared by domestic and international banking institutions.
The demographic tables employed are those used by local actuaries to perform IAS 19 measurements.
The effects of reasonably possible changes in the main actuarial assumptions at year end are as follows:
(€ million)
Effect on DBO
TFR
Foreign defined benefit plans
FISDE and other foreign health plans
Other long-term employee benefits
Discount rate
Increase
of 0.5%
(10)
(1)
(7)
(1)
(1)
Decrease
of 0.5%
11
1
7
1
2
Inflation rate
Increase
of 0.5%
3
1
2
-
-
Growth rate
of salary
increase
Increase
of 0.5%
4
-
3
-
1
Growth rate of
pensions
Increase
of 0.5%
1
-
1
-
-
Growth rate
of healthcare
costs
Increase
of 1%
1
-
-
1
-
The sensitivity analysis was performed by applying the modified parameters to the results of the analyses conducted for each
plan.
The expected amount of contributions to be paid to foreign defined benefit plans in the subsequent year is €12 million.
\ 266
The maturity profile of employee benefit plan obligations is as follows:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
2024
2025
2026
2027
2028
After
The weighted average duration of obligations is as follows:
(years)
2023
2022
28 Other non-current liabilities
R
F
T
2
1
2
2
2
10
R
F
T
7
8
d
e
n
i
f
e
d
n
g
e
r
o
F
i
l
s
n
a
p
t
i
f
e
n
e
b
r
e
h
t
o
d
n
a
E
D
S
I
F
h
t
l
a
e
h
n
g
e
r
o
f
i
s
n
a
p
l
13
13
14
15
15
75
1
1
1
1
1
6
d
e
n
i
f
e
d
n
g
e
r
o
F
i
l
s
n
a
p
t
i
f
e
n
e
b
r
e
h
t
o
d
n
a
E
D
S
I
F
h
t
l
a
e
h
n
g
e
r
o
f
i
s
n
a
p
l
10
10
13
14
m
r
e
t
-
g
n
o
l
r
e
h
t
O
e
e
y
o
p
m
e
l
s
t
i
f
e
n
e
b
23
37
12
10
5
10
m
r
e
t
-
g
n
o
l
r
e
h
t
O
e
e
y
o
p
m
e
l
s
t
i
f
e
n
e
b
5
5
Other non-current liabilities of €3 million (€2 million as of December 31, 2022) consisted of the following:
(€ million)
Fair value of derivative financial instruments
Other liabilities
Other liabilities
Total
Dec. 31, 2023
-
2
1
3
Dec. 31, 2022
-
2
-
2
\ 267
SAIPEM ANNUAL REPORT 2023
29 Derivative financial instruments
(€ million)
Derivatives qualified for hedge accounting
Interest Rate Contracts (Forward component)
- purchases
- sales
Currency forwards (Spot component)
- purchases
- sales
Currency forwards (Forward component)
- purchases
- sales
Commodity forwards (Forward component)
- purchases
- sales
Total derivatives qualified for hedge accounting
Derivatives not qualified for hedge accounting
Currency forwards (Spot component)
- purchases
- sales
Currency forwards (Forward component)
- purchases
- sales
Commodity forwards (Forward component)
- purchases
- sales
Total derivatives not qualified for hedge accounting
Total derivatives accounting
Of which:
- current (includes IRS, Note 25 “Analysis of net financial debt”)
- non-current
The derivative contracts’ fair value hierarchy is level 2.
Purchase and sale commitments on derivatives are detailed as follows:
(€ million)
Purchase commitments
Derivatives qualified for hedge accounting:
- interest rate derivatives
- exchange rate derivatives
- commodity contracts
Derivatives not qualified for hedge accounting:
- exchange rate derivatives
Sale commitments
Derivatives qualified for hedge accounting:
- exchange rate derivatives
Derivatives not qualified for hedge accounting:
- exchange rate derivatives
Dec. 31, 2023
Active
fair value
Passive
fair value
Dec. 31, 2022
Active fair
value
Passive
fair value
-
-
5
65
-
(16)
-
-
54
4
12
1
(4)
-
-
13
67
64
3
-
-
2
1
2
2
2
-
9
6
1
-
1
-
-
8
17
17
-
1
-
31
83
(3)
(13)
4
-
103
13
19
-
(2)
-
-
30
133
133
-
-
-
10
60
-
5
2
-
77
6
9
(1)
3
-
-
17
94
94
-
Dec. 31, 2023
Dec. 31, 2022
Active
Passive
Active
Passive
-
441
-
840
1,281
-
405
28
737
1,170
-
656
-
486
1,142
2,415
333
1,518
624
3,039
279
612
1,227
2,745
37
633
46
1,192
1,908
696
242
938
The fair value of derivative financial instruments was determined by taking into account valuation models widely used in the
financial sector and market parameters (exchange rates and interest rates) at the balance sheet date.
The fair value of forward transactions (outright, forward and currency swaps) was determined by comparing the net present
value at the negotiated terms of the transactions outstanding as of December 31, 2023 with the present value recalculated at
\ 268
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
the conditions quoted by the market on the closing date. The model used is the Net Present Value model, which is based on the
forward contract exchange rate, the year-end exchange rate, and the respective forward interest rate curves.
As of December 31, 2023, no Interest Rate Swaps (IRS) (positive for €1 million as of December 31, 2022) contracts were in
existence.
Cash flow hedging transactions relate to forward purchase and sale transactions (forwards, outright and currency swaps).
The recognition of the effects on the income statement and the realisation of the economic flows of the highly probable future
transactions hedged as of December 31, 2023, are expected over a period of time up to 2025.
During the financial year 2023, there were no significant cases in which transactions previously qualified as hedges were no
longer considered highly probable.
The fair value asset on qualified hedging derivative contracts as of December 31, 2023 amounted to €54 million (€103 million as
of December 31, 2022). In respect of these derivatives, the spot component, amounting to €70 million (€114 million as of
December 31, 2022), was suspended in the hedging reserve in the amount of €61 million (€117 million as of December 31,
2022) and recognised in financial income and expenses in the amount of €9 million (-€3 million as of December 31, 2022), while
the forward component, not designated as a hedging instrument, was recognised in financial income and expenses in the
amount of -€16 million (-€16 million as of December 31, 2022).
With regard to commodity contracts, the active fair value assets of €0,2 million was suspended in the hedging reserve (€4 million
as of December 31, 2022).
The fair value liability on qualified hedging derivative contracts as of December 31, 2023 amounted to €9 million (€77 million as
of December 31, 2022). In respect of these derivatives, the spot component, amounting to €3 million (€70 million as of
December 31, 2022), was suspended in the hedging reserve in the amount of €5 million (€61 million as of December 31, 2022)
and recognised in financial income and expenses in the amount of -€2 million (€9 million as of December 31, 2022), while the
forward component, not designated as a hedging instrument, was recognised in financial income and expenses in the amount of
€4 million (€5 million as of December 31, 2022).
With regard to commodity contracts, the fair value liability of €2 million was suspended in the hedging reserve (€2 million as of
December 31, 2022).
The hedging reserve, relating to currency contracts, amounted to a positive amount of €15 million with a weighted average
exchange rate of the hedging instruments of 1.0941 to the US dollar (USD), 3.7357 to the Israeli shekel (ILS) and 0.3348 to the
Kuwaiti dinar (KWD). The hedging reserve, relating to commodity contracts, was a positive €1 million, with a weighted average
price of hedging instruments of 5,734 USD/MT (Metric Ton) for copper hedges and 814 USD/MT (Metric Ton) for fuel hedges.
\ 269
SAIPEM ANNUAL REPORT 2023
The table below shows the change in the hedging reserve attributable to the change in the fair value of hedging transactions
outstanding for the entire year, or of new hedging relationships designated during the year, and to the release of hedging effects
from shareholders' equity to the income statement due to the economic manifestation of the hedged commercial transactions,
or as a result of the discontinuation of hedging relationships due to exposures that are no longer certain or highly probable.
(€ million)
Exchange rate hedge reserve
Saipem SpA
Saipem SA
Sofresid SA
Saipem (Portugal) Comércio Marítimo,
Sociedade Unipessoal Lda
Saipem Ltd
Saipem Misr for Petroleum Services (S.A.E.)
Servizi Energia Italia SpA
Snamprogetti Saudi Arabia Co Ltd Llc
Saipem Contracting Netherlands BV
Saipem Contracting Nigeria
Saipem do Brasil
Saipem Drilling Norway AS
Saipem Guyana
Saipem Luxembourg
Saipem Singapore
Saipem Australia Pty Ltd
Snamprogetti Engineering & Contracting
Total exchange rate hedge reserve
Commodity hedge reserve
Saipem Ltd
Saipem SpA
Saipem SA
Saipem (Portugal) Comércio Marítimo,
Sociedade Unipessoal Lda
Snamprogetti Saudi Arabia Co Ltd Llc
Total commodity hedge reserve
Interest rate hedge reserve
Saipem SpA
Total interest rate hedge reserve
Total hedge reserve
2
2
0
2
,
1
3
.
c
e
D
(37)
(54)
1
14
-
-
(36)
(9)
(2)
3
-
4
(2)
3
-
4
(3)
(114)
1
2
(1)
-
4
6
d
o
i
r
e
p
e
h
t
r
o
f
t
i
f
o
r
P
d
o
i
r
e
p
e
h
t
r
o
f
s
e
s
s
o
L
t
n
e
m
t
s
u
d
a
j
A
D
T
B
E
I
t
i
f
o
r
p
t
n
e
m
t
s
u
d
a
j
s
e
s
s
o
l
A
D
T
B
E
I
135
55
1
31
20
10
68
13
3
1
-
5
1
11
1
19
1
375
1
5
1
2
6
15
(93)
(24)
(1)
(17)
(24)
(2)
(82)
(9)
(1)
(1)
(2)
(2)
-
(6)
-
(14)
-
(278)
(1)
(3)
(2)
(1)
(1)
(8)
(189)
(62)
(1)
(30)
(36)
(3)
(37)
(27)
(4)
(5)
-
(5)
-
(5)
(1)
(29)
(1)
(435)
(1)
(4)
-
(1)
(6)
(12)
215
74
1
14
40
2
45
32
4
3
1
2
-
4
-
22
2
461
-
-
-
-
-
-
1
1
(107)
-
-
390
(1)
(1)
(287)
-
-
(447)
-
-
461
g
n
i
y
l
r
e
d
n
u
t
i
f
o
r
P
n
o
i
t
a
l
l
e
c
n
a
c
(2)
(1)
-
(2)
-
-
-
-
(1)
-
-
-
-
-
-
(1)
-
(7)
-
-
-
-
-
-
-
-
(7)
g
n
i
y
l
r
e
d
n
u
s
e
s
s
o
L
n
o
i
t
a
l
l
e
c
n
a
c
7
1
-
2
-
-
1
-
1
-
-
-
1
-
-
-
-
13
-
-
-
-
-
-
-
-
13
3
2
0
2
,
1
3
.
c
e
D
36
(11)
1
12
-
7
(41)
-
-
1
(1)
4
-
7
-
1
(1)
15
-
-
(2)
-
3
1
-
-
16
During the financial year 2023, the project margins were adjusted by a net negative amount of €26 million for hedging.
Information on the risks being hedged and the carrying amounts of the financial instruments and their economic and equity
effects is provided in Note 33 “Guarantees, commitments and risks”; information on hedging policies is provided in Note 3
“Accounting policies” under “Financial risk management”.
30 Discontinued operations, assets held for sale and directly associated liabilities
Discontinued operations
In accordance with the provisions of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, the Onshore
Drilling (DRON) business is recognised under Discontinued operations. During 2022, the activities in Saudi Arabia, Congo, the
United Arab Emirates, and Morocco were transferred, and during the first half of 2023 the activities in Kuwait and Latin America
were sold; exception is made for the activities in Argentina, which are expected to be transferred, together with those in
Kazakhstan and Romania, within the first half of 2024.
The economic results of the DRON sector are shown separately from Continuing operations in a single line in the income
statement, and limited to only transactions with third parties, while intercompany transactions continue to be eliminated.
Assets and liabilities directly associated with activities in Argentina, Kazakhstan and Romania were classified as held for sale.
Finally, the net cash flows of Discontinued operations have been presented separately from the net cash flows of Continuing
operations.
\ 270
Below are the main balance sheet values of Discontinued operations.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Below is the main financial information of Discontinued operations.
(€ million)
Total core business revenue and other revenue
Operating expenses
Operating result
Financial income (expense)
Gains (losses) on equity investments
Pre-tax profit (loss)
Income taxes
Capital gain
Net profit (loss):
- of which Saipem shareholders
- of which non-controlling interests
Net income per share
Cash flows from operating activities
Net cash flows from investing activities
Capital expenditure
Dec. 31, 2023
4
22
26
26
-
26
Dec. 31, 2022
112
31
143
43
2
45
Dec. 31, 2023
99
(105)
(6)
-
-
(6)
-
-
(6)
(6)
-
-
-
-
-
Dec. 31, 2022
477
(465)
12
(7)
-
5
(18)
119
106
106
-
0.11
46
(27)
27
Assets held for sale
As of December 31, 2023, there were no assets held for sale.
During 2023, the sale of the floating, production storage and offloading (FPSO) unit Cidade de Vitória and of Saipem SpA
Kazakhstan branch assets was finalised.
31 Equity
Non-controlling interests
Minority shareholders' capital and reserves amounted to €2 million as of December 31, 2023 (€18 million as of December 31,
2022).
The breakdown of minority interests is shown below.
(€ million)
ER SAI Caspian Contractor Llc
Other
Total
Profit (loss) for the year
Equity
2023
-
-
-
2022
-
-
-
2023
-
2
2
2022
17
1
18
\ 271
SAIPEM ANNUAL REPORT 2023
Saipem's equity
Saipem's shareholders' equity amounted to €2,394 million as of December 31, 2023 (€2,068 million as of December 31, 2022)
and can be broken down as follows:
(€ million)
Share capital
Share premium reserve
Legal reserve
Hedging reserve
Fair value reserve
Exchange rate difference reserve
Actuarial reserve for employees
Reserve for OCI on equity-accounted investments
Other
Retained earnings
Profit (loss) for the year
Negative reserve for treasury shares in portfolio
Total
Dec. 31, 2023
502
1,622
-
19
(2)
(45)
(22)
(2)
80
137
179
(74)
2,394
Dec. 31, 2022
502
1,877
-
(76)
(4)
(20)
(16)
-
-
91
(209)
(77)
2,068
Share capital
As of December 31, 2023, Saipem SpA's fully paid-up share capital amounted to €501,669,790.83, corresponding to
1,995,558,791 shares, all without par value (1,995,558,791 as of December 31, 2022), of which 1,995,557,732 (1,995,557,732 as
of December 31, 2022) were ordinary shares and 1,059 savings shares (1,059 as of December 31, 2022).
Share premium reserve
The excess reserve for shares amounted to €1.622 million as of December 31, 2023 (€1.877 million as of December 31, 2022).
Other reserves
Other reserves as of December 31, 2023 were positive by €28 million (negative by €116 million as of December 31, 2022) and
consisted of the following:
(€ million)
Legal reserve
Hedging reserve
Fair value reserve
Exchange rate difference reserve
Actuarial reserve for employees
Reserve for OCI on equity-accounted investments
Other
Total
Dec. 31, 2023
-
19
(2)
(45)
(22)
(2)
80
28
Dec. 31, 2022
-
(76)
(4)
(20)
(16)
-
-
(116)
Hedging reserve
The reserve is positive by €19 million (negative by €76 million as of December 31, 2022), net of tax effects of €3 million (as €31
million of December 31, 2022) and relates to the fair value measurement of interest rate hedging contracts, commodity risk
hedging contracts and the spot component of exchange rate risk hedging contracts outstanding as of December 31, 2023.
Fair value reserve
The negative reserve of €2 million (negative by €4 million as of December 31, 2022) includes fair value of available-for-sale
financial instruments.
Exchange rate difference reserve
The reserve is negative by €45 million (negative by €20 million as of December 31, 2022) and relates to exchange rate
differences from the translation into euros of financial statements expressed in currencies other than the euro (mainly the US
dollar).
Actuarial reserve for employees
The reserve shows a negative balance of €22 million (negative by €16 million as of December 31, 2022), net of the tax effect of
€7 million.
This reserve, in accordance with the provisions of IAS 19, includes the actuarial gains and losses related to the employee
defined benefit plans.
\ 272
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Reserve for OCI on equity-accounted investments
The OCI reserve of the investments accounted for using the equity method includes a negative value of €2 million relating to the
defined employee benefit plans.
Other
“Other” includes the “convertible bond reserve”, which is positive by €80 million and represents the option that grants holders of
compound financial instruments the right to convert into a fixed quantity of the Company's ordinary shares. This value is equal to
the difference between the fair value of the compound financial instrument as a whole and the fair value of the financial liability,
net of emission costs of €1,041 thousand.
Negative reserve for treasury shares in portfolio
The negative reserve amounted to €74 million (€77 million as of December 31, 2022) and included the value of treasury shares
allocated to the implementation of incentive plans for Group executives.
During the year, 17,308 shares were assigned to implement the 2016-2018 Long-Term Incentive Plan.
Taking into account the transactions described above, the breakdown of treasury shares is as follows:
Treasury shares in portfolio as of December 31, 2022
Procurement year 2023
Allocations 2023
Treasury shares in portfolio as of December 31, 2023
s
e
r
a
h
s
f
o
r
e
b
m
u
N
415,957
-
(17,308)
398,649
e
g
a
r
e
v
A
)
€
(
t
s
o
c
t
s
o
c
l
a
t
o
T
)
n
o
i
l
l
i
m
€
(
186.183
-
186.183
186.183
77
-
(3)
74
)
%
(
l
a
t
i
p
a
c
e
r
a
h
S
0.02
-
n.a.
0.02
At the same date, 1,995,160,142 shares were outstanding (1.995.142.834 as of December 31, 2022).
Reconciliation of Saipem SpA's shareholders' equity and profit for the year with the consolidated figures
(€ million)
As per the financial statements of Saipem SpA
Surplus of the net assets of the financial statements including the results for the
period, compared to the carrying values of participations in consolidated companies
Consolidation adjustments, net of tax effect, for:
- difference between purchase price and corresponding book net worth
- elimination of unrealised intra-group profits
- other corrections
Total equity
Non-controlling interests
As per consolidated financial statements
Dec. 31, 2023
Dec. 31, 2022
Profit (loss)
for the year
107
Equity
2,395
Profit (loss)
for the year
(256)
Equity
2,148
36
(518)
225
(556)
(23)
25
34
179
-
179
694
(163)
(12)
2,396
(2)
2,394
(3)
23
(198)
(209)
-
(209)
717
(191)
(32)
2,086
(18)
2,068
The item "Other adjustments" mainly includes the impact of consolidation entries aimed at aligning the margins of job orders
involving several Group companies whose individual progressions may not have a homogeneous economic-temporal
development to the progress of the consolidated job order.
\ 273
SAIPEM ANNUAL REPORT 2023
32 Additional information
Additional information on the statement of cash flows
(€ million)
Analysis of disposals in companies which have left the consolidation scope and business units
Current assets
Non-current assets
Net liquid funds (net financial debt)
Current and non-current liabilities
Net effect of disposals
Current value of investments retained after transfer of control
Capital gain (loss) from disposals
Non-controlling interests
Reclassification of other items
Total sale price
less:
Cash and cash equivalents
Cash flow from disposals
Dec. 31, 2023
32
47
(42)
24
61
-
(24)
(14)
(2)
21
42
63
Disposals in 2023 are related to the sale of the equity investment in the company ER SAI Caspian Contractor Llc, the sale of the
equity investment in the company Sofresid Engineering SA and, as part of the sale of Onshore Drilling started in 2022, the sale of
the assets in Kuwait and Latin America, with the exception of those in Argentina.
33 Guarantees, commitments and risks
Guarantees
Guarantees amounted to €7,898 million (€7,393 million as of December 31, 2022), and were as follows:
(€ million)
Joint ventures and associates
Subsidiaries
Own
Total
Dec. 31, 2023
Dec. 31, 2022
Other
personal
guarantees
374
4,777
2,682
7,833
Unsecured
19
46
-
65
Total
393
4,823
2,682
7,898
Other
personal
guarantees
522
4,839
1,927
7,288
Unsecured
54
51
-
105
Total
576
4,890
1,927
7,393
Other personal guarantees issued for consolidated companies amounted to €4,777 million (€4,839 million as of December 31,
2022), which are related to independent guarantees given to third parties mainly to bid bonds and to ensure compliance with
contractual agreements, together with sureties and other personal guarantees issued to banks.
Guarantees issued to/through related parties are detailed in Note 43 “Related party transactions”.
Commitments
Saipem SpA has commitments with clients and/or other beneficiaries (financial and insurance institutions, export credit
agencies) relating to the fulfilment of contractual obligations entered into by itself and/or by its subsidiaries, associates and joint
ventures in the event of non-performance and payment of any damages arising from non-performance.
The total value of corporate commitments, which also entail the obligation to take action, amounted to €74,350 million (€78,607
million as at December 31, 2022).
The repayment obligations of bank loans granted to Group companies are generally supported by guarantees issued by the
parent company Saipem SpA and other Group companies. The repayment obligations of the Group’s bond issues are covered
by guarantees issued by the parent company Saipem SpA, and other Group companies.
Risks
For information on risk management, both financial and industrial, please refer to the analytical description in Note 3 “Accounting
policies” in the “Financial risk management” section and to the “Risk management” section in the Directors’ Report.
\ 274
Additional information on financial instruments
FINANCIAL INSTRUMENTS - CARRYING AMOUNTS AND EFFECT ON INCOME STATEMENT AND EQUITY
The carrying amounts and effect on income statement and equity of financial instruments were as follows:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(€ million)
Financial instruments held for trading
Non-hedging derivatives (a)
Financial instruments measured at fair value
Bonds
Financial fixed assets
Investments carried at fair value
Receivables and payables and other assets (liabilities) measured at amortised cost
Trade receivables and other assets (b)
Financial receivables (c) (g)
Trade payables and other debts (d)
Contract liabilities
Loans and borrowings (e) (h)
Net hedging derivative assets (liabilities) (f)
g
n
i
y
r
r
a
C
s
t
n
u
o
m
a
5
86
-
2,441
641
2,944
3,088
3,123
45
)
e
s
n
e
p
x
e
(
e
m
o
c
n
I
e
h
t
n
i
d
e
d
r
o
c
e
r
t
n
e
m
e
t
a
t
s
e
m
o
c
n
i
(74)
-
-
(11)
54
(48)
-
(153)
(26)
)
e
s
n
e
p
x
e
(
e
m
o
c
n
I
r
e
h
t
o
o
t
d
e
d
r
o
c
e
r
e
v
i
s
n
e
h
e
r
p
m
o
c
f
o
s
m
e
t
i
e
m
o
c
n
i
-
3
-
-
-
-
-
-
124
(a) The income statement effects relate only to the income (expense) indicated in Note 36 “Financial income (expense)”.
(b) The effects on the income statement were reported in the “Financial income (expense)” for €11 million of expense (relating to currency translations gains (losses) arising from adjustments to the
year-end exchange rate).
(c) The effects on the income statement were reported in the “Financial income (expense)” for €54 million of income (financial income (expense) relating to net debt), of which €14 million of income
related to lease financial assets.
(d) The effects on the income statement were reported in the “Financial income (expense)” for €48 million of expense (relating to currency translations gains (losses) arising from adjustments to the
year-end exchange rate).
(e) The effects on the income statement were reported in the “Financial income (expense)” for €8 million of income (relating to currency translations gains (losses) arising from adjustments to the
year-end exchange rate), for €161 million of expense due to lease financial liabilities, of which €42 million of expense related to lease financial liabilities.
(f) Project margins were adjusted in the income statement by €26 million in expense.
(g) The item includes current and non-current lease assets amounting to €253 million.
(h) The item includes current and non-current lease liabilities amounting to €730 million.
NOTIONAL AMOUNTS OF DERIVATIVES
The notional amount of a derivative is an amount used as a reference to calculate the contractual payments to be exchanged.
This amount may be expressed in terms of a monetary or physical quantity (e.g., barrels, tonnes, etc.). Monetary quantities in
foreign currencies are converted into euros at the exchange rate prevailing at year end.
Notional amounts of derivatives, as summarised below, do not represent the amounts actually exchanged between the parties
and do not therefore constitute a measure of Saipem’s credit risk exposure. This is instead represented by the fair value of
derivatives at year end.
INTEREST RATE RISK MANAGEMENT
No Interest Rate Swaps (IRS) contracts were in existence as of December 31, 2023.
The data relating to the Interest Rate Swaps in force at the end of 2022, entered into with third party banks, is set out in the table
below:
Notional amount
Weighted average buying rate
Weighted average selling rate
Floor
Weighted average maturity
(€ million)
(%)
(%)
(%)
(years)
Dec. 31, 2023
-
-
-
-
-
Dec. 31, 2022
37
2.132
0.129
(1.25)
1
EXCHANGE RATE RISK MANAGEMENT
The Group enters into various types of exchange rate derivatives to manage its exchange rate risk. For contracts involving the
exchange of two foreign currencies, both the amount received, and the amount sold are indicated.
(€ million)
Forward foreign exchange contracts
3
2
0
2
,
1
3
.
c
e
D
f
o
s
a
t
n
u
o
m
a
l
a
n
o
i
t
o
N
1,228
2
2
0
2
,
1
3
.
c
e
D
f
o
s
a
t
n
u
o
m
a
l
a
n
o
i
t
o
N
718
\ 275
SAIPEM ANNUAL REPORT 2023
The table below shows forward foreign exchange contracts and other instruments used to manage the exchange rate risk for
the main currencies.
(€ million)
AED
AUD
BRL
CAD
CHF
EUR
GBP
IDR
ILS
JPY
KWD
MXN
NOK
RON
SAR
SGD
THB
USD
Total
Notional amount
as of Dec. 31, 2023
Notional amount
as of Dec. 31, 2022
Purchases
17
97
20
-
1
427
250
-
25
8
-
2
28
5
567
7
1
968
2,423
Sales
31
12
35
-
3
14
122
-
37
-
125
6
8
93
36
-
14
3,115
3,651
Purchases
12
87
46
-
1
613
216
9
29
10
-
22
31
-
311
2
-
1,577
2,966
Sales
53
31
79
7
3
2
39
-
22
-
120
10
10
56
-
100
34
3,118
3,684
The table below shows the hedged cash flows as of December 31, 2023, by time period of occurrence and expressed in euro.
(€ million)
Revenue
Expenses
r
e
t
r
a
u
q
t
s
r
i
F
4
2
0
2
1,398
999
r
e
t
r
a
u
q
d
n
o
c
e
S
4
2
0
2
1,594
974
r
e
t
r
a
u
q
d
r
i
h
T
4
2
0
2
1,386
946
r
e
t
r
a
u
q
h
t
r
u
o
F
4
2
0
2
883
476
d
n
o
y
e
b
d
n
a
5
2
0
2
1,543
1,592
l
a
t
o
T
6,804
4,987
COMMODITY PRICE RISK
The Group only enters into commodity contracts with the purpose of managing its commodity price risk exposure.
The following table shows hedged cash flows as of December 31, 2023 by time period of occurrence.
(€ million)
Expenses
r
e
t
r
a
u
q
t
s
r
i
F
4
2
0
2
28
r
e
t
r
a
u
q
d
n
o
c
e
S
4
2
0
2
-
r
e
t
r
a
u
q
d
r
i
h
T
4
2
0
2
-
r
e
t
r
a
u
q
h
t
r
u
o
F
4
2
0
2
-
d
n
o
y
e
b
d
n
a
5
2
0
2
-
l
a
t
o
T
28
INFORMATION ON FAIR VALUE
The classification of financial assets and liabilities is given below; these are measured at fair value in the statement of financial
position, according to the fair value hierarchy defined according to the significance of the inputs used in the assessment process. In
particular, depending on the characteristics of the inputs used for assessment, the fair value hierarchy has the following levels:
a)
b)
level 1: prices (not subject to variations) listed on active markets for the same financial assets or liabilities;
level 2: assessments made on the basis of inputs, other than the listed prices referred to in the preceding point, which, for the
measured asset/liability, can be observed directly (prices) or indirectly (derived from prices); and
level 3: inputs not based on observable market data.
c)
\ 276
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In relation to the above, the financial instruments measured at fair value as of December 31, 2023 were as follows:
(€ million)
Financial assets (liabilities) held for trading:
- non-hedging derivatives
Financial assets available for disposal:
- financial assets measured at fair value through OCI
Net hedging derivative assets (liabilities)
Total
Dec. 31, 2023
Level 1
Level 2
Level 3
Total
-
86
-
86
5
-
45
50
-
-
-
-
5
86
45
136
Throughout the financial year 2023, there were no transfers between the different levels of the fair value hierarchy.
Legal proceedings
The Group is a party in certain judicial proceedings. Provisions for legal risks are made on the basis of information available at the
date of the present Report, including information acquired by external consultants providing the Group with legal support.
Information available regarding criminal proceedings at the preliminary investigation phase is by its nature incomplete due to the
principle of pre-trial secrecy.
With respect to pending legal proceedings, provisions are not made when a negative outcome is evaluated as not probable or
when it is not possible to estimate its outcome.
Except as noted below, for all the criminal proceedings evaluated, also with the support of external lawyers, and considered to be
proceedings whose outcome cannot be predicted, no provisions were made.
The Company has made provisions for the following proceedings:
a) actions for damages brought by institutional investors following Consob Resolution No. 18949 of June 18, 2014, for which
the Company prudently deemed it necessary to establish a provision;
b) the Algerian GNL 3 Arzew criminal proceeding, for which it was necessary to acknowledge the sentence in the first instance
of February 14, 2022, confirmed by the Court of Appeal of Algiers on June 28, 2022 and subsequently by the Algerian
Supreme Court, as indicated in the press release dated November 18, 2022.
For more details, please see the coming paragraphs.
A summary of the most significant judicial proceedings is set out below.
ALGERIA
Proceedings in Algeria - Sonatrach 1: in 2010, proceedings were initiated in Algeria regarding various matters and involving 19
parties investigated for various reasons (“Sonatrach 1 investigation”). The Société nationale pour la recherche, la production, le
transport, la transformation et la commercialisation des hydrocarbures SpA (“Sonatrach”) appeared as plaintiff in these
proceedings and the Algerian Trésor Public also applied to appear as a plaintiff.
The Algerian company Saipem Contracting Algérie SpA (“Saipem Contracting Algérie”) is also a party to the proceedings
regarding the manner in which the GK3 contract was awarded by Sonatrach. In the course of these proceedings, some bank
accounts of Saipem Contracting Algérie denominated in local currency were frozen.
In particular, in 2012 Saipem Contracting Algérie received formal notice of the referral to the Chambre d’accusation at the Court
of Algiers of an investigation into the company regarding allegations that it took advantage of the authority or influence of
representatives of a government-owned industrial and trading company in order to inflate prices in relation to contracts awarded
by that company. The GK3 contract was awarded in June 2009 and had an equivalent value of €433.5 million (at the exchange
rate in effect when the contract was awarded).
At the beginning of 2013, the “Chambre d’accusation” ordered Saipem Contracting Algérie to stand trial and further ordered that
the aforementioned bank accounts remained frozen. According to the allegation, the price offered had been up to 60% higher
than the market price; this alleged increase over the market price had been reduced to 45% of the market price as a result of the
discount negotiated between the parties after the offer. In April 2013, and in October 2014, the Algerian Supreme Court rejected
requests made by Saipem Contracting Algérie since 2010 to unfreeze the bank accounts. The documentation was then
transmitted to the Court of Algiers which, in the hearing of March 15, 2015, adjourned the proceedings to the hearing of June 7,
2015, during which, in the absence of certain witnesses, the Court officially handed over the case to a criminal court. The trial
commenced with the hearing fixed for December 27, 2015. In the hearing of January 20, 2016, the Algiers Public Prosecutor
requested the conviction of all 19 defendants accused in the “Sonatrach 1” trial.
The Algiers Public Prosecutor requested that Saipem Contracting Algérie be fined 5 million Algerian dinars (approximately
€40,000).
The Algiers Public Prosecutor also requested the confiscation of the alleged profit ascertained by the Court, of all 19 parties
whose conviction has been requested (including Saipem Contracting Algérie).
For the offence with which Saipem Contracting Algérie was charged, local regulations prescribed a fine as the main punishment
(up to a maximum of approximately €40,000) and allowed, in the case of the alleged offence, additional sanctions such as the
confiscation of the profit arising from the alleged offence (which would be the equivalent of the amount allegedly over the market
price of the GK3 contract as ascertained by the judicial authority) and/or disqualification sanctions.
On February 2, 2016, the Court of Algiers issued the first instance ruling. Amongst other things, this ruling ordered Saipem
Contracting Algérie to pay a fine of approximately 4 million Algerian dinars (corresponding to approximately €30,000). In
particular, Saipem Contracting Algérie was held to be responsible, in relation to the call for bids for the construction of the GK3
gas pipeline, of “an increase in price during the awarding of contracts signed with a public company of an industrial and
\ 277
SAIPEM ANNUAL REPORT 2023
commercial character in a way that causes benefit to be derived from the authority or influence of representatives of said
company”, an act punishable under Algerian law. The ruling also returned two bank accounts denominated in local currency to
Saipem Contracting Algérie. These held a total of approximately €64.8 million (amount calculated at the exchange rate as of
December 31, 2023), which had been frozen in 2010.
The client Sonatrach, which appeared as a civil plaintiff in the proceedings, reserved its right to pursue its claims in the civil
courts. The request by the Algerian Trésor Civil to appear as plaintiff was rejected.
Pending the filing of the reasons thereof, the ruling of February 2, 2016 of the Court of Algiers was challenged before the
Supreme Court: by Saipem Contracting Algérie (which requested acquittal and had announced that it would challenge the
decision); by the Prosecutor General (who had requested the imposition of a fine of 5 million Algerian dinars and the confiscation,
requests that were rejected by the Court, which, as noted, fined Saipem Contracting Algérie with the lesser amount of
approximately 4 million Algerian dinars); by the Trésor Public (whose request to be admitted as plaintiff against Saipem
Contracting Algérie had been, as already stated, rejected by the Court); by all the other parties sentenced, in relation to the cases
concerning them.
Owing to these challenges, the implementation of the decision of the Court of Algiers was fully suspended and remained so,
pending the ruling of the Supreme Court in respect of:
≥ the payment of the fine of approximately €30,000; and
≥ the unfreezing of the two bank accounts, containing a total of approximately €64.8 million (amount calculated at the exchange
rate as of December 31, 2023).
Sonatrach has not challenged the decision of the Court, consistently with its request, accepted by the Court, to be allowed to
claim compensation subsequently in civil proceedings. Civil action was not initiated by Sonatrach.
With the judgement of July 17, 2019, which reasons were filed on October 7, 2019, the Algerian Supreme Court overruled the
decision of the Court of Algiers dated February 2, 2016, upholding the challenge of all the appellants (including the appeal of
Saipem Contracting Algérie) and referring the case to the Court of Appeal of Algiers.
The proceedings began on February 17, 2021 and on December 12, 2022, the Court of Appeal of Algiers issued its judgement.
Saipem’s press release dated December 12, 2022 informed that:
“Most of the Company’s defence arguments were accepted. New summons to appear.
Following the press releases dated February 2, 2016 and July 17, 2019, Saipem informs that today the Court of Appeal of Algiers
has pronounced a judgment in the Sonatrach 1 criminal proceedings, against Saipem Contracting Algérie ongoing since 2010, in
Algeria, in relation to the award of the GK3 contract in 2009. In this proceeding Saipem Contracting Algérie was accused of
“inflating the price on contracts awarded by a public company engaged in industrial and commercial activities, taking advantage
of the authority or influence of representatives of said company” which bears a criminal sanction under Algerian law.
Specifically, today the Court of Appeal of Algiers, having accepted most of the Company's defence arguments, rejected the
claim for damages of the Algerian Treasury, confirming the rest of the first instance sentence. As a result of this decision, the
same Court of Appeal also ordered to revoke the seizure of current accounts in the amount of €63.2 million equivalent, referable
to the proceedings in question.
It should be noted that the proceeding in the first instance concluded on February 2, 2016, when the Court of Algiers ordered
Saipem Contracting Algérie to pay a fine of approximately 4 million Algerian dinars (corresponding to around €30,000). The ruling
issued in the first instance was challenged before the Algerian Supreme Court, which on July 17, 2019, had fully overruled the
decision by the Court of Algiers dated February 2, 2016, thus the Court of Appeal of Algiers started the trial which ended today.
It should be noted that the Italian judiciary authority – further to criminal proceedings in which also the process of award of the
GK3 project in 2009 had been analysed – fully acquitted the company on December 14, 2020.
Saipem Contracting Algérie, in welcoming the ruling, will consider whether to challenge the decision of the Court of Appeal
regarding the fine imposed before the Supreme Court. Additional information on this proceeding in Algeria is provided under the
section “Legal proceedings” in Saipem’s Interim Consolidated Financial Report as of June 30, 2022 (pages 142-143).
Still concerning projects dating back to 2008, Saipem has also received a summons to appear, with other individuals and legal
entities, before the Algerian Court in a new proceeding for “inflating the price on contracts awarded by a public company
engaged in industrial and commercial activities, taking advantage of the authority or influence of representatives, to obtain
advantageous prices compared to those normally charged, or to modify, to their advantage, the quality of the materials or
services or the delivery or supply times. Trafficking in influence. Violation of laws and regulations concerning exchange and
transfer of capital to and from abroad”. The company denies all charges and will actively participate in the proceedings to show it
was not involved in the alleged facts, having always acted in accordance with the relevant regulatory framework”.
On December 19, 2022, Saipem Contracting Algérie challenged the decision of the Algiers Court of Appeal decision of
December 12, 2022, relating to the pecuniary fine before the Algerian Supreme Court.
On February 16, 2023, Saipem Contracting Algérie filed its brief with its grounds for appeal.
On March 2, 2023, Saipem Contracting Algérie filed its reply to the appeal presented by the General Attorney to the Algerian
Supreme Court. The hearing before the Supreme Court, initially set for May 25, 2023, had been postponed to July 27, 2023.
On July 27, 2023, following the Algerian Supreme Court hearing, Saipem issued the following press release:
“Making reference to the press release of December 12, 2022, Saipem informs that today the Algerian Supreme Court has
pronounced a judgement in the Sonatrach 1 criminal proceedings ongoing since 2010, in Algeria, against, among others,
Saipem Contracting Algérie SpA, in relation to the award of the GK3 contract in 2009. Based on the decision read out by the
Algerian Supreme Court, whose text and reasons will be made available in the manner and timeframe provided under local
regulations, Saipem was pleased to learn from its lawyers that the Algerian Supreme Court, concerning specifically Saipem
Contracting Algérie, upheld the ruling by the Court of Appeal of Algiers. Further information on this proceeding is provided in
detail, in addition to the aforementioned press release, under the section “Legal proceedings” in the Annual Report as of
December 31, 2022 of Saipem SpA”.
\ 278
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At the following hearing, on February 8, 2024, the Court of Appeal of Algiers fully acquitted Saipem Contracting Algérie and
ordered the release of the bank accounts that had been frozen. On the same date, Saipem issued the following press release:
“With reference to the press release of July 27, 2023, Saipem informs that today the Court of Appeal of Algiers, following referral
by the Supreme Court of July 27, 2023, has fully acquitted Saipem Contracting Algérie SpA in the Sonatrach 1 criminal
proceedings ongoing since 2010 in Algeria, in relation to the award of the GK3 contract in 2009. The text and reasons of today's
decision will be made available in the manner and timeframe provided under local regulations. Further information on this
proceeding is provided in detail, in addition to the aforementioned press release, under the section “Legal proceedings” in the
Interim Report as of June 30, 2023 of Saipem SpA”.
Ongoing Investigation - Algeria - Sonatrach 2: in March 2013, the legal representative of Saipem Contracting Algérie was
summoned to appear at the Court of Algiers, where he received verbal notification from the local investigating judge of the
commencement of an investigation (“Sonatrach 2”) underway “into Saipem Contracting Algérie for charges pursuant to Articles
25a, 32 and 53 of the Algerian Anti Corruption Law No. 01/2006”. The investigating judge also requested documentation
(Articles of Association) and other information concerning Saipem Contracting Algérie, Saipem SpA and Saipem SA. After this
summon, no further activities or requests have followed.
GNL3 Arzew - Algeria: on October 16, 2019 and October 21, 2019, Saipem Contracting Algérie and Snamprogetti SpA Algiers
branch were summoned by the investigating judge at the Supreme Court as part of investigations relating to events in 2008
(award of the GNL3 Arzew contract). Saipem Contracting Algérie and the Algiers Branch of Snamprogetti SpA were further
summoned on November 18, 2019 by the General Public Prosecutor at the Supreme Court of Algiers to provide information and
documents relating to the same GNL3 Arzew contract awarded by Sonatrach in 2008.
A further hearing of the representatives of Saipem Contracting Algérie and the Algiers Branch of Snamprogetti SpA took place
on November 18, 2019, at which the General Public Prosecutor of Algiers was provided with the information and documentation
he had requested; the General Public Prosecutor of Algiers instructed Saipem Contracting Algérie and Snamprogetti SpA Algiers
branch to provide further documentation by December 4, 2019. Saipem Contracting Algérie and the Algiers Branch of
Snamprogetti SpA promptly filed the documentation requested by the deadline of December 4, 2019.
The Algiers General Public Prosecutor also summoned a representative of Saipem Contracting Algérie. On November 20, 2019,
the Algiers General Public Prosecutor informed Saipem Contracting Algérie and Snamprogetti SpA Algiers branch that Algeria's
Trésor Public had joined the proceedings as a plaintiff.
On December 9, 2020, the local representative of Saipem Contracting Algérie was heard.
Saipem SpA Algiers branch, Saipem Contracting Algérie and Snamprogetti SpA Algiers Branch were again called on December
16, 2020.
In September 2021, it became known that the Court of Algiers – Sidi Mhamed pole economic et financier – having taken note of
the closure of the investigations, had issued an order to seize certain bank accounts of Saipem Group companies in Algeria,
already subject to a similar previous provision set out in the context of the GK3 proceeding, as indicated above.
The commencement of the trial relating to the 2008 award of the GNL3 Arzew contract was initially set for a hearing before the
Court of Algiers pole economic et financier on December 6, 2021, which was first postponed to December 20, 2021, then to
January 3, 2022.
At the hearing of January 17, 2022, the trial was postponed to January 24, 2022 and then to January 31, 2022.
In these criminal proceedings, which involved 38 individuals (including the former Algerian Ministry of Energy, certain former
executives of Sonatrach and Algerian customs officials) and legal persons, the Public Prosecutor alleged that, with regard to the
award in 2008 and the execution of the contract for the GNL3 Arzew project (the original value of which was approximately €2.89
billion), the following offences were committed, inter alia, by Saipem SpA Algerian branch, Snamprogetti SpA Algerian branch,
Saipem Contracting Algérie, two former employees of the Saipem Group and an employee of the Saipem Group:
(i)
the “inflating of prices in connection with the award of contracts concluded with a public company of an industrial and
commercial nature benefiting from the authority or influence of representatives of that body”;
infringement of certain Algerian customs regulations.
(ii)
Sonatrach, the Algerian Trésor Public and the Customs Agency requested to appear as civil plaintiffs. The trial was declared
open at the hearing of January 31, 2022. At the hearing of February 1, 2022, the judge closed the hearing stage. The Saipem
Group defended itself on the merits, stating the lack of grounds for the charges, noting, among other things, the verdict of final
acquittal pronounced by the Italian judicial authority regarding matters that included the award of the GNL3 Arzew contract and
in any case the effects of the settlement signed with Sonatrach on February 14, 2018, which also concerned the previous
pending arbitration regarding the same project.
By its press release dated February 15, 2022, Saipem informed:
“The Court of Algiers yesterday has ruled in first instance on the legal proceeding ongoing since 2019 in Algeria concerning,
among other things, the award of the 2008 project GNL3 Arzew.
Saipem, Saipem Contracting Algérie and Snamprogetti SpA Algeria Branch will appeal the decision of the Court of Algiers with
subsequent suspension of its effects.
It should be noted that the Italian judicial authority, at the end of a criminal proceeding in which the award methods of the 2008
project GNL3 Arzew were also scrutinised, pronounced on December 14, 2020 a final acquittal.
With reference to the criminal proceeding by the Court of Algiers, the companies Saipem, Saipem Contracting Algérie and
Snamprogetti SpA Algeria Branch were accused of the offences sanctioned by the Algerian law in the case of: ‘price increase
when awarding contracts with a public company, industrial and commercial, benefitting of the authority or influence of
representatives of said company’ and of ‘false customs declaration’.
The ruling of the Court of Algiers, with reference to both charges, established for Saipem, Saipem Contracting Algérie and
Snamprogetti SpA Algeria Branch a fine and damage compensation for a total of approximately €192 million. The ruling
determined the recognition in the financial statements as of December 31, 2021 of an obligation of equal value, of which the
payment remains on hold due to the appeal.
\ 279
SAIPEM ANNUAL REPORT 2023
The Court of Algiers has also sentenced two former employees of the Saipem Group (the former head of the GNL3 Arzew
project and an Algerian employee) to 5 and 6 years of conviction respectively. Another employee of the Saipem Group was
acquitted of all charges.
The ground of the sentence have not yet been made available by the Court of Algiers”.
The first-degree sentence had imposed the payment of approximately €208 million, of which €145 million was awarded in favour
of the civil parties and €63 million in damages.
On February 16, 2022, Saipem SpA, Saipem Contracting Algérie and Snamprogetti SpA Algeria Branch appealed the sentence
of February 14, 2022, whose grounds were made available on April 4, 2022.
The first hearing in the appeal judgment, initially scheduled for April 12, 2022, was postponed to May 10, 2022 and then to May
24, 2022 then June 14, 2022.
At the hearing on June 14, 2022, the Judge indicated a decision would be issued on June 28, 2022.
Saipem’s press release dated June 28, 2022, informed:
“The Court of Appeal of Algiers today ruled in the criminal proceeding, ongoing in Algeria since 2019, connected, inter alia, to the
2008 tender for the award of the GNL3 Arzew contract. In this proceeding, the companies Saipem SpA, Saipem Contracting
Algérie and Snamprogetti SpA Algeria Branch were charged, in accordance with Algerian law, of allegedly ‘having obtained a
contract, with a price higher than the correct value, concluded with a state-owned commercial and industrial company,
benefitting of the influence of representatives of that company’; and of ‘false custom declarations’.
The Court of Appeal of Algiers upheld, on both charges, the judgement of the first-degree ruling issued by the Court of Algiers
on February 14, 2022. This ruling had imposed against Saipem SpA, Saipem Contracting Algérie and Snamprogetti SpA Algeria
Branch fines and damages for an overall amount of approximately €199 million euros equivalent at today’s exchange rate (of
which approximately €60 million in fines and around €139 million in favour of the civil parties). Following the first degree ruling by
the Court of Algiers, the Company set aside an equivalent amount in the Financial Statements as of December 31, 2021, even
though the payment had been suspended following the appeal against the decision. The Tribunal of Algiers had also sentenced
two former employees of Saipem Group (the then head of the project GNL3 Arzew and a former Algerian employee) to 5 years
and 6 years of imprisonment, respectively. Another employee of Saipem Group had been acquitted of all charges.
The reasons for the ruling have not yet been made available by the Court of Appeal of Algiers.
Saipem notes that the Italian judiciary authority – further to criminal proceedings in which also the process of award in 2008 of
the project GNL3 Arzew had been analysed – fully acquitted the Company on December 14, 2020.
Saipem SpA, Saipem Contracting Algérie and Snamprogetti SpA Algeria Branch will promptly challenge before the Algerian
Supreme Court the decision issued by the Court of Appeal of Algiers. Under Algerian law, the opposition against the ruling of the
Court of Appeal suspends the effects of such ruling with regard to the fines (equal to approximately €60 million) while the ruling
in favour of the civil parties (equal to approximately €139 million) is enforceable despite the pending opposition.
The judgement, whose amount has already been set aside in the financial statements as of December 31, 2021, does not affect
the validity of the financing package and the achievement of the objectives of the 2022-2025 Strategic Plan”.
On July 31, 2022, Saipem SpA Algeria branch, Saipem Contracting Algérie and Snamprogetti SpA Algeria Branch challenged the
decision of the Algiers Court of Appeal issued on June 28, 2022 before the Algerian Supreme Court.
Saipem’s press release dated November 18, 2022 informed:
“Saipem SpA, Saipem Contracting Algérie and Snamprogetti SpA Algeria Branch reserve the right to challenge the decision
issued by the Algerian Supreme Court.
Following the press releases dated February 18 and June 22, 2022, Saipem informs that the Algerian Supreme Court has ruled in
the criminal proceeding related to the GNL3 Arzew project, rejecting the appeal presented by all defendants against the ruling
issued by the Algiers Court of Appeal on June 28, 2022. Specifically, today, Saipem SpA, Saipem Contracting Algérie and
Snamprogetti SpA Algeria branch were notified of the aforementioned ruling by their local legal counsels.
It is recalled that the decision by the Algiers Court of Appeal, on June 28, 2022, had upheld the first instance sentence by the
Court of Algiers dated February 14, 2022, which had convicted the abovementioned defendants for charges and amounts as
they are indicated in the recalled press releases.
Saipem notes that the Italian judiciary authority - further to criminal proceedings in which the process of award in 2008 of the
project GNL3 Arzew had been analysed – fully acquitted the Company on December 14, 2020.
Saipem SpA, Saipem Contracting Algérie and Snamprogetti SpA Algeria Branch, which have always contested the charges,
reserve the right to challenge the decision issued by the Algerian Supreme Court before the relevant judicial authority.
Following the original award by the Court of Algiers dated February 14, 2022, the aforementioned amounts had been set aside in
the financial statements as of December 31, 2021.
Additional information on the GNL3 Arzew proceeding in Algeria is provided under the section “Legal proceedings” in Saipem’s
Interim Consolidated Financial Report as of June 30, 2022 (pages 144-145)”.
According to Algerian law, the pecuniary fine and the compensation amounts are not currently due.
Regarding the bank accounts already frozen, Saipem Contracting Algérie had informally learned of a request of confiscation of
sums held therein and had informed the banks involved, inter alia, of the existence of a previous similar provision which insisted
on the same sums set out in the GK3 proceedings which would have determined the illegitimacy of any subsequent payment by
them of the aforementioned sums. Saipem Contracting Algérie had informed the local competent Authority for the execution
which, noting the foregoing, ordered the temporary suspension of the execution, pending the conclusion of the GK3
proceedings. Despite the information made available by Saipem, pending the issuance of the aforementioned ministerial
provision, one of the local banks had proceeded to implement the confiscation request for a sum equal to 1,693,222,124.55
Algerian Dinars (equivalent to €11.4 million at the exchange rate of December 31, 2023).
After excluding the possibility of presenting an extraordinary appeal, the management of the Company carried out, also through
external legal consultants, an in-depth analysis on the recognition and enforceability of the rulings of the Algerian Supreme Court
outside the local jurisdiction. At the same time, the management of Saipem Contracting Algérie, with the help of its legal
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advisors, made a formal request for an authentic interpretation of the ruling to the Attorney General's Office, the only body
delegated to enforce judgments under Algerian law, regarding the permissibility of confiscation of bank accounts that had no
connection to the aforementioned project. This request has not yet been processed.
The Algerian proceedings - Sonatrach 3: on November 17, 2022, the legal representative of Saipem SpA Algeria branch was
summoned by the Judge of the Economic and Financial Criminal Division of the Court of Algiers, as part of an investigation
concerning some 2008 Competitive FEED contracts also involving other natural and legal persons.
The Judge indicated the following alleged charges against Saipem SpA Algeria branch: “inflating the price on contracts awarded
by a public company engaged in industrial and commercial activities, taking advantage of the authority or influence of
representatives, to obtain advantageous prices compared to those normally charged, or to modify, to their advantage, the
quality of the materials or services or the delivery or supply times. Trafficking in influence. Violation of laws and regulations
concerning exchange and transfer of capital to and from abroad”.
On November 22, 2022, a second hearing was held with the legal representative of Saipem SpA Algeria branch, who provided all
the elements, including documents, aimed at clarifying the regularity of the activities of Saipem SpA Algeria Branch in relation to
the Competitive FEED procedures.
The first hearing originally scheduled for December 8, 2022 was postponed to December 29, 2022 and then to January 5, 2023.
On January 5, 2023, the proceedings began and on January 10, 2023 it was closed.
With press release dated January 19, 2023, Saipem SpA informed:
"Saipem: ruling issued by the Court of Algiers in the proceedings related to a 2008 bid for studies of the Rhourde Nouss QH
competitive feed. The Company will challenge the decision before the Court of Appeal of Algiers.
Milan, January 19, 2023 - Following the press release dated December 12, 2022, the Company informs that today the Court of
Algiers issued a first-degree ruling in relation to the criminal proceedings, which started in Algeria in December 2022 against
Saipem SpA, in relation to the company’s participation in a 2008 bid for studies of the Rhourde Nouss QH competitive feed.
Based on the decision communicated to Saipem SpA by its local attorneys, the Court of Algiers, upholding the Company's
defences, acquitted the latter of the crime of 'violation of laws and regulations concerning exchange and transfer of capital to
and from abroad' and the crime of 'trafficking in influence'.
The Court of Algiers found Saipem SpA liable for the crime of 'inflating the price on contracts awarded by a public company
engaged in industrial and commercial activities, taking advantage of the authority or influence of representatives, to obtain
advantageous prices compared to those normally charged, or to modify, to their advantage, the quality of the materials or
services or the delivery or supply times' imposing only a fine of about 34,000 euros equivalent at today exchange rate.
With reference to the claims brought by Sonatrach and Trésor Public as civil plaintiffs, the Court of Algiers, noted the absence of
compensatory claims by Sonatrach against Saipem and upheld in minimal part the claims brought by Trésor Public, recognising
in favour of the latter a compensation for an overall amount of about €680.000 equivalent at today’s exchange, which the quota
directly pertaining to Saipem SpA is equal to approximately €170,000 equivalent at today's exchange rate.
The Company, in welcoming the absolutory content of the decision, will appeal the condemnatory content of the ruling by the
Court of Algiers, resulting in the suspension of its criminal and civil effects”.
On January 26, 2023, Saipem SpA appealed against the first instance decision dated January 19, 2023.
At the end of the Appeal proceeding, on April 16, 2023, the Algiers Court of Appeal acquitted Saipem of all charges. On the same
date, the Company issued the following press release:
“Saipem: full acquittal by the Court of Appeal of Algiers in the proceeding related to a 2008 bid for studies of the Rhourde Nouss
QH competitive FEED - Saipem welcomes with satisfaction the full acquittal issued by the Court of Appeal of Algiers - Following
the press release dated January 19, 2023, the Company informs that today, the Court of Appeal of Algiers issued a second-
degree ruling in relation to the criminal proceeding, which started in December 2022 against Saipem SpA, in relation to the
Company’s participation in a 2008 bid for studies of the Rhourde Nouss QH competitive FEED. Based on the decision read out in
Court and communicated to Saipem SpA by its local attorneys, the Court of Appeal of Algiers, in light of the objective arguments
presented by Saipem's defence, reversing the first-degree ruling, extended the Company's acquittal to all charges and therefore
annulled the fines and rejected the claims for compensation imposed by the Court of Algiers in the first-degree ruling".
On June 19, 2023, the bailiff notified Saipem of the request, presented by the General Attorney to the Algiers Court of Appeal,
for the annulment of the judgment of the Court of Algiers pronounced on April 16, 2023, which had, among other things,
acquitted Saipem of all charges. Saipem SpA, through its local lawyers, filed a brief to oppose the grounds for appeal proposed
by the General Attorney.
At the hearing on January 11, 2024, the Algerian Supreme Court rejected the appeals filed by the Algerian Attorney General and
Trésor Public, thus upholding the April 16, 2023 ruling and making Saipem SpA's full acquittal final.
The Company issued the following press release on January 14, 2024:
“Following the press releases issued on January 19 and April 16, 2023, the Company informs that, following the appeals
presented by some of the other parties to the proceeding, the Algerian Supreme Court has ruled on the criminal proceedings
initiated in December 2022 against Saipem SpA in relation to the participation of the latter in a 2008 tender for competitive FEED
studies in relation to the Rhourde Nouss QH project. Based on the decision, read out at the hearing and communicated to
Saipem SpA by its local lawyers, the Supreme Court, having rejected all the appeals, definitely confirmed the acquittal of the
Company already pronounced by the Court of Appeal of Algiers on April 16, 2023”.
BRAZIL
On August 12, 2015, the Public Prosecutor’s office of Milan served Saipem SpA. with a notice of investigation and a request for
documentation in the framework of new criminal proceedings for the alleged crime of international corruption occurring between
2004-2014 concerning three contracts: “Mexilhao 1”, “Uruguà - Mexilhao Pipeline Project” and “Operation of the Floating,
Production, Storage and Offloading FPSO - Cidade de Vitória” awarded by the Brazilian company Petrobras to Saipem SA
(France) and Saipem do Brasil (Brazil). On January 30, 2023, the Milan Public Prosecutor served the Company's lawyers with
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the decree of dismissal of the Saipem SpA’s proceeding pursuant to Article 58 of Legislative Decree No. 231/2001 dated
January 24, 2022.
On January 31, 2023, the Company’s lawyers acquired a copy of the dismissal order, sending it to the company on the same
date.
It states that the dismissal regards Saipem SpA pursuant to Article 746-quater, paragraph 6 of the Code of Criminal Procedure.
Following the aforementioned dismissal, the file was taken over by the Paris Public Prosecutor's Office (Parquet National
Financier). To assist the subsidiary Saipem SA, involved in a request for the acquisition of documents by the French Public
Prosecutor, a law firm in Paris has been engaged and is currently dealing with it.
With reference to the aforementioned contracts, the Company learned only through the press, that the award of this contract
was being looked into by the Brazilian judicial authorities in relation to a number of Brazilian citizens, including a former associate
of Saipem do Brasil.
In particular, on June 19, 2015, Saipem do Brasil learned through the media of the arrest (in regard to allegations of money
laundering, corruption and fraud) of a former associate, as a result of a measure taken by the Brazilian Public Prosecutor’s office
of Curitiba, in the framework of a judicial investigation in progress in Brazil since March 2014 (“Lava Jato” investigation). On July
29, 2015, Saipem do Brasil then learned through the press that, in the framework of the conduct alleged against the former
associate of Saipem do Brasil, the Brazilian Public Prosecutor’s office also alleges that Petrobras was unduly influenced in 2011
to award Saipem do Brasil a contract called “Cernambi” (for a value of approximately €56 million). This has been purportedly
deduced from the circumstance that in 2011, in the vicinity of the Petrobras headquarters, said former associate of Saipem do
Brasil claims to have been the target of a robbery in which approximately 100,000 reals (approximately €18,650 amount updated
at the exchange rate as of December 31, 2023) just withdrawn from a credit institution were stolen from him. According to the
Brazilian Prosecutor, the robbery allegedly took place in a time period prior to the award of the aforesaid “Cernambi” contract.
Saipem SpA has cooperated fully with the investigations and has started an audit with the assistance of a third-party consultant.
The audit examined the names of numerous companies and persons reported by the media as being under investigation by the
Brazilian judicial authorities. The audit report, issued on July 14, 2016, recognised the absence of communications or
documents relating to transactions and/or financial movements between companies of the Saipem Group and the personnel of
Petrobras under investigation.
The witnesses heard in the criminal proceedings underway in Brazil against this former associate, as well as in the framework of
the works of the parliamentary investigative committee set up in Brazil on the “Lava Jato” case, have stated that they were
unaware of any irregularities regarding Saipem’s activities.
Petrobras appeared as a plaintiff (Assistente do Ministerio Publico) in the proceedings against the three individuals charged. The
Brazilian Attorney General considered that the conditions for keeping confidential an agreement signed in October 2015 by the
former associate of Saipem do Brasil – who, with such agreement committed himself to substantiating with evidence some of
the statements made – had ceased. The proceeding resumed on June 9, 2017. At the hearing on June 9, 2017, the depositions
of the three defendants were obtained, among them the former associate of Saipem do Brasil and a former Petrobras official.
Saipem do Brasil’s former associate, with regard to the robbery he suffered where 100,000 Brazilian reals were stolen in October
2011, said that money was needed to pay the costs of real estate for a company he was managing on behalf of a third party vis-
à-vis Saipem (that is, the former Petrobras official charged in the same proceeding who confirmed that statement).
The former Saipem do Brasil associate had also stated that the Saipem Group did not pay any bribes because Saipem’s
compliance system prevented this from happening. That statement was confirmed by the former Petrobras official charged in
the same proceeding. The former associate of Saipem do Brasil and the former Petrobras official charged in the same
proceeding, while offering a reconstruction of the facts which was partially different, had reported that the possibility of some
inappropriate payments was discussed with reference to certain contracts of Saipem do Brasil but in any case, no payment had
been made by the Saipem Group. The former Saipem do Brasil associate and the former Petrobras official charged in the same
proceeding stated that the contracts awarded by the client to the Saipem Group had been won through regular bidding
procedures. During the proceedings against the former associate of Saipem do Brasil, no evidence of irregularities emerged in
the management of tenders assigned by Petrobras to Saipem Group and/or evidence of illegal payments by Saipem Group in
relation to tenders assigned by Petrobras to Saipem Group and/or evidence of damages suffered by Petrobras in relation to
tenders assigned to Saipem Group. Saipem Group has not been involved in this proceeding.
The audit that was concluded in 2016 was relaunched with the support of the same third-party consultant used earlier and with
the same methodology in order to analyse some of the information mentioned during the depositions of June 9, 2017.
The audit report, issued on July 18, 2018, confirmed the absence of communications or documents relating to transactions
and/or financial movements between companies of the Saipem Group and the personnel of Petrobras under investigation.
With the press release dated May 30, 2019, Saipem informed as follows:
“Saipem: notification of administrative proceedings in Brazil to the subsidiaries Saipem SA and Saipem do Brasil in relation to a
contract awarded in 2011.
San Donato Milanese (Milan), May 30, 2019 - Saipem informs that today its French subsidiary Saipem SA and its Brazilian
subsidiary Saipem do Brasil were notified by the competent Brazilian administrative authority (Controladoria-Geral da União
through the Corregedoria-Geral da União) about the opening of administrative proceedings with respect to alleged irregularities
in relation to the award by the Brazilian oil company Petrobras, as leader of the ‘Consortium BMS 11’, in December 2011, of the
contract (whose value was equal to approximately 249 million Brazilian reals, currently equivalent to approximately €56 million)
for the installation of the underwater gas pipeline connecting the Lula and Cernambi fields in Santos Basin.
Saipem SA and Saipem do Brasil will cooperate in the administrative proceedings by providing all the clarifications requested by
the competent administrative authority and have confidence in the correctness of the award of the above-mentioned contract
and in the absence of circumstances to affirm the administrative liability of the companies”.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As part of the aforementioned administrative proceedings, on June 21, 2019, Saipem do Brasil and Saipem SA presented their
initial defence statements before the competent administrative authority (Controladoria-Geral da União through Corregedoria
Geral da União).
With a communication dated August 21, 2019, the competent administrative authority (Controladoria-Geral da União through
Corregedoria-Geral da União) informed Saipem do Brasil and Saipem SA that, following the preliminary investigation carried out
up to that moment, the administrative procedure has not been closed and invited Saipem do Brasil and Saipem SA to present
further defence statements by September 20, 2019.
Saipem do Brasil and Saipem SA submitted their defence statements by the set deadline. On April 24, 2020, the competent
Brazilian Administrative Authority (Controladoria-Geral da União through the Corregedoria-Geral da União) ordered a 180-day
postponement for the conclusion of the administrative procedure.
On November 30, 2020, Saipem SA and Saipem do Brasil submitted further defence statements before the Brazilian
Administrative Authority (Controladoria-Geral da União through the Corregedoria-Geral da União).
On December 29, 2022, it was published in the Diario Oficial da Uniao the decision of the Minister at the Controladoria-Geral da
União which applied against Saipem SA and to Saipem do Brasil the sanction of the interdiction from participating in tenders or
concluding agreements with the Brazilian Public Administration with suspended effect.
On January 6, 2023, the aforementioned Saipem companies presented a request to review the decision of December 29, 2022,
within the Controladoria-Geral da União.
On January 12, 2024, the ruling by the Controladoria-Geral da União was published in the Diario Oficial da Uniao, applying against
Saipem SA and Saipem do Brasil the sanction of suspension from participating in tenders or entering into agreements with the
Brazilian Public Administration for a period of 2 years.
On the same date, by press release, Saipem SpA informed as follows:
“With reference to the press release of May 30 2019, we inform that the Brazilian Controladoria-Geral da União (CGU) has
published today its final ruling in the administrative proceedings initiated against Saipem SA and Saipem do Brasil in reference to
alleged irregularities in the award, dating back to December 2011, by the BM-S-11 Consortium, of the contract for the
installation of a gas pipeline.
The CGU has amended its previous interim decision consisting in the ban on contracting with the Public Administration issued
on December 29, 2022 and substituted it with the temporary suspension limited to a period of two years.
The reclassification of the sanction was obtained also thanks to the recognition by the same CGU of the effectiveness of the
Compliance model of the two companies.
The sanction has no impacts on the ongoing projects in Brazil since it applies solely to potential new contracts and concerns
exclusively dealings with the Public Administration.
Notwithstanding the above, Saipem SA and Saipem do Brasil intend to appeal the decision in the appropriate jurisdictions,
considering it to be inconsistent with what the companies demonstrated during the proceedings”.
On January 18, 2024, Saipem SA and Saipem do Brasil filed their appeal before the Federal District Court in Brasilia.
On June 8, 2020, the Brazilian Federal Prosecutor’s office issued a press release informing of a new charge against a former
President of Saipem do Brasil, who left the Saipem Group on December 30, 2009. The charge concerns alleged episodes of
corruption and money laundering that allegedly occurred between 2006 and 2011 in relation to two contracts awarded by
Petrobras Group companies to Saipem Group companies (the Mexilhao contract signed in 2006 and the Uruguà-Mexilhao
contract signed in 2008).
The new charge was made only against individuals (not Saipem Group companies) and involved, in addition to the former
President of Saipem do Brasil, some former Petrobras officials.
The Brazilian Federal Court of Curitiba on July 6, 2020, accepted the complaint filed by the Brazilian Federal Prosecutor's Office
against the former Chairman of Saipem do Brasil (who left the company on December 30, 2009) and a former Petrobras official
against whom a criminal trial was opened in Brazil. Petrobras was admitted as plaintiff (“Assistente do Ministerio Publico”) in the
same proceeding against the two accused persons. No company of the Saipem Group is party to this proceeding.
FOS CAVAOU
With regard to the Fos Cavaou (“FOS”) project for the construction of a regasification terminal, the client Société du Terminal
Méthanier de Fos Cavaou (“STMFC”, now Fosmax LNG) in January 2012 commenced arbitration proceedings before the
International Chamber of Commerce in Paris (“Paris ICC”) against the contractor STS, a French “société en participation” made
up of Saipem SA (50%), Tecnimont SpA (49%) and Sofregaz SA (1%). On July 11, 2011, the parties signed a mediation
memorandum pursuant to the rules of Conciliation and Arbitration of the Paris ICC. The mediation procedure ended on
December 31, 2011 without agreement having been reached, because Fosmax LNG refused to extend the deadline.
The brief filed by Fosmax LNG in support of its request for arbitration included a demand for payment of approximately €264
million for damages allegedly suffered, penalties for delays and costs for the completion of works (mise en régie). Of the total
sum demanded, approximately €142 million was for loss of profit, an item excluded from the contract except for cases of willful
misconduct or gross negligence. STS filed its defence brief, including a counterclaim for compensation for damage due to
excessive interference by Fosmax LNG in the execution of the works and for the payment of extra work not approved by the
client (and reserving the right to quantify the amount as the arbitration proceeds). On October 19, 2012, Fosmax LNG lodged a
Mémoire en demande. Against this, STS, on January 28, 2013, lodged its own Mémoire en défense, in which it filed a
counterclaim for €338 million. The final hearing was held on April 1, 2014. On the basis of the award issued by the Arbitration
Panel on February 13, 2015, Fosmax LNG paid STS the sum of €84,349,554.92, including interest on April 30, 2015, of which
50% is due to Saipem SA. On June 26, 2015, Fosmax LNG challenged the award before the French Conseil d’Etat, requesting its
annulment on the alleged basis that the Arbitration Panel had erroneously applied private law to the matter instead of public law.
On November 18, 2015, a hearing was held before the Conseil d’Etat. Subsequently to the submission of the Rapporteur Public,
the judges concluded the discussion phase. The Rapporteur requested a referral to the Tribunal des Conflits. With its judgement
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SAIPEM ANNUAL REPORT 2023
of April 11, 2016, the Tribunal des Conflits held that the Conseil d’Etat had jurisdiction for deciding on the dispute regarding the
appeal to overrule the arbitration award of February 13, 2015. On October 21, 2016, a hearing was held before the Conseil d’Etat
and on November 9, the latter issued its own ruling, with which it partially nullified the award of February 13, 2015, for only the
mise en régie costs (quantified by Fosmax LNG in €36,359,758), stating that Fosmax LNG should have relinquished such costs
back to an arbitration tribunal, unless otherwise agreed by the parties.
Parallel with the aforementioned appeal before the Conseil d’Etat, on August 18, 2015, Fosmax LNG also filed an appeal with the
Court of Appeal of Paris to obtain the annulment of the award and/or the declaration of nullity of the relevant exequatur, the
enforceability of which had been recognised and of which Fosmax LNG had been notified on July 24, 2015. On February 21,
2017, the Court of Appeal declared itself incompetent to decide on the annulment of the award and stated that it would
postpone the subsequent decision on the alleged nullity of the exequatur. On July 4, 2017, the Court annulled the exequatur
issued by the President of the Tribunal de grande instance and sentenced STS to pay the costs (€10,000) of the proceeding in
favour of Fosmax LNG.
On June 21, 2017, Fosmax LNG notified Sofregaz, Tecnimont SpA and Saipem SA, of a request for arbitration, requesting that
the aforementioned companies (as members of the société en partecipation STS) be jointly and severally condemned to pay the
mise en régie costs as quantified above beyond delays and legal fees. On April 13, 2018, Fosmax LNG filed its Mémoire en
demande in which it detailed its demands at €35,926,872 in addition to interest for late payments of approximately €4.2 million.
STS filed its brief and response on July 13, 2018, with which it has made the counter claim that Fosmax LNG be ordered to pay
€2,155,239 in addition to interest for loss of profit and €5,000,000 for non-material damage.
Hearings were held from February 25 to February 27, 2019. By the award communicated to the lawyers of the parties on July 3,
2020, the Arbitration Tribunal fully rejected the counterclaims made by the STS members and sentenced them, jointly and
severally, to pay Fosmax LNG: (i) €31,966,704 for en règie works made by Fosmax LNG; (ii) default interest on the
aforementioned amount at the annual rate EURIBOR 1 month plus two basis points, starting from the 45th day from the issue of
the accepted invoices and up to complete payment; (iii) USD 204,400 as a partial refund of the advance paid by Fosmax LNG for
the costs of the arbitration procedure; and (iv) €1,343,657 as compensation for legal defence costs. With an addendum to the
award, the Arbitral Tribunal provided some clarification on the application of the default interest.
On July 30, 2020, Saipem SA paid Fosmax LNG its share of the principal capital of the award, equal to €16,744,610. In 2021, the
appeal process against the award proposed by Tecnimont SpA was concluded with the rejection of the appeal.
By letter dated November 16, 2020, Fosmax LNG’s defence jointly notified Tecnimont SpA and Saipem SA to pay the
outstanding part of the award within 15 days, quantifying the interest and VAT at €11,374,761. However, there was no
consensus on how to calculate interest, and the issue is still under discussion between the parties. Tecnimont SpA paid its
capital share and expenses. On December 30, 2021, Saipem SA paid its VAT share (€3,196,670). Tecnimont SpA and Saipem SA
agreed to pay FOSMAX LNG only the amount of undisputed interests, notifying such decision to Fosmax LNG through their
lawyers. On February 1, 2022, Saipem has therefore made a payment of €3,073,902.
On April 25, 2022, Fosmax LNG notified of a seizure order for four Saipem SA current accounts up to the amount of €5,712,140
plus expenses, for alleged additional interest on arrears over and above the interest already paid. On May 20, 2022, Saipem SA
opposed the execution of the seizure. The amount seized is equal to €92,154. Saipem SA, disputing the legitimacy of the action
by Fosmax LNG, notified Fosmax LNG that it opposed the execution and requested the annulment of the seizure, deemed
illegitimate, and that Fosmax LNG be sentenced to a fine of €3,000 for reckless litigation plus the payment of €20,000 for
damages. After the first hearing held on September 14, 2022, the Judge adjourned the case to the hearing of November 23,
2022, for Saipem SA to present its defence. On February 8, 2023, the discussion hearing was held and the Judge retained the
case for decision. Following the judge's rejection of Saipem SA's opposition, the latter filed an appeal. The Court of Appeal has
set the timetable for the procedure which should end on October 18, 2023 with the final hearing for discussion.
On November 29, 2023, the Court of Appeals issued a ruling upholding Saipem SA's appeal, lifting the freezing of current
accounts. On January 29, 2024, Fosmax LNG appealed the decision of the Court of Appeals to the Supreme Court.
ACTIONS FOR DAMAGES FOLLOWING CONSOB RESOLUTION NO. 18949 OF JUNE 18, 2014
First proceeding with institutional investors
First instance proceedings: on April 28, 2015, a number of foreign institutional investors initiated legal action against Saipem
SpA before the Court of Milan, seeking judgement against the Company for the compensation of alleged loss and damage
(quantified in approximately €174 million), in relation to investments in Saipem SpA shares which the claimants alleged that they
had made on the secondary market. In particular, the claimants sought judgement against Saipem SpA requiring the latter to pay
compensation for alleged loss and damage which purportedly derived from the following: (i) with regard to the main claim, from
the communication of information alleged to be “imprecise” over the period from February 13, 2012 to June 14, 2013; or
(ii) alternatively, from the allegedly “delayed” notice, only made on January 29, 2013, with the first “profit warning” (the so-called
“First Notice”) of privileged information which would have been in the Company’s possession from July 31, 2012 (or such other
date to be established during the proceedings, identified by the claimants, as a further alternative, on October 24, 2012,
December 5, 2012, December 19, 2012 or January 14, 2013), together with information which was allegedly “incomplete and
imprecise” disclosed to the public over the period from January 30, 2013 to June 14, 2013, the date of the second “profit
warning” (the so-called “Second Notice”). Saipem SpA appeared in court, case number R.G. 28789/2015, fully disputing the
adverse parties’requests, challenging their admissibility and, in any case, their lack of grounds.
Following the first instance ruling, on November 9, 2018, the Court filed the first instance ruling No. 11357 rejecting the merit of
the request by the parties. The Court has indeed ruled that there is lack of evidence of ownership of Saipem SpA shares by said
plaintiffs in the period indicated above and has condemned them to pay €100,000 in favour of Saipem SpA, by way of
reimbursement of legal expenses.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Appeal proceedings: on December 31, 2018, the institutional investors challenged the aforementioned sentence before the
Court of Appeal of Milan, requesting that Saipem SpA be ordered to pay approximately €169 million. On February 23, 2021, the
Judge ordered an integrative evidence phase.
On April 14, 2022, the court technical expert (“CTU”) filed his technical report integrated on February 20, 2023. On March 6,
2023, at the request of the Court of Appeal, the court technical expert filed a clarification. At the hearing of May 3, 2023, the
decision was retained.
In a ruling dated November 7, 2023, the Milan Court of Appeals partially reformed the first instance ruling and – against a claim of
more than €170 million (plus interest and revaluation) – partially upheld that claim granting approximately €10.2 million (plus
interest and revaluation). The Milan Court of Appeals substantially rejected the investors' claims, having found Saipem SpA liable
only for an informational delay for a very limited period of time.
Supreme Court: on December 21, 2023, Saipem SpA filed an appeal to the Supreme Court against the ruling of the Milan Court
of Appeals.
On January 30, 2024, the investors filed their counter-appeal and cross-appeal.
Saipem SpA filed its own counter-appeal in response to the cross-appeal within the legal deadlines.
Second proceeding with 27 institutional investors
First instance proceedings: with a writ of summons dated December 4, 2017, twenty-seven institutional investors initiated
legal action before the Court of Milan section specialised in the field of corporate law, against Saipem SpA and two former Chief
Executive Officers of said company, requesting that they are jointly condemned to pay compensation (with respect to the two
former members of the company, limited to their periods of stay in office) for damages, material and non-material, allegedly
suffered due to an alleged manipulation of information released to the market during the period between January 2007 and June
2013.
Saipem SpA liability was assumed pursuant to Article 1218 of the Civil Code (contractual liability) or pursuant to Article 2043 of
Civil Code (non-contractual liability) or pursuant to Article 2049 of the Civil Code (owner and client liabilities) for the illegal
conduct committed by the two former company representatives.
The Company appeared in Court to contest the claims in full, pleading inadmissibility and in any case the groundlessness in fact
and in law.
In the pleading pursuant to Article 183, paragraph 6, No. 1, Civil Procedure Code, the plaintiffs provided for the quantification of
damages allegedly suffered in the amount of approximately €139 million. With the pleading under Article 183, paragraph 6, No. 3,
Civil Procedure Code, one of the plaintiffs declared to waive the action pursuant to Article 306, Civil Procedure Code.
On November 9, 2018, the Company filed sentence No. 11357 issued by the Court of Milan on November 9, 2018 at the
outcome of case R.G. No. 28789/2015, as this provision decided the same preliminary issues of merit raised by Saipem SpA and
the other defendants in the case under consideration, in particular with reference to the failed proof of purchase of Saipem SpA
shares.
On November 9, 2019, Saipem SpA produced in the proceedings the order of the Criminal Court of Milan dated October 17,
2019, with reference to the pending criminal judgment R.G.N.R. 5951/2019, in which the constitution of approximately 700 civil
parties was declared inadmissible in that case, with reasons similar to those of judgment No. 11357 issued by the Court of Milan
on November 9, 2018 at the outcome of case R.G. No. 28789/2015.
On February 9, 2021, the Judge held the case in decision – having deemed it necessary to remit the decision on all claims and
exceptions made by the parties to the Court – setting the legal terms for the filing of the final statements and the replies which
were respectively filed on April 12 and May 3, 2021.
With a ruling dated November 20, 2021, the Court of Milan ruled in favour of Saipem SpA, rejecting the plaintiffs' claims for
approximately €101 million out of €139.6 million, considering the ownership of Saipem SpA shares in the relevant period to be
unproven.
Investors have paid Saipem SpA approximately €150,000 in legal fees.
The Court of Milan, with the above ruling and with an order dated November 20, 2021, referred the case to the preliminary
investigation for claims made by other plaintiffs for damages amounting to a total of approximately €38 million.
With a correction order dated March 10, 2022, the Court of Milan – at the request of all the parties in the proceedings – made
some changes to the first instance sentence, adding some plaintiffs and funds/assets separated to the group of those whose
claims had been fully rejected, and adding other plaintiffs and funds/assets to the group of investors for which the prosecution in
first instance was ordered.
By order dated October 4, 2022, communicated on October 6, 2022, reserving any assessment on the relevance of the criminal
acquittal decision dated December 21, 2021 issued in the R.G.N.R. 5951/2019 proceedings and the court technical expert
report (“CTU”) rendered in the R.G. 28789/2015 proceedings (both produced by Saipem SpA in the proceedings), the Court
decided to initiate the expert technical activity ordered on November 20, 2021, with a question crystallized in the cross-
examination of the parties at the hearing of December 14, 2022, appointing the same technical expert of the R.G. 28789/2015
proceedings.
The Judge accepted the request for extension of the filing of the expert opinion, the deadline being July 15, 2024, and set the
hearing for September 17, 2024 to examine the findings of the expert opinion itself.
Appeal proceedings: on January 22, 2022, Saipem SpA appealed the ruling of November 20, 2021, insofar as it remanded the
claims of these plaintiffs for investigation. The parties appeared in the proceedings within the terms, also formulating a
cross-appeal against the same sentence.
On January 24, 2022, the investors whose claims were rejected, because they had failed to prove they owned Saipem SpA
shares in the relevant period, had also appealed the ruling of November 20, 2021.
Saipem SpA appeared in this judgment with a brief filed on May 25, 2022, also containing an cross-appeal. The other defendants
appeared by filing a brief with cross- appeal on May 19 and May 20, 2022.
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SAIPEM ANNUAL REPORT 2023
In light of the changes made by the correction order (ordinanza di correzione) of the Court of Milan on March 10, 2022 to the
judgement of the Court of Milan of November 20, 2021, Saipem SpA, on March 18, 2022, challenged the judgement also in the
parts corrected by the correction order, with reference to the plaintiffs and funds initially omitted from the proceeding and
subsequently "added" to the group of those for which the continuation of the trial in the first instance had been ordered. The
other parties appeared in the proceedings filing their briefs on July 25, 2022.
Three appeals were pending against the same ruling and, at the request of the parties, on September 28, 2022, the Court of
Appeal united the three appeals. At the final hearing closing arguments were submitted by the parties in the three combined
proceedings, held on July 5, 2023, the case was held in decision, setting(cid:1)terms for the exchange of final briefs and replies to be
filed by the Company within the legal deadlines.
Third proceedings with 27 institutional investors
On December 1, 2022, 27 institutional investors served Saipem SpA and two previous managing directors of the Company with
a writ of summons before the Civil Court of Milan – section specialised in corporate matters – requesting jointly (with respect to
the two former company representatives, limited to their respective terms of office) the compensation for pecuniary and non-
pecuniary damages allegedly suffered in the period between January 2007 and June 2013.
The liability of Saipem SpA is claimed pursuant to Article 1218, Civil Code (contractual liability), or pursuant to art. 2043, Civil
Code (non-contractual liability), or pursuant to Article 2049, Civil Code (liability of owners and clients) for the offenses allegedly
committed by the two former company representatives sued, as well as liability for a crime pursuant to Article 185 Italian Criminal
Code.
The amount of damage is not quantified by the plaintiffs, who reserved the right to proceed with the related quantification during
the proceedings.
In its defence, Saipem SpA appeared before the Court on September 27, 2023, contesting each charge and(cid:1) requesting the
dismissal of all investors' claims.
On November 22, 2023, the first hearing was held in which some preliminary issues of Saipem SpA were discussed, and the
Judge reserved the right to proceed. On February 21, 2024, the Judge decided to deal in advance with the issue of the plaintiffs'
standing/representation with respect to the merits of the case. The hearing was adjourned to September 24, 2024 to deal with
this issue, the Judge having given deadlines to the parties to submit the relevant briefs.
Fourth proceedings with 14 investors
On December 21, 2023, 14 investors served Saipem SpA with a writ of summons before the Court of Milan, claiming the
Company's alleged liability, pursuant to Article 94 et seq., of Legislative Decree No. 58 of February 24, 1998, and Articles 1337
and/or 2043 of the Italian Civil Code for having allegedly communicated erroneous and misleading information to the market in
the period between the date of publication of the financial results for the first nine months of 2015, i.e., October 27, 2015, and
the date of publication of the results for the first nine months of 2016, i.e., October 25, 2016, with regard to, inter alia, the 2016-
2019 Strategic Plan, the 2015 consolidated financial statements, and the documentation relating to the 2016 capital increase.
The claim for damages is formulated with regard to the difference between the investment in Saipem shares made by the
plaintiffs during the relevant period and the value of the shares on the date of sale or, if still held by the investor, on the date of
the summons’ notification, for an overall amount (combining the claims of the individual plaintiffs) of approximately €1.7 million.
The first hearing listed in the summons is scheduled on May 6, 2024. On February 26, 2024, Saipem SpA appeared in the
proceedings. The Court of Milan confirmed the hearing on May 6, 2024, and set deadlines for the parties to file supplementary
briefs.
Demands for out-of-court settlement and mediation proceedings: in relation to alleged delays in providing information to
the market, Saipem SpA received a number of out-of-court claims and requests for mediation during the period 2015-2023 and
in the first months of 2024.
With regard to out-of-court requests, the following were made: (i) in April 2015 by 48 institutional investors on their own behalf
and/or on behalf of the funds respectively managed for a total amount of approximately €291.9 million, without specifying the
value of the claims of each investor/fund (subsequently, 21 of these institutional investors together with 8 others proposed a
request for mediation, for a total amount of approximately €159 million; 5 of these institutional investors together with 5 others
proposed a request for mediation, for a total amount of approximately €21.9 million); (ii) in September 2015 by 9 institutional
investors on their own behalf and/or on behalf of the funds respectively managed, for a total amount of approximately €21.5
million, without specifying the value of the claims of each investor/fund (subsequently 5 of these institutional investors together
with 5 others proposed a request for mediation, for a total amount of approximately €21.9 million); (iii) during 2015 by two private
investors respectively for approximately €37,000 and for approximately €87,500; (iv) during July 2017 by some institutional
investors for approximately €30 million; (v) on December 4, 2017 by 141 institutional investors for an unspecified amount (136 of
these investors on June 12, 2018 renewed their out-of-court request, again for an unspecified amount); (vi) on April 12, 2018 for
approximately €150-200 thousand by a private investor; (vii) on July 3, 2018 by a private investor for approximately €330
thousand; (viii) on October 25, 2018 for approximately €8,800 from three private investors; (ix) on November 2, 2018 for
approximately €48,000 from a private investor; (x) on May 22, 2019 for approximately €53,000 from a private investor; (xi) on
June 3, 2019 for an unspecified amount from a private investor; (xii) on June 5, 2019 for an unspecified amount from two private
investors; (xiii) in February 2020 by a private investor who claims to have suffered damages worth €1,538,580; (xiv) in March
2020 by two private investors who did not indicate the value of their claims; (xv) in April 2020 by two private investors who did not
indicate the value of their claims and by a private investor claiming alleged damages of approximately €40,000; (xvi) in May 2020
by a private investor who did not indicate the value of his claim; (xvii) in June 2020 by one private investor who did not indicate
the value of its claim for damages; (xviii) in June 2020 by twenty-three private investors who did not indicate the value of their
claim for damages; (xix) in July 2020 by eighteen investors claiming damages of approximately €22.4 million; (xx) in July 2020 by
thirty-four private investors who did not indicate the value of their claim for damages; (xxi) in August 2020: (a) by four private
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
investors who did not indicate the value of their claim; (b) by three institutional investors in their own right and/or on behalf of the
funds respectively managed for an amount of approximately €7.5 million; (xxii) in September 2020 by ten private investors who
did not indicate the value of their claim; (xxiii) in October 2020 by: (a) twelve private investors who did not indicate the value of
their claim, (b) by one private investor claiming to have suffered damages in the amount of €113,810, (c) by six hundred and
forty-four associated private investors who did not indicate the value of their claim and (d) by three institutional investors in their
own right and/or on behalf of the funds respectively managed for a total amount of €115,000; (xxiv) in November 2020: (a) by
eleven private investors who did not indicate the value of their claim, (b) by two institutional investors in their own right and/or on
behalf of the funds respectively managed for an amount of approximately €166,000; (xxv) in December 2020 by ten private
investors who did not indicate the value of their claim and by one private investor who claims to have suffered damages in the
amount of €234,724; (xxvi) in January 2021 by four private investors who did not indicate the value of their claim; (xxvii) in March
2021 by three private investors who did not indicate the value of their claim and by five associated private investors who did not
indicate the value of their claim; (xxviii) in April 2021 (a) by one private investor who did not indicate the value of his claim; (b) by
fourteen institutional investors in their own right and/or on behalf of the funds respectively managed for a total amount of
approximately €3 million; (xxix) in May 2021 (a) by two private investors who did not indicate the value of their claim, (b) by one
private investor who indicated the value of his claim in a total amount of approximately €100,000 and (c) by a private investor
who indicated the value of his claim in a total amount of approximately €84,000; (xxx) in July 2021 by a private investor who
indicated the value of his claim in a total amount of approximately €92,000; (xxxi) in December 2021 by two private investors who
indicated the value of their claim in a total amount of approximately €143,000; (xxxii) in January 2022 by 161 private investors
who indicated the value of their claim in a total amount of approximately €23 million; (xxxiii) in May 2022 by 6 institutional
investors who indicated the value of their claim in a total amount of €3.9 million and by 103 private investors claiming
approximately €7.9 million; (xxxiv) in June 2022 by 14 private investors claiming a total of approximately €1.9 million; (xxxv) in July
2022 by two private investors claiming a total of approximately €387,000; (xxxvi) in September 2022 by 7 private investors
claiming approximately €385 million; (xxxvii) in December 2022 by 1 private investors claiming approximately €106 million for a
total amount of more than 1,000 claims for a total value of more than €300,000,000. Those applications where mediation has
been attempted, but with no positive outcome, involve nine main demands: (a) in April 2015 by 7 institutional investors acting on
their own behalf and/or of the funds managed by them, in relation to about €34 million; (b) in September 2015 by 29 institutional
investors on their own behalf and/or for the funds managed by them respectively, for a total amount of approximately €159
million (21 of these investors, together with another 27, submitted out-of-court demands in April 2015, complaining that they
had suffered loss and damage for a total amount of approximately €291 million without specifying the value of the claims for
compensation for each investor/fund); (c) in December 2015 by a private investor in the amount of approximately €200,000; (d)
in March 2016 by 10 institutional investors on their own and/or on behalf of the funds managed by each respectively, for a total
amount of approximately €21.9 million (5 of these investors together with another 4 had presented out-of-court applications in
September 2015 complaining they had suffered loss and damage for a total amount of approximately €21.5 million without
specifying the value of the compensation sought by each investor/fund. Another 5 of these investors, together with a further 43,
had submitted out-of-court applications in April 2015 alleging they had suffered loss and damage for an amount of
approximately €159 million without specifying the value of the compensation sought by each investor/fund); (e) from a private
investor in April 2017 for approximately €40,000; (f) in 2018-2019 by a private investor for approximately €48,000; (g) in
December 2020, a private investor initiated an attempt at mediation aimed at the request of compensation for an undetermined
value; (h) in October 2022 by a private investor initiated an attempt at mediation aimed at the request of compensation for an
undetermined value; (i) in November 2022 by a private investor initiated an attempt at mediation aimed at the request of
compensation for approximately €20,000; (l) in July 2023 by a private investor for approximately €60,000; (m) in January 2024 by
a private investor for approximately €40,000.
Saipem SpA verified the aforementioned requests for out-of-court claims and mediation and found them to be groundless. As of
today, the aforementioned requests carried out out-of-court and/or through mediation have not been the subject of legal action,
except as specified above in relation to the four lawsuits pending before the Court of Milan, the Court of Appeal of Milan and the
Supreme Court, respectively, and to another lawsuit, with a claim value of approximately €3 million, in which Saipem SpA had
been summoned during 2018 by the defendant in the action and for which (after the claim against Saipem SpA was rejected by
the Court of First Instance in the first instance and the Court of Appeal in the second instance, accepting Saipem SpA 's
defence, rejected the counterparty's appeal, ordering the latter to pay Saipem SpA the costs of the litigation) is pending before
the Supreme Court, another case with a claim value of approximately €40 thousand – which ended with a ruling in favour of
Saipem SpA, and another case served on Saipem SpA with a claim value of approximately €200 thousand which also ended in
favour of Saipem and another case with a claim value of approximately €20,000
ARBITRATION WITH CPB CONTRACTORS PTY LTD (FORMERLY LEIGHTON CONTRACTORS PTY LTD) (“CPB”)
- GORGON LNG JETTY PROJECT
In August 2017, CPB notified Saipem SA and Saipem (Portugal) Comércio Marítimo, Sociedade Unipessoal Lda (together
“Saipem Companies” or, for the purpose of this section, “Saipem”) of a request for arbitration.
The dispute stemmed from the construction of the jetty of an LNG plant for the Gorgon LNG project in Western Australia. The
main contract for engineering and construction of the pier (“Jetty Contract”) was signed on November 10, 2009, by CPB, Saipem
SA, Saipem (Portugal) Comércio Marítimo, Sociedade Unipessoal Lda and Chevron Australia Pty Ltd (“Chevron”).
CPB, based on alleged contractual breaches by Saipem SA and Saipem (Portugal) Comércio Marítimo, Sociedade Unipessoal
Lda, had requested that Saipem Companies be ordered to pay approximately AUD 1.39 billion (approximately €900 million).
Saipem sustained that the CPB claims were totally unfounded and filed its statement in which it has requested the rejection of all
the claims made by CPB and filed a counterclaim for AUD 37,820,023 (approximately €24.5 million), subsequently increased to
approximately AUD 50 million (approximately €32.4 million), for payments related to the consortium agreement, extra costs
related to non-compliance and delays by CPB in the execution of the works and backcharges. Subsequently, the parties
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SAIPEM ANNUAL REPORT 2023
specified their claims. In particular: (i) CPB clarified its demands by making a claim of approximately AUD 1 billion (approximately
€649 million) for alleged violations of the consortium agreement between the parties and another alternative claim of
approximately AUD 1.46 billion (approximately €948 million) based on the assumption that CPB would not have entered into the
Jetty Contract (and would not have suffered the related damages), if Saipem had not violated the consortium contract (No
Contract Claim); (ii) Saipem had, at the end, quantified its claims in a total amount of approximately AUD 30 million (approximately
€19.4 million). During 2020 and 2021, the first tranches of hearings were held, while the last was held from March 28 to April 1,
2022. Oral closing submissions were held from July 5 to July 7, 2022.
The partial award was issued on December 29, 2022. The Tribunal condemned: (i) Saipem to pay CPB AUD 10,108,655.97; (ii)
and CPB to pay Saipem AUD 450,513.50, €494,301.41, USD 161,656.94 and MYR 491,473.
The award was partial as the apportionment of costs and interests was still pending. On February 3, 2023, the briefs of the
parties on the costs were filed (“Costs Submission”) and on interest and, on February 17, 2023, the replies.
On April 20, 2023, the final award was issued which condemned:
1) CPB to pay to Saipem AUD 34,402,000 in reimbursement of legal costs, AUD 79,477.12 in interest, USD 489,457.50 in
reimbursement of costs, as well as USD 28,518.63 and €87,201.95 for other costs;
2) Saipem to pay to CPB the amount of AUD 1,821,878.91 as interest.
Also including the amount recognised to the parties by the partial award, the net amount in favour of Saipem was equal to AUD
23,001,455.74; USD 679,633.07; €581,503.36 and MYR 578,175.97. Saipem asked CPB for the immediate payment of these
sums (equivalent to approximately €16 million) and, as no payment was received, initiated proceedings to enforce the award in
Australia. CPB in parallel initiated proceedings to challenge the award in the Singapore Courts.
During July and August 2023, the parties entered into negotiations for an amicable settlement of the dispute, and a settlement
agreement was signed on August 15, 2023, under which CPB awarded Saipem a substantial portion of the legal fees. As a result,
the judgments before the Australian (enforcement) and Singapore (appeal of award) Courts were abandoned.
CPB honored the settlement agreement in full by paying the last tranche on January 10, 2024, and therefore the dispute is
closed.
ARBITRATION BETWEEN GALFAR ENGINEERING AND CONTRACTING (“GALFAR”) AND SAIPEM SPA (“SAIPEM”)
(PROJECT DUQM REFINERY, OMAN)
In March 2023, Saipem was served with a request for arbitration, administered by the International Chamber of Commerce, from
the Omani company, Galfar (subcontractor in the Duqm Refinery project, Oman). Galfar requests that Saipem be ordered to pay
USD 43,478,843.56 for prolongation costs (extension of time) and variation orders not recognised by Saipem. Galfar also
contests the back charges of USD 14,617,966.13 made by Saipem. Saipem filed the response to the arbitration request on May
12, 2023, appointing its arbitrator, contesting Galfar's claims and proposing a counterclaim of approximately USD 20 million
consisting of liquidated damages and back charges. Having established the Arbitration Panel, the parties agreed on the
proceedings’ calendar, under which the final hearing will be held from April 7 to 11, 2025.
ARBITRATION BETWEEN NATIONAL CONTRACTING CO ("NCC") AND SNAMPROGETTI SAUDI ARABIA (KHURAIS PROJECT, SAUDI ARABIA)
On July 17, 2023, Snamprogetti Saudi Arabia ("SSA") was served with a request for arbitration, administered by the International
Chamber of Commerce, ICC, from the Saudi company NCC (a subcontractor in the Khurais Expansion Project) seeking an order
for SSA to pay SAR 562,305,560 (approximately €135.7 million equivalent at the exchange rate of December 31, 2023) for
prolongation costs (extension of time), variation orders and other damages.
SSA entered into arbitration on August 10 contesting NCC's claims and submitting a total counterclaim of approximately SAR
225,315,403 (approximately €54.4 million equivalent at the exchange rate of December 31, 2023).
Having established the Arbitration Panel, the parties agreed on the proceedings’ calendar, under which the final hearing will be
held from July 7, 2025.
LITIGATION INITIATED BY ISIODU COMMUNITY IN EMOHUA LOCAL GOVERNMENT AREA OF RIVERS STATE + OTHERS
HRH Eze Jacob O Ugwugwueli, Chief Tobin Iregbundah, Chief Robinson Chukwu, Chief Sunday P. Azundah, Elder Clifford Ikpo,
Chief Samuel C. Azundah (on its own and on behalf of the Council of Chiefs and people of Isiodu Community in Emohua Local
Government Area of Rivers State (together the “Plaintiffs”) sued Saipem Contracting Nigeria Ltd (“SCNL”), Shell Petroleum
Development Company Nigeria Ltd (“SPCD”), Patyco Global Concept Ltd, the Nigerian Federal Ministry of Environment and the
Nigerian Department of Petroleum Resources before the Federal High Court of Port Harcourt (Nigeria) alleging that toxic
substances deriving from the realisation of the Southern Swamp Associated Gas Solutions project in Nigeria were illegally spilled
into the territory of their community by the Nigerian company Patyco Global Concept Ltd, a subcontractor appointed by
SCNL/SPDC to dispose of the waste deriving from the realisation of this project. The Plaintiffs requested that all the defendants
be sentenced to pay, jointly and severally, compensation of: (i) USD 60 million (approximately €49.5 million) for the alleged
damage to the environment and the health/life of the Plaintiffs; (ii) USD 3 billion (approximately €2.47 billion) for the alleged
special damages for all of the related consequences and recovery activities that would allegedly derive from them; (iii) legal fees
and interest at 20%. The defendants contest any responsibility vis-à-vis the claims put forth by the Plaintiffs. After several
postponements, the first hearing was held on March 30, 2022. At the hearing the judge postponed the proceeding to June 23,
2022 and to further dates without entering into the merit of the case. At the next hearing of September 28, 2023,(cid:1) some
preliminary issues were discussed, which will be resolved by the Court at a later hearing to be set in due course.
CONSOB RESOLUTION OF MARCH 2, 2018
With reference to Consob Resolution No. 20324 of March 2, 2018 (the “Resolution”), Saipem SpA Board of Directors, resolved
on March 5, 2018, to appeal the Resolution in the competent courts.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The appeal to the Regional Administrative Court (TAR)-Lazio was filed on April 27, 2018. Following access to the administrative
proceedings, on May 24, 2018 Saipem SpA filed with the TAR-Lazio additional grounds for appeal against the aforementioned
Resolution.
On June 15, 2021, a hearing was held before the TAR-Lazio to discuss Saipem SpA’s appeal against the Consob Resolution of
March 2, 2018.
On July 6, 2021, the TAR-Lazio rejected the appeal filed by Saipem SpA on April 27, 2018.
On July 6, 2021, Saipem SpA issued the following press release:
“Saipem: the Regional Administrative Court of Lazio rejects the appeal against Consob Resolution No. 20324 of March 2, 2018.
San Donato Milanese (Milan), July 6, 2021: Saipem informs that with the judgment filed today the Tribunale Amministrativo
Regionale (‘TAR’) of Lazio rejected the appeal submitted by the Company on April 27, 2018 against Consob Resolution No.
20324 of March 2, 2018 (disclosed to the market in the press release of March 5, 2018, the ‘Resolution’).
With the Resolution (the contents of which are described in paragraph ‘Information regarding censure by Consob under Article
154-ter, paragraph 7, Legislative Decree No. 58/1998 and the notice from the Consob Offices dated April 6, 2018’, of Saipem
Annual Report as of December 31, 2020) Consob has stated the non-compliance of Saipem’s 2016 Annual Statutory and
Consolidated Reports with the regulations which govern their preparation, concerns in particular: (i) the incorrect application of
the accrual basis of accounting affirmed by IAS 1; (ii) the non-application of IAS 8 in relation to the correction of errors with
reference to the financial statements of 2015; and (iii) the estimation process of the discount rate pursuant to IAS 36.
With the Resolution, Consob has therefore asked the Company, under Article 154-ter, paragraph 7, Legislative Decree No.
58/1998, to disclose the following elements of information to the markets: (A) the weaknesses and non-compliance identified by
Consob in relation to the accounting correctness of the financial statements mentioned above; (B) the applicable international
accounting standards and the violations detected in relation thereto; (C) the illustration, in an appropriate pro-forma consolidated
income statements and balance sheet – with comparative data – of the effects that accounting in compliance with the
regulations would have produced on the 2016 balance sheet, income statement and shareholders’ equity, for which incorrect
information was supplied.
Saipem on April 16, 2018 issued a press release providing a pro forma consolidated income statements and balance sheet as of
December 31, 2016 with the only aim to comply with the Resolution.
The TAR of Lazio has rejected the appeal presented by Saipem requesting the annulment of the Resolution.
Saipem reserves its right to appeal the decision of the TAR of Lazio before the Council of State”.
On November 6, 2021, Saipem SpA filed its own appeal before the Council of State against decision of the TAR-Lazio.
On March 7, 2024, a hearing was held before the Council of State to discuss the merits of the appeal brought by Saipem SpA
against the ruling of the TAR-Lazio.
CONSOB RESOLUTION OF FEBRUARY 21, 2019
With reference to Consob Resolution No. 20828 of February 21, 2019, communicated to Saipem SpA on March 12, 2019 (the
“Resolution”) the contents of which are described in paragraph “Information regarding censure by Consob pursuant to Article
154-ter, paragraph 7, Legislative Decree No. 58/1998 and the notice from the Consob Offices dated April 6, 2018”. The Board of
Directors of Saipem SpA resolved on April 2, 2019, to appeal before the Court of Appeal of Milan the Resolution No. 20828. On
April 12, 2019, Saipem SpA appealed against the Resolution before the Court of Appeal of Milan, under Article 195 TUF,
requesting the Resolution cancellation. A similar appeal was filed by the two individuals sanctioned under the Resolution, i.e. the
Chief Executive Officer of Saipem SpA and the Chief Financial Officer and Officer responsible for financial reporting in office at
the time of the events. The first hearing before the Milan Court of Appeal was held on November 13, 2019.
On that day, the Milan Court of Appeal postponed the discussion on November 4, 2020.
On October 23, 2020, Saipem SpA and the two individuals sanctioned submitted an application to the Court of Appeal, to be
allowed to file documents required to debate the appeal by November 4, 2020.
On November 2, 2020, the Court of Appeal authorised the filing of the documents requested on October 23, 2020 by the parties,
also granting Consob a deadline to submit any counter-arguments on those documents by December 15, 2020 and postponed
the hearing to discuss the appeal to January 27, 2021.
On January 20, 2021, Saipem SpA and the two individuals sanctioned presented a new application to the Court of Appeal, to be
allowed to file additional documents required to debate the appeal by January 27, 2021, and to be authorised to propose new
grounds for the appeal. which came to light when new documents were found.
On January 21, 2021, the Court of Appeal accepted the applications by Saipem SpA and the individuals and authorised the filing
of the documents requested on January 20, 2021. The Court also upheld the proposal of additional grounds, to be submitted
through written filings by February 26, 2021, and also granted Consob the right to submit its counter filings by March 25, 2021.
The Court set the hearing for April 21, 2021.
At the hearing of April 21, 2021, the appeals were discussed.
The Milan Court of Appeal has partially upheld the appeals, whilst it rejected the remaining:
≥ reducing from €200,000 to €150,000 the administrative financial fine imposed by Consob in 2019 against the former Chief
Executive Officer of the Company in office from April 30, 2015, to April 30, 2021;
≥ reducing from €150,000 to €115,000 the administrative financial fine imposed by Consob in 2019 against the former CFO and
Officer responsible for the Company’s financial reporting in office at the time of the capital increase of 2016 and until June 7,
2016; and
≥ consequentially reducing from a total of €350,000 to a total of €265,000 the condemnation of Saipem SpA to the payment of
the afore mentioned administrative financial fines, as the party jointly and severally liable pursuant to Article 195, paragraph 9,
of the Italian Consolidated Law on Finance.
\ 289
SAIPEM ANNUAL REPORT 2023
On January 20, 2022, Saipem SpA has filed an appeal to the Supreme Court against the sentence of the Court of Appeal of
Milan.
On March 1, 2022, Consob has notified Saipem SpA of its cross-appeal with counterclaim.
Saipem SpA’s cross-appeal against Consob’s counterclaim was notified on April 8, 2022.
The proceeding is pending.
Tax proceedings
The Group is a party in some tax proceedings. Provisions for tax risks are made on the basis of information currently available,
including information acquired by external consultants providing the Group with tax consultant support.
A summary of the most important disputes is provided below.
Snamprogetti Saudi Arabia Ltd
On October 21, 2020, the Saudi tax authority, following a tax audit on the tax periods from 2015 to 2018, notified Snamprogetti
Saudi Arabia Ltd of an assessment of higher taxes on income and omitted withholding taxes for a total amount of approximately
€180 million; the amount of the fine was updated as of the closing date of the 2023 financial statements.
The main findings disputed that led to the demand for higher income taxes concern:
≥ restatement of higher taxable amounts corresponding to the difference between the values of the imported goods resulting
from the declarations submitted to the Saudi customs and the value of the goods purchased from foreign suppliers booked in
the accounts. The explanation for this difference lies instead in the purely administrative activity of importing project materials
carried out, based on precise contractual provisions, by the Saudi subsidiary on behalf of its local clients, actual buyers of
those same materials;
≥ assessment of higher taxable amounts corresponding to 25% of the revenues of a contractual joint venture (therefore an
unincorporated entity, that is a temporary association of companies that does not give rise to a new autonomous legal entity
separate from the shareholders) constituted by Snamprogetti Saudi Arabia Ltd together with a local partner for the execution
of a contract on behalf of Saudi Aramco. The defence of the company is essentially based on the fact that, since the joint
venture is totally transparent, its revenues are periodically attributed, pro-rata to the two partners, on the basis of the
provisions of the collaboration agreement, and are therefore regularly taxed via the partners;
≥ denial of the deductibility of accruals of costs pertaining to previous years and carried forward to the years that have been
audited. The Saudi administration raised the assessment by completely ignoring the reversals of the same accruals recorded
by the company in the tax periods audited, in accordance with national and international accounting standards. These
reversals had in fact totally sterilised the economic, and therefore also fiscal, effects of those provisions on the income
declared by the company for the periods being assessed.
As regards the finding in respect of the omitted withholding taxes, the local tax authority contested the existence of a permanent
establishment of some foreign Group companies providing services in favour of Snamprogetti Saudi Arabia Ltd and
consequently claimed the failure to apply withholding taxes to the related payments in accordance with the domestic law. In
formulating this dispute, the Saudi tax authority did not consider the provisions of the Double Tax Treaty signed by Saudi Arabia
with the countries of residence of the supplier companies, which prevail over the internal law. In particular, Article 5, paragraph 21
of the OECD model convention establishes that the provision of services by a company resident in a contracting state may give
rise to the existence of a permanent establishment in the other contracting state only in case the activities are actually carried
out in that same state. In the present case, all the activities were carried out by the non-Saudi companies of the Group entirely at
their own head offices. On April 26, 2022, Saipem SpA submitted an application to the Revenue Agency for the initiation of an
amicable procedure (Mutual Agreement Procedure, MAP) based on Article 25 of the Double Tax Treaty stipulated between the
Republic of Italy and the Kingdom of Saudi Arabia as the notices of assessment would not comply with the provisions of Articles
5 and 7 of the Treaty itself. The initiation of the mutual agreement procedure caused the administrative proceedings in Saudi
Arabia to be suspended, limited to the issue covered by the MAP.
On December 19, 2020, the Company filed an application for cancellation of the assessment to the Saudi tax authority which
was rejected on March 16, 2021. Consequently, on April 13, 2021 an appeal was filed against the assessment document with
the Tax Commission of first instance ("Tax Violations and Disputes Resolution Committee"), which only partially accepted the
complaints of the respondent party on October 31, 2021. On December 20, 2021, the Company therefore appealed the
unfavourable ruling with the Tax Commission of second degree (“Tax Violations and Disputes Appellate Committee”) where the
judgement is still pending.
Petrex SA, Colombian subsidiary
On October 7, 2019, the Colombian tax authority, following an audit on the 2014 tax year, notified the local branch of Petrex SA
of a notice of assessment which contested, pursuant to a local anti-avoidance rule, the USD 120 million loan agreement signed
in that same year with Eni Finance International SA, a financial company of the Eni Group, as a sham operation. In accordance
with the above-mentioned rule, the entire amount of the loan was considered taxable income by the tax authority, with a
consequent assessment of higher taxes and the imposition of penalties for a total amount of €105 million equivalent as of the
closing of the 2023 financial statements. The tax authority claims that the relevant Group company has not provided sufficient
evidence to demonstrate the use of the financing to support its economic activities. Moreover, the same notice of assessment
does not recognise the interest accrued on the same loan and the losses on foreign exchange arising from the accounting of
the financial debt in US dollars as deductible, which leads to higher taxes and penalties for additional €2 million.
On December 3, 2019, the company filed an application for the annulment of the assessment with the Colombian tax authority,
supported by accurate and indisputable evidence that demonstrate the pertinence of the loan agreement with respect to its
business activity. In summary, the borrowed funds were used to purchase some drilling rigs that were needed to execute
commercial contracts signed with local clients. On October 14, 2020, the local tax authority rejected the application.
\ 290
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
On February 15, 2021, the company appealed the notice of assessment with the Administrative Court, which is the court of first
instance for the tax disputes, where the judgement is still pending.
Saipem SpA - Saipem SA - Snamprogetti Engineering BV - Saipem (Portugal) Comércio Marítimo,
Sociedade Unipessoal Lda - Saipon Snc
Following a tax audit carried out through questionnaires in 2016, on November 10, 2016, the Nigerian tax administration (“FIRS”)
notified Saipem SpA, Saipem SA, Snamprogetti Engineering BV, Saipem (Portugal) Comércio Marítimo, Sociedade Unipessoal
Lda and Saipon Snc with a notice of assessment in which the local administration claims the existence of their permanent
establishments in Nigeria during the period 2009-2013 in relation to the carrying out of engineering and procurement activities
for the execution of turnkey contracts for various Nigerian clients and consequently assesses the failure to pay income tax. In
the notices, the tax authority, in fact, ascribes to the alleged permanent establishments all the income obtained from the
performance of the aforementioned activities, non-recognising that, as regards the taxability of the income, the same activities
were exclusively carried out by the overseas head offices of the recipient companies of the assessment. The tax claim, including
the imposed fines, amounts to approximately €235 million equivalent as of the closing of the 2023 financial statements.
The companies involved challenged the notices of assessment before the Federal High Court on April 11, 2017, requesting to
combine all the cases into one procedure, which was granted by the Court. On July 17, 2020, the Court decided in favour of the
applicant companies and accepted all the reasons for the grievances. The Nigerian administration lodged an appeal at the Court
of Appeal on October 15, 2020. The first hearing has not yet been scheduled by the Court.
Saipem SpA
Following a criminal proceeding against Saipem SpA and a number of individuals who held top positions within the Company
concerning the criminal offenses of "international bribery" and "fraudulent misrepresentation", the Company received writs of
assessment for the tax years 2008 and 2009 – served in 2015 – and for the tax year 2010 – served in 2016 – which alleged the
so-called "non-deductibility of criminal costs" related to the aforementioned international bribery hypothesis.
The Company challenged the 2008 and 2009 writs and, pending the criminal and tax proceedings, both of which were lost in the
first instance, on September 8, 2017 it settled the tax disputes by availing itself of Article 11 of Legislative Decree No. 50/2017, a
provision that allowed for settlement without the application of penalties and part of the interest.
The assessment writ for the 2010 tax year was settled on May 26, 2017.
After the unfavorable criminal judgment issued by the Court of Milan (dated September 19, 2018), on January 15, 2020, the
second instance ruling issued by the Court of Appeals of Milan fully acquitted Saipem SpA’s top executives from the crime of
international bribery and rejecting the liability of Saipem SpA from the alleged administrative offense. On December 14, 2020,
the ruling by the Supreme Court was issued, definitively closing the criminal proceedings for international bribery, confirming the
acquittal of the Company and the individuals involved.
In light of the aforementioned outcome of the criminal proceedings, on June 1, 2021, the Company applied for a refund of the
tax paid.
As the refund application was met with silence-refusal, the Company appealed before the Milan Tax Court (Corte di Giustizia
Tributaria) requesting in the First Instance that the Internal Revenue Service be made to refund the higher taxes paid in
connection with the assessment writs concerning the non-deductibility of costs related to the alleged crime of international
bribery, totaling €64 million. On July 5, 2022, the Milan Tax Court in the First Instance partially upheld Saipem SpA's appeal.
Specifically, the ruling established that this right be limited to the taxes paid in relation to assessment that was settled (year
2010), excluding the amount paid for the settlement of disputes relating to the tax years 2008 and 2009.
On October 6, 2022, the Company appealed the sentence that had excluded the right to a refund for the amount paid as a result
of the settlement of pending litigation in relation to the tax years 2008 and 2009. At the same time, the Internal Revenue Service
filed suit to defend the parts of the judgment that were in its favor, also challenging the ruling regarding the entitlement to the
refund for the 2010 year.
On June 12, 2023, the ruling of the Lombardy Tax Court in the Second Instance upheld the Company's appeal and rejected the
Revenue Agency's appeal. As a result of the ruling, the Company is entitled to be refunded all amounts paid in 2017 plus
statutory interest. As of the closing date of the 2023 financial statements, the Inland Revenue Service has already refunded
approximately half of the amount due.
On November 15, 2023, the Internal Revenue Service filed an appeal with the Court of Cassation. On January 22, 2024, the
Company filed a counter-appeal. To date, the parties are awaiting the hearing dates before the Court of Cassation.
\ 291
SAIPEM ANNUAL REPORT 2023
34 Revenue
The following is a summary of the main components of revenue. For more information about changes in revenues and reporting
by business segment, see the “Financial and economic results” section of the “Directors’ Report”.
Core business revenue
Core business revenue was as follows:
(€ million)
Asset Based Services - Revenue from sales and services
Energy Carriers - Revenue from sales and services
Offshore Drilling - Revenue from sales and services
Total
Net sales by geographical segment were as follows:
(€ million)
Italy
Rest of Europe
CIS
Middle East
Far East and Oceania
North Africa
Sub-Saharan Africa
Americas
Total
2023
6,069
5,062
743
11,874
2023
681
956
303
3,893
739
288
3,165
1,849
11,874
2022
5,026
4,389
565
9,980
2022
400
1,040
409
3,821
676
210
2,251
1,173
9,980
As described in “Accounting policies” in the paragraph “Contract assets and contract liabilities”, to which we refer, in
consideration of the nature of the contracts and the type of works performed by Saipem, the individual obligations contractually
identified are mainly satisfied over time. The revenue that measures the progress of the work is determined, in line with the
provisions of IFRS 15, by using an input method based on the percentage of costs incurred with respect to the total
contractually estimated costs (“cost-to-cost” method).
Contract revenue includes the amount agreed in the initial contract, plus revenue from change orders and claims.
The change orders consist of additional fees deriving from changes to the contractually agreed works requested by the client;
price revisions (claims) consist of requests for additional fees deriving from higher charges incurred for reasons attributable to
the client. Change orders and claims (pending revenue) are included in the amount of revenue when the changes to the agreed
works and/or price has a high probability of recognition, even if their definition has not yet been agreed. Any pending revenue
reported for a period longer than one year, with no changes in the negotiations with the client, is impaired, despite the
confidence in recovery of the business. Amounts higher than €30 million are reported only if supported by outside
technical-legal expert opinions.
The cumulative amount of additional payments (pending revenue) of Engineering & Construction contracts, including amounts
pertaining to previous years, based on projects progress as of December 31, 2023, totalled €265 million (€236 million as of
December 31, 2022). There are no additional amounts relating to ongoing legal proceedings.
The contractual obligations to be fulfilled by the Saipem Group (backlog), which as of December 31, 2023 amounted to €29,802
million, are expected to generate revenue of €11,647 million in 2024 while the remainder will be generated in subsequent years.
The share of revenues for leasing in the item “Core business revenues” does not have a significant impact on the overall amount
of core business revenues, as it amounts to less than 2% of the total and it refers to the Offshore Drilling and Leased FPSO
sectors.
Revenue from related parties is shown in Note 43 “Related party transactions”.
Other revenue and income
Other revenue and income were as follows:
(€ million)
Gains on disposal of assets
Indemnities
Other income
Total
\ 292
2023
15
2
7
24
2022
4
-
7
11
35 Operating expenses
The following is a summary of the main components of operating expenses. The most significant variations are analysed in the
“Financial and economic results” section of the “Directors’ Report”.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Purchases, services and other costs
Purchases, services and other costs included the following:
(€ million)
Raw, ancillary and consumable materials and goods
Services
Use of third party assets
Net accruals to (utilisation of) the provisions for risks and charges
Other expenses
less:
- internal work capitalised
- changes in inventories of raw, ancillary and consumable materials and goods
Total
2023
3,451
4,945
1,167
(335)
72
(16)
(52)
9,232
2022
2,704
4,542
901
(266)
31
(11)
(70)
7,831
During 2023, no brokerage fees were incurred.
Use of third-party assets equal to €1,167 million, refer to €1,158 million for lease contracts, of which €876 million relate mainly to
“Short-term Leases” with a term of less than or equal to 12 months, €281 million relate to “Variable payments” and €1 million
relate to “Low Value”.
Net accruals to/utilisations of the provisions for risks and charges for a total of €335 million refer to the provisions for risks
related to litigation, provisions for contractual expenses and losses on long-term contracts and other provisions included in
Note 26 “Provisions for risks and charges”.
Research and development costs that do not meet the requirements for capitalisation amounted to €32 million (€31 million in
2022).
Purchases, services and other costs to related parties are detailed in Note 43 “Related party transactions”.
Net reversals of impairment losses (impairment losses) on trade receivables and other assets
Net reversals of impairment losses (impairment losses) on trade receivables and other assets include the effects relative to IFRS
9 applied to contract assets and are broken down as follows:
(€ million)
Trade receivables
Other receivables
Contract assets
Total
Personnel expenses
Personnel expenses were as follows:
(€ million)
Wages and salaries
Social security contributions
Contributions to benefit plans
Accrual to provision for TFR recognised as a counter-item to pension or Inps funds
Voluntary redundancy incentives
Other costs
less:
- internal work capitalised
Total
Dec. 31, 2023
-
-
1
1
Dec. 31, 2022
35
(1)
(2)
32
2023
1,453
218
38
24
(3)
15
(9)
1,736
2022
1,350
224
31
22
(18)
54
(7)
1,656
Net accruals to provisions for employee benefits are shown under Note 27 “Employee benefits”.
Incentives for voluntary redundancy refer to net balance between accruals and utilisations of the provisions for redundancy
incentives as commented in Note 26 “Provisions for risks and charges”.
Incentive plans
In order to create a system of incentives and loyalty among Group’s Senior Managers, Saipem SpA, defined, among other things,
variable incentive plans, through the free assignment of Saipem SpA ordinary shares, with a three-year cycles (vesting period) of
attributions.
\ 293
SAIPEM ANNUAL REPORT 2023
As of December 31, 2023, the active plans approved by the Shareholders' Meeting of Saipem SpA are as follows: 2019-2021
Long-Term Variable Incentive Plan (2021 attribution), 2023-2025 Long-Term Variable Incentive Plan (2023 attribution), and
2021-2023 Short-Term Variable Incentive Plan (2021 attribution).
All plans provide for the free allocation of Saipem ordinary shares to the executives of Saipem SpA and its subsidiaries, holders
of organisational positions with significant impact on the achievement of business results, also in relation to performance
expressed and professional skills. For additional information about the characteristics of the plans, please see the disclosure
made available to the public on the Company’s website (www.saipem.com), under the current law (Article 114-bis of Legislative
Decree No. 58/1998 and Consob implementing regulations).
The cost is determined with reference to the fair value of the option assigned to the senior manager, while the portion for the
year is determined pro-rata temporis throughout the period to which the incentive refers (so-called vesting period and
co-investment period/retention premium).
The fair value for the year, relative to all the attributions in place, is approximately €6 million.
The assessment was made using the Stochastic and Black & Scholes models, according to the provisions set forth in
international accounting policies, in line with the provisions of IFRS 2.
In particular, the Stochastic model was used to assess the allocation of market-based subordinated equity instruments (TSR)
and the Black & Scholes model was used to assess the economic and financial goals.
On the attribution date, the classification and number of beneficiaries, the respective number of shares attributed and the
subsequent fair value calculation, are as follows:
LTI Attribution for 2018
Strategic senior managers
(vesting period)
Strategic senior managers
(co-investment period)
Non-strategic senior managers
Chief Executive Officer-CEO
(March 2018)
Chief Executive Officer-CEO
(July 2018)
Total
s
r
e
g
a
n
a
m
f
o
.
o
N
98
263
1
1
363
)
1
(
s
e
r
a
h
s
f
o
.
o
N
)
%
(
n
o
i
t
r
o
p
e
r
a
h
S
R
S
T
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
5
t
h
g
e
w
(
i
N
F
P
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
5
t
h
g
e
w
(
i
74,757
49,577
75
130
196
25
100
259
130
391
196
e
u
a
v
l
r
i
a
f
l
a
t
o
T
3
2
0
2
e
u
a
v
l
r
i
a
F
)
2
(
2
2
0
2
e
u
a
v
l
r
i
a
F
8,210,400
253,190
650,136
4,322
100
98
156
324,448
4,479,459
-
-
-
-
8,686
137,342
100
130
196
847,078
13,861,385
-
253,190
-
650,136
(1) The number of shares shown in the table corresponds to the attributed number to the beneficiaries at the right attribution date, appropriately restated on the basis of the reverse stock splits of May
23 and June 13, 2022. The number of shares used for total fair value and fair value calculation as of July 24, 2023 (end of the co-investment period), on the other hand, corresponds to 126,416 shares,
and reflects the forfeited rights due to unilateral/consensual employment relationship resignations, as well as the percentage of achievement of the non-market conditions at the end of the vesting period.
(2) The fair value for the period is measured as of the observation date.
LTI Attribution for 2021
Strategic senior managers
(vesting period)
Strategic senior managers
(Retention Premium)
Non-strategic senior managers
Chief Executive Officer-CEO
(vesting period)
Chief Executive Officer-CEO
(co-investment period)
Total
)
1
(
s
e
r
a
h
s
f
o
.
o
N
)
%
(
n
o
i
t
r
o
p
e
r
a
h
S
R
S
T
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
5
3
t
h
g
e
w
(
i
)
%
5
1
t
h
g
e
w
(
g
n
i
i
l
l
i
r
D
R
S
T
e
u
a
v
l
r
i
a
f
t
i
n
U
N
F
P
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
5
1
t
h
g
e
w
(
i
I
C
A
O
R
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
5
1
t
h
g
e
w
(
i
I
A
D
T
B
E
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
2
t
h
g
e
w
(
i
e
u
a
v
l
r
i
a
f
l
a
t
o
T
3
2
0
2
e
u
a
v
l
r
i
a
F
)
2
(
2
2
0
2
e
u
a
v
l
r
i
a
F
80,552
75
88
89
104
104
104
3,677,054
943,129
1,028,372
25
81,205 100
175
88
104
175
89 104
104
104
104 104
3,467,787
1,131,732
1,153,914
s
r
e
g
a
n
a
m
f
o
.
o
N
80
304
1
10,326
385
172,083
75
25
88
89 104 104
104
175
175 104 104
104
598,891
-
167,492
7,743,732
2,074,861 2,349,778
(1) The number of shares shown in the table corresponds to the number attributed to beneficiaries at the right attribution date. The number of shares used for total fair value and fair value calculation
as of December 31, 2023, on the other hand, corresponds to 128,437 shares, and reflects the forfeited rights due to unilateral/consensual termination of the employment relationship, as well as the
percentage of achievement of the estimated non-market conditions at the end of the vesting period.
(2) The fair value for the period is measured as of the observation date.
\ 294
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
STI Attribution for 2021
Senior managers
Total
s
r
e
g
a
n
a
m
f
o
.
o
N
)
1
(
s
e
r
a
h
s
f
o
.
o
N
132
132
19,338
19,338
)
%
(
n
o
i
t
r
o
p
e
r
a
h
S
100
e
u
a
v
l
r
i
a
f
t
i
n
U
102
e
u
a
v
l
r
i
a
f
l
a
t
o
T
f
o
s
a
e
u
a
v
l
r
i
a
F
3
2
0
2
,
1
3
.
c
e
D
)
2
(
f
o
s
a
e
u
a
v
l
r
i
a
F
2
2
0
2
,
1
3
.
c
e
D
1,344,877
1,344,877
420,756
420,756
447,477
447,477
(1) The number of shares shown in the table corresponds to the number attributed to beneficiaries at the right attribution date. The number of shares used for the total fair value and fair value
calculation as of December 31, 2022, on the other hand, is 12,324 shares, and reflects the forfeited rights due to unilateral/consensual employment relationship resignations as of the observation date.
(2) The fair value for the period is measured as of the observation date.
LTI Attribution for 2023
Senior managers (vesting period)
Senior managers
(Retention Premium period)
Chief Executive Officer-CEO
(vesting period)
Chief Executive Officer-CEO
(co-investment period)
Total
s
r
e
g
a
n
a
m
f
o
.
o
N
)
1
(
s
e
r
a
h
s
f
o
.
o
N
)
%
(
n
o
i
t
r
o
p
e
r
a
h
S
R
S
T
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
4
t
h
g
e
w
(
i
G
S
E
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
2
t
h
g
e
w
(
i
I
C
A
O
R
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
5
1
t
h
g
e
w
(
i
I
C
A
O
R
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
2
t
h
g
e
w
(
i
I
A
D
T
B
E
e
u
a
v
l
r
i
a
f
t
i
n
U
)
%
0
2
t
h
g
e
w
(
i
e
u
a
v
l
r
i
a
f
l
a
t
o
T
3
2
0
2
e
u
a
v
l
r
i
a
F
395
13,004,900
1,181,762
2,964,754
75
1.38
1,177
1,177
1,177
1,177
25
75
1,177
2,910
1,177
1,177
1.38 1,177 1,177 1,177 1,177
1,177
1
744,300
396
13,749,200
25 2,910
1,177 1,177 1,177 1,177
21,830,244
3,134,426
20,648,482
169,672
2
2
0
2
e
u
a
v
l
r
i
a
F
-
-
-
(1) The number of shares shown in the table corresponds to the number attributed to beneficiaries at the right attribution date. The number of shares used for total fair value and fair value calculation as
of December 31, 2023, on the other hand, corresponds to 15,738,095 shares, and reflects the forfeited rights due to unilateral/consensual termination of the employment relationship, as well as the
percentage of achievement of the estimated non-market conditions at the end of the vesting period.
The evolution of the share plans is as follows:
Options outstanding as of January 1
New options granted
(Options exercised during the period) (c)
(Options expired during the period)
Options outstanding at the end of the year
Of which:
- exercisable as of Dec. 31, 2023
- exercisable at the end of the vesting period
- exercisable at the end of the co-investment
period/Retention Premium
2023
Average strike
price (a)
(€ thousand)
-
-
-
-
-
Market price (b)
(€ thousand)
353
16,183
(24)
(336)
20,293
-
-
-
-
-
-
No. of shares
313,362
13,749,200
(17,308)
(240,493)
13,804,761
-
10,374,418
3,430,343
2022
Average strike
price (a)
(€ thousand)
-
-
-
-
-
Market price (b)
(€ thousand)
40,034
-
924
(3,021)
353
-
-
-
-
-
-
No. of shares
455,675
-
(33,334)
(108,979)
313,362
-
269,517
43,845
(a) Since these are free shares, the strike price is zero.
(b) The market value of the shares underlying options granted or expired in the period corresponds to the average market value of the shares. The market value of shares underlying options outstanding
at the beginning and end of the period is equal to the last available data as of January 1 and December 31.
(c) Options exercised in 2023 are represented by shared assigned to beneficiaries of the co-investment of the 2018 attribution of the 2016-2018 plan, as provided for in the Plan’s regulation.
\ 295
SAIPEM ANNUAL REPORT 2023
Option outstanding as of December 31, 2023 and the number of beneficiaries are as follows:
s
n
o
i
t
u
b
i
r
t
t
A
LTI 2016
LTI 2017
LTI 2018
LTI 2019
LTI 2020
LTI 2021
STI 2021
LTI 2023
As of December 31, 2023
Shares assigned
LTI 2016
LTI 2017 (b)
LTI 2018
LTI 2019
LTI 2020
LTI 2021
STI 2021
Expired options
LTI 2016
LTI 2017
LTI 2018
LTI 2019
LTI 2020
LTI 2021
STI 2021
LTI 2023
Stock options
LTI 2016
LTI 2017
LTI 2018
LTI 2019
LTI 2020
LTI 2021
STI 2021
LTI 2023
s
r
e
g
a
n
a
m
f
o
.
o
N
372
345
363
368
382
387
132
396
-
-
-
-
-
332
104
393
r
a
e
y
l
i
a
c
n
a
n
F
i
)
a
(
e
c
i
r
p
-
-
-
-
-
-
-
-
s
e
r
a
h
s
f
o
.
o
N
128,121
141,697
137,342
88,038
182,259
172,083
19,338
13,749,200
(3,323)
(144,040)
(92,026)
-
-
-
-
(124,798)
(11,908)
(45,316)
(88,038)
(182,259)
(43,646)
(7,014)
(85,200)
-
-
-
-
-
128,437
12,324
13,664,000
13,804,761
(a) Since these are free shares, the strike price is zero.
(b) The number of shares assigned in relation to the 2017 attribution of the 2016-2018 plan also includes the additional share accruing to those eligible against the co-investment.
The incentive plans for employees of the Group are shown in the item “Personnel expenses” and as a counter-item to “Other
reserves” of equity.
\ 296
The parameters used to calculate the fair value relating to the 2023 attribution of the LTI 2023-2025 plan and 2021 attribution of
the LTI 2019-2021 plan are as follows20:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Share price (a)
Strike price (b)
Parameter adopted in the Black & Scholes model
Expected life
Vesting period
Co-investment/Retention Premium
Risk-free interest rate
TSR
- Vesting period
- Co-investment/Retention Premium
Black & Scholes
Expected dividends
Expected volatility
TSR
- Vesting period
- Co-investment/Retention Premium
Black & Scholes
(€)
(€)
(€)
(years)
(years)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
Attribution
June 27, 2023
June 27, 2023
LTI 2023
1,177
-
1,177
Attribution
October 27, 2021
October 27, 2021
LTI 2021
104
-
104
3
2
3.71
3.63
n.a.
0.00
June 27, 2023
June 27, 2023
October 27, 2021
October 27, 2021
June 27, 2023
June 27, 2023
105,53
116.72
n.a.
October 27, 2021
October 27, 2021
3
2
0.00
0.20
n.a.
0.00
49.02
50.48
n.a.
(a) Corresponding to the closing price of Saipem SpA shares on the date of attribution, recorded on the Electronic Stock Market managed by Borsa Italiana.
(b) Since these are grants, the strike price is zero.
Remuneration of Senior Managers with Strategic Responsibilities
To ensure better consistency between disclosures provided in the Report on Remuneration Policy and Compensation Paid and
this annual report, the definition of Senior Managers with Strategic Responsibilities is consistent with Article 65, section 1-quater
of the Issuer Regulations. This definition refers to individuals with direct or indirect planning, coordination and control powers and
responsibilities.
The table shows the remuneration payable to Saipem's key management personnel, defined as executives, other than Directors
and Statutory Auditors, who are required to participate in the Management Committee and in any case the first reports to the
Chief Executive Officer-CEO/Chairman of the Board of Directors of Saipem SpA.
(€ million)
Wages and salaries
Employee termination indemnities
Other long-term benefits
Fair value stock-based incentive plans
Total
2023
7
-
-
1
8
2022
7
-
-
1
8
Compensation of Statutory Auditors
Remuneration of Statutory Auditors amounted to €170 thousand in 2023.
Compensation included emoluments and all other retributive and social security compensations due for the function of
Statutory Auditor of Saipem SpA or other companies within the scope of consolidation that represented a cost to the Parent
Company.
(20) For more information on the parameters used for past and still active implementations as of December 31, 2023, please refer to the Annual Report of Saipem
SpA for the financial years 2017, 2018, 2019, 2020, 2021 and 2022.
\ 297
SAIPEM ANNUAL REPORT 2023
Average number of employees
The average number of employees, by category, for all consolidated companies was as follows:
(number)
Senior managers
Junior managers
White collars
Blue collars
Seamen
Total
2023
383
4,576
14,478
9,434
237
29,108
2022
383
4,533
15,248
11,000
230
31,394
The average number of employees was calculated as the arithmetic mean of the number of employees at the beginning and end
of the year. The average number of senior managers included managers employed and operating in foreign countries whose
position was comparable to senior manager status.
Depreciation, amortisation and impairment losses
Depreciation, amortisation and impairment losses are detailed below:
(€ million)
Depreciation and amortisation:
- property, plant and equipment
- intangible assets
- Right-of-Use lease assets
Total depreciation and amortisation
Impairment losses:
- property, plant and equipment
- intangible assets
- Right-of-Use lease assets
Total impairment losses
Total
2023
2022
327
11
122
460
29
-
-
29
489
294
14
136
444
1
-
-
1
445
Impairment losses of €29 million (€1 million in 2022) related mainly to impairment losses of assets of the Asset Based Services
business line.
Other operating income (expense)
During the year, €5 million in operating expenses was recorded (€7 million in operating income in 2022).
36 Financial income (expense)
Financial income (expense) consisted of the following:
(€ million)
Financial income (expense)
Financial income
Financial expense
Total
Derivative financial instruments
Total
2023
2022
672
(765)
(93)
(74)
(167)
1,008
(1,075)
(67)
(128)
(195)
\ 298
Net financial income (expense) was as follows:
(€ million)
Net exchange gains (losses)
Exchange gains
Exchange losses
Financial income (expense) related to net financial debt
Interest income from banks and other financial institutions
Interest income on leases
Interest and other expense due to banks and other financial institutions
Interest expense on leases
Other financial income (expense)
Other financial income from third parties
Other financial expense to third parties
Financial income (expense) on defined benefit plans
Net financial income (expense)
Net income (expense) on derivatives consisted of the following:
(€ million)
Exchange rate derivatives
Interest rate derivatives
Total
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023
5
575
(570)
(107)
40
14
(119)
(42)
9
43
(29)
(5)
(93)
2023
(75)
1
(74)
2022
92
993
(901)
(133)
6
3
(121)
(21)
(26)
6
(30)
(2)
(67)
2022
(127)
(1)
(128)
The balance of income (expense) from derivative contracts is negative for €74 million (negative for €128 million in 2022) mainly
related to the recognition in the income statement of the effects related to the fair value measurement of derivative contracts
that do not qualify for hedge accounting under IFRS and the measurement of the forward component of derivative contracts
qualifying for hedge accounting.
Financial income (expense) with related parties is shown in Note 43 “Related party transactions”.
37 Gains (losses) on equity investments
Effect of accounting using the equity method
The share of profit (loss) of equity-accounted investees consisted of the following:
(€ million)
Share of profit of equity-accounted investees
Share of loss of equity-accounted investees
Net utilisations of (accruals to) the provisions for losses related to equity-accounted investees
Total
2023
60
(4)
51
107
2022
28
(21)
(72)
(65)
The share of profits (losses) of equity-accounted investees is commented in Note 18 “Equity investments”.
Other gains (losses) from equity investments
Net losses for €47 million were recorded in the year (no other gains (losses) on equity investments in 2022) due mainly to the
disposal of investments.
38 Income taxes
Income taxes consisted of the following:
(€ million)
Current taxes:
- Italian subsidiaries
- foreign subsidiaries
Net deferred tax assets and liabilities:
- Italian subsidiaries
- foreign subsidiaries
Total
2023
(55)
136
44
20
145
2022
11
152
(2)
(8)
153
\ 299
SAIPEM ANNUAL REPORT 2023
The reconciliation between the theoretical tax burden, calculated by applying a 24% tax rate (Ires) to pre-tax profit as per the
Italian laws, and the effective tax burden for the years ended December 31, 2023 and 2022 is as follows:
(€ million)
Pre-tax profit (loss)
Theoretical income tax
Items increasing (decreasing) tax rate:
- different foreign subsidiaries tax rate
- permanent differences and other factors
- effect of Italian regional production tax (Irap) on Italian companies
- impact of uncertainty in tax treatment
- unrecognised deferred income tax assets
- impairment (recognition) of deferred tax assets and income taxes
Total changes
Effective taxes
(€ million)
Income taxes recognised in the income statement
Income tax related to items of other comprehensive income that may be reclassified to profit or loss
Of which:
- tax effect due to the change in the fair value of cash flow hedges
- tax effect due to the change in the fair value of financial assets, other than equity investments,
measured at fair value through OCI
Income tax related to items of other comprehensive income that will not be reclassified to profit or loss
Of which:
- tax effect due to the remeasurement of defined benefit plans for employees
Tax on comprehensive income (loss)
2023
330
79
(34)
67
3
(67)
91
6
66
145
2023
145
(30)
(29)
(1)
3
3
118
2022
(162)
(39)
(10)
64
4
35
99
-
192
153
2022
153
18
17
1
(10)
(10)
161
On December 27, 2023, the Legislative Decree No. 209 “International Taxation” was approved with effect from January 1, 2024.
It adopted the EU Regulation 2022/2523 of December 14, 2022 and introduced into Italian law rules to ensure a global minimum
tax for large multinational and national groups, in accordance with the OECD Pillar Two in order to reduce the phenomena of tax
base erosion and profit transfer. Saipem SpA, in its capacity as Ultimate Parent Entity, therefore assessed the income tax
exposure to the new Pillar Two system, in view of the fact that the Group meets the requirements for its application. The
assessment is based on the most recent tax returns submitted by entities within the scope of Pillar Two, on their financial
statements and on the Country by Country Report. From Saipem’s analysis, it appeared that the actual tax rates, determined
according to the rules of Pillar Two, in the main jurisdictions in which the Group operates are higher than 15%, which the global
minimum tax within the system; on the other hand, there are a few jurisdictions where the tax rate is lower than 15%. The Group
does not foresee significant exposure to Pillar Two income taxes.
39 Non-controlling interests
There was no income by non-controlling interests in 2023, as for 2022.
40 Profit (loss) per share
Basic profit (loss) per ordinary share is calculated by dividing profit (loss) for the year attributable to the Group’s shareholders by
the weighted average of Saipem SpA ordinary shares outstanding during the year, excluding treasury shares.
Diluted profit (loss) per share is calculated by dividing profit (loss) for the year by the weighted average number of Saipem SpA
ordinary shares outstanding during the year, excluding treasury shares, increased by the potential number of shares that could
be issued. Losses for the year are excluded to the extent that their inclusion would have an anti-dilutive effect.
The weighted average number of outstanding shares used for the calculation of the basic profit (loss) per share was
1,995,147,895 in 2023 and 940,341,988 in 2022.
The weighted average number of outstanding shares used for the calculation of the diluted profit (loss) per share was
2,008,953,715 in 2023 and 940,343,047 in 2022.
\ 300
Reconciliation of the weighted average number of outstanding shares used for the calculation of basic and diluted profit and loss
per share is as follows:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Weighted average number of outstanding shares used for the calculation
of the basic profit (loss) per share
Number of potential shares against convertible bonds
Number of potential shares following incentive plans
Number of savings shares convertible into ordinary shares (a)
Weighted average number of outstanding shares used for the calculation
of the diluted profit (loss) per share (b)
Profit (loss) attributable to Saipem - Continuing operations
Basic profit (loss) per share
Diluted profit (loss) per share
Profit (loss) attributable to Saipem - Discontinued operations
Basic profit (loss) per share
Diluted profit (loss) per share
Profit (loss) attributable to Saipem
Basic profit (loss) per share
Diluted profit (loss) per share
Dec. 31, 2023
Dec. 31, 2022
1,995,147,895
74,220,137
13,804,761
1,059
940,341,988
-
313,362
1,059
2,008,953,715
185
0.09
0.09
(6)
-
-
179
0.09
0.09
(€ million)
(€ per share)
(€ per share)
(€ million)
(€ per share)
(€ per share)
(€ million)
(€ per share)
(€ per share)
940,343,047
(315)
(0.33)
(0.33)
106
0.11
0.11
(209)
(0.22)
(0.22)
(a) It should be noted that for 2022, the number of potential shares following the incentive plans was not considered when computing the weighted average number of outstanding shares used for the
calculation of the diluted earnings (loss) per share.
(b) Potential shares against convertible bonds were excluded in the calculation as they have an anti-dilutive effect.
41 Reporting by business segment
As already commented in the Director's Report, to which we refer, information to the market starting from the first quarter of
2023, in accordance with the provisions of IFRS 8, is prepared following the reporting segments below:
≥ Asset Based Services, which includes Offshore Engineering & Construction and Offshore Wind activities;
≥ Offshore Drilling; and
≥ Energy Carriers, which includes the Onshore Engineering & Construction, Sustainable Infrastructures, and Robotics
& Industrialized Solutions.
The sectors clustered in the reporting segments above have similar economic characteristics; moreover, the new Offshore
Wind, Sustainable Infrastructures, and Robotics & Industrialized Solutions sectors are not, at present, so significant that they
deserve separate reporting, in accordance with IFRS 8. Given its relevance and economic characteristics, the Offshore Drilling
sector will be reported separately, as usual.
The results restated based on the new reporting are broadly in line with the data released to the market in 2022; in any case, for
the purpose of a more complete understanding of the effects of the re-aggregation, the data on revenues, EBITDA and adjusted
EBIT for the year 2022, relating to the two sectors subject to re-aggregation, are reported at the end of this note.
\ 301
SAIPEM ANNUAL REPORT 2023
Reporting by business segment*
(€ million)
December 31, 2023
Core business revenue
less: intra-group revenues
Net revenues
Operating profit (loss)
Depreciation, amortisation and impairment losses
Gains (losses) on equity investments
Capital expenditure in property, plant and equipment
and intangible assets
Property, plant and equipment and intangible assets
Right-of-use of leased assets
Equity investments (a)
Current assets
Current liabilities
Provisions for risks and charges (a)
December 31, 2022
Core business revenue
less: intra-group revenues
Net revenues
Operating profit (loss)
Depreciation, amortisation and impairment losses
Gains (losses) on equity investments
Capital expenditure in property, plant and equipment
and intangible assets
Property, plant and equipment and intangible assets
Right-of-use of leased assets
Equity investments (a)
Current assets
Current liabilities
Provisions for risks and charges (a)
d
e
s
a
B
t
e
s
s
A
s
e
c
i
v
r
e
S
9,461
3,392
6,069
301
313
14
258
2,320
315
102
1,904
2,938
349
6,969
1,943
5,026
84
314
10
146
2,293
166
98
1,841
2,194
599
s
r
e
i
r
r
a
C
y
g
r
e
n
E
5,632
570
5,062
(42)
53
66
22
400
101
(25)
2,447
3,090
306
4,875
486
4,389
(85)
59
(75)
27
440
79
(58)
2,343
3,293
403
e
r
o
h
s
f
f
O
g
n
i
l
l
i
r
D
1,266
523
743
178
123
-
202
906
12
-
613
335
33
914
349
565
99
72
-
350
837
13
-
348
279
28
d
e
t
a
c
o
l
l
a
n
U
-
-
-
-
-
(20)
-
-
-
85
3,140
492
30
-
-
-
-
-
-
-
-
-
88
3,095
1,148
17
l
a
t
o
T
16,359
4,485
11,874
437
489
60
482
3,626
428
162
8,104
6,855
718
12,758
2,778
9,980
98
445
(65)
523
3,570
258
128
7,627
6,914
1,047
(*) The results of the Onshore Drilling segment being divested, have been recognized as discontinued operations in accordance with the criteria set out in IFRS 5.
(a) See the section “Reconciliation of reclassified statement of financial position with the mandatory templates” on page 75.
Revenues and associated profit levels are not consistent over time, as they are influenced not only by market performance but also by climatic conditions and individual project schedules in the Engineering
& Construction segment, and by contract expiry and renegotiation timing in the drilling activities.
Impact of reorganisation - data reported
(€ million)
Offshore E&C
Core business revenue
Adjusted gross operating profit (EBITDA)
Adjusted operating profit (EBIT)
Onshore E&C
Core business revenue
Adjusted gross operating profit (EBITDA)
Adjusted operating profit (EBIT)
\ 302
2022
5,127
420
105
4,288
1
(57)
Impact of reorganisation - data reported
(€ million)
Asset Based Services
Core business revenue
Adjusted gross operating profit (EBITDA)
Adjusted operating profit (EBIT)
Energy Carriers
Core business revenue
Adjusted gross operating profit (EBITDA)
Adjusted operating profit (EBIT)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2022
5,026
414
100
4,389
7
(52)
For more details on the information by sectors please see the specific sections of the “Directors’ Report”.
42 Reporting by geographical segment
Reporting by geographical segment
Since Saipem’s business involves the deployment of a fleet on a number of different projects over a single year, it is difficult to
allocate assets to a specific geographic segment and some activities are deemed not to be directly allocable.
The unallocated part of property, plant and equipment, intangible assets and capital expenditure relates to vessels and their
related equipment and goodwill.
The unallocated part of current assets pertained to inventories related to vessels.
A breakdown of revenues by geographical segment is provided in Note 34 “Revenue”.
(€ million)
2023
Capital expenditure in property, plant and equipment
and intangible assets
Property, plant and equipment and intangible assets
Right-of-use of leased assets
Identifiable assets (current)
Assets held for sale
2022
Capital expenditure in property, plant and equipment
and intangible assets
Property, plant and equipment and intangible assets
Right-of-use of leased assets
Identifiable assets (current)
Assets held for sale
e
p
o
r
u
E
f
o
t
s
e
R
104
36
98
641
-
27
33
60
729
-
y
l
a
t
I
22
63
110
1,602
-
22
64
98
1,629
-
i
a
s
A
f
o
t
s
e
R
a
c
i
r
f
A
h
t
r
o
N
n
a
r
a
h
a
S
-
b
u
S
a
c
i
r
f
A
S
C
I
s
a
c
i
r
e
m
A
d
e
t
a
c
o
l
l
a
n
U
l
a
t
o
T
-
-
-
7
249
60
39 2,711
-
3
2
5
41
4
482
342
-
61 3,175 3,626
1
126
17
428
13
752 8,104
138 1,205 1,016
26
23
-
-
-
-
21
-
5
69
60
103 2,632
38
-
-
-
4
55
-
11
42
10
947
4
3
523
455
70 3,271 3,570
258
14
12
662 7,627
870
211
168
1
Current assets were allocated by geographical segment using the following criteria: (i) cash and cash equivalents and loan
assets were allocated on the basis of the country in which individual company bank accounts were held; (ii) inventories were
allocated on the basis of the country in which onshore storage facilities were situated (i.e. excluding inventories in storage
facilities situated on vessels); (iii) trade receivables and other assets were allocated to the geographical segment to which the
related project belonged.
Non-current assets were allocated on the basis of the country in which the asset operates, except for offshore drilling and
construction vessels, which were included under “Unallocated”.
43 Related party transactions
From January 22, 2016, following the entry into force of the transfer of 12.5% of Saipem SpA’s (“Saipem”) share capital from Eni
SpA to CDP Equity SpA (formerly Fondo Strategico Italiano SpA), Eni SpA no longer has sole control over Saipem, which has
been replaced by the joint control exercised by Eni SpA and CDP Equity SpA (taken over on December 13, 2019 by CDP
Industria SpA), on the basis of the shareholders’ agreement, with a resulting variation in the scope of related parties.
As of December 31, 2022, the merger became effective through the absorption of CDP Industria SpA into CDP Equity SpA, both
of which are wholly and directly owned subsidiaries of Cassa Depositi e Prestiti SpA ("CDP SpA"). Therefore, also effective as of
December 31, 2022, CDP Equity SpA took over the Agreement in lieu of CDP Industria SpA and all the rights and obligations
previously held by the latter under the Agreement by signing a letter of assumption.
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SAIPEM ANNUAL REPORT 2023
Eni SpA and CDP Industria SpA do not exercise sole control over Saipem pursuant to Article 93 of TUF.
Eni SpA is subject to the de facto control of the Ministry of Economy and Finance (“MEF”), on account of the participation held by
the latter both directly and through CDP SpA. CDP Equity SpA is a fully-owned subsidiary of CDP SpA, whose majority
shareholder is the MEF.
Transactions carried out by Saipem and the companies included in the scope of consolidation with related parties mainly consist
of the supply of services and the exchange of goods with joint ventures, associates and subsidiaries that are not fully
consolidated, with subsidiaries, joint ventures and associates of Eni SpA and CDP SpA, with companies controlled by the
Ministry of Economy and Finance (MEF); these transactions form part of ordinary operations and are settled at market
conditions, i.e., at the conditions that would have applied between two non-related parties. All transactions were carried out in
the interest of Saipem SpA companies.
In addition, relations with members of the Board of Directors, Statutory Auditors, key management personnel, their close family
members and the entities controlled, even jointly, by them, of Saipem, Eni SpA, CDP SpA and CDP Equity SpA were represented.
Directors, statutory auditors, general managers, and key management personnel must declare, every 6 months, any transactions
they enter into with Saipem or its subsidiaries, directly or through a third party. Directors and Statutory Auditors release every six
months and/or in the event of a change, a statement in which each potential interest is represented in relation to the parent and
the Group and in any case report to the Chief Executive Officer (or the Chairman where the Chief Executive Officer is involved),
who informs the other directors and the Board of Statutory Auditors of the individual transactions that the parent intends to
perform, in which they have direct interests.
Saipem is not under the management or coordination of any other company. Saipem manages and coordinates its subsidiaries
pursuant to Article 2497 of the Italian Civil Code.
Within the framework of related party transactions and pursuant to disclosure requirements of Consob Regulation No. 17221 of
March 12, 2010, during 2023, the following transactions were carried out and communicated to Consob, which exceeded the
relevance threshold in compliance with the aforementioned Regulation in the Saipem, Management System Guideline
“Transactions with Related Parties and Parties of Interest” (the “Procedure”), published on Saipem’s website in section
“Governance”, for greater importance transactions.
CDP and SACE - Revolving Credit Facility and SACE Facility
On February 10, 2023, a loan transaction was entered into consisting of the following:
(i) a revolving credit facility in favour of Saipem and its subsidiary Saipem Finance International BV ("SAFI") in the amount of
around €470 million (the "new RCF"), and with a term of three years, granted by a pool of lending banks including CDP SpA;
and
(ii) a senior unsecured term loan, with a maturity of five years and a pre-amortisation period of two years, in favour of Saipem for
an amount of around €390 million granted by a pool of lending banks (the "SACE Facility"), backed by a guarantee provided by
SACE SpA ("SACE") in accordance with Legislative Decree No. 50/2022 covering 70% of the loan amount (together the
"Loans" or the "Transaction").
In view of the fact that: (i) Saipem controls SAFI; (ii) Saipem is jointly controlled by Eni SpA and CDP Equity SpA; (iii) CDP Equity
SpA is controlled by CDP SpA; (iv) CDP SpA and Eni SpA are in turn controlled by the MEF; (v) SACE is in turn controlled by the
MEF; the signing of the Loan Agreements qualifies as a Related Party transaction, as it is being carried out between companies
subject to common control, including joint control, with Saipem.
The signing of the Loan Agreements – although it qualifies as a "greater importance" transaction, since it exceeds the applicable
pro tempore significance index – is classed as an ordinary transaction carried out at equivalent market or standard conditions,
and is therefore exempt from the procedural and reporting obligations established for greater importance transactions in the
Regulation and the Procedure in light of the following:
≥ this Transaction forms part of the ordinary operating activities of Saipem and its subsidiary SAFI for the purpose of entering
into loan facilities necessary to support ordinary operating activities and to ensure an adequate financial structure and level of
liquidity for the Group;
≥ the Loans have been entered into under standard terms and conditions in line with CDP SpA's and SACE's ordinary operations,
as well as national and international practice;
≥ the financial conditions envisaged in the Loans are applied uniformly to all the lending institutions and are aligned with the
conditions applied in the related markets with non-related counterparties for transactions with similar characteristics;
≥ the financial terms and conditions of the guarantee provided by SACE under the SACE Facility are governed by the General
Conditions of the SupportItalia Guarantee published on the SACE website and are not negotiable.
Eni Côte d’Ivoire Ltd - drilling services offshore Ivory Coast
On February 22, 2023, a Contract was signed between Saipem (Portugal) Comércio Marítimo, Sociedade Unipessoal Lda (SPCM)
and Eni Côte d'Ivoire Ltd, concerning offshore drilling activities off the Ivory Coast using the leased vessel Deep Value Driller. The
contract involves the drilling of several offshore wells with an estimated duration of around 985 days plus optional periods.
The contract value amounts to $400,000,000 before lease costs for the vessel Deep Value Driller. If the contractual options are
exercised, the respective financial conditions will be agreed with the client.
In view of the fact that: (i) SPCM is indirectly controlled by Saipem (100%) through its subsidiary Saipem International BV, which is
also a wholly owned subsidiary of Saipem (100%); (ii) Saipem is in turn jointly controlled by Eni SpA and CDP Equity SpA; (iii) Eni
Côte d'Ivoire Ltd is a subsidiary of Eni SpA; this transaction qualifies as a related party transaction, as it is being carried out with
companies subject to common control, including joint control.
Although this transaction qualifies as a transaction of “greater importance” as it exceeds the applicable pro tempore relevance
index of the countervalue, it is an ordinary transaction concluded at market or standard equivalent conditions, and is therefore
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
excluded from the procedural and disclosure requirements provided for transactions of greater importance, which do not fall
within the cases of exclusion provided for by the Consob Regulation and the Procedure adopted by the Company.
In particular, the transaction is configured as an ordinary transaction and concluded under equivalent market or standard
conditions for the reasons below:
≥ it falls within the scope of ordinary activity of the Saipem Group, in particular of the Asset Based Services Business Line -
Offshore Drilling segment (offshore drilling services);
≥ the financial conditions applied are in line with the market conditions reported by specialised and international third party
sources for the industry concerned (offshore drilling rigs) and used by the Asset Based Services Business Line, Offshore
Drilling segment;
≥ the contractual terms agreed for the Contract are in line with those applied to similar contracts entered into with parties not
identified as related parties of Saipem.
Eni Angola SpA - EPCI Flowline for AGOGO FF Project
On February 27, 2023, the Engineering, Procurement, Construction and Installation Contract was signed between Saipem SA,
Petromar Lda, Saipem Luxembourg SA Angola Branch, on the one hand, and Eni Angola SpA, on the other hand, concerning the
procurement, construction and installation (EPCI) of around 12 km of pipelines in Angola. The Contract has a duration of 30
months and a value of $499,000,000, of which $445,000,000 for the lump sum and $54,000,000 for the reimbursable portion.
In view of the fact that: (i) Saipem SA and Saipem Luxembourg SA are controlled (respectively directly and indirectly) by Saipem
SpA; (ii) Petromar Lda is a jointly controlled subsidiary of Saipem and third parties; (iii) Saipem is in turn controlled jointly by Eni
SpA and CDP Equity SpA; (iv) Eni Angola SpA is a subsidiary of Eni SpA; this transaction qualifies as related party transaction, as it
is being carried out between companies under common or joint control.
Although this transaction qualifies as a transaction of “greater importance” as it exceeds the applicable pro tempore relevance
index of the countervalue, it is an ordinary transaction concluded at market or standard equivalent conditions, and is therefore
excluded from the procedural and disclosure requirements provided for transactions of greater importance, which do not fall
within the cases of exclusion provided for by the Consob Regulation and the Procedure adopted.
In particular, the transaction is configured as an ordinary transaction and concluded under equivalent market or standard
conditions for the reasons below:
≥ it falls within the scope of ordinary activity of the Saipem Group and, specifically, Saipem’s Subsea, Umbilical, Risers and
Flowline (SURF) of the Asset Based Services Business Line (Offshore E&C segment);
≥ the contractual conditions are based on client’s standards in line with contractual standards of international industrial projects;
≥ the prices for the execution of the activities have been agreed at market financial, technical and contractual conditions,
comparable to those applied to similar projects, including unrelated parties.
Rete Ferroviaria Italiana - Passante Ferroviario Alta Velocità Nodo di Firenze
On March 1, 2023, Rete Ferroviaria Italiana ("RFI") notified Consorzio Florentia (49% Saipem) of the effectiveness of the final
award for the contract for the "Execution and Completion of the works for the High-Speed Railway Link and the High-Speed
Station of the Florence Node" (the "Project"). The Project involves the construction of a new HS/HC railway line of approximately
7 kilometres underground with two parallel tunnels, completed with two terminal sections above ground, to the north between
the stations of Firenze Castello and Firenze Rifredi, and to the south near the station of Firenze Campo di Marte. The new HS/HC
Firenze Belfiore station will be built along the underground section. The Project will have a duration of 2,291 days (about 76
months) and a value of €1,079 million (Saipem's share is €529 million).
In view of the fact that: (i) the Consorzio Florentia is jointly controlled by Saipem and third parties; (ii) Saipem is in turn jointly
controlled by Eni SpA and CDP Equity SpA; (iii) Eni SpA and CDP Equity SpA are controlled by the MEF; (iv) RFI is in turn controlled
by the MEF; the transaction qualifies as a related party transaction, as it is being carried out with companies under common
control, including joint control.
Although this transaction qualifies as a transaction of “greater importance” as it exceeds the applicable pro tempore relevance
index of the countervalue, it is an ordinary transaction concluded at market or standard equivalent conditions, and is therefore
excluded from the procedural and disclosure requirements provided for transactions of greater importance, which do not fall
within the cases of exclusion provided for by the Consob Regulation and the Procedure adopted by the Company.
In particular, the transaction is configured as an ordinary transaction and concluded under equivalent market or standard
conditions for the reasons below:
≥ it falls within the scope of ordinary activity of the Saipem Group and, specifically, the rail infrastructure work, typical of Saipem's
Sustainable Infrastructures business line;
≥ the financial terms are in line with similar turnkey contracts in the Infrastructure sector, with an average margin in line with other
projects of the Sustainable Infrastructures business line that have been implemented or for which bids have been submitted in
recent years, including with unrelated parties;
≥ the financial conditions of the Project are based on RFI's standard conditions and price lists;
≥ the interest rates applied by the banks for the issuance of guarantees for the Project are in line with those applicable to similar
transactions with parties classed as unrelated counterparties.
Eni Congo SAU - Scarabeo 5 Engineering, Procurement and Conversion for Congo LNG Project
On March 2, 2023, the "Scarabeo 5 Engineering, Procurement and Conversion for Congo LNG Project" Agreement for
Preliminary Activities (the "APA") was signed between Eni Congo SA ("Eni Congo") and Saipem, relating to the execution of
engineering services, project management, materials procurement and selection of the yard where the semi-submersible
Scarabeo 5 (owned by Saipem) will be sent for conversion and fabrication activities.
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SAIPEM ANNUAL REPORT 2023
The maximum amount of the APA is $55,000,000 (approximately €51,862,329 equivalent). The APA is part of the initiative called
“Scarabeo 5 Conversion in a Separation & Boosting Platform”, related to the expansion of the production capacity connected to
the client's gas field located in Nené (Congo) and the broader Congo LNG project. The scope of the overall work involves the
conversion of the Scarabeo 5 semi-submersible unit into a platform for the separation and compression of gas from the Nené
field to be sent to the FLNG offshore unit, and includes installation and operation & maintenance activities.
The APA is to be considered preparatory to the potential future signing of several contracts for the execution of the entire EPCIC
(Engineering, Procurement, Construction, Installation, Commissioning) scope and subsequent operation & maintenance
activities.
In view of the fact that: (i) Saipem is jointly controlled by Eni SpA and CDP Equity SpA; (ii) Eni Congo is a subsidiary of Eni SpA; this
transaction qualifies as a transaction with related parties, as it is entered into with companies subject to common control,
including joint control.
Although this transaction qualifies as a transaction of “greater importance” as it exceeds the applicable pro tempore relevance
index of the countervalue, it is an ordinary transaction concluded at market or standard equivalent conditions, and is therefore
excluded from the procedural and disclosure requirements provided for transactions of greater importance, which do not fall
within the cases of exclusion provided for by the Consob Regulation and the Procedure adopted by the Company.
In particular, the transaction is configured as an ordinary transaction and concluded under equivalent market or standard
conditions for the reasons below:
≥ it falls within the scope of ordinary activity of the Group and, specifically, the Floaters segment of the Energy Carriers business.
≥ the margin expected for the APA is in line with market conditions for similar projects with unrelated parties;
≥ the agreed prices for the execution of the APA activities comply with conditions typical of the relevant market sector, in
particular: (i) with regard to the remuneration for engineering services, project management, third-party studies, procurement
management, inspections and surveys, the rates applied are those stated in previous agreements in place between Saipem
and Eni SpA, in accordance with international contract standards for similar projects in the sector; (ii) with regard to the
remuneration for the purchase of equipment and materials, a fee of 12% will be paid in addition to the value of the invoices of
the suppliers concerned.
SACE SpA - Mandate and indemnity agreement
On April 12, 2023, a mandate and indemnity agreement (the "Agreement") was signed between Saipem and SACE SpA ("SACE"),
related to the partial coverage by SACE of the amount of a Performance Security Guarantee ("PSG") with an overall initial value of
$353,125,000 (around €325 million equivalent) issued by HSBC Australia in favour of the client Perdaman Chemicals and
Fertilisers Pty Ltd ("Perdaman"). The PSG was issued as security for the obligations under the contract signed between the
Unincorporated Joint Venture made up of Saipem Australia Pty Ltd and Clough Projects Australia Pty Ltd, on the one hand, and
Perdaman, on the other, for the execution of the project “Design, engineering, procurement, and supply of equipment,
construction and commissioning of the Burrup Urea Plant” in Australia.
The initial value of Saipem's share of the PSG (50% of the total value), amounting to $176,562,500 (approximately €163 million
equivalent), was covered by the issuance of the following counter-guarantees in favour of HSBC Australia:
(i) a counter-guarantee issued by HSBC Continental Europe for an initial amount of $114,781,250 (approximately €106 million
equivalent).
(ii) a counter-guarantee issued by UniCredit SpA for an initial amount of $61,781,250 (approximately €56 million equivalent).
The Agreement provided for the coverage by SACE of 50% of the value of Saipem's share (amounting, as indicated above, to
$176,562,500) through the issuance of a counter-guarantee in favour of HSBC Continental Europe for an initial value of
$88,281,250 (approximately €81.3 million equivalent), to partially cover the counter-guarantee mentioned in point (i).
In view of the fact that: (i) Saipem Australia Pty Ltd is controlled by Saipem; (ii) Saipem is jointly controlled by Eni SpA and CDP
Equity SpA;, (iii) CDP Equity SpA is controlled by CDP SpA; (iv) CDP SpA and Eni SpA are in turn controlled by the MEF; (v) and
SACE is in turn controlled by the MEF; this transaction qualifies as a related party transaction, as it is being carried out with
companies subject to common control, including joint control.
The transaction subject to their joint, although qualified as an of “greater importance” as it exceeds applicable pro tempore
countervalue significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for
the reasons described below:
≥ the issuance of a first demand performance bank guarantee is standard practice in connection with the ordinary operating
activities of Saipem and its subsidiaries for the performance of engineering services, material supply and construction
activities;
≥ the transaction subject to the Agreement was carried out under standard terms and conditions in line with widely established
national and international practice;
≥ the fee paid by Saipem on the portion counter-guaranteed by SACE is equivalent to the fee charged by HSBC Continental
Europe in remuneration of its portion and is in line with the market prices applied to Saipem's credit risk for this type of
guarantee;
≥ the fee agreed with SACE for the issuance of the counter-guarantee in favour of HSBC Continental Europe, as well as the
related contractual terms and conditions, are in line with the fees and contractual terms paid by Saipem to unrelated
counterparties for transactions with similar characteristics.
Eni SpA - Amendment to offshore drilling contract with the "Santorini" vessel
On April 17, 2023, an amendment to Contract No. 2500039715 (the “Contract”) was signed between Saipem and Eni SpA (“Eni”),
providing for an extension of offshore drilling activities with the drillship “Santorini”.
The amendment envisages the possibility of using the vessel in specific areas with subsequent contractual commitments, also
with other Eni Group companies.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The contract extension has a duration of two years and the contract value is $280 million, plus additional revenue related to
investments for improvements of the vessel totalling around $15 million.
Given that Saipem is jointly controlled by Eni and CDP Equity SpA, this Contract qualifies as a related party transaction.
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Saipem Group, in particular of the Asset Based Services Business Line -
Offshore Drilling segment;
≥ the financial conditions applied are in line with the market conditions reported by specialised and international third party
sources for the industry concerned (offshore drilling rigs) and used by the Asset Based Services business line, Offshore
Drilling segment;
≥ the contractual terms agreed for the Contract are in line with those applied to similar contracts entered into with parties
identified as parties not related to Saipem.
Eni Côte d’Ivoire Ltd - Agreement for preliminary activities “Baleine Phase 2”
On May 30, 2023, under the "Baleine Phase 2" project, the Amendment 1 to the Agreement for Preliminary Activities ("APA
SURF") was signed between Saipem SA and Servizi Energia Italia SpA, on the one hand, and Eni Côte d'Ivoire Ltd, on the other
hand, for the execution of Engineering, Procurement, Construction and Installation (EPCI) services for Subsea Umbilicals, Risers
& Flowlines (SURF) activities for the connection of the Floating, Production, Storage and Operations (FPSO) to six wells. The total
value of the APA SURF is $75 million.
In view of the fact that: (i) Saipem SpA and Servizi Energia Italia SA are fully controlled by Saipem; (ii) Saipem is in turn jointly
controlled by Eni and CDP Equity SpA; and (iii) Eni Côte d'Ivoire Ltd is a subsidiary of Eni; this transaction qualifies as a related
party transaction, as it is being carried out with companies subject to common control, including joint control.
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Saipem Group and, specifically, Saipem’s Asset Based Services Business Line
(Offshore E&C segment);
≥ the contractual conditions applied are in line with the conditions usually applicable to similar international industrial projects, as
well as the standard contractual terms and conditions of the Eni Group and, in any event, are in line with those applied to similar
contracts entered into with parties identified as non-related parties of the Saipem Group;
≥ the financial and technical conditions agreed in the APA SURF are in line with comparable market conditions for similar types
of projects.
Eni Congo SAU - Scarabeo 5 Conversion in S&B Platform
On August 7, 2023, as part of the “Scarabeo 5 Conversion in S&B Platform” initiative (relating to the expansion of the offshore
facilities linked to Eni SpA gas field in Congo), a contract (the “Contract”) was signed between Saipem and Servizi Energia Italia
SpA on the one hand, and Eni Congo SAU on the other; the scope of the contract is the conversion of the semisubmersible
Scarabeo 5 into a platform for the separation and compression of the gas from the Nené field, to be sent to the Offshore FLNG
unit. In particular, the scope of the Contract includes: (i) conversion activities of the Scarabeo 5 into a production unit;
(ii) commissioning, start-up and performance test activities on the plant. The total value of the Contract is €662 million.
In view of the fact that: (i) Saipem is jointly controlled by Eni SpA and CDP Equity SpA; (ii) Servizi Energia Italia SpA is a subsidiary
of Saipem; (iii) Eni Congo SAU is a subsidiary of Eni SpA; this transaction qualifies as a transaction with related parties, as it is
entered into with companies subject to common control, including joint control.
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Saipem Group and, specifically, the E&C activities for the Floaters segment of
the Energy Carriers business line;
≥ negotiated contractual conditions are equivalent to market or standard conditions for similar contracts;
≥ the margin expected for the execution of activities related to the Contract is in line with market conditions for similar projects
with unrelated parties;
≥ the economic conditions are in line with market conditions for similar contracts, based on a comparative analysis of said
conditions compared to the benchmarks for similar projects carried out by Saipem in the same sector (Floaters FPSO).
Mellitah Oil & Gas BV Libyan Branch - contract for Engineering, Procurement, Construction, Installation
and Commissioning (EPCIC) of a Gas Recovery Module (GRM)
On August 9, 2023, as part of the “Bouri Gas Utilisation Project”, a contract was signed between Saipem Libyan Branch and
Mellitah Oil & Gas BV Libyan Branch for the engineering, procurement, construction, installation and commissioning (EPCIC) of a
gas recovery module (GRM) of around 5,000 tonnes on the DP4 offshore structure, as well as laying 28 km of pipes to connect
the DP3, DP4 and Sabratha platforms. The total value of the contract is around $1,050,000,000.
In view of the fact that: (i) Saipem is jointly controlled by Eni SpA and CDP Equity SpA; (ii) Mellitah Oil & Gas BV Libyan Branch is a
consortium formed by National Oil Corporation of Libya and Eni North Africa; (iii) Eni North Africa is a subsidiary of Eni SpA; this
transaction qualifies as a transaction with related parties, as it is entered into with companies subject to common control,
including joint control.
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SAIPEM ANNUAL REPORT 2023
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Saipem Group and, specifically, Saipem’s Asset Based Services Business Line
(Offshore E&C segment);
≥ the contractual and economic conditions are in line with market conditions for similar contracts, signed with non-related
parties;
≥ the margin expected for the execution of the activities included in the Project is comparable to those in similar projects, based
on a comparative analysis compared to the benchmarks in similar projects in the same business segment (Offshore E&C).
Snam Rete Gas SpA - FSRU Ravenna Contract for the execution of offshore activities
On September 6, 2023, a contract relating to the FSRU Ravenna project for the execution of offshore activities (the “Project”)
was signed between Snam Rete Gas SpA ("Snam”) and Saipem, as authorised representative of the Temporary Group of
Companies consisting of Saipem, Rosetti Marino SpA and Micoperi Srl.
The Project includes the engineering, procurement, construction, and installation (EPCI) of a new offshore structure, connected
to an existing one, for the berthing and mooring of a FSRU vessel, to be connected to the mainland via an offshore 26’’ pipeline,
8.5 kilometres long, plus 2.6 km onshore, and a parallel fibre-optic cable. The total value of the Project is around €522 million, and
Saipem’s share is around €204.6 million.
The transaction qualifies as “related party“, as it was carried out between companies under common control by Cassa Depositi e
Prestiti SpA (“CDP") (or joint control by Saipem). In particular: (i) Saipem is jointly controlled by Eni SpA and CDP Equity SpA;
(ii) CDP Equity SpA is jointly controlled by CDP SpA; (iii) Snam Rete Gas SpA is in turn controlled by CDP, through Snam SpA and
CDP Reti SpA.
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Saipem Group and, specifically, Saipem’s Asset Based Services Business Line
(Offshore E&C segment);
≥ the contractual and economic conditions are in line with market conditions for similar contracts, signed with non-related
parties;
≥ the margins expected for the execution of the activities included in the Project is comparable to those in similar projects,
based on a comparative analysis compared to the benchmarks in similar projects in the same business segment (Offshore
E&C).
Eni Côte d’Ivoire Ltd - Subsea Umbilicals, Risers and Flowlines (SURF) contract for the development
of the “Baleine Phase 2” project
On September 7, 2023, a Subsea Umbilicals, Risers and Flowlines (SURF) contract was signed between Saipem SA and Servizi
Energia Italia SpA, on one hand, and Eni Côte d'Ivoire Ltd on the other, for the development of the Baleine Phase 2 project
regarding the Baleine oil and gas field located in the offshore Ivory Coast, at a depth of 1,200 metres (the “Project”).
The scope of work involves the engineering, procurement, construction and installation (EPCI) of approximately 20 kilometres of
rigid lines, 10 kilometres of flexible jumpers and risers, and 15 kilometres of umbilicals connected to a dedicated floating unit.
The total value of the Contract is €675.16 million equivalent.
The transaction qualifies as “related party“, as it was carried out between companies under common control by Eni SpA (or joint
control by Saipem). In particular: (i) Saipem controls both Saipem SA and Servizi Energia Italia SpA; (ii) Saipem is jointly controlled
by Eni SpA and CDP Equity SpA; (iii) Eni Côte d'Ivoire Ltd is in turn controlled by Eni SpA.
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Group and, specifically, Saipem’s Subsea, Umbilical, Risers and Flowline
(SURF) of the Asset Based Services Business Line (Offshore E&C segment);
≥ the contractual and economic conditions are in line with market conditions for similar contracts, signed with non-related
parties;
≥ the margin expected for the execution of the activities included in the Project is comparable to those in similar projects, based
on a comparative analysis compared to the benchmarks in similar projects in the same business segment (Offshore E&C).
Rete Ferroviaria Italiana (“RFI”) - Executive design and execution of the works
of doubling the Codogno-Cremona-Mantova line, on the Piadena-Mantova route
On October 10, 2023, RFI notified the temporary grouping of companies of Impresa Pizzarotti & C SpA, Saipem, ICM SpA, and
Salcef SpA of the effectiveness of the final award relating to the award procedure for the “Executive design and execution of
doubling the Codogno-Cremona-Mantova line, on the Piadena-Mantova route” (the “Operation”). The scope of work includes the
execution of doubling works on the Piadena-Mantova railway. The total value of the operation (including Saipem’s share)
amounts to €470,406,216.44 million.
In view of the fact that: (i) Saipem is part of RTI; (ii) Saipem is jointly controlled by Eni SpA and CDP Equity SpA; (iii) Eni SpA and
CDP Equity SpA are controlled by the MEF; (iv) RFI is in turn controlled by the MEF; the transaction qualifies as a related party
transaction, as it is being carried out with companies under common control.
\ 308
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Group and, specifically, Saipem’s Sustainable Infrastructures Business Line;
≥ the contractual and economic conditions are in line with market conditions for similar contracts, signed with non-related
parties;
≥ the expected margin for the execution of the Operation is comparable to those on similar projects, based on a comparative
analysis compared to an average profitability identified in line with other projects carried out by the Sustainable Infrastructures
business line in the past years.
Rete Ferroviaria Italiana (“RFI”) - Executive design and execution of the works relating to Civil works, Railway
Infrastructures, Electric Traction and Technological Systems for the HS/HC hub of Verona: West Entrance
On October 12, 2023, RFI notified the temporary grouping of companies of Impresa Pizzarotti & C SpA, Saipem, and Salcef SpA
of the effectiveness of the final award relating to the award procedure for the “Executive design and execution of the works
relating to Civil works, Railway Infrastructures, Electric Traction and Technological Systems for the HS/HC hub of Verona: West
Entrance” (the “Operation”).
The scope of the Operation includes the execution of works in the Verona Ovest rail junction, for the construction of 3.6 km of
new HS/HC line, 4.2 km of new historic line, and 3.3 km of independent freight line, in addition to adjustment of the master plan of
Verona Porta Nuova. The total value of the Operation (including Saipem’s share) amounted to €253,440,139.19.
In view of the fact that: (i) Saipem is part of RTI; (ii) Saipem is jointly controlled by Eni SpA and CDP Equity SpA; (iii) Eni SpA and
CDP Equity SpA are controlled by the MEF; (iv) RFI is in turn controlled by the MEF; the transaction qualifies as a related party
transaction, as it is being carried out with companies under common control.
The transaction, although qualified as an of “greater importance” as it exceeds the applicable pro tempore countervalue
significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for the reasons
described below:
≥ it falls within the scope of ordinary activity of the Group and, specifically, Saipem’s Sustainable Infrastructures Business Line;
≥ the contractual and economic conditions are in line with market conditions for similar contracts, signed with non-related
parties;
≥ the expected margin for the execution of the Operation are comparable to those on similar projects, based on a comparative
analysis compared to an average k-factor identified in line with other projects carried out by the Sustainable Infrastructures
business line in the past years.
SACE FCT - Factoring Framework Agreement for the conclusion of transactions involving the sale
of claims by Saipem against Eni Congo SAU
On December 13, 2023, a factoring framework agreement (hereinafter the “Framework Agreement”) was signed between
Saipem and SACE FCT SpA (“SACE FCT”) for the conclusion of transactions involving the sale of claims by Saipem against Eni
Congo SAU (“Eni Congo”), relating to the contract “Engineering, Procurement, Construction and Commissioning for Scarabeo 5
Conversion Project” (“Scarabeo 5 Contract”) on behalf of SACE FCT. The Scarabeo 5 Contract was notified to Consob on
August 7, 2023 as greater importance transaction, ordinary and concluded to conditions equal to market or standard conditions.
The Framework Agreement entails that individual sale transactions be debated each time by Saipem, and the potential
acceptance by SACE FCT has a total estimated maximum value of €79.2 million. The Framework Agreement is part of a reverse
factoring transaction between SACE FCT on one hand, and Eni Congo and Eni SpA (“Eni”) on the other, deriving from the latter’s
need to postpone the terms of payment included in the Scarabeo 5 Contract. It should be noted that the cost associated to the
Framework Agreement will be borne exclusively by Eni Congo, and it was negotiated by them with SACE FCT, while Saipem will
keep the payment conditions in line with the Scarabeo 5 Contract. With regards to Saipem’s interest in the Framework
Agreement, it should be noted that credit transfer transactions will ensure a neutral project cash flow for Saipem.
In view of the fact that: (i) Saipem is jointly controlled by Eni and CDP Equity SpA; (iii) Eni and CDP Equity SpA are controlled by the
MEF; (iv) SACE FCT is controlled by SACE SpA; the transaction qualifies as a related party transaction, as it is being carried out
with companies under common control on the Ministry of Economy and Finance (“MEF”).
The framework agreement, although qualified as an of “greater importance” as it exceeds the applicable pro tempore
countervalue significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for
the reasons described below:
≥ the Framework Agreement is a transaction ancillary to Saipem’s ordinary business activity, intended to mitigate the liquidity
risk associated with the execution of the Scarabeo 5 Contract (which in turn falls within the ordinary activity of the Saipem
Group, and in particular of the E&C activity for the Floaters sector of the Energy Carriers business line);
≥ the contractual conditions in the Framework Agreement (such as, the non-recourse of divestments, the methods for the
transfer notifications, the timing of payment of the consideration) are equal to market or standard conditions for similar
transactions (entered into with non-related parties) and in line with national and international practice;
≥ the cost associated to the Framework Agreement will be bore exclusively by Eni Congo, and the payment conditions on behalf
of Saipem are in line with the Scarabeo 5 Contract.
Eni Côte d’Ivoire Ltd - Amending agreements to contracts No. 5000000171 and No. 5000000172
On December 20, 2023, the following agreements were signed:
≥ amending agreement of contract No. 5000000171 between Eni Côte d’Ivoire Ltd, Saipem SA and Servizi Energia Italia SpA for
the execution of EPCI Subsea, Umbilicals, Risers & Flowlines (SURF) services, and a gas pipeline to ground for connection to
the distribution network (the “SURF Amending Agreement”); and
\ 309
SAIPEM ANNUAL REPORT 2023
≥ amending agreement No. 5000000172 between Eni Côte d’Ivoire Ltd, Saipem and Servizi Energia Italia SpA for the execution
of EPC services for the modernisation of vessels FPSO Firenze (the “FPSO Amending agreement” and together the “Amending
Agreement”.
The aforementioned Amending Agreements aim at include additional materials and services, as well as regulating the costs
related to the completion of works in contracts No. 5000000171 and No. 5000000172. In particular, the SURF Amending
Agreement has a total value of $233 million (increasing the total value of contract No. 5000000171 from $452 million to $685
million), while the FPSO Amending Agreement has a total value of $306 million (increasing the total value of contract No.
5000000172 from $295 million to $601 million).
Contracts No. 5000000171 and No. 5000000172, subject to modification, were notified to Consob on September 29, 2022 as
greater importance transactions, ordinary and concluded at conditions equal to market or standard conditions. In view of the fact
that: (i) Saipem SA and Servizi Energia Italia SA are fully controlled by Saipem; (ii) Saipem is in turn jointly controlled by Eni and
CDP Equity SpA; and (iii) Eni Côte d'Ivoire Ltd is a subsidiary of Eni SpA; the Amending Agreements qualify as related party
transaction, as they are being carried out with companies subject to common control, including joint control.
The Amending Agreements, although qualified as an of “greater importance” as it exceeds the applicable pro tempore
countervalue significance index, is an ordinary transaction which is concluded at equivalent market or standard conditions, for
the reasons described below:
≥ the activities subject of the Amending Agreements fall within the ordinary scope of Offshore Engineering & Construction
business of Saipem’s Asset Based Services Business Line (for the SURF Amending Agreement) and Onshore Engineering &
Construction business of Saipem’s Energy Carriers Business Line (FPSO Amending Agreement);
≥ the economic conditions of the Amending agreements are in line with market conditions and with those applied to similar
projects signed with non-related parties, as well as with conditions of contracts No. 5000000171 and No. 5000000172;
≥ the contractual conditions of the Amending agreements are in line with international industry practice and comparable to
those in similar operations (entered into with non-related parties), as well as with conditions of contracts No. 5000000171 and
No. 5000000172.
The tables below show the value of transactions of a trade, financial or other nature entered into with related parties. The
company analysis is made on the basis of the principle of materiality related to the overall size of the individual relationships;
relationships not shown analytically, because they are not material, are indicated according to the following aggregation:
≥ subsidiaries not fully consolidated;
≥ joint ventures and associates;
≥ companies controlled by Eni and CDP Equity SpA;
≥ Eni and CDP Equity SpA associates and jointly controlled companies;
≥ State-controlled companies and other related parties.
\ 310
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Trade and other transactions
Trade and other transactions for 2023 consisted of the following:
(€ million)
Name
Continuing operations
Subsidiaries not consolidated with the full consolidation method
Smacemex Scarl
Other (for transactions not exceeding €500
thousand)
Total subsidiaries not consolidated with the full consolidation
method
Joint ventures and associates
ASG Scarl (2)
CCS JV Scarl (2)
CEPAV (Consorzio Eni per l’Alta Velocità) Due (2)
CEPAV (Consorzio Eni per l’Alta Velocità) Uno (2)
Consorzio Florentia (2)
Gygaz Snc
KCA Deutag International Ltd
KWANDA Suporte Logistico Lda
Petromar Lda
PSS Netherlands BV
Saipem Taqa Al Rushaid Fabricators Co Ltd
Saipon Snc
SAME Netherlands BV
Saren BV
SCD JV Scarl (2)
TSGI Mühendislik Insaat Ltd Sirketi
Other (for transactions not exceeding €500 thousand)
Total joint ventures and associates
Eni Group
Azule Energy Angola BV
Azule Energy Angola SpA
Eni Congo SAU
Eni Côte d’Ivoire Ltd
Eni Mediterranea Idrocarburi SpA
Eni México, S de RL de Cv
Eni SpA (3)
Eni US Operating Co Inc
Mellitah Oil&Gas BV
Petrobel Belayim Petroleum Co
Other Eni Group companies (for transactions
not exceeding €21 million)
Total Eni Group
CDP Group
Snam Rete Gas
Trans Adriatic Pipeline AG
Other CDP Group companies (for transactions
not exceeding €21 million)
Total CDP Group
Dec. 31, 2023
Trade
payables,
other
liabilities, and
contract
liabilities Guarantees
Trade
receivables
and other
assets
Year 2023
Expenses
Revenue
Goods Services (1)
Goods and
services
Other
5
-
5
1
78
110
-
7
5
9
1
12
2
7
1
74
-
13
-
-
320
39
55
41
199
29
6
16
-
60
164
9
618
33
-
7
40
4
-
4
1
439
213
-
30
-
8
4
2
3
1
-
-
-
88
-
-
789
5
1
33
34
-
1
1
1
107
36
4
223
42
-
7
49
-
-
-
-
-
332
34
-
-
-
-
1
-
26
-
-
-
-
-
-
393
12
-
1
-
29
-
10
-
105
61
9
227
29
26
3
58
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
-
-
3
9
-
-
-
-
-
-
-
-
120
277
-
28
-
(1)
3
(1)
-
1
-
-
-
111
-
-
538
-
-
-
-
179
294
-
7
5
15
(4)
14
1
-
-
281
7
145
1
-
945
-
3
-
-
-
-
1
-
-
-
191
377
174
1,041
175
45
46
79
47
250
3
22
7 2,447
-
-
5
5
51
-
11
62
-
-
-
-
-
-
-
-
-
-
-
2
-
-
-
-
-
-
-
-
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) The item "Services" includes costs for services, costs for the use of third-party assets and other expenses.
(2) Revenue from limited liability consortium companies refer to the retrocession of fees that these companies invoice to the client and that on the basis of the consortium nature of the investee company
are attributed to the consortium partner.
(3) The item “Eni SpA” includes also the transactions with Eni SpA Divisione Exploration & Production, Eni SpA Divisione Gas & Power, and Eni SpA Divisione Refining & Marketing.
\ 311
SAIPEM ANNUAL REPORT 2023
Trade and other transactions for 2023 consisted of the following:
(€ million)
Name
Companies controlled or owned by the State
Total related party transactions - Continuing operations
Incidence (%)
Overall total - Continuing operations
Discontinued operations
Joint ventures and associates
KCA Deutag International Ltd
Total joint ventures and associates
Total related party transactions - Discontinued operations
Overall total - Discontinued operations
Total related party transactions
Overall total
Incidence (%)
Dec. 31, 2023
Trade
payables,
other
liabilities, and
contract
liabilities Guarantees
-
678
8.62
7,862
5
1,070
17.74
6,032
Trade
receivables
and other
assets
2
985
40.35
2,441
-
-
-
-
985
2,441
40.35
-
-
-
26
1,070
6,058
17.66
-
-
-
36
678
7,898
8.58
Year 2023
Expenses
Revenue
Goods Services (1)
Goods and
services
-
3,454
29.09
6,184 11,874
15
565
9.14
-
9
0.26
3,451
-
-
-
4
9
3,455
0.26
20
20
20
73
585
1
1
1
99
3,455
6,257 11,973
28.86
9.35
Other
-
2
8.33
24
-
-
-
-
2
24
8.33
(1) The item "Services" includes costs for services, costs for the use of third-party assets and other expenses.
Trade and other transactions for financial year 2022 consisted of the following:
(€ million)
Name
Continuing operations
Subsidiaries not consolidated with the full consolidation method
Smacemex Scarl
Other (for transactions not exceeding €500 thousand)
Total subsidiaries not consolidated
with the full consolidation method
Joint ventures and associates
ASG Scarl (2)
CCS JV Scarl (2)
CEPAV (Consorzio Eni per l’Alta Velocità) Due (2)
CEPAV (Consorzio Eni per l’Alta Velocità) Uno (2)
Gydan Lng Ltd
Gydan Yard Management Services (Shanghai) Co Ltd
KCA Deutag International Ltd
KWANDA Suporte Logistico Lda
Novarctic Ltd
Petromar Lda
PSS Netherlands BV
Saipem Taqa Al Rushaid Fabricators Co Ltd
Saipon Snc
SAME Netherlands BV
Saren BV
SCD JV Scarl (2)
TSGI Mühendislik Insaat Ltd Sirketi
Other (for transactions not exceeding €500 thousand)
Total joint ventures and associates
Dec. 31, 2022
Trade
payables,
other
liabilities, and
contract
liabilities Guarantees
Trade
receivables
and other
assets
Year 2022
Expenses
Revenue
Goods Services (1)
Goods and
services
Other
5
-
5
1
44
131
-
1
-
6
1
-
6
-
13
1
-
76
32
2
-
314
4
-
4
2
405
263
-
-
-
1
5
-
1
3
10
-
-
1
161
-
-
852
-
-
-
-
-
503
34
-
-
-
-
-
3
-
36
-
-
-
-
-
-
576
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
105
274
1
-
-
-
2
-
(1)
-
4
-
-
-
142
-
-
526
-
-
-
-
161
269
-
5
1
2
5
8
16
30
-
-
82
41
191
-
-
811
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) The item "Services" includes costs for services, costs for the use of third-party assets and other expenses.
(2) Revenue from limited liability consortium companies refer to the retrocession of fees that these companies invoice to the client and that on the basis of the consortium nature of the investee company
are attributed to the consortium partner.
\ 312
Trade and other transactions for 2022 consisted of the following:
(€ million)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Name
Eni Group
Azule Energy Angola BV
Azule Energy Angola SpA
Eni Cote d'Ivoire Ltd
Eni Kenya BV
Eni Mediterranea Idrocarburi SpA
Eni México, S de RL de Cv
Eni US Operating Co Inc
Naoc - Nigerian Agip Oil Co Ltd
Petrobel Belayim Petroleum Co
Solenova Ltd
Other Eni Group companies (for transactions
not exceeding €21 million)
Total Eni Group
CDP Group
Snam Rete Gas
Other CDP Group companies (for transactions
not exceeding €21 million)
Total CDP Group
Companies controlled or owned by the State
Total related party transactions - Continuing operations
Incidence (%)
Overall total - Continuing operations
Discontinued operations
Joint ventures and associates
KCA Deutag International Ltd
Total joint ventures and associates
Eni Group
Eni Congo SAU
Total Eni Group
Total related party transactions - Discontinued operations
Overall total - Discontinued operations
Total related party transactions
Overall total
Incidence (%)
Dec. 31, 2022
Trade
payables,
other
liabilities, and
contract
liabilities Guarantees
Trade
receivables
and other
assets
Year 2022
Expenses
Revenue
Goods Services (1)
Goods and
services
Other
15
96
77
-
2
5
21
-
38
16
26
296
23
4
27
33
675
30.93
2,182
7
1
4
-
-
-
19
-
17
-
15
63
23
-
34
-
-
29
-
-
-
107
-
23
193
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
319
351
21
11
49
99
184
198
33
9
9
68
1,367
-
29
5
28
11
958
17.36
5,520
5
6
-
775
10.57
7,333
-
-
-
-
-
2,704
-
-
12
547
9.99
5,474
13
42
1
2,221
22.25
9,980
-
-
2
2
-
-
-
-
-
-
2
2
4
4
4
54
679
2,236
30.37
-
-
2
43
960
5,563
17.26
-
-
-
60
775
7,393
10.48
-
-
-
75
-
2,779
-
-
-
-
187
547
6
6
8
476
2,229
5,661 10,456
21.32
9.66
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
-
-
-
-
-
1
-
12
-
(1) The item 'Services' includes costs for services, costs for the use of third-party assets and other expenses.
The values shown in the table refer to Notes 10 “Trade receivables and other assets”, 21 “Trade payables and other liabilities”, 22
“Contractual liabilities”, 33 “Guarantees, commitments and risks”, 34 “Revenues (core business revenues and other income)” and
35 “Operating expenses (purchases, services and other costs)”.
The Saipem Group provides services to Eni Group companies in all sectors in which it operates, both in Italy and abroad.
\ 313
SAIPEM ANNUAL REPORT 2023
Other transactions consisted of the following:
(€ million)
CCS JV Scarl
CEPAV (Consorzio Eni per l’Alta Velocità) Uno
Other Eni Group companies (for transactions not
exceeding €21 million)
Total related party transactions - Continuing operations
Total related party transactions - Discontinued operations
Overall total - Continuing operations
Overall total - Discontinued operations
Incidence - Continuing operations (%)
Dec. 31, 2023
Dec. 31, 2022
Other
assets
22
1
-
23
-
296
-
7.77
Other
liabilities
-
-
-
-
-
36
-
-
Other
assets
22
1
5
28
-
302
14
9.27
Other
liabilities
-
-
-
-
-
109
-
-
Financial transactions
Financial transactions, excluding net lease liabilities, for 2023 consisted of the following:
(€ million)
Name
CCS JV Scarl
Petromar Lda
PSS Netherlands BV
Saipon Snc
SCD JV Scarl
Société pour la Réalisation du Port de Tanger Méditerranée
Other Eni Group companies (for transactions not exceeding €21 million)
Total related party transactions
(1) Shown in the statement of financial position under “Other current financial assets”.
Dec. 31, 2023
Year 2023
Receivables (1)
277
-
3
-
102
1
1
384
Payables Commitments
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
1
Expenses
2
-
-
-
-
-
-
2
Financial transactions, excluding net lease liabilities, for 2022 consisted of the following:
(€ million)
Name
CCS JV Scarl
Petromar Lda
Saipem Taqa Al Rushaid Fabricators Co Ltd
Saipon Snc
SCD JV Scarl
Société pour la Réalisation du Port de Tanger Méditerranée
TSGI Mühendislik Insaat Ltd Sirketi
Other Eni Group companies (for transactions not exceeding €21 million)
Total related party transactions
(1) Shown in the statement of financial position under “Other current financial assets”.
Dec. 31, 2022
Year 2022
Receivables (1)
326
-
-
-
161
1
-
1
489
Payables Commitments
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
1
Expenses
-
-
-
-
-
-
1
15
16
The incidence of financial transactions and positions with related parties was as follows:
Income
17
1
-
-
-
-
11
29
Income
4
1
(2)
-
1
-
-
1
5
(€ million)
Current financial liabilities
Non-current financial liabilities
(including current portion)
Total
(€ million)
Financial income (expense)
Derivative financial instruments
Other operating income (expense)
Total - Continuing operations
Total - Discontinued operations
\ 314
Dec. 31, 2023
Related parties
1
Total
97
2,296
2,293
Total
(93)
(74)
(5)
(172)
-
-
1
Year 2023
Related parties
27
-
-
27
-
Incidence %
1.03
-
Incidence %
n.s.
-
-
Dec. 31, 2022
Related parties
1
Total
159
2,471
2,630
Total
(67)
(128)
7
(188)
(7)
-
1
Year 2022
Related parties
(11)
-
-
(11)
-
Incidence %
0.63
-
Incidence %
16.42
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Financial lease transactions
Financial lease transactions as of December 31, 2023, consisted of the following:
(€ million)
Name
Consorzio FSB
Total related party transactions
Dec. 31, 2023
Year 2023
Receivables
-
-
Payables
1
1
Commitments
-
-
Expenses
-
-
Income
-
-
The incidence of transactions or positions with related parties relating to financial lease transactions is as follows:
(€ million)
Non-current lease liabilities (including current portion)
Total - Continuing operations
Total - Discontinued operations
Financial lease transactions as of December 31, 2022 consisted of the following:
Dec. 31, 2023
Total
730
730
-
Related parties
1
1
-
Incidence %
0.14
(€ million)
Name
Consorzio FSB
Total related party transactions
Dec. 31, 2022
Year 2022
Receivables
-
-
Payables
1
1
Commitments
-
-
Expenses
-
-
Income
-
-
The incidence of transactions or positions with related parties relating to financial lease transactions is as follows:
(€ million)
Non-current lease liabilities (including current portion)
Total - Continuing operations
Total - Discontinued operations
The main cash flows with related parties were as follows:
(€ million)
Revenue and income
Costs and other expenses
Financial income (expenses) and derivatives
Change in trade receivables and payables
Net cash flows from operating activities - Continuing operations
Net cash flows from operating activities - Discontinued operations
Change in financial receivables
Net cash flows from investing activities - Continuing operations
Net cash flows from investing activities - Discontinued operations
Change in financial liabilities
Net cash flows from financing activities - Continuing operations
Net cash flows from financing activities - Discontinued operations
Total cash flows with related parties - Continuing operations
Total cash flows with related parties - Discontinued operations
The incidence of cash flows with related parties was as follows:
Dec. 31, 2022
Total
403
403
-
Related parties
1
1
-
Incidence %
0.25
Dec. 31, 2023
3,456
(574)
27
(198)
2,711
(17)
105
105
-
-
-
-
2,816
(17)
Dec. 31, 2022
2,221
(547)
(11)
(350)
1,313
6
65
65
-
(17)
(17)
-
1,361
6
(€ million)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities (*)
Dec. 31, 2023
Total Related parties
2,711
586
105
(175)
-
(354)
Incidence %
n.s.
n.s.
n.s.
Dec. 31, 2022
Total Related parties
1,313
65
(17)
(523)
32
(1,047)
Incidence %
n.s.
n.s.
1.62
(*) The cash flows from financing activities do not include dividends distributed, the net purchase of treasury shares, capital contributions from third parties, the purchase of shares in consolidated
companies, and the change in the convertible bond.
Information on jointly controlled entities
Jointly controlled companies classified as joint operations do not have a significant value.
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SAIPEM ANNUAL REPORT 2023
44 Significant non-recurring events and operations
During the year, except for the instances mentioned above, there were no significant non-recurring events and operations, as
defined in the Consob Communication No. DEM/6064293 of July 28, 2006.
45 Positions or transactions arising from atypical and/or unusual operations
During the year, there were no atypical and/or unusual positions or transactions, as defined in the Consob Communication No.
DEM/6064293 of July 28, 2006.
46 Events after the reporting period
Physical Settlement Notice
On January 8, 2024, Saipem SpA delivered today the Physical Settlement Notice to all bondholders of the equity-linked bonds
named “€500,000,000 Senior Unsecured Guaranteed Equity-linked bonds due 2029”. In accordance with the Physical
Settlement Notice, the bondholders shall be granted the right, effective from January 26, 2024, to convert the Bonds into
ordinary shares of the Company according to the terms and conditions of the Bonds.
Launch of the buy-back programme for Saipem ordinary shares to service the 2023-2025 Variable Long-Term
Incentive Plan
On January 15, 2024, Saipem SpA has launched the buy-back programme for the Company’s ordinary shares, pursuant to
Article 5 of EU Regulation No. 596/2014, as subsequently amended, concerning a maximum number of 29,500,000 shares to
service the 2023 allocation of the Company's 2023-2025 Long-Term Variable Incentive Plan. As of January 29, 2024,
22,500,000 treasury shares have been purchased for a total consideration of €32,933,508 (weighted average price 1.4637).
Incident on Castorone vessel
On January 30, 2024, Saipem confirms that early this morning an incident occurred on the Castorone pipelay vessel off the
waters of Australia during normal pipelaying operations. The incident did not cause injuries to personnel and localised damage to
the trunkline was sustained which will be remediated. Castorone vessel did not sustain any major damages. As of February 13,
2024, the Australian Commonwealth regulator NOPSEMA (National Offshore Petroleum Safety and Environmental Management
Authority) has confirmed today it is satisfied that the Castorone vessel may resume pipelay operations.
Authorisation to buy-back treasury shares for the 2024 allocation of the 2023-2025 Long-Term Variable
Incentive Plan
Following the proposal of the Remuneration and Nomination Committee, the Board of Directors resolved to submit to the
Shareholders' Meeting a proposal for authorisation of the buy-back of treasury shares up to a maximum of 31,900,000 ordinary
shares, and in any case, up to the overall maximum amount of €77,500,000, for the 2024 allocation of the 2023-2025
Long-Term Variable Incentive Plan approved by the General Shareholders’ Meeting on May 3, 2023. On the same date, the
Company holds 22,898,649 treasury shares, equal to 1.15% of the share capital, earmarked for the implementation of the
long-term incentive plans approved in previous years.
47 Obligations regarding transparency and disclosure.
Italian Law August 4, 2017, No. 124 (Article 1, sections 125-129)
During 2023, Saipem SpA and other Italian companies have not received public payments within the scope of application of the
Law No. 124/2017 (Article 1, sections 125-129) and following changes.
In particular, the scope of application of the aforementioned law does not include: (i) the forms of incentive/subsidy received
under a general aid scheme to all those eligible; (ii) sums relating to provision of works/services, including sponsorships;
(iii) reimbursements and allowances paid to individuals in training and guidance; (iv) contributions received for continuing
education by inter-professional funds set up as associations; (v) membership fees for membership of professional and territorial
associations, as well as in favour of foundations or equivalent organisations which are functional to activities linked to corporate
business. Disbursements are identified according to the cash criterion.
The notice falling within the scope of the aforementioned legislation includes disbursements over €10 thousand paid by the
same paying entity during 2023, also through multiple payments.
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INFORMATION REGARDING CENSURE BY CONSOB PURSUANT TO ARTICLE
154-ter, subsection 7, OF LEGISLATIVE DECREE NO. 58/1998
AND THE NOTICE FROM THE CONSOB OFFICES DATED APRIL 6, 2018
INFORMATION REGARDING CENSURE BY CONSOB
On January 30, 2018, Consob, having concluded its inspection commenced on November 7, 2016 (which ended on October 23,
2017) and about which Saipem gave information in the Annual Report 2016, has informed Saipem that it has detected non
compliances in “the Annual Report as of December 31, 2016, as well as in the Interim Consolidated Report as of June 30, 2017”
with the applicable international accounting standards (IAS 1 “Presentation of Financial Statements”; IAS 34 “Interim Financial
Reporting”; IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, par. 5, 41 and 42; IAS 36 “Impairment of
Assets”, par. 31, 55-57) and, consequently, has informed Saipem about the commencement “of proceedings for the adoption of
measures pursuant to Article 154-ter, subsection 7, of Legislative Decree No. 58/1998”.
With notes of February 13 and 15, 2018, the Company transmitted to Consob its own considerations in relation to the remarks
formulated by the offices of Consob, highlighting the reasons for which it does not share such remarks.
On March 2, 2018, the Commission of Consob, partially accepting the remarks of the offices of Consob, informed Saipem of its
own Resolution No. 20324 (the “Resolution”), with which it ascertained the “non-compliance of Saipem’s Annual Report 2016
with the regulations governing their preparation”, without censuring the correctness of the Interim Consolidated Report as of
June 30, 2017.
According to the Resolution, the non-compliance of Saipem’s Annual Report 2016 with the regulations which govern its
preparation, concerns in particular: (i) the incorrect application of the accrual basis of accounting affirmed by IAS 1; (ii) the non-
application of IAS 8 in relation to the correction of errors with reference to the financial statements of 2015; and (iii) the
estimation process of the discount rate pursuant to IAS 36.
Consob has therefore asked the Company, pursuant to Article 154-ter, subsection 7 of Legislative Decree No. 58/1998, to
disclose the following elements of information to the markets:
(A) the weaknesses and non-compliance identified by Consob in relation to the accounting correctness of the financial
statements mentioned above;
(B) the applicable international accounting standards and the violations encountered in relation thereto;
(C) the illustration, in an appropriate pro forma consolidated income statement and balance sheet – with comparative data – of
the effects that accounting in compliance with the regulations would have produced on the 2016 balance sheet, income
statement and shareholders’ equity, for which incorrect information was supplied.
A. Weaknesses and non-compliance identified by Consob regarding the correctness of accounting in the consolidated and
statutory financial statements of 2016.
The weaknesses and non-compliance identified by Consob with regard to the 2016 consolidated and statutory financial
statements can be substantially attributed to the following two items:
(a) non-compliance of the “2016 consolidated and statutory Saipem SpA financial statements with reference to the
comparative data for 2015”;
(b) non-compliance of the estimation process of the discount rate underlying the impairment test for the 2016 financial
statements with the requirements of IAS 36, which requires the Company to “apply the appropriate discount rate to future
cash-flows”.
With regard to point (a), the contestation concerns the non-compliance of the 2016 consolidated and statutory financial
statements with:
(i)
IAS 1, paragraph 27, according to which “an entity shall prepare its statements (except for cash flow information) using
the accrual basis of accounting”; and paragraph 28, according to which “when the accrual basis of accounting is used, an
entity recognises items as assets, liabilities, equity, revenue and costs (the elements of financial statements) when they
satisfy the definitions and recognition criteria for those elements in the Framework”; and
IAS 8, paragraph 41, according to which “[...], material errors are sometimes not discovered until a subsequent period, and
these prior period errors are corrected in the comparative information presented in the financial statements for that
subsequent period”; and paragraph 42 according to which “the entity shall correct the material prior period errors
retrospectively in the first financial statements authorised for issue after their discovery by: (a) restating the comparative
amounts for the year/years prior to the one in which the error occurred [...]”.
(ii)
In substance, in Consob’s opinion, the circumstances at the basis of some of the impairment losses recognised in the 2016
financial statements already existed, wholly or in part, when preparing 2015 financial statements. Indeed, Consob alleges that
the Company approved 2016 consolidated and statutory financial statements without having corrected the “material errors”
contained in the consolidated and statutory financial statements of the previous administrative period, in relation to the
following items:
≥
≥
≥
With regard to point sub (b), Consob does not approve that the Company, for the purposes of the impairment test: (i) used a
single rate to discount business unit cash flows, characterised by a different risk profile; (ii) did not consider the country risk in
relation to some assets operating in specific geographical areas over a long period of time; (iii) did not take into account the
changes in the Company risk profile subsequent to the transaction that determined the deconsolidation of Saipem from the
Eni Group.
“property, plant, and equipment”;
“inventories” ;
“tax assets”.
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SAIPEM ANNUAL REPORT 2023
B. The applicable international accounting standards and the violations encountered in relation thereto.
“property, plant, and equipment”;
“inventories”;
“tax assets”.
Consob holds that the 2016 consolidated and statutory financial statements of Saipem as of December 31, 2016, were not
compliant with the following standards: IAS 1, IAS 8, and IAS 36.
Specifically, Consob observed that the Company approved 2016 consolidated and statutory financial statements without
having corrected the “material errors” contained in the consolidated and statutory financial statements of the previous
administrative period, in relation to the following items:
≥
≥
≥
With reference to the item “Property, plant and equipment” as of December 31, 2015, Consob alleges the incorrect
application of IAS 16 “Property, plant and equipment” and of IAS 36.
Specifically, Consob alleges that some impairment losses carried out by the Company on “property, plant and equipment” in
the 2016 consolidated financial statements should have been accounted for, at least in part, in the previous year.
In particular Consob alleges:
(i)
the incorrect application of IAS 36 with reference to the impairment test of some assets recognised as “property, plant and
equipment” of the Offshore Drilling business unit and with respect to the assets recognised in the Offshore and Onshore
Engineering & Construction business units. Consob's remark relates to the manner in which the cash flows expected from
the use of these assets were estimated for the purpose of applying the impairment test with regard to the 2015 financial
year, and in particular to the incorrect application of IAS 36: (a) paragraph 33, letter a).This states that “in assessing value in
use, an entity shall: a) base cash flow projections on reasonable and supportable assumptions that represent management’s
best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. Greater weight
shall be given to external evidence”; (b) paragraph 34 in the sections that requires management to assess the
reasonableness of the assumptions on which its current cash flow projections are based by examining the causes of
differences between past cash flow projections and actual cash flows and ensuring that the assumptions on which its
current cash flow projections are based are consistent with past actual outcomes; (c) paragraph 35 in the section that
mentions the approach to be followed when using cash flow projections over a period longer than five years, stressing that
such an approach is allowed “if [the entity] is confident that these projections are reliable and it can demonstrate its ability,
based on past experience, to forecast cash flows accurately over that longer period”;
(ii) the incorrect application of IAS 16, paragraphs 51, 56 and 57 with reference to the residual useful life of some assets
registered as “Property, plant and equipment” of the Onshore Drilling business unit, of the Offshore Engineering
& Construction business unit and of the Onshore Engineering & Construction business unit. Consob’s remarks concern
the circumstances that the review of the estimation of the residual useful life of assets cited (reported in the 2016
financial statements) should have already been done in the financial year 2015. Specifically, Consob alleges that IAS 16:
(a) paragraph 51 was not correctly applied in the part that requests that “the residual value and the useful life of an asset
shall be reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s)
shall be accounted for as a change in an accounting estimate in accordance with IAS 8 “Accounting Policies, Changes in
Accounting Estimates and Errors”; (b) paragraph 56 in the part that requires that “the future economic benefits embodied
in an asset are consumed by an entity principally through its use. However, other factors, such as technical or commercial
obsolescence and wear and tear while an asset remains idle, often result in the diminution of the economic benefits that
might have been obtained from the asset” [...]; paragraph 57 in the part that requires that “the useful life of an asset is
defined in terms of the asset’s expected utility to the entity. The asset management policy of the entity may involve the
disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits
embodied in the asset. Therefore, the useful life of an asset may be shorter than its economic life. The estimation of the
useful life of the asset is a matter of judgement based on the experience of the entity with similar assets”.
As a consequence of the above-mentioned remarks, Consob likewise does not agree with the recognition of the impairment
losses included in the 2016 consolidated and statutory financial statements with reference to some inventories and to a
deferred tax asset related to the items criticised by Consob for which the items of the impairment loss according to Consob
should have been accounted for in 2015.
Consob notes in this regard:
(i)
IAS 2, paragraph 9, that “inventories shall be measured at the lower of cost and net realisable value” and at paragraph 30
that “estimates of net realisable value are based on the most reliable evidence available at the time the estimates are
made, of the amount the inventories are expected to realise”;
IAS 12 in the part that requires at paragraph 34 that “a deferred tax asset shall be recognised for the carry forward of
unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against
which the unused tax losses and unused tax credits can be utilised” and that “to the extent that it is not probable that
taxable profit will be available against which unused tax losses or unused tax credits can be utilised, the deferred tax asset
is not recognised”.
(ii)
Furthermore, Consob criticises the process of estimating the discount rate at the base of the impairment test for 2016 in so
far as it is characterised by an approach that is not compliant with IAS 36 which requires that the Company “shall apply the
appropriate discount rate to the future cash flows”. More precisely, with respect to 2016 Consob does not agree with the
approach taken by the Company, i.e., with reference to the execution of the impairment test it: (i) has used a single rate to
discount cash flows of different business units which are characterised by different risk profiles; (ii) has not considered the
country risk in relation to some assets operating in specific geographical areas over a long period of time.
In relation to the above, Consob also alleges the violation of the principle of correct representation of the company’s
situation which would not guarantee the observance of fundamental assumptions and qualitative characteristics of
information.
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INFORMATION REGARDING CENSURE BY CONSOB
Consob believes, in fact, that the importance of the errors and the significance of the shortcomings can likewise determine
the non-compliance of the aforementioned financial statements with the requirements of reliability, prudence and
completeness, pursuant to IAS 1.
C. The illustration, in an appropriate pro-forma consolidated income statement and balance sheet – with comparative data – of
the effects that accounting in compliance with the regulations would have produced on the 2016 balance sheet, income
statement and shareholders’ equity, for which incorrect information was supplied.
While not sharing the judgement of non-compliance of the 2016 consolidated and statutory financial statements put forward
by Consob in its Resolution, Saipem points out that the 2016 consolidated and statutory financial statements of the
Company were approved by the Board of Directors on March 16, 2017 and by the Shareholders’ Meeting on April 28, 2017
and were subject to audit pursuant to Legislative Decree No. 39 of January 27, 2010, Articles 14 and 16, and the report was
issued on April 3, 2017.
In addition, with the press release of March 6, 2018, Saipem reported that “the Board of Directors of Saipem, in disagreement
with the Resolution of Consob, resolved on March 5, 2018, to appeal the Resolution in the competent courts”.
In the press release dated March 21, 2018, Saipem reported that for the purposes of ensuring a correct interpretation, and in
order to implement the findings of the Resolution, today the Company has filed a petition with Consob in order to obtain
interpretative clarifications suitable for overcoming the technical and evaluation complexities related to the findings of the
Authority and to be able, in this way, to inform the market correctly, reaffirming that it does not share – and has no intention of
accepting – the judgement of non-compliance of the consolidated and statutory financial statements as of December 31,
2016.
On April 27, 2018, Saipem lodged an appeal with the Regional Administrative Court (“TAR”) of Lazio requesting the annulment of
the Resolution and of any other presumed or related act and/or provision.
On May 24, 2018, Saipem filed with the TAR-Lazio additional grounds for appeal against the aforementioned Resolution.
On June 15, 2021, a hearing was held before the TAR-Lazio to discuss Saipem’s appeal against the Consob Resolution of March
2, 2018.
On July 6, 2021, the TAR-Lazio rejected the appeal filed by Saipem SpA on April 27, 2018.
On July 6, 2021, Saipem SpA issued the following press release:
“Saipem: the Regional Administrative Court of Lazio rejects the appeal against Consob Resolution No. 20324 of March 2, 2018.
San Donato Milanese (Milan), July 6, 2021: Saipem SpA informs that the Regional Administrative Court (‘TAR’) of Lazio, through
decision filed today, has rejected the appeal presented on April 27, 2018, by the Company against Consob resolution No. 20324
dated March 2, 2018 (of which the markets were informed with the Press Release dated March 5, 2018, the ‘Resolution’).
With the Resolution (the contents of which are described in paragraph ‘Information regarding censure by Consob pursuant to
Article 154-ter, subsection 7, of Legislative Decree No. 58/1998 and the notice from the Consob Offices dated April 6, 2018’ of
the Annual Report 2020 of Saipem SpA) Consob has stated the non-compliance of Saipem’s 2016 Annual Statutory and
Consolidated Reports with the regulations which govern their preparation, concerns in particular: (i) the incorrect application of
the accrual basis of accounting affirmed by IAS 1; (ii) the non-application of IAS 8 in relation to the correction of errors with
reference to the financial statements of 2015; and (iii) the estimation process of the discount rate pursuant to IAS 36.
With the Resolution Consob has therefore asked the Company, pursuant to Article 154-ter, subsection 7, of Legislative Decree
No. 58/1998, to disclose the following elements of information to the markets: (A) the weaknesses and non-compliance
identified by Consob in relation to the accounting correctness of the financial statements mentioned above; (B) the applicable
international accounting standards and the violations detected in relation thereto; (C) the illustration, in an appropriate pro-forma
consolidated income statements and balance sheet – with comparative data – of the effects that accounting in compliance with
the regulations would have produced on the 2016 balance sheet, income statement and shareholders’ equity, for which
incorrect information was supplied.
Saipem SpA on April 16, 2018 issued a press release providing a pro forma consolidated income statements and balance sheet
as of December 31, 2016 with the only aim to comply with the Resolution.
The TAR of Lazio has rejected the appeal presented by Saipem SpA requesting the annulment of the Resolution.
Saipem reserves its right to appeal the decision of the TAR of Lazio before the Council of State”.
On November 6, 2021, Saipem SpA filed its appeal before the Council of State against the decision of the TAR of Lazio.
On March 7, 2024, a hearing was held before the Council of State to discuss the merits of the appeal brought by Saipem SpA
against the ruling of the TAR-Lazio.
On April 16, 2018, Saipem issued a press release regarding the pro-forma consolidated income statements and statement of
financial position as of December 31, 2016, for the sole purpose of complying with the Resolution.
On April 6, 2018, after the closure of the market, the Offices of Consob (Divisione Informazione Emittenti - Issuer Information
Division) announced with their communication No. 0100385/18 (the “Communication”), that they started an administrative
sanctioning procedure, claiming some violations pursuant to Articles 191 and 195 of Italian Legislative Decree No. 58/1998 (the
“Financial Law”), relating to the offer documentation (Prospectus and Supplement to the Prospectus) made available to the
public by Saipem on the occasion of its capital increase operation, which took place in January and February 2016. The alleged
violations were exclusively addressed to the members of the Board of Directors and the Chief Financial Officer/Officer
responsible for financial reporting in office at that time.
The Offices of Consob, in communicating their allegations to the interested parties also pointed out that, if the alleged violations
were ascertained by the Commission of Consob at the outcome of the procedure, said violations “would be punishable by an
administrative fine between €5,000 and €500,000”.
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SAIPEM ANNUAL REPORT 2023
Saipem received notice of the communication solely as guarantor ex lege for the payment “of any economic fines that may
eventually be charged to the company executives at the outcome of the administrative procedure”.
The allegations follow Consob Resolution No. 20324 of March 2, 2018 (the “Resolution”), the content of which was
communicated to the market by the Company with its press release of March 5, 2018. The Resolution – with which, as also
communicated to the market, the Company disagreed and that it will appeal before the TAR-Lazio – alleged, among other things,
“the inconsistency of the assumptions and elements underlying the Strategic Plan for 2016-2019 with respect to the evidence
at the disposal of the administrative bodies”, as the indicators of possible impairment of value of the assets, later impaired by
Saipem in its nine-month interim report as of September 30, 2016 would already have existed, in the opinion of Consob, at the
time of approval of the consolidated financial statements of 2015.
With its Communication, the Offices of Consob have charged the company executives who, at the time of the capital increase,
performed management functions, with the violations that are the subject of the Resolution and have already been
communicated to the market, as stated above. The Offices of Consob further claim certain “elements relative to the incorrect
drafting of the declaration on the net working capital” required by the standards in force applicable to the prospectus.
The foregoing would imply, according to the Offices of Consob, “the inability of the offer documentation to ensure that the
investors would be able to formulate a well-grounded opinion about the equity and financial position of the issuer, its economic
results and prospects, pursuant to Article 94, sections 2 and 7, of the Financial Law, with regard to the information concerning: a)
estimates of the Group’s results for 2015 (Guidance 2015 and underlying assumptions)”; “b) forecast of the Group results drawn
from the Strategic Plan for 2016-2019 and underlying assumptions”; “c) the declaration on the Net Working Capital”.
Also according to the Offices of Consob, Saipem would have additionally omitted, in violation of Article 97, section 1 and Article
115, section 1, letter a), of the Financial Law, to report to Consob “information pertaining to: (i) the assumptions underlying the
declaration on its Net Working Capital; (ii) the availability of an updated ‘Eni Scenario’ on the price of oil; and (iii) the existence of
significant amendments to the assumptions underlying the Strategic Plan for 2016-2019”.
On July 4, 2018, Saipem, as guarantor ex lege for the payment “of any fines that may eventually be charged to the company
executives at the outcome of the administrative procedure”, submitted its defence to Consob.
Saipem and all the company executives who have received the Communication have proceeded to file their defences with the
Consob Offices.
Consob, with its Resolution No. 20828 of February 21, 2019, communicated to Saipem on March 12, 2019 and adopted at the
outcome of the procedure for application of a fine initiated on April 6, 2018, applied the following fines: (a) €200,000 on the
company CEO; (b) €150,000 on the Officer responsible for financial reporting in office at the time of the capital increase in 2016.
Consob also sentenced Saipem SpA to a payment of €350,000, as the party jointly liable for payment of the aforementioned
administrative fines with the two persons fined pursuant to Article 195, section 9, of the Finance Law (in force at the time of the
alleged violations), with obligation to recourse against the authors of the alleged breaches.
Consob ordered the filing of the procedure launched on April 6, 2018, against the non-executive Directors in office at the time of
the facts alleged.
The Board of Directors of Saipem resolved on April 2, 2019 to appeal the Resolution No. 20828 before the Court of Appeal.
A similar appeal was filed by the two individuals sanctioned under the Resolution, i.e., the Chief Executive Officer of Saipem SpA
and the Chief Financial Officer and Officer responsible for financial reporting in office at the time of the events. The first hearing
before the Milan Court of Appeal was held on November 13, 2019.
On that day, the Milan Court of Appeal postponed the discussion to November 4, 2020.
On October 23, 2020, Saipem SpA and the two individuals sanctioned applied to the Court of Appeal, to be allowed to file
documents required to debate the appeal by November 4, 2020.
On November 2, 2020, the Court of Appeal authorised the filing of the documents requested on October 23, 2020, by the
parties, also granting Consob a deadline to submit any counterarguments on those documents by December 15, 2020 and
postponed the hearing to discuss the appeal to January 27, 2021.
On January 20, 2021, Saipem SpA and the two individuals sanctioned presented a new application to the Court of Appeal, to be
allowed to file additional documents required to debate the appeal by January 27, 2021, and to be authorised to propose new
grounds for the appeal. which became known when new documents were found.
On January 21, 2021, the Court of Appeal accepted the applications by Saipem and the individuals and authorised the filing of
the documents requested on January 20, 2021. The Court also upheld the proposal of additional grounds, to be submitted
through written filings by February 26, 2021, and also granted Consob the right to submit its counter filings by March 25, 2021.
The Court set the hearing for April 21, 2021.
At the hearing of April 21, 2021, the appeals were discussed.
The Milan Court of Appeal, partially upholding the appeals, (whilst it rejected the remaining):
≥ reduced from €200,000 to €150,000 the administrative financial fine imposed by Consob in 2019 against the former Chief
Executive Officer of the Company in office from April 30, 2015 until April 30, 2021;
≥ reduce from €150,000 to €115,000 the administrative financial fine imposed by Consob in 2019 against the former CFO and
Officer responsible for the Company’s financial reporting in office at the time of the 2016 capital increase until June 7, 2016;
and
≥ consequentially reduced from €350,000 to €265,000 the payment of the afore-mentioned administrative financial fines by
Saipem as the party jointly and severally liable pursuant to Article 195, paragraph 9, of the Italian Consolidated Law on Finance.
On January 20, 2022, Saipem appealed the Milan Court of Appeal decision before the Italian Supreme Court (“Corte di
Cassazione”). On March 1, 2022, Consob served Saipem SpA with its appeal (“controricorso con ricorso incidentale”).
Saipem SpA filed its appeal against Consob’s appeal (“controricorso con ricorso incidentale”) on April 8, 2022.
The proceedings is still pending.
\ 320
CONSOLIDATED FINANCIAL STATEMENTS
CERTIFICATION PURSUANT TO ARTICLE 154-BIS, PARAGRAPH 5
OF THE LEGISLATIVE DECREE NO. 58/1998
(TESTO UNICO DELLA FINANZA)
1. The undersigned Alessandro Puliti and Paolo Calcagnini in their quality as Chief Executive Officer (CEO) and Manager
responsible for the preparation of financial reports of Saipem SpA, also pursuant to Article 154-bis, paragraphs 3 and 4 of
Legislative Decree No. 58 of February 24, 1998, certify that internal controls over financial reporting in place for the preparation
of the consolidated financial statements as of December 31, 2023 and during the period covered by the report, were:
≥ adequate to the Company structure, and
≥ effectively applied during the process of preparation of the report.
2. Internal controls over financial reporting in place for the preparation of the 2023 consolidated financial statements have been
defined and the evaluation of their effectiveness has been assessed based on principles and methodologies adopted by Saipem
in accordance with the Internal Control - Integrated Framework Model issued by the Committee of Sponsoring Organizations of
the Treadway Commission, which represents an internationally-accepted framework for the internal control system.
3. The undersigned officers also certify that:
3.1 the consolidated financial statements as of December 31, 2023:
a) have been prepared in accordance with applicable international accounting standards adopted by the European
Commission pursuant to Regulation (CE) n. 1606/2002 of the European Parliament and European Council of July 19,
2002;
b) correspond to the accounting books and entries;
c) fairly and truly represent the financial position, the performance and the cash flows of the issuer and the companies
included in the consolidation as of, and for, the period presented in this report;
3.2 the Directors’ Report provides a reliable analysis of business trends and results, including a trend analysis of the issuer
and the companies included in the consolidation, as well as a description of the main risks and uncertain situations to which
they are exposed.
March 12, 2024
/signed/ Alessandro Puliti
Alessandro Puliti
CEO
/signed/ Paolo Calcagnini
Paolo Calcagnini
Manager responsible for the preparation
of the financial reports
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SAIPEM ANNUAL REPORT 2023
INDEPENDENT AUDITORS’ REPORT
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CONSOLIDATED FINANCIAL STATEMENTS
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SAIPEM ANNUAL REPORT 2023
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CONSOLIDATED FINANCIAL STATEMENTS
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SAIPEM ANNUAL REPORT 2023
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CONSOLIDATED FINANCIAL STATEMENTS
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SAIPEM ANNUAL REPORT 2023
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Società per Azioni
Share Capital €501,669,790.83 fully paid up
Tax code and VAT 00825790157
Registry of Businesses of Milan
Monza-Brianza, Lodi registration No. 788744
Registered office in Milan - Italy
Via Luigi Russolo, 5
Information for Shareholders
Saipem SpA,, Via Luigi Russolo, 5
20138 Milan
Italy
Relations with institutional investors
and financial analysts
Fax +39-0244254295
e-mail: investor.relations@saipem.com
Publications
Financial statements as of December 31 (in Italian)
prepared in accordance with
Legislative Decree of April 9, 1991 No. 127
Annual Report (in English)
Interim consolidated financial report
as of June 30
(in Italian and English)
Sustainability Report 2023 (in Italian and English)
Also available on Saipem’s website:
www.saipem.com
Website: www.saipem.com
Operator: +39-0244231
Layout and supervision: Studio Joly Srl - Rome - Italy
Printing:
saipem spa
Via Luigi Russolo, 5
20138 – Milan
ITALY
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