Economic results

The breakdown by business sector is as follows:

Offshore Engineering & Construction

(€ million)2012 approved 2012 restated 2013 consistent 2013 
Net sales from operations  5,356  5,356  5,256  5,256 
Cost of sales  (4,393)  (4,388)  (4,888)  (4,888) 
EBITDA  963  968  368  368 
Depreciation and amortisation  (273)  (273)  (293)  (293) 
Operating result (EBIT)  690  695  75  75 

Revenues for 2013 amounted to €5,256 million, representing a 1.9% decrease compared to 2012, mainly due to lower volumes recorded in the North Sea, Kazakhstan and Australia. The increase from an operating point of view of €495 million in the cost of sales compared with 2012 was principally due to increased costs on a project involving the construction of a new vessel for a Client, as well as additional costs arising from technical issues and low initial productivity on the new pipelayer Castorone. Depreciation and amortisation rose by €20 million compared with 2012, mainly due to the entering into service of the Castorone. The operating result (EBIT) for 2013 amounted to €75 million, equal to 1.4% of revenues, versus €690 million, equal to 12.9% of revenues, in 2012. This was due to the increase in costs described above, a different profit mix of projects under execution in the two periods under consideration, and to the delay in the award and execution of new projects. The EBITDA margin for 2013 meanwhile stood at 7%.

Onshore Engineering & Construction

(€ million)2012 approved 2012 restated 2013 consistent 2013 
Net sales from operations  6,175  5,930  4,831  5,076 
Cost of sales  (5,747)  (5,744)  (5,445)  (5,445) 
EBITDA  428  186  (614)  (369) 
Depreciation and amortisation  (33)  (33)  (31)  (31) 
Operating result (EBIT)  395  153  (645)  (400) 

The Onshore Engineering & Construction Business Unit is the only business unit to have been impacted by the restatement relating to the proceedings initiated by Consob. The restatement produced a decrease in 2012 revenues and margins of €245 million and an increase in 2013 revenues and margins by the same amount. Revenues totalled €5,076 million, representing a decrease of 14.4% compared with 2012. From an operating point of view, revenues totalled €4,831 million, representing a decrease of 21.8% that was mainly attributable to lower volumes recorded in North and West Africa and the Middle East. The cost of sales, which amounted to €5,445 million, also decreased compared with the previous year. Depreciation and amortisation amounted to €31 million, which was in line with the figure recorded in 2012. The operating result (EBIT) for 2013 amounted to -€400 million, versus €153 million in 2012. 2013 EBIT of -€645 million seen from an operating perspective was essentially due to higher costs and to provisions for contingencies on projects in Algeria, Canada and Mexico.

Offshore Drilling

(€ million)2012 approved 2012 restated 2013 consistent 2013 
Net sales from operations  1,088  1,088  1,177  1,177 
Cost of sales  (510)  (509)  (539)  (539) 
EBITDA  578  579  638  638 
Depreciation and amortisation  (285)  (285)  (259)  (259) 
Operating result (EBIT)  293  294  379  379 

Revenues for 2013 amounted to €1,177 million, representing an 8.2% increase over 2012. This was principally attributable to full utilisation of the semi-submersible rigs Scarabeo 8, Scarabeo 3 and Scarabeo 6 (the first was under construction in the first part of 2012, while the other two underwent upgrading works in the third quarter of 2012), and also to the start of operations of the vessel Ocean Spur, which is on lease from third parties. This increase in revenues more than offset a drop in revenues connected with repair and upgrade works being carried out on the semi-submersible Scarabeo 5 and the sinking on July 1, 2013 of the jack-up Perro Negro 6. The cost of sales increased by 5.7% compared to 2012, reflecting an increase in volumes. Depreciation and amortisation fell by €26 million compared with 2012, due principally to the sinking of the jack-up Perro Negro 6 on July 1, 2013. Operating profit (EBIT) in 2013 amounted to €379 million, versus €293 million in 2012, with the margin on revenues rising from 26.9% to 32.2%. Meanwhile, the EBITDA margin amounted to 54.2%, up just over one percent from the figure of 53.1% recorded in 2012.

Onshore Drilling

(€ million)2012 approved 2012 restated 2013 consistent 2013 
Net sales from operations  750  750  747  747 
Cost of sales  (512)  (512)  (513)  (513) 
EBITDA  238  238  234  234 
Depreciation and amortisation  (135)  (135)  (141)  (141) 
Operating result (EBIT)  103  103  93  93 

Revenues for 2013, which amounted to €747 million, were essentially in line with the figure recorded in 2012, with higher levels of activity on rigs in Saudi Arabia, Kazakhstan and Mauritania offsetting the lower levels registered in Algeria.

The cost of sales for the year amounted to €513 million. This was essentially in line with the 2012 figure. The year saw a slight fall in depreciation and amortisation, which amounted to €234 million.

Operating profit (EBIT) in 2013 amounted to €93 million, versus €103 million in 2012, with the margin on revenues falling from 13.7% to 12.4%.

Meanwhile, the EBITDA margin stood at 31.3%, compared with 31.7% in 2012. This was principally owing to higher costs for personnel and equipment demobilisation in Algeria.