Engineering & Construction

Key performance indicators

2011

2012

2013

(a)	Before elimination of intragroup sales.

Employees injury frequency rate

(No. of accidents per million of worked hours)

0.44

0.54

0.46

Contractors injury frequency rate

0.21

0.17

0.10

Fatality index

(No. of fatalities per 100 million of worked hours)

1.82

0.93

2.01

Net sales from operations ^(a)

(€ million)

11,834

12,771

11,611

Operating profit

1,422

1,442

(83)

Adjusted operating profit

1,443

1,474

(84)

Adjusted net profit

1,098

1,111

(253)

Capital expenditure

1,090

1,011

902

Orders acquired

(€ million)

12,505

13,391

10,653

Order backlog

20,417

19,739

17,514

Employees at period end

(number)

38,561

43,387

47,209

Employees outside Italy

(%)

86.5

88.1

89.1

Local managers

41.3

41.3

Local procurement

56.4

51.8

51.1

Healthcare expenditure

(€ million)

Security expenditure

Direct GHG emissions

(mmtonnes CO₂eq)

1.32

1.54

1.54

Performance of the year

In 2013 the injury frequency rate for employees and contractors declined compared to 2012 (by 14.8% and 41.1%, respectively). In 2013, Eni continued its commitment in education and training for employees and contractors in the field of health and security, with the initiatives such as “Leadership in Health and Safety”, “Working at height and Confined Space” as well as the use of dedicated HSE training portal and individual protection equipment.
In 2013 procurement amounted to €9,066 million, 51.1% of which referred to local procurement.
Health and safety expenditure registered an increase (totally up by 4% from 2012). In particular, the expenditure for individual protection equipment increased by 30% and the expenditure for safety training increased by 10%.
In 2013, adjusted net loss amounted to €253 million (down by €1,264 million from the adjusted net profit of €1,111 million reported in 2012). This result reflected operating and marketing difficulties encountered in the first half of 2013, which led management to revise the profit margin estimates for important orders, in particular for the construction of onshore industrial complexes.
Orders acquired amounted to €10,653 million (€13,391 million in 2012), 94% of which relating to the works outside Italy, while 14% orders from Eni Companies.
Order backlog amounted to €17,514 million at December 31, 2013 (€19,739 million at December 31, 2012), of which €9,244 million to be fulfilled within 2014.
In 2013 overall expenditure in R&D amounted approximately to €15 million, in line with the previous year. 14 patent applications were filed.
Capital expenditure amounted to €902 million (€1,011 million in 2012), mainly regarded the upgrading of the drilling and construction fleet.

Development and sustainability initiatives

In November 2013 Saipem inaugurated a new fabrication yard in Edmonton, Canada. The facility will allow to accelerate the fulfilment of the projects by keeping the workforce active during adverse weather conditions as well. The yard will be used for the prefabrication of industrial components and pipes as well as for the assembly of modules for the different projects in the oil and gas market, including liquefied natural gas and power generation.
In 2013, in order to exploit value from competences, the “Onshore EPC Projects, Construction Phase Enhancement” project was launched, aiming at evaluating the qualitative and quantitative adequacy level of Saipem’s employees in “Critical Positions” in the Construction area to optimize and centralize their planning and development.
In 2013, Saipem committed to strengthen relationships with local stakeholders through the direct involvement activity, studies and analyses. In the field of training and support for local hiring, the Memorandum of Mutual Agreement was signed in Brazil; in Congo, the training on-the-job for local engineers has been started; in Kazakhstan, some initiatives of professional training and technical support for local teaching institutions were fulfilled, in Nigeria, professional training aiming at development of local entrepreneurs was conducted. In the health area, programs for diseases prevention in West Africa, Sud America, Indonesia and Kazakhstan were completed.
In order to guarantee the spread of competences and to share Saipem’s know-how, training activity was conducted in the Training Centre of Schiedam (the Netherlands), recognized as a well-advanced training centre in the HSE offshore area, where also the complex working conditions in the offshore have been simulated.