Fincantieri reported a record level of new orders
The Italian shipbuilding group released the half year financial report
The Board of Directors of Fincantieri Spa, chaired by Giampiero Massolo, has examined and approved the half year financial report at 30 June 2019, prepared in accordance with the international financial reporting standards (IAS/IFRS).
The Italian Group reported a record level of euro 6,627 million in new orders, compared to euro 2,388 million for the same period in 2018; the Shipbuilding segment accounted for 96% (57% in the first half of 2018), the Offshore and Special Vessels segment for 1% (35%) and the Equipment, Systems and Services segment for 5% (16%).
In line with the 2018-22 Business Plan, revenue and income amounted to euro 2,837 million, thus increasing by euro 310 million compared to the same period of the previous year (+12%). The Shipbuilding segment registered an aggregate growth in revenues of 13.2%, with revenues of the Cruise business up 9.8% and revenues of the naval business up 13.2%.
At June 30, 2019, revenues from the Cruise business contributed to 54% of the Group’s revenues while the contribution of the naval vessels business unit stood at 23%.
The Equipment, Systems and Services segment recorded a growth in production volumes with revenues up 16%; revenues of the Offshore and Specialized Vessels segment declined.
Revenue generated by foreign clients accounted for 81%.
EBITDA at June 30, 2019 was euro 215 million (euro 183 million in the first half of 2018) with an EBITDA margin of 7.6%, improved from the 7.3% at June 30, 2018. Such result includes the positive performance of the Shipbuilding and the Equipment, Systems and Services segments on the one hand, and the negative margins of the Offshore and Specialized Vessels segment on the other.
Adjusted Net profit was 34 million at June 30, 2019 (euro 39 million at June 30, 2018); net profit for the period was euro 12 million (euro 15 million at June 30, 2018).
“In this first part of the year we achieved an exceptional growth for the seventh semester in a row and a new record, with unparalleled order intake. Remarkable achievements, also considering the innovation level of the acquired contracts” stressed CEO Giuseppe Bono. “These are confirmations that praise our great work on research and development, allowing us to offer our clients projects that are capable to anticipate times. We design and install advanced solutions for a market that is increasingly asking for a higher attention to the environment, universal heritage that we must protect both for us and for future generations”.
Bono continued by praising the company, “well aware of the new global challenges, keeping up with commitment towards the creation of a more efficient and competitive European shipbuilding industry: recently, we signed the Alliance Cooperation Agreement with Naval Group which starts to shape the Poseidon project and paves the way to the reinforcement of the naval cooperation between France and Italy”.
The CEO’s final message was addressed to the supply chain. “ The huge bulk of projects we are working on require an increasing effort of the entire workforce currently involved in the production process, and more than this. We expect to be able to lever the support of new professionalisms, developed also through the inclusion of new courses among Industrial Technical Institutes and through the cooperation with Universities in order to be able to best meet the expectations we created with our performance and the quality of our products.”