Italian shipbuilding group Fincantieri reported record revenues last year, driven by a significant increase in cruise ship construction.
Revenues totalled €5.8 bill for the year, an increase of 8%, compared to €5.4 billion recorded in 2018.
Fincantieri said that it had seen remarkable growth in the cruise shipbuilding business of 8.8% and in equipment, systems and services business of 38.1%. This growth countered the reduction of volumes of the offshore and specialised vessel business of 29.4%.
The cruise ships business sector recorded an increase in revenues of 10.8%, and accounted for 56% of the group’s revenues, while the naval vessels business recorded an increase in revenues of 4.8%, accounting for 23% of the group’s revenues.
However, the negative performance of its subsidiary Vard, for which a restructuring plan was implemented following its de-listing in late 2018, had a negative impact on group results.
EBITDA was €320 mill for 2019, against €421 mill posted a year earlier. In addition, adjusted net loss amounted to €71 mill in 2019, compared to an adjusted profit of €114 mill in 2018, and last year’s loss was €148 mill, compared to a profit of €69 mill reported for 2018.
Last year’s new orders amounted to €8.7 bill and were in line with the 2018 order intake, with 28 new vessels and with a book-to-bill ratio of 1.5, of which, the shipbuilding segment accounted for 93%.
In the cruise ship shipbuilding segment, Fincantieri gained orders for 13 new units for six different brands, with an overall value of €6 bill.
The group’s total backlog on 31st December, 2019, included 109 units totalling €32.7 bill.
In the first few months of this year, the COVID-19 pandemic outburst caused the Italian Government to issue measures in an effort to contain the outbreak.
Apart from other initiatives aimed at protecting the health of its employees, Fincantieri stopped production at all its Italian yards on 16th March.
Despite the coronavirus significantly affecting its 2020 business operations, Fincantieri said it believed that its equity and economic structure will successfully cope with the repercussions of the emergency, should the crisis cease within a reasonable amount of time.
Currently, the group said it is focused on safeguarding its clients and strategic partners to ensure the backlog is addressed, notably in the cruise sector, among the hardest hit by crisis.
The group added that it would finalise its five-year business plan once the potential impact of the pandemic can be analysed.
“In consideration of the uncertainty regarding the impacts on public health, and on the country’s production and social and economic aspects, the group will disclose to the market a new 2020-2024 business plan, as soon as the emergency permits a clear evaluation of its possible impacts,” Fincantieri said.