Italian cruise ship builder Fincantieri has reported an increase in revenue of 4.9% to €1,764 mill for the first quarter of this year.
The EBITDA margin was at 4.9%, a 3% improvement over the FY2022 results.
The Group’s net financial position was €2.9 bill in the quarter, in line with the production activities of cruise projects. Some 89 vessels of all types were on order or under construction in 1Q23 giving a backlog at €22.7 bill.
The 1Q23 order intake was € 0.9 bill, compared to €0.5 bill in 1Q22, with a positive contribution from the offshore wind sector.
CEO Pierroberto Folgiero, commented: “The first three months of 2023 are perfectly in line with our expectations for 2023, with revenues up by 4.9% compared with the same period in 2022.
“The Cruise business area recorded a significant increase in production volumes led by our sizeable backlog, while the Naval business area continues the development of ongoing programmes.
Offshore and Specialised Vessels performed particularly well, with revenues at €238 mill, growing by 31%, thanks to the full swing production of vessels for the offshore wind industry.
“The operating performance expected for 2023 will allow us to consolidate revenues and margins, which together with a solid backlog and improving EBITDA compared to FY2022, confirm our positioning as a solid company in our core business, also thanks to our strategic attention to new technologies,” he said.
Fincantieri also presented its 2023-2027 business plan in Milan this month.
Through cost management and financial and operational discipline, the management aimed to consolidate the Group’s leading position and lay the foundations for the next industrial cycle driven by a digital and green ship.
This strategy is supported by the Group’s distinctive factors:
(i) Consolidated excellence across cruise, defence and offshore.
(ii) Ability to address geopolitical dynamics through competences gained through local presence with 18 shipyards on four continents.
(iii) Vertical integration thanks to automation, electronic and mechanical knowhow, including propulsion and power generation systems expertise, to lead the digital and green transition.
Fincantieri also confirmed the Group’s five strategic pillars:
(i) Focus on the core shipbuilding businesses – cruise, defence and offshore.
(ii) Risk mitigation, attention to costs and cash flow optimisation.
(iii) Industrial commitment to the sustainability strategy.
(iv) Develop offering as life cycle management supplier.
(v) Evolution of platform integrator capabilities de-risking and partnering of the Infrastructure business to add value to the segment, leveraging on the backlog while strengthening the execution processes.
Investments will be made on human capital, to enable technologies and supply chain partnerships.
The financial results targets listed were €7.6 bill in 2023; €8 bill for 2024; €8.8 bill for 2025, rising to €9.8 bill in 2027.
In addition, Capex is to fall from €300 mill to €200 mill per year during the period with the Group recording a net profit from 2025.
Following the Covid emergency, passengers taking a cruise are forecast to grow at 6% CAGR up to 2030, leading to an expected resumption in cruise ship orders in 2023/2024.
Stable revenues were forecast for the cruise business supported by the solid backlog, which highlights a resumption in order intake last year, benefiting from the recovery of tourism, with a clear preference towards new operators in the luxury segment.
Cruise shipbuilding revenues are expected to be €3.8 – €4.2 bill in 2023, rising to €3.8 – €4.2 bill during the period.