Italian cruise ship and naval shipbuilder, Fincantieri, saw revenues grow by 16% to €3,510 mill in the first half of this year, compared to €3,026 mill for 1H21.
However, the group suffered a net loss of €234 mill but saw the first signs of a cruise ordering resumption.
EBITDA came in at €90 mill, compared with €219 mill in 1H21.
Adjusted net income was a negative €94 mill, compared to a positive €49 mill in the first half of the previous year, while 1H22 net income was a negative €34 mill, compared with a positive €7 mill in 1H21.
The drop was due to extraordinary and non-recurring expenses of €156 mill.
Fincantieri said that its results were hit by (i) the effects of a strategic review of the Infrastructure business, (ii) the valuation of raw materials prices impact on whole-life costs of shipbuilding projects, (iii) the write-off of some financial assets, and (iv) a goodwill impairment for the Norwegian subsidiary Vard and the US subsidiary Fincantieri Marine Group.
The net financial position (NFP) was negative at €3,296 mill at the end of June (€2,238 mill on 31st December, 2021), consistent with first half production volumes and the delivery schedule with five cruise ships in the second half of the year.
NFP was also influenced by the strategy implemented by the Group to support shipowners, following the COVID-19 outbreak.
There was a total backlog of 113 ships of varying types, worth €34.6 bill, about 5.2 times 2021 revenues, excluding pass-through activities, of which:
*Backlog: €24.1 bill and 93 ships to be delivered up to 2029.
*Soft backlog: around €10.5 bill.
Record-high production volumes led by the large backlog and the progress of specific cruise contracts meant a total amount of 8.6 mill production hours versus 8.4 mill in 1H21.
Eight ships were delivered from five shipyards during 1H22 with five more cruise ships to be delivered in the second half of this year.
As for the cruise ship order resumption, a Memorandum of Agreement for two hydrogen-powered cruise ships and a contract for an ultra-luxury cruise ship were signed in July.
Following the first sustainability linked credit line of €700 mill granted by BNP Paribas, Fincantieri signed a sustainability linked revolving credit facility with Intesa Sanpaolo for a maximum amount of €500 mill.
Fincantieri is also taking part in the IPCEI (Important Project of Common European Interest) project aimed at developing hydrogen energy, which will be financed by the European Commission for a total of €5.4 bill, of which €1 bill to Italy.
Pierroberto Folgiero, Fincantieri CEO and Managing Director, commented: “Second quarter results are negatively affected by the impacts of a strategic review of the non-core business portfolio, by the surge in raw materials prices caused by the Russian/Ukrainian conflict, and by other non-recurring items.
“In the upcoming months, we will be fully committed in the core business, benefiting from the expected growth in defence and the resumption of the cruise market. New digital and green solutions will strengthen even more Fincantieri ‘s leadership within the international shipbuilding industry.
“Furthermore, we will pursue with great dedication those industrial projects fostering operational excellence both in Italy and abroad, while investing in our human capital,” he said.