Fincantieri: the BoD approves 9M 2019 results
Ships to be delivered up to 2027 -ATTACHMENT
The Board of Directors of Fincantieri SpA, chaired by Giampiero Massolo, has examined and approved the interim financial information at September 30, 2019.
The highlights are:
Revenues increased by 9.7% at euro 4,254 million (euro 3,878 million at 30 September 2018)
EBITDA at euro 287 million (euro 281 million at 30 September 2018) with EBITDA margin at 6.7% (7.3% at 30 September 2018): includes the positive performance of the Shipbuilding segment (+30.2% compared to 30 September 2018 despite the negative impact of Vard cruise projects) and was affected by the negative margin of the Offshore and Specialized Vessels segment
Positive operating performance at Group level, improving in all areas, but limited by the negative results of Vard, which is undergoing a reorganization process aiming at improving its management trend
Net financial position at euro 904 million (euro 494 at 31 December 2018), in line with expectations and consistent with the increase of value and size of the cruise ships under construction. Based on the delivery schedule for the remainder of the year (3 units delivered in October) and for the next quarters we expect a decrease of the net debt
Order intake at euro 6.8 billion: contracts signed for 17 units, including 11 cruise ships for 5 different brands (Oceania, Regent Seven Seas Cruises, Viking, MSC, Princess), and the order by the US Navy for an additional Littoral Combat Ship (LCS) unit
Total backlog at euro 32.3 billion, comprising 106 ships, equivalent to approximately 5.9 times the 2018 revenues: backlog at euro 28.4 billion (+9.3% compared to 30 September 2018) with 96 units to be delivered up to 2027 and soft backlog at euro 3.9 billion
Delivery of 18 ships from 11 different shipyards, of which 2 cruise ships, 3 expedition cruise vessels and 3 naval units, and launch of 2 vessels of the Italian Navy fleet renewal program
Acquisition of a 60% controlling stake in INSIS group, active in the system integration sector through the production of innovative technological solutions, aimed at further strengthening the initiatives already started by Fincantieri to develop an IT and electronic excellence center
Continuation of the French-Italian cooperation for the creation of a more efficient and competitive European shipbuilding industry, with the signing of the Alliance Cooperation Agreement between Fincantieri and Naval Group
Ongoing commitment of the Group on sustainability with the signing of important agreements in the social and environmental fields, with a specific focus on innovation, security and education.
During the Board meeting Giuseppe Bono, Fincantieri's Chief Executive Officer, said: “In these months we proved to be a rare example in the Industrial landscape. A multi – year visibility, in fact, grants us a solid growth in revenues, which increased in these nine months by 10% if compared to 2018. Unfortunately, the Group results are impacted by the negative contribution of VARD, which suffers from the persisting effect of the deep crisis of its reference market of the Oil & Gas, and from the costs occurred following its entrance into the cruise shipbuilding market. The reorganization of Vard is a priority for the entire Group and we dedicated to this initiative some of our best Italian employees. The complexity of our products and of the related operations drive us towards an ongoing innovation aimed at improving continuously our performances. A proof of that is the delivery in the single month of October of three cruise ships from three different shipyards, for three different Clients. Our Group successes and the positive economic and social impact of our activities concur to the prestige of the Italian export and, in the end, they contribute to the success of the Made in Italy worldwide. We can also say that we are participating as key players in the European Shipbuilding market consolidation”.
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