• 2019 May 10 11:18

    Fincantieri's Q1 2019 revenues up 13% with backlog at EUR 34.3 bn

    Fincantiri S.p.A. ("Fincantieri" or the "Company") reports that its Board of Directors, chaired by Giampiero Massolo, has examined and approved the interim financial information at March 31, 2019.

    During the Board meeting Giuseppe Bono, Fincantieri's Chief Executive Officer, said: “The results of the first quarter 2019 strengthen our role as a leader company, capable of quickly transforming the soft backlog into firm orders. This strength gives us a key role in the Country, thanks to the long term contribution that we are able to provide, as testified by the growing trust shown by our clients. The orders for the 11 cruise vessels signed in these three months translate into almost 27 billion euro generated to the benefit of the territories where we are located: this figure speaks for itself.

    I would also like to recall the strategic initiatives that we are carrying on with determination, both in the naval business area and in the development of an in-house center of excellence in engineering and information technology services. Furthermore, we are keeping up with our diversification efforts consistently with our engineering capabilities: I’d like to mention the cooperation agreement that we signed with Eni, CDP and Terna, featuring highly innovative content and particularly important from an industrial standpoint”.

    Bono concluded: “This is the first glimpse of a challenging year ahead of us, which will allow us to show our excellent production and system integration capabilities”.

    In the first three months of 2019 Revenues increased by 13.0% compared to the same period of 2018, in line with the growth expectations for 2019.

    Group EBITDA at March 31, 2019 stood at euro 90 million (euro 89 million at March 31, 2018) with an EBITDA margin of 6.5%, compared to the 7.3% of the first three months of 2018; such trend was mainly due to the positive performance of the Shipbuilding and the Equipment, Systems and Services segments on the one hand, and to the negative margins of the Offshore and Specialized Vessels segment on the other.

    Revenues in the Shipbuilding segment at March 31, 2019 were equal to euro 1,113 million, increased by 8.8% if compared to the euro 1,023 million of the first quarter 2018 restated. The increase in revenues was linked to the higher volumes generated by the construction of cruise vessels, that recorded an increase of 13.1% if compared to the same period of 2018.

    EBITDA of the segment at March 31, 2019 was euro 83 million (euro 65 million at March 31, 2018 restated), with an EBITDA margin of 7.4% (6.3% at March 31, 2018 restated). The EBITDA margin benefited from the progress in the construction of sister cruise ships with higher marginality. The profitability of the segment was nonetheless impacted by the low margins of some VARD Cruise business unit projects, due for delivery in 2019.

    Offshore and Specialized Vessels revenues at March 31, 2019 stood at euro 224 million, with an increase of 44.5% compared to the same period of 2018 (euro 155 million). Production volumes of specialized vessels increased as a result of the diversification strategy, recording a still sub-optimal utilization rate of the production capacity. In the context of the diversification strategy, on April 19, 2019 an agreement was signed with Eni, Cassa depositi e prestiti and Terna to develop and build wave power stations on an industrial scale.

    EBITDA of the segment at March 31, 2019 was negative for euro 2 million (positive for euro 18 million at March 31, 2018 restated), with an EBITDA margin of -0.9% (+11.4% at March 31, 2018 restated). As compared to the first quarter 2018, positively impacted by the development of the “Module Carrier Vessels” (MCV) program, the trend recorded by the segment in the first quarter 2019 is affected by the complexity of the current, highly challenging, specialized vessels’ portfolio, that features different projects and categories of vessels under construction at the same time. The segment is facing a depressed market environment where the acquisition of high-potential projects comes alongside other orders with lower profitability.

    Revenues of the Equipment, Systems and Services segment were equal to euro 170 million, substantially in line with the first quarter of 2018. They include the contribution from the launch of Fincantieri Infrastructure activities.

    EBITDA of the segment at March 31, 2019 stood at euro 18 million (euro 15 million at March 31, 2018) with an EBITDA margin of 10.3%, increased in comparison with the first quarter of 2018.

    Net fixed capital was euro 1,801 million (euro 1,703 million at December 31, 2018), increased by euro 98 million. Among the main impacts is the inclusion of the utilization right of the leased items following the first application of IFRS 16 (euro 83 million). Net working capital was negative for euro 47 million (positive for euro 44 million at December 31, 2018). The main effects include: i) the decrease of the Inventories and advances (euro 68 million) mainly due to the delivery of a vessel accounted for in the inventories following the order cancellation, then sold; ii) the increase in Construction contracts and client advances (euro 128 million) due to the volumes generated in the period; and iii) the reduction of Trade receivables (euro 229 million) mainly due to the cash-in of the final instalment of the cruise vessels delivered in the quarter.

    Construction loans, specially dedicated credit instruments used for the exclusive financing of the project they are referred to, amounted to euro 545 million at March 31, 2019, recording a reduction of euro 87 million; of these, euro 395 million were related to the subsidiary VARD and euro 150 million to the Parent Company.

    Net financial position, which excludes construction loans, reported a net debt balance of euro 505 million (euro494 million in net debt at December 31, 2018), consistently with the production volumes developed by the Group and with the delivery schedule of the cruise units. It also includes the financial liabilities arising from the application of IFRS 16 (euro 85 million).

    BUSINESS OUTLOOK

    The Group expects 2019 results to be in line with 2018 and consistent with the economic and financial forecast announced within the 2018-2022 Business Plan.

    In particular, for FY 2019 the revenue growth trend is confirmed, with an EBITDA margin in line with 2018.

    Net debt is expected to rise due to working capital financing needs.

    In the Shipbuilding segment, in the next quarters of 2019 the Group expects to deliver 8 ships, 6 cruise units (two of which, the “Le Bougainville” and the “Hanseatic Nature”, were delivered in April by VARD respectively to the shipowners Ponant and Hapag Lloyd) and 2 naval vessels (one of which, the FREMM “Antonio Marceglia”, was delivered in April to the Italian Navy). Also with reference to the naval vessels business area, the launch of two vessels included in the fleet renewal program for the Italian Navy is scheduled, including the Landing Helicopter Dock currently under construction at the Castellammare di Stabia shipyard, while the program for the Qatari Ministry of Defense is coming into full swing, with 3 vessels under construction and first delivery scheduled for 2021.

    In the Offshore and Specialized Vessels segment, the construction activity related to the backlog acquired as a result of the diversification strategy put in place following the Oil&Gas sector crisis will continue, as well as the focus on execution aimed at margin recovery. Among these is the reorganization of production facilities, with the alignment of headcount to the current workload at some yards.

    In 2019 the Equipment, Systems and Services segment is expected to confirm its revenue growth trend, thanks to the development of the naval orders, to the higher volumes of production of cabins and public areas for the cruise business activity, to the lengthening projects and to the activities in the infrastructure sector, where the construction of the bridge over the Polcevera river started in the first quarter.




2019 December 13

18:17 New ecological equipment enters berths of Multipurpose Reloading Complex in Ust-Luga
17:22 Total's Mozambique LNG Project gets $400 mln loan from African Development Bank
17:03 Port of Los Angeles and Indonesia Port Corporation sign cooperative agreement
16:33 ABB wins contract to power Genting’s next-generation cruise vessels
16:12 ABB completes delivery for the world's most advanced icebreaking LNG carrier fleet
16:03 Windermere Lake Cruises new vessel launched in Damen Technical Cooperation project
15:33 MacGregor deck handling solution supports China’s Xue Long 2 icebreaker operation
15:12 Polarcus awarded 10-month acquisition program offshore Brazil
14:32 Rotterdam Port Fund invests in Fleet Cleaner
14:11 Subsea 7 awarded contract offshore Norway
13:43 Moín Container Terminal reaches 1 million TEUs
13:31 New container terminal opens in northern Italy
13:05 Aker Solutions to provide subsea production system for phase two of Aker BP's Ærfugl
12:30 Jifmar Offshore Services acquires Delta Marine
12:04 SBM Offshore signs FPSO Sepetiba contracts
11:30 Abu Dhabi Ports announces AED 4Bn expansion projects at Khalifa Port on its 7th Anniversary
11:27 Damen signs contract with Cotecmar for DTC hydrographic research vessel
11:12 WMU and EMSA cooperate on capacity building and research
11:03 SAL Heavy Lift becomes world’s first to equip vessels with new hydrogen / methanol injection technology
10:48 Murmansk Sea Fishing Port handled 245,000 tonnes of cargo in 11M’2019, down 20.7% Y-o-Y
10:34 Overseas Shipholding Group and American Shipping Company jointly announce extension of tanker charters
10:24 WMU President reports to the IMO Assembly
09:59 Kawasaki Heavy Industries launches the world's first liquefied hydrogen carrier
09:43 MABUX: Bunker market this morning, December 13
09:29 Brent Crude futures price is up 0.65% to $64.62, Light Sweet Crude – up 0.52% to $59.49
09:13 Baltic Dry Index is down to 1,388 points

2019 December 12

18:36 EBRD finances Tekirdag port on Turkey’s Sea of Marmara
18:05 Dutch Drone Delta established with Port of Rotterdam Authority support
17:51 Port of Southampton continues infrastructure investment with £3m crane
17:30 Baltic Workboats shipyard delivers 19 WP Oilrec workboat
17:05 The European Federation of Inland Ports welcomes the Green Deal for Europe
16:46 MOL orders 2 next-generation 'EeneX' coal carriers
16:43 Throughput of port Kaliningrad in Jan-Nov’2019 fell by 21% Y-o-Y to 10.20 million tonnes
16:26 Klaipėda LNG terminal welcomed three large and four small LNG vessels in November
16:05 Air quality sensor in the Port of Rotterdam checks sulphur emissions from shipping
15:57 Throughput of port Vyborg in Jan-Nov’2019 fell by 35% Y-o-Y to 1.12 million tonnes
15:34 Alewijnse wins electrical contracts for two additional Combi Freighters at Damen Yichang Shipyard
15:00 Throughput of port Vysotsk in Jan-Nov'2019 climbed by 6% Y-o-Y to 17.90 million tonnes
14:36 Krasnoye Sormovo shipyard launches dry cargo carrier Pola Anastasia of Project RSD59
14:12 CMA CGM announces FAK Reefer Rates from North Europe to Asia and Middle East
13:53 Bunker market sees mixed price movements at the Far East ports of Russia (graph)
13:31 NLNG signs sales deal with Vitol SA
13:12 Austal USA delivers USNS Puerto Rico to U.S. NAVY
12:49 Throughput of port Primorsk in Jan-Nov’2019 grew by 16% Y-o-Y to 56.25 million tonnes
12:24 Lead nuclear-powered icebreaker of Project 22220, Arktika, left for sea trials
12:00 ABS publishes Fuel Cell Guidance to support industry decarbonization objectives
11:38 Port of Ust-Luga handled 95.31 million tonnes in 11M’18, up 6% Y-o-Y
11:13 Throughput of Port St. Petersburg in 11M'2019 grew by 2% to 55.01 million tonnes
11:10 Verifavia Shipping undertakes IHM services for 29 Attica Group vessels
10:56 Wärtsilä to divest its ELAC Nautik business
10:49 Throughput of port Riga (Latvia) in 11M’2019 fell by 9.4% Y-o-Y to 30 million tonnes
10:26 TransContainer dispatched test train from Korea to Poland
10:05 MABUX: Bunker market this morning, Dec 12
09:47 Brent Crude futures price is up 0.41% to $63.98, Light Sweet Crude – up 0.14% to $58.84
09:31 Baltic Dry Index is down to 1,460 points
09:08 Viking Line’s new vessel to be equipped with Climeon Heat Power System
08:12 Nautilus Labs becomes new Inmarsat fleet data application provider

2019 December 11

18:33 Kongsberg and the Norwegian Society for Sea Rescue join forces to develop new SAR solutions
18:03 DOF Subsea secures integrated FSV contract in Africa
17:50 NCSP Group's consolidated cargo turnover for 10 months of 2019 totaled 121.2 million tons