• 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 August 18

13:02 BAE Systems cuts steel for UK Royal Navy's HMS Cardiff
12:46 Kongsberg Digital simulation and software selected to fast-track R&D at new autonomous ship centre in Korea
11:05 NYK sponsors endangered Sea Turtle Research
10:56 Coast Guard cites passenger vessel for operating illegally, terminates voyage

2019 August 17

14:24 Kinder Morgan announces additional projects to enhance capabilities at Houston Ship Channel Facilities
13:31 Damen Shipyards Cape Town joins Women’s International Shipping & Trading Association
12:28 CMA CGM announces rate restoration for Asia to West Africa trade
11:32 APL informs on voil sailing on Asia-Indian Subcontinent Service in August
10:58 Pre-commissioned USCG's Cutter Midgett makes second cocaine seizure within five days

2019 August 16

18:16 Port of Vyborg volumes in Jan-Jul plummet 29% to 687,700 tons
18:06 Hapag-Lloyd announces rates from East Asia to North Europe and Mediterranean
17:36 Norwegian Encore leaves MEYER WERFT's building dock
17:06 Balltec secures North Sea decommissioning contract from Heerema Marine Contractors Nederland
16:35 Canada Infrastructure Bank signs MoU with the Port of Montreal on Contrecoeur port expansion project
16:05 Vår Energi AS awarded an EPCI contract to Rosenberg Worley AS
16:03 Low-sulphur marine fuel sales by Gazprom Neft in the first half of the year increased by 11% to 121,400 tonnes
15:48 Samsung Heavy to advance smart ship technology in cooperation with equipment producers
15:36 Throughout of oil port Primorsk in Jan-Jul 2019 increased 14% to 35.74 million tonnes
15:14 New mid-year record for container volumes through the Port of Vancouver
15:11 USCG repatriates 25 migrants to the Dominican Republic
14:27 Port of Vysotsk throughput in January-July rose 7% to 11.14 million tonnes
14:10 Austal signs A$126 mln contract to export two Cape Class Patrol Boats
13:14 Seven-month cargo volumes of Port of Ust-Luga increase 10% to 62 million tonnes (update)
13:05 NORDEN signs multiple long-term global contracts
12:05 APM Terminals Poti to implement uninterrupted 24/7 operations
11:39 Port of St. Petersburg seven-month volumes rise 2% to 35 million tonnes (update)
11:05 Steel cutting ceremony for the next AIDA LNG cruise ship at MEYER WERFT
10:48 Tekmar Energy selected for Formosa 1 Phase 2
10:44 Port of Hamburg seaborne cargo throughput up 4.1 percent to 69.4 million tons in H1 2019
09:55 Crude futures prices tend upward again: Brent Crude rises to $ 58,88, WTI – to $ 55,16
09:34 Baltic Dry Index leaps 97pts to 2047 points
09:27 Bunker prices show mixed movements at Port of St. Petersburg
08:41 MABUX: Bunker market this morning, Aug 16

2019 August 15

18:48 Seven-month box throughput of Ukraine’s seaports leaps 20% to 545.800 TEUs
18:05 Huntington Ingalls Industries announces leadership changes at shipyards
17:05 Scandlines installs Norsepower’s Rotor Sail solution on board hybrid ferry
16:43 Kinder Morgan announces additional projects to enhance capabilities at Houston Ship Channel facilities
16:35 Kalmar service expertise to enhance safety, performance and productivity at OPCSA’s Las Palmas terminal
16:33 Global Dredging Forum in London to address all current aspects of capital and maintenance dredging as expansion opportunity
16:05 Wilhelmsen Ship Management awarded two supramaxes from Stove Shipping AS
15:47 Neste introduces a new IMO2020-compliant low-sulphur marine fuel
15:43 Stena Bulk's CEO appeals directly to the Leaders of India, Russia, Latvia & the Philippines
14:33 Rotterdam Polymer Hub construction starts
14:20 A.P. Moller - Maersk reports strong improvements in earnings in Q2
14:01 Tuapse Sea Commercial Port JSC 1H net profit drops 3.3 times to RUB 1bn
13:52 Port of Oslo speaker to join Int'l Baltic Transport Forum, Sept. 11
13:05 RS supports PortNews сonference on icebreaking and service fleet, to be held prior to NEVA-2019 trade fair
13:02 CMA CGM announces FAK rates from Asia to North Africa
12:06 LUGAPORT terminal construction kicks off at Port of Ust-Luga
12:03 MOL transports fire engines to Paraguay
11:03 Jan De Nul bags 600MW Kriegers Flak contract
10:17 CMA CGM announces FAK rates from Asia to the Mediterranean
10:01 Crude futures prices continue to decline: Brent Crude – to $ 59,09, WTI – to $ 54,92
09:57 Latest frigate Admiral Kasatonov enters shipbuilder’s trials final phase
09:12 Baltic Dry Index leaps by 4.61% to hit 1950-pts mark
08:42 MABUX: Bunker market this morning, Aug 15

2019 August 14

23:00 Sergey Mazokhin takes helm at Nordic Engineering JSC
18:09 Icebreaker Novorossiysk escorts Silver Explorer along the Northern Sea Route
18:05 OOCL revises Trans-Pacific service
17:23 Moscord to add Schneider Electric Marine Product Line