Fincantieri Improves Shipbuilding Revenue

Image Courtesy: Fincantieri

Italian shipbuilder Fincantieri S.p.A. has recorded EUR 1.659 billion revenue coming from its shipbuilding segment in the first half of 2016, a 6.7% increase compared to EUR 1.555 billion reported for the same period a year earlier, on the back of a rise in cruise ship production volumes. 

The company’s cruise ship business brought EUR 1.026 bn in revenue in the first six months of 2016, as compared to EUR 826 million revenue in 1H 2015, while the revenue from the naval vessels business remained flat at EUR 554 million.

Fincantieri had 13 cruise ships under construction at its Italian yards in 1H 2016, of which four were  delivered in the period, versus 11 ships at 30 June 2015.

Revenue from other activities decreased to EUR 79 million from EUR 175 million at 30 June 2015, mainly reflecting a lower contribution from repairs and conversions that, in the previous period, had benefitted from the execution of the Renaissance Program for the client MSC.

First half profitability of the company’s shipbuilding business continued to be affected by low margins of the large number of highly complex cruise prototypes delivered in the period.

Having left behind the industry’s longest period of crisis with 2015 second-half results, shipbuilding margins are seeing a gradual improvement after completing delivery of low-margin prototype cruise ships ordered during the severe market downturn, Fincantieri said.

Overall, the company’s revenue and income amounted to EUR 2.266 bn in the first half of 2016, as compared to EUR 2.222 bn reported for the first half of 2015. Group share of profit for the period was EUR 7 million as opposed to net profit of EUR 12 million at 30 June 2015.

During the first half of 2016, Fincantieri was awarded EUR 5.851 bn in new orders, compared to EUR 4.17 bn in the corresponding period of 2015.

The company’s total backlog amounted to EUR 21.8 bn at 30 June 2016, with the order delivery profile extending until 2026. The backlog and total backlog guarantee about 4.6 and 5.2 years of work respectively in relation to the 2015 level of revenue, with most of it in the shipbuilding segment, Fincantieri said.

Looking ahead, Fincantieri confirms the guidance for 2016 outlined in the Business Plan 2016-2020, i.e. revenue growth of 4-6% compared to 2015 revenues, an EBITDA margin of around 5% and a positive net result.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >