Fincantieri Delivers Record Revenues and Total Backlog

Italian shipbuilding giant Fincantieri reported a further increase in its revenues in 2018, with a record-high total backlog.

The company said that its revenues were at a record level, rising by 9% to EUR 5.47 billion from EUR 5 billion reported in 2017. The shipbuilding segment recorded an overall increase in revenues of 9.6%, with the revenues from cruise ships increasing by 6.4% and the revenues from naval vessels increasing by 18.3%.

The company’s profit for the year surged by 30% to EUR 69 million, compared to last year’s profit of EUR 53 million.

Fincantieri said that its order intake reached EUR 8.6 billion and includes orders for 27 units, 14 of which are cruise ships for 8 different companies. Total backlog was at a record-high level with 116 units at EUR 33.8 billion, rising by 29% from a backlog of EUR 26.1 billion reported a year earlier.

“The results we have presented prove once again that our company is a leader, a landmark in the worldwide shipbuilding industry, a network of excellences that share knowledge and resources in many fields,” Giuseppe Bono, Chief Executive Officer of Fincantieri, said.

“The relevant increase in revenues that have grown by almost 10% is only the first step in the growth path aiming at an approximate 50% increase of volumes by 2022 requiring a high organizational effort and a clear vision of the future challenges.”

Following the delisting of VARD, in December 2018, the full organizational integration with the parent company was launched both for expedition cruise shipbuilding projects and the relating shipyards, and for offshore and special vessels projects.

Because of the reorganization, the Romanian shipyards and the Norwegian yards dedicated to the outfitting of cruise ships, together with other key activities, have been merged into an autonomous organizational unit.

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

Revenues will continue their trend of growth with an EBITDA margin in line with the one recorded in 2018. Net debt is expected to rise due to working capital financing needs.