Fincantieri posts EUR 245 million loss for 2020

Italian shipbuilding heavyweight Fincantieri reported a net loss of EUR 245 million ( $ 296 million) for the full year of 2020 amid the impact of the coronavirus, further deepening the loss of EUR 148 million from 2019.

The shipbuilder said that 2020 was an out-of-the-ordinary year due to the impact of the pandemic on the global economy. As a result, Fincantieri ended the year with a 20% lower production of what had been planned.

The company resumed full production recovery in the fourth quarter of the year, pointing at a likely recovery of profitability in 2021.

As disclosed, cruise ship deliveries stayed on schedule as per the pre-pandemic program, even with the postponement of production programs.

Four out of the seven cruise ships delivered in 2020 were handed over in the second half of the year, including the 100^th cruise ship built by Fincantieri for Princess Cruises.

There have been no order cancellations, Fincantieri said.

The operational performance for the fourth quarter was consistent with revenues at EUR 1,657 million and EBITDA at EUR 114 million, up by 42% and 40% when compared to Q3 results.

The company’s total backlog stands at 116 units, with deliveries up to 2029, and a value of EUR 35.7 billion.

The order intake for the year was EUR 4.5 billion with 18 secured units, of which 5 naval and 2 for operations in offshore wind farms.

During 2020 Fincantieri’s shipyards delivered 19 units, 7 of which are cruise ships, including 2 expedition cruise vessels, and 4 naval units.

“Throughout 2020, the pandemic put a severe strain on the global economy, painfully impacting all industries and especially large-scale enterprises. In such a scenario, we have proven our prompt responsiveness, by rescheduling our production programs and adjusting our operational processes accordingly,” Giuseppe Bono, Chief Executive Officer of Fincantieri, said.

“As long as scientific progress is made in treatments and vaccines, we expect a growth of 25%, led by our considerable backlog, as well as improving marginality and return to profit.”