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Fincantieri Swings to Loss despite All-Time High Order Intake

April 1, 2016

Italian shipbuilding giant Fincantieri has booked an all-time high order intake totaling in EUR 10.08 billion (approximately USD 11 bn) which comes despite the troubles in the offshore segment. 

The orderbook has almost doubled when compared to figures from the previous year when it amounted to EUR 5.6 billion.

The shipbuilder also reported an all-time high total backlog of EUR 19 billion, also much higher when compared to figures from 2014 when it stood at EUR  9.8 million, with the order delivery profile extending through 2026.

Of the total new orders 92% relates to the shipbuilding segment, 4% to the offshore segment susbtantially down from 20% at 31 December 2014 , and 6% to the equipment, systems and services segment.

However, the strong order intake did not translate into major profit for the company, as Fincatieri recorded a loss of EUR  289 million for 2015 against a profit of EUR 55 million at 31 December 2014.

 “ We closed 2015 results with an all-time high backlog and further relevant commercial opportunities in an advanced stage of negotiation. With 2015 Fincantieri leaves behind its sector’s longest period of crisis, managed with the most appropriate strategy, which allowed us to get out of it strengthened and as the undisputed leader of high value segments of the shipbuilding industry,” Giuseppe Bono, Fincantieri’s Chief Executive Officer, said.

The shipbuilder has also approved its 2016-2020 Business Plan, which according to Bono, allows the company to retain production and engineering potential, “which is necessary to seize the cruise sector current boom and the solid outlook of the naval as well as of the equipment, components and services businesses.”

“The actions foreseen by the Business Plan, enacted by a committed and cohesive management team, will allow to increase revenues by 50% and reach an EBITDA margin of 7/8% at the end of the forecast period, as well as post a positive net result in 2016 and distribute dividends on 2017 net income,” he added.