Fincantieri board approves 1H 2018 results
The Board of Directors of FINCANTIERI S.p.A., chaired by Giampiero Massolo, has examined and approved the Half year financial report at June 30, 2018, prepared in accordance with international financial reporting and accounting standards (IAS/IFRS).
Revenues at June 30, 2018 up 10% compared to the same period of 2017, EBITDA at euro 183 mln (up 25%), EBITDA margin at 7.3%, marking an improvement from 6.3% from the first half of 2017 (+16%). Adjusted profit[2] of euro 39 mln (up 39%)
Total backlog at a record euro 29.8 billion, amounting to approximately 6 times 2017 revenues: backlog as at June 30, 2018 was euro 22 billion (euro 20.4 billion as at June 30, 2017) with scheduled deliveries stretching to 2026, while the soft backlog at the same date was approximately euro 7.8 billion (circa euro 5.1 billion as at June 30, 2017), most of which transformed into backlog during the month of July. The total backlog gives Fincantieri visibility for the years to come and allows to ensure workload for all its Italian yards and to consolidate its global leadership. At June 30, 2018 the Group’s order portfolio consisted of 99 ships, which increased to 109 with the orders acquired during the month of July
Orders and agreements (in the Shipbuilding sector) signed in the first six months of the year for a total of 9 cruise ships (including options)
In the month of July, Fincantieri acquired a new important customer, Tui Cruises, with an order for two new-concept, LNG-powered cruise ships; conversion into order of an option for two cruise ships by Norwegian Cruise Line; signed a Memorandum of Agreement with Princess Cruises, a brand of Carnival Group & plc, for the construction of two new-generation cruise ships of 175,000 tons each, that will be the largest ever built in Italy so far; confirmed an order for a cruise ship by Cunard, an iconic brand belonging to Carnival Corporation & plc; acquired, through the American subsidiary Marinette Marine Corporation (in a consortium led by Lockheed Martin), an order from the US Government to advance work in support of the construction of four Multi-Mission Surface Combatants (MMSC) ships for the Kingdom of Saudi Arabia. Furthermore, VARD acquired an order from Viking for two new expedition cruise vessels, a promising market
In the Shipbuilding sector, six units delivered during the first semester, of which four cruise ships (”Carnival Horizon”, “Seabourn Ovation”, “MSC Seaview”, “Viking Orion”) and two naval vessels (the seventh unit of the “FREMM” programme to the Italian Navy and the oceanographic vessel “Kronprins Haakon” for the Norwegian Institute of Marine Research)
Signed a share purchase agreement with the French State for the acquisition of 50% of the share capital of STX France. The closing will be subject to customary conditions for this kind of transactions, including the approval from the relevant Antitrust Authorities. The shareholders’ agreements and the agreement covering the loan of 1% of the share capital of STX France to Fincantieri - the terms of which have already been agreed by the parties - will be signed at the closing of the transaction. The agreement with STX France is part of a broader collaboration on shipbuilding between Italy and France in the context of a consolidation of the European shipbuilding industry
VARD’s shareholders meeting approved the company’s delisting
Order intake: euro 2,388 mln (euro 4,369 mln at June 30, 2017)
Revenue and income: euro 2,527 million (euro 2,295 million at June 30, 2017)
EBITDA: euro 183 million (euro 146 million at June 30, 2017) with a consolidated EBITDA margin of 7.3% (6.3% at June 30, 2016), an improvement of 16%
Adjusted profit of euro 39 million (euro 28 million at June 30, 2017)
Profit for the period of euro 15 million, up euro 4 million from the first semester of 2017 (euro 11 million at June 30, 2017), despite euro 32 million in extraordinary charges, mostly due to provisions for asbestos-related litigations
Net debt of euro 264 million (net debt of euro 314 million at December 31, 2017), mostly related to the financing of current assets associated with cruise ships construction. This figure includes certain short term debts which, although related to the financing of construction, are not, due to their technical specifications, construction loans
Construction loans, i.e. credit instruments used for the exclusive financing of orders to which they are referred,at euro 488 million at June 30, 2018 (euro 624 million at December 31, 2017), entirely related to the subsidiary VARD (euro 574 million at December 31, 2017)
Net cash flows from operating activities: positive at euro 99 million in the first six months of 2018 (positive at euro 122 million at June 30, 2017); this includes euro 165 million of outflows related to construction loans repayments (whereas at June 30, 2017 they had generated cash for euro 319 million)
