Avio, order book on the rise but revenues slow down. Work is underway on the new Vega C launcher. What emerges from the half-yearly report
First half in chiaroscuro for Avio: profits slow down while the order book increases.
Avio – a company listed on the Star segment, leader in space propulsion that builds the Vega vector and the P120C engine used in the four side boosters of the Ariane 6, as well as in the Vega C – recorded revenues of € 127.7 million in the first half of the year. in 2021, down by 24% compared to the first half of 2020.
The data on the order book for the Colleferro company, on the other hand, continues to grow reaching 835 million euros (+ 13%, compared to December 2020).
«Profits are slowing down due to the postponement of activities caused by Covid and the commitment that for 3-4 months we had to dedicate to the activities for the return to the flight. But we have not lost contracts and the growth in the order book shows that we have years of growth ahead of us, ”Giulio Ranzo, CEO, told Sole 24 Ore .
Ranzo's reference is to the failure of Flight VV17 in November 2020 when an anomaly caused a deviation of the trajectory of the Vega launcher with the consequent premature end of the mission. The company had to spend time and resources to implement the recommendations of the independent commission of inquiry, set up by the European Space Agency (ESA) and the company Arianespace , which manages the launches from the European base in Kourou.
All the details.
REVENUES SLOW DOWN
Avio closed the first six months of 2021 with revenues of € 127.7 million, down by 24% compared to the € 167.8 million of the first six months of 2020.
THE ORDER PORTFOLIO GROWS
The data of the order book is positive, which continues to grow reaching 835 million euros (+ 13%, compared to December 2020), thanks to the acquisition of new orders for approximately 230 million euros referring mainly to the Vega E contract for development until 2024 and a further three tranches of the Aster Booster production contract for the Mbda group to cover approximately ten years of production (over 80 million).
GROSS OPERATING MARGIN FALLS
Reported Ebitda decreased by 52% to 8.1 million while Adjusted Ebitda settled at 10.5 million euros (-47%). Reported EBIT stood at € -2.4 million. A decrease due to the increase in depreciation relating to the entry into operation of investments for the production of the P120 engine.
the result for the period was -2.4 million euros (-10.9 million compared to the first half of 2020).
IMPROVE NET CASH POSITION
The net cash position at 30 June 2021 was +36.6 million euros (62.6 million euros at 31 December 2020 and 26.6 million euros at 30 June 2020). The company underlines "a better result than the typical seasonal trend thanks to the trend in working capital, despite the return to the payment of dividends and a sustained level of investments" (14.8 million euros in the half year, + 20% compared to the first semester 2020).
THE 2021 GUIDANCE
The board of directors has approved the guidance for the 2021 annual results. The company expects an order book between 850 and 900 million euros, revenues between 300 and 330 million euros, Ebitda Reported between 30 and 32 million euros and a net profit between 10-12 million euros.
THE COMMENT OF CEO GIULIO RANZO
"The first half of 2021 confirmed, once again, the strength of our company which, despite the difficulties related to Covid-19, remained resilient and focused on long-term objectives, as confirmed by the significant growth of the backlog", he declared Giulio Ranzo, CEO of Avio.
IN NOVEMBER NEW FLIGHT FOR THE VEGA WAITING FOR VEGA C
“In recent months we have given continuity to operational activities, launching Ariane 5 in July and, a few days ago, Vega. In Guyana we are already working on the new VV20 flight, scheduled for November, and soon after we will start the campaign for the maiden flight of Vega C, the new and more performing European space launcher produced in Colleferro ”added the CEO.
The Member States of ESA have agreed on the boundary conditions for the forthcoming use of Ariane 6 and Vega-C by Europe.
The resolution agreed by the ESA member states in mid-August sets the conditions for the first three years of consolidated exploitation of the new launch vehicles, Ariane 6 and Vega-C.
The revised consolidated usage model is based on a demand for European institutional launch services of four Ariane 6 and two Vega-C vehicles per year on average. For the associated standard launch service, pricing conditions have also been agreed.
The game of the new European launchers closely concerns Avio. Not only with the launch of Vega C in the first quarter of 2022.
IN 2022 THE INAUGURAL LAUNCH OF ARIANE 6
"At the same time, in 2022, the inaugural launch of Ariane 6 is also planned, for which Avio will produce the P120C engine, the largest monolithic carbon fiber engine in the world, which also equips Vega C".
WAITING FOR VEGA E
"Finally – concluded Giulio Ranzo – in the coming weeks we will inaugurate the new SPTF plant in Sardinia, where the next generation 'green' liquid propellant (oxygen and methane) space engines will be tested that will power Vega E in the coming years".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-leffetto-vega-sui-conti-di-avio/ on Tue, 14 Sep 2021 06:24:07 +0000.