Here’s how Fincantieri will still focus on the military
Fincantieri expands the defense business with a share of revenues from the sector that could reach 40% in the long term. Facts, numbers and scenarios
Fincantieri presses the accelerator on military business.
"The emerging geopolitical scenario can lead, in the medium term, to a potential positive impact on the entire defense sector", observes Fincantieri, indicating the prospects for this year's accounts.
The Trieste shipbuilding group closed 2021 with revenues and income of 6,662 million euros, up by 28.3% compared to 5,191 million in 2020. The adjusted net result was 92 million and the net profit was 22. million after the loss of 245 million in 2020. These are some of the results of the consolidated financial statements and draft financial statements for 2021 approved on 23 March by the board of directors of Fincantieri spa.
So much so that the group said it could return to a "sustainable dividend distribution starting in 2022". However, Fincantieri did not provide the 2022 guidance citing the uncertainty deriving from both geopolitical tensions and inflation in the prices of raw materials and energy.
But precisely with the war in Ukraine, the military sector could develop, "accelerating the process towards the creation of European defense", noted Fincantieri CEO Fabio Gallia.
All the details.
THE NAVAL DIVISION IS READY TO GROW
Speaking to a call from analysts on 2021 results, Giuseppe Dado, CFO of Fincantieri, said that the naval division of the group is ready to grow in the short term thanks to the already insured order book.
At the moment, 69% of the revenues in the shipbuilding segment come from cruise boats versus 31% from the military sector.
In the long term, the military vessel segment could grow from the current 31 percent to 40 percent, Dado said, as reported by Reuters . In 2021, the shipbuilding segment recorded a 27% increase in sales to 5.9 billion, ”he said, adding that total revenue for the year reached 6.7 billion.
In fact, the delivery of 7 ships to the Italian integrated shipyard is expected in 2022 (for the Italian Navy and the Qatar Navy, of which the OPV Musherib delivered in January), where the start of activities for the units is also expected. of the Indonesian Navy.
In addition, the group plans to deliver a commercial unit to the US shipyards of Fincantieri Marine Group (Fmg). Here the construction programs of the Littoral Combat Ships for the US Coast Guard, of the units for the Royal Saudi Navy and of the FFG (X) frigates for the US Navy continue.
THE PRODUCTION OF MILITARY VESSELS IS GROWING
As the group reports, "the increase in the production value of the military vessels business area, excluding the pass-through activities relating to the Fremm unit delivered in April, reflects the progress of the program for the renewal of the Navy's fleet. Italian military, whose first LSS (Logistic Support Ship) “Vulcano” was delivered in March, and orders for the Ministry of Defense of Qatar ”. In this regard, Fincantieri recalls the delivery of the first corvette “Al Zubarah” in October and of the first patrol vessel “Musherib” in January 2022.
In addition, the revenues of the business area also record the contribution of the US subsidiary FMG, which continues the development of the Foreign Military Sales program between the United States and Saudi Arabia which provides for the supply of four Multi-Mission Surface Combatants, and the FFG-62 program.
NO GUIDANCE 2022
With regard to the prospects for the year, the outbreak of the war in Ukraine is "a strong element of instability at the geopolitical, economic and financial markets" observes Fincantieri. "The macroeconomic effects of this serious crisis, of the possible further limitation to travel and tourism, with possible repercussions on the cruise sector, and of Western sanctions against Russia are complex and still difficult to estimate in terms of impacts on the value chain. of the world economy and international politics ". It is therefore impossible to assess the impact on the group today, adds the company led by Giuseppe Bono.
BUT RETURN TO THE DIVIDEND
Finally, net of the effects of the war in Ukraine, the group, in any case, expects "revenues to grow in 2022, exceeding the estimates expected before the pandemic and a consolidation of margins". With the consequence that "these results could allow the return to a sustainable dividend distribution policy starting from 2022".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ecco-come-fincantieri-puntera-ancora-sul-militare/ on Sun, 27 Mar 2022 15:50:27 +0000.