How are Fincantieri’s accounts going?
Fincantieri's 2020 accounts are not too bright. Here's how and why. All the details on the 2020 financial statements approved by the board of directors of the shipbuilding group
The accounts of Fincantieri are not too bright. Here's how and why.
The pandemic is weighing on Fincantieri accounts, with the 2020 financial statements closing with a loss of 245 million euros, net of charges related to Covid-19 (196 million) and charges on asbestos disputes (52 million).
However, on the basis of the last quarter of last year which marked a productive recovery, the forecasts are for a return to profit in 2021.
The Board of Directors approved the balance sheet which speaks of confirmed workload, production resumption with 19 units delivered and orders acquired for 4.5 billion for 18 new ships.
THE LOSS OF PRODUCTION
The 2020 financial year was affected by a production loss of 20% compared to what was planned but the scheduled deliveries of the cruise units were respected, albeit with the postponement of production programs.
WHAT FINCANTIERI STRESSES
Above all, underlines the group headed by the CEO, Giuseppe Bono, there has been no cancellation of orders.
THE REVENUES OF FINCANTIERI
Revenues stood at 5.1 billion (-11% on 2019) due to a loss of 3.2 million hours of production.
EBITDA
Ebitda is 314 million (320 in 2019) and Ebitda margin 6.1%, (5.5% in 2019).
DEBT
The debt stands at 1.06 billion (731 million at the end of 2019) and reflects the typical evolution of the working capital in the construction of cruise ships, but is improving compared to the third quarter.
WORKPLACES
Last year, more than 500 direct and 2,500 jobs were created in Italy with the increase in the workforce. Investments of € 309 million were also made and the operational efficiency works are continuing in the Italian and foreign construction sites (Norway, Romania and the United States).
THE WORKLOAD
The total workload is 116 ships, with deliveries until 2029, and € 35.7 billion (6.1 times the revenues), of which soft backlogs for approximately € 7.9 billion.
FORECASTS
In 2021 revenues are expected to increase by 25/30% compared to those of 2020, confirming the growth guidelines outlined by the Group before the pandemic, and a consequent improvement in margins which is expected to be around 7%, therefore with a return to profit and, starting from 2022, to dividends.
WHAT THE SUN 24 ORE HAS WRITTEN
The CEO Bono then placed the accent – wrote Il Sole 24 Ore – on the "confirmation of the workload (over 35 billion), supported by new orders for 4.5 billion with the military ships business that played the part of the lion. In addition to the contract for the new submarines, Fincantieri brought home, among other things, the order for the first class unit of the new missile frigates for the US Navy as part of the FFG (X) program and, in the fourth quarter, The contract for the sale of two Fremm frigates, originally conceived for the Italian Navy and then sold to Egypt, was also finalized, one of which delivered in December 2020 and the other for delivery in 2021. To boost the performance of the group has then, as the CEO pointed out, also contributed to the acceleration of business diversification with the sprint on new fronts (renewable energy laws), effectively managed by the subsidiary Vard, and with the strengthening of the large infrastructure sector. Where Fincantieri has completed the acquisition of Inso and Sof and where the group has built the new Genoa Bridge "with which we have demonstrated – Bono emphasized yesterday – our ability to produce very complex products on schedule" " .
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/come-vanno-i-conti-di-fincantieri/ on Fri, 26 Feb 2021 08:19:40 +0000.