How Fincantieri will fall towards profit
All the details and scenarios of Fincantieri in the light of the half-yearly accounts
Fincantieri turned to profit in the first half of the year.
The Trieste shipbuilding group returns to profit in the first half of 2021 for 7 million after the negative result of 137 million recorded in the first six months of 2020.
Revenues and income for the first half amounted to € 3.026 billion, excluding pass-through activities of € 225 million, and recorded an increase of 27.7% compared to the same period of 2020.
The group confirms the 2021 guidance of revenues up by more than 25% and an Ebitda margin of 7% "which is affected by the growing trend in raw material prices".
These are the main results of the Fincantieri half-year report, approved yesterday by the Board of Directors, chaired by Giampiero Massolo, according to a note from the company.
All the details on the half-yearly accounts of the group led by Giuseppe Bono.
REVENUES FROM FINCANTIERI
At 30 June 2021, revenues and income increased by 28% to 3,026 million euros compared to the first half of 2020 (2,369 million).
EBITDA
Ebitda, equal to 219 million (compared to 119 million at 30 June 2020), explains a note, "benefits from both the increase in volumes and the improvement in margins, even net of the effects of the increase in the prices of raw material". The Ebit achieved in the first six months is equal to euro 123 million compared to euro 54 million in the same period of the previous year.
The Ebitda margin, excluding pass-through activities, "went from 5.5% as at 30 June 2020 to 7.2% as at 30 June 2021, making it possible to recover well beyond the margins lost following the production shutdown in the first half of 2020, at the Group's Italian sites due to Covid-19 (65 million). The increase in margins is mainly attributable to the Shipbuilding sector ”.
POSITIVE SIGN FOR VARD
Vard Offshore, a subsidiary of Fincantieri, closed the first half of 2021 with a positive Ebitda (compared to the breakeven of the first half of 2020) "confirming the strategic choices made by management starting from 2019 through the restructuring launched following the delisting of the Norwegian Group ”explains the company.
ECONOMIC RESULT
The adjusted result for the period is positive for 49 million (it was negative for 29 million) and the result for the period is positive for 7 million (it was negative for 137 million) after discounting charges for asbestos (29 million euros) and for COVID-19 (euro 22 million).
The result attributable to the Group is positive for € 6 million, compared to a loss of € 135 million in the same period of the previous year.
DEBT
Net financial debt stood at 1,617 million (1,062 million at December 31, 2020), stable in the quarter and consistent with the production program and the delivery plan; values at the end of 2021 expected in line with those at the end of 2020.
THE ORDERS
In the first six months, the group recorded new orders for € 1.753 billion compared to € 1.723 billion in the corresponding period of 2020, with a book-to-bill ratio (new orders / revenues) of 0.6 (0.7 as at 30 June 2020 ).
THE WORKLOAD
The total workload of Fincantieri is for 111 ships, equal to 37 billion euros, or 7.1 times the 2020 revenues, excluding revenues from pass-through activities. Of these 27.6 billion are contracts already closed for 93 ships, for delivery until 2029 (backlog), and 9.4 billion are orders in the negotiation phase (soft backlog).
The production volumes also increase to record levels, the note explains, also the hours worked, 8.4 million in the first half of 2021, compared to 5.6 million in the same period of 2020.
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.
THE GROUP NOTE
Among the important facts, the first half of this year saw the successful launch of the vaccination campaign in the Italian sites of the group; the delivery of 7 ships from 6 factories, and another 6 will be delivered in the second half; the award of the contract for the supply of 6 Fremm frigates to the Indonesian Navy , and for the second Ffg-62 unit for the US Navy; the signing of the construction contract for the MSC cruise terminal in Miami (USA).
THE COMMENT OF THE CEO GIUSEPPE BONO
"We hope that, thanks to the stringent measures adopted to combat the pandemic, the vaccination campaign above all, the strong acceleration of the recovery can be confirmed, as demonstrated by the results we presented today, both from an economic-financial point of view and from that of 'exceptional performance in the military sector, where we believe we can boast world leadership in surface ships, which goes hand in hand with the one we already hold in the cruise ship sector ”commented CEO Giuseppe Bono.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/come-fincantieri-strambera-verso-lutile/ on Fri, 30 Jul 2021 11:32:36 +0000.