How the year began for Fincantieri
Increasing profitability, stable revenues and record workload for Fincantieri as of 30 March 2024. Regarding debt, the group confirms its reduction objective. What emerges from the quarterly report of the group led by Folgiero
Positive quarterly for Fincantieri.
The Trieste-based naval group closed the first quarter of the year with a positive gross operating margin of 100 million in the first quarter (+15.8%) on stable revenues at 1.767 billion (+0.2%), equal to a of 5.7%, an improvement from 4.9% a year ago. Orders fell by 40.7% to 539 million, "a figure that does not include the 1.18 billion contract signed with the Indonesian Ministry of Defense for two patrol boats which awaits authorization from the competent institutions" specifies the note from the company led by Pierroberto Folgiero (in the photo).
These are the main economic indicators of the accounts as at 30 March approved yesterday by the board of directors chaired by Claudio Graziano. The company thus confirmed its 2024 guidance which estimates revenues at 8 billion (+4.5%) and the EBITDA margin at around 6% (1 percentage point more than 2023).
“We are very satisfied with the results obtained in the first quarter of 2024, which confirm and improve last year's excellent performance both in economic, financial and commercial terms” commented Folgiero.
In the meantime, the Fincantieri shareholders' meeting has been called for 11 June in Trieste and, for the extraordinary part, has on the agenda the delegation to the board of directors to increase the capital within five years for a maximum of 500 million. The operation is functional to the purchase of the former Wass assets from Leonardo, announced last week . “A further confirmation of Fincantieri's growth path in the underwater supply chain, a strategic sector with high added value which is expected to acquire an increasingly fundamental role in the Group's growth and innovation plans”, indicates the note.
In addition to this, the shareholders will also have to decide on the delegation to the board of directors for a capital increase with the exclusion of the right of option within five for a maximum amount equal to 10% of the pre-existing capital.
All the details.
THE RESULTS OF THE FIRST QUARTER
In the first quarter of the year Fincantieri achieved revenues of 1.7 billion euros, substantially stable (+0.2%) compared to the same period of the previous year.
As of 31 March 2024, the Group confirms the process of significant increase in profitability, with an Ebitda growing by 16% to 100 million euros and an Ebitda margin at 5.7% (4.9% in the first three months of 2023 and 5 .2% at the end of 2023). These results are attributable to a progressive increase in margins in all business segments, the company specifies.
HOW ARE THE INDIVIDUAL SECTORS PERFORMING
“In line with forecasts”, the revenues of the Shipbuilding sector stood at 1.338 billion in the first quarter of 2024 (-6.2% compared to the same period of 2023) and are made up of 914 million relating to cruise ships (930 million as of March 31, 2023) and 415 million relating to naval ships (484 million as of March 31, 2023). The sector has an ebitda margin of 6.2% (from 5.4%). The contraction in revenues relating to military ships, explains the company, "is consistent with the development of the workload in Italy, following the deliveries made during 2023, and is affected by the lower production volumes developed in the first quarter by the American shipyards, engaged in particular in the development of the Constellation FFG(X) and Foreign Military Sales programs between the United States and Saudi Arabia".
The Offshore and Special Vessels sector recorded revenues of 299 million, up 25.7% compared to the same period in 2023, with an ebitda margin of 4.3% (from 3.8%). Revenues from the Systems, Components and Infrastructures sector amounted to 278 million (+5%) with a gross margin of 5.8% (from 3.6%).
ORDERS GROW
The group's overall workload – continues the note – reached a record level of approximately €39.3 billion as at 31 March 2024, of which €22 billion in backlog (€23.1 billion as at 31 December 2023) and €17 billion, 3 billion in soft backlog (11.7 billion as at 31 December 2023) with a development of the orders in the portfolio expected until 2030.
DEBT REDUCTION OBJECTIVE
As for debt, at the end of March it amounted to 2.413 billion, which compares with 2.92 billion in March 2023 and 2.27 billion in December 2023. The group confirms the deleveraging objective to bring the ratio between the net financial position and EBITDA in the range of 5.5x and 6.5x at the end of the year.
GUIDANCE CONFIRMED
Finally, Fincantieri confirmed the guidance of the plan in which the CEO Pierroberto Folgiero estimated revenues for 2024 at 8 billion (+4.5%) and the EBITDA margin at around 6% (1 percentage point more than in 2023 ), in line with the provisions of the 2023-27 Business Plan and excluding the contribution of the consolidation of Remazel.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-iniziato-lanno-per-fincantieri/ on Tue, 14 May 2024 14:14:32 +0000.