Why Fincantieri and Leonardo toast with the Navy for submarines
Fincantieri signs a € 1.35 billion contract for the construction of two submarines for the Navy. Leonardo awarded a € 150 million contract for surveillance and protection systems for new submarines. All the details and reflections on the stock exchange
Fincantieri sets sail on the Stock Exchange: the stock leaps to + 3% in morning trading, driven by the new order for submarines of the Italian Navy.
Today Fincantieri will in fact sign, as prime contractor with Occar ('International Organization for Cooperation for Armaments), the contract for the construction of 2 new generation submarines with the option for an additional 2 units, as part of the U212NFS acquisition program. (Near Future Submarine) of the Navy.
The total value of the order is 2.3 billion. The first tranche will have a value of 1.35 billion and will concern the construction of the first two submarines.
The CEO of Fincantieri Giuseppe Bono said he was "proud" of the "recognition of the abilities" of the group "by the Navy and the German partner, it has led to an evolution of relations such as to guarantee on the one hand the role of design authority , on the other hand that of prime contractor ".
The news, therefore, made Fincantieri shares jump, which at 11 am trading with an increase of 1.44% to € 0.70. Furthermore, yesterday the Trieste group released the 2020 financial statements and the outlook for 2021, forecasting a possible return to the dividend starting from 2022.
But the order of the Navy also concerns Leonardo. The former Finmeccanica has in fact signed a contract with Fincantieri worth approximately 150 million euros for the supply of equipment for the first two U212NFS submarines.
All the details.
THE EVOLUTION OF THE U212A PROGRAM IN COLLABORATION WITH TMS
Fincantieri will sign a contract worth 1.35 billion euros as prime contractor for the construction of two new generation submarines for the Navy.
The project is an evolution of the U212A program, conducted in collaboration with the Germans of Thyssenkrupp Marine Systems. This led to the construction of 4 submarines for Italy – “Todaro”, “Scirè”, “Venuti” and “Romei”, delivered by Fincantieri between 2006 and 2017 – and 6 for Germany.
According to the most accredited analyzes, these air independent propulsion boats, due to their technological content, have shifted the balance between nuclear and conventional units since the war.
WHEN THE DELIVERIES
The first two deliveries are scheduled for 2027 and 2029, Fincantieri added .
THE U212NFS SUBMARINES
The multi-year U212 NFS program “finds its justification in the need to preserve adequate surveillance capabilities of the maritime and underwater spaces determined by the obsolescence of the Sauro class III and IV series units now nearing the end of their operational and technical life”.
It will also serve to preserve and increase the strategic and innovative industrial know-how gained by Fincantieri, adds the note.
It will also allow to consolidate the technological advantage achieved by the company and the supply chain, with the strengthening of the presence on board of components developed by the national industry.
THE DUTIES OF THE FINCANTIERI SUBMARINES FOR THE NAVY
The tasks that submarines perform are many: to the purely military missions, there are those inherent to the freedom of navigation; anti-piracy; the safety of energy supply routes (by virtue of the resources of the seabed and of the underwater infrastructures present); respect for international law; the fight against terrorism; the protection of external borders; the safeguarding of maritime infrastructures, including vital off-shore and underwater ones and, last but not least, the control of the presence of cetaceans.
THE CONTRACT ASSIGNED TO LEONARDO FOR THE U212NFS SUBMARINE SURVEILLANCE SYSTEMS
As we said at the beginning, the Navy order is also good news for the former Finmeccanica. Leonardo has signed a contract with Fincantieri worth approximately 150 million euros for the supply of equipment for the first two U212 NFS submarines.
The contract provides for the design and construction of a new generation Combat Management System. The latter derives from the ongoing developments on the "Naval Law" – the modernization plan of MM -, as part of the broader program signed between Fincantieri and the Armed Force for the development, acquisition and technical-logistic support of two U212NFS submarines plus two optional, deriving from the Todaro class.
Leonardo will also provide a simulation and training laboratory installed at the Submarine Training Center of the Italian Navy in Taranto. As well as initial logistical support, including staff training and a first set of backup parts.
THE IMPORTANCE OF THE FINCANTIERI CONTRACT FOR THE FORMER FINMECCANICA
For Leonardo this contract is of strategic importance in the naval sector, underlines the note released by the group in Piazza Monte Grappa. From a commercial point of view, the company expands its offer to the submarine sector. On the industrial side, the synergy with the systems already supplied on surface ships, including future configurations, will be a further boost to investments for the development and innovation of the product lines, in particular the Combat Management System.
BONO: "WE WILL MAKE A TECHNOLOGICAL LEAP"
“Compared to the submarines of the previous class, we will make an authentic technological leap, starting from the design and the combat system, developed together with Leonardo and which we are in charge of integrating on board. This will allow Italy to remain in the very limited circle of countries capable of building such sophisticated units ”.
This is the comment of the ad Bono, on the news that the company will build two submarines for the Italian Navy.
“Once again a qualified induced, made up of small and medium-sized enterprises in the sector, will be driven by our activities, helping to generate a significant contribution in terms of GDP, employment and progress in the field of research and development”, concluded the manager.
HOW ARE FINCANTIERI'S ACCOUNTS
Fincantieri reaches + 3.1% to 0.715 euros in Piazza Affari, after having presented the 2020 accounts and the announcement of the order for two submarines for the Navy. The group expects revenues to increase up to 30% in 2021, return to dividend from 2022.
However, the Covid effect weighs on Fincantieri's accounts. The operating result was negative for 245 million euros (negative for 148 million euros in 2019) net of costs related to Covid-19 (196 million) and charges on asbestos disputes (52 million).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/perche-fincantieri-e-leonardo-brindano-con-la-marina-per-i-sottomarini/ on Fri, 26 Feb 2021 10:31:03 +0000.