Fincantieri, the Italian shipbuilder that is the world’s largest cruise ship builder, said the COVID-19 had hits its first half interims, but pointed out that no orders had been cancelled and targets of the group’s current business plan remain intact.
Revenues fell by 15.6% to €2.37 billion in the first half of this year from the same period in 2019 as suspension of production in the spring resulted in a €790 reduction in the output. EBITDA fell to €119 million from €227 million and EBITDA margin t 5.0% from 8.1%. The group made a net loss of €137 million, including €114 million impact from cOVID-19 and €23 million from asbestos. In the first half of last year, Fincantieri had booked a net loss of €12 million.
Net debt rose to €980 million as per 30 June from €736 million a year earlier. This mirrors the cruise shipbuilding working capital flow, stressed/accentuated by COVID-19 effects resulting in the postponement of a cruise ship delivery – originally scheduled for the 2020 first semester – and of part of the expected installments, the company said.
Giuseppe Bono, Chief Executive Officer of Fincantieri, said: “It is evident that our economic and financial results are influenced by the production slowdown due to the Coronavirus. However, our current backlog allows us to look at the future with confidence, confirming a workload for the next six to seven years with consequent financial and economic performances in line with the previous Business Plan’s targets.”
The group’s shipyards had orders for 117 ships of various types at the end of June, it said.