Revenues ballooned in the key shipbulding segment, with cruise business up 27% compared to 2016, accounting for 49% of the group’s total revenues. The naval vessel business was up 5%.
Earnings before interest, taxation, depreciation and amortization rose 28%, to €341m.
Under Fincantieri's new business plan, in 2022 revenues are projected to be approximately 50% higher than their current level, while EBITDA is forecast to increase 100% over 2017.
The Italian shipbuilding giant is consolidating its leadership in the cruise segment by acquiring a 50% stake in STX France, while also expanding its naval sector, diversifying its offshore business and renewing its focus on after-sales service.
The results confirm the group's good health, CEO Giuseppe Bono said, citing Fincantieri's 'capabilities and our diversified presence in the global arena.'
He added: 'We have demonstrated our capacity to deal with truly complex projects and tenders. This level of excellence translates into a more than decade-long workload ahead of us in the unfailing ability to transform soft backlog into firm orders, all the while respecting project times and deadlines of ever more demanding clients.'
The group is now concentrating on the consolidation of the European shipbuilding sector, a process Fincantieri has driven for years.
Orders intake during 2017 totaled €8.6bn, a 31% increase, confirming the group's commercial effectiveness and the buoyant market, particularly for cruise ships. The important order for new client Norwegian Cruise Line and the two Seaside EVO newbuilds from MSC Cruises were among the year's highlights.
The current value of total orders is €26bn, covering approximately five years of work. At year-end 2017, the backlog was €22bn, up 21% from 2016, with 106 ships in the orderbook. The soft backlog (options) was approximately €4.1bn.
Twelve units were delivered in 2017, including five cruise ships—among them, MSC Seaside, a prototype for new client MSC Cruises.
Net debt was reduced to €314m, down from €615m in 2016.
Other 2017 highlights included reaching the agreement to pay €59.7m for a 50% stake in STX France and the related start of activities to integrate with France's Naval Group. A proposal for Vard's delisting was also put forward.
Employment in Italy was bolstered with the creation of almost 400 jobs in the domestic shipyards and around 1,600 jobs in the subcontractor network.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Cruise News to your Google News feed.
