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Inflation, prototype ship costs widen Meyer Turku's 2023 loss

'With the continuation of the Icon series, our cost efficiency improves, leading to more profitable ships vessel by vessel,' Meyer Turku CEO Tim Meyer said
Meyer Turku's 2023 loss widened to €103.8m on higher turnover of €1.43b as inflation, financing costs and prototype development impacted results.

Turnover was 10.6% higher than 2022's €1.29b when the loss was €15.6m.

2023 was affected by ship deals that were closed pre-pandemic, prototype development and the loss provision for Mein Schiff 7, to be delivered in 2024. Beyond that, Meyer Turku said it made remarkable advances in the green transition.

Cruising resurges but costs are up

'The cruise industry has recovered to the pre-corona level, even beyond it, and there is demand for our high-quality products,' Meyer Turku CEO Tim Meyer said. 'We constantly make large financial investments in sustainable development, which is a key competitive factor for us and a natural part of the high-quality shipbuilding that we are known for. Meanwhile, the rising general and financing costs added to the COVID pandemic and the war in Ukraine have heavily affected our financial results in 2023.'

Meyer called building the world's most complex cruise ship, Icon of the Seas, an exceptional experience, and noted it's had huge market success.

With further Icon ships, cost efficiency improves

'However, each prototype ship brings significant product development costs,' he said. 'With the continuation of the Icon series, our cost efficiency improves, leading to more profitable ships vessel by vessel. So we remain optimistic about the future.'

Mein Schiff 7, Star of the Seas and Icon 3

Meyer Turku delivered to Icon of the Seas to Royal Caribbean in November. TUI Cruises’ Mein Schiff 7, the yard's first methanol-ready ship, is now at the outfitting pier. Also under construction is Star of the Seas, for 2025 delivery, with Icon 3 scheduled for 2026.

In addition, Meyer Turku plans to deliver two multi-purpose offshore patrol vessels to the Finnish Border Guard in 2025 and 2026.

2023 investments were €9.8m compared to 2022's €12.1m.

The average number of personnel was 2,200, up from 2,131 the year before.