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Vard restructuring drags Fincantieri Group's 2019 results

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Vard's restructuring pulled the Fincantieri Group to a €148m loss in 2019 on record revenues including a nearly 11% spike in cruise-related revenue.

Coronavirus impact

Reporting the results, Fincantieri said production activities have been interrupted since March 16 due to the COVID-19 emergency. The outbreak will affect 2020 results. 'However, with the resolution of the situation in a reasonable time frame, the group's financial structure will be able to face the impacts,' Fincantieri said.

Its priority is 'safeguarding clients and strategic partners to ensure the acquired backlog, notably in the cruise sector, among the hardest hit by the COVID-19 crisis.'

EU antitrust probe off for now

EU competition authorities' investigation of the Fincantieri/Chantiers de l’Atlantique transaction has been suspended for the time being. According to news reports in France, a decision had been expected by the end of April. 

2019 results

Group revenues reached a record €5.8bn, 8% higher than in 2018, but Vard's negative performance/restructuring led to a group loss of €148m, down from the €69m profit in 2018.

Revenues for the cruise ships area increased 10.8% and accounted for 56% of revenues, 2% more than in 2018.

Fincantieri SpA's profit was €151m on revenues of €4.3bn, compared to the €218m profit on revenues of just under €4bn the year before. The 2019 results were net of a €50m Vard share write-down and €40m of extraordinary items related to asbestos. EBITDA was €489m.

€8.7bn order intake

Order intake was €8.7bn, consisting of 28 units including 13 cruise ships for six brands: Oceania Cruises, Regent Seven Seas Cruises, Viking, MSC Crociere, Princess Cruises and Ponant.

Total backlog was nearly €33bn, with 98 units to be delivered up to 2027 and options. Handed over in 2019 were 26 units from 12 shipyards, including four large cruise ships and four expedition cruise vessels. Head count increased with 550 new jobs, while 2,650 indirect jobs were created.