Covid effect for Fincantieri which closes 2020 with revenues down 11% to €5,191 billion, excluding pass-through assets. The EBITDA stood at 314 million (20 million in 2019), while the operating result it is negative for €245 million (negative for €148 million in 2019) net of charges related to Covid-19 (€196 million) and charges on asbestos disputes equal to €52 million. The adjusted operating result it is negative by 42 million (-71 million in 2019), an improvement despite the effects of the pandemic.
The 2020 financial year “reflects an extraordinary year, characterized by a pandemic that hit the economy globally and impacted Fincantieri with a 20% production loss compared to what was planned”, comments Fincantieri in a note.
The company makes it known that it has complied deliveries planned cruise units, albeit with the postponement of production programs: 7 cruise units delivered, 4 of which in the second half, in the midst of the pandemic, including the hundredth cruise ship built by Fincantieri, Enchanted Princess, for Princess Cruises, a brand of the Carnival group .
As for the solo fourth quarter, revenues amounted to 1,675 billion, while the ebitda stood at 114 million (+42% and +40% compared to the already positive results of the fourth quarter). The capital position is solid with liquidity and credit lines available for 2,3 billion, sufficient to meet the financial needs of the Group. "The fourth quarter confirms the Group's production recovery which in 2021 will resume its growth path with an improvement in margins and a return to profit", underlines the company.
Il workload total is for 116 ships, with deliveries up to 2029, and 35,7 billion, equal to 6,1 times the revenues, of which soft backlog for approximately euro 7,9 billion. Orders acquired amount to Euro 4,5 billion for 18 units, 5 of which military and 2 for operations in marine wind farms. During the year, 19 units were delivered from 11 shipyards, of which 7 cruise, including 2 expedition cruise, and 4 military, and over 500 jobs were created in Italy directly and 2.500 in related industries with the increase in personnel.
- investments carried out amount to 309 million: work to improve operational efficiency continues in Italian shipyards and in foreign shipyards (Norway, Romania and the United States). For Vard confirmed Ebitda in substantial breakeven as a result of the restructuring operations and alignment with Italian best practices, started in 2019.
As for the updates for the Covid scenario, Fincantieri specifies that for the main cruise operators the recovery of activity is expected for late spring 2021 and booking levels equal to the historical ones for the second half of 2021.
L'ad Giuseppe Bono he commented: 'In 2020 the pandemic put the world economy to a severe test, sparing no sector, let alone large industry. In this scenario we have demonstrated a remarkable ability to respond by rescheduling our productions also with the review of organizational processes".
Bono then concluded: "Hand in hand with the progress expected from the scientific world in terms of treatments and vaccinations, we expect for the current year growth of over 25%, guaranteed by the high number of orders in the portfolio and a return to profit with an improvement in margins”.
During the conference call, the manager said he was confident “a return to profit in 2021 which can lead to the resumption of sustainable dividend payouts starting in 2022,” he stressed. The plan for next year, she added, "will show revenue growth of 10% and EBITDA margin between 9 and 10%" she added.
Fincantieri also announced that the signing of prime contractors with OCCAR (the International Armaments Cooperation Organization) is scheduled for today, a contract for the construction of 2 submarines new generation with the option for an additional 2 units, within the U212NFS (Near Future Submarine) acquisition program of the Italian Navy. The total value of the contract for the first two vessels, including the related logistic support, is 1,35 billion euros.
“We are proud that the recognition of our capabilities by the Navy and the German partner has led to an evolution of relations such as to guarantee us the role of design authority on the one hand, and that of prime contractor on the other – said Giuseppe Bono – Compared to the submarines of the previous class, we will make a real technological leap, starting from the design and the combat system, developed together with Leonardo and which we are in charge of integrating on board".
Leonardo and Fincantieri have in fact signed a contract worth around 150 million euros for the supply of equipment for the first two submarines. It is, explains a note, strategic equipment for the surveillance and protection of Italian and international underwater spaces.
At Piazza Affari the Fincantieri title gains 2% to 0,7075 euro against a 0,55% drop in Ftse All Share. Stock prices benefit from the 2021 targets announced and judged "aggressive" by analysts.
