Fincantieri runs on the stock exchange, realizing one of the best performances of the Milan basket. At 12.13 the share gains 13,77%, rising to 1,157 euros. The 2018 accounts, closed with a consolidated profit equal to 69 million euros, an increase compared to the 53 million of 2017, and a adjusted profit amounting to 108 million euros, excluding income and charges extraneous to ordinary operations, compared to 91 million in the previous year.
On i revenues, which reached 5,5 billion (+9%), while theEbitda of the group rose by 21% to 414 million euros, with an impact on revenues and income (Ebitda margin) equal to 7,6% (6,8% in 2017). Fincantieri specifies that the shipbuilding sector made a significant contribution to the margins "thanks to the excellent performance of orders under construction" for both cruise and military ships.
- orders acquired in 2018 amounted to 8,617 billion euro (+1%). The workload total at the end of December reached 33,8 billion, of which euro 25,5 billion in backlog (22 billion at the end of 2017) and 8,3 billion in soft backlog (4,1 billion) with development of the orders in the portfolio expected until 2027. The backlog and the overall workload guarantee approximately 4,7 and 6,2 years of work respectively if compared to the revenues generated in 2018. The investments they grew to 161 million, of which 124 million in property, plant and equipment. 68% of total investments were made by the parent company. The incidence of investments on revenues decreased to 2,9% from 3,2% in 2017.
Worsening the net financial position rose from 314 million in 2017 to 494 million as at 31 December 2018 due to "financial dynamics typical of cruise ships", explains the company in a note.
Giuseppe Bono, CEO of the group, comments: “The results we have presented demonstrate once again that ours is a leading company, a true reference in the global shipbuilding panorama, a set of excellences that pool skills and resources in the various fields. The already significant increase in revenues, which grow by almost 10%, is only a first step in the path that aims to increase volumes by around 50% by 2022 and which will require a considerable organizational effort and a clear vision future challenges."
By virtue of the results achieved in 2018, the board of directors of the Trieste company will propose to the shareholders' meeting, scheduled for next April 5, a dividend equal to 1 cent per share, for a total dividend estimated at 16,87 million.
For 2019, Fincantieri estimates results "in line" with those of last year. Revenues, reads the company's note, "will continue on a trajectory of further growth with a margin in terms of Ebitda percentage in line with that of 2018".
Kepler Cheuvreux analysts have revised the judgment on the stock from "hold" to "buy" with the target price raised from 1,15 to 1,3 euros. The recommendations on the stock, according to the data collected by Bloomberg, are now divided into 4 "buys", 3 "holds" and 1 "sell" with an average 12-month target price of €1,35, which implies a potential upside of around 20% of the current quotation.
During the conference call following the accounts, Bono also spoke of theStx deal, on which Fincantieri is awaiting the ok from the EU antitrust: “We have signed an agreement with the French government for the acquisition of 50% (plus 1%) of Chantiers de l'Atlantique. The acquisition is subject to the approval of the Antitrust and France and Germany have decided to forward the file to the European Commission” the CEO recalled. “We will work with the EU to set up the structure of the acquisition in order to speed up the process, which we are confident will be successful,” he concluded.
(Last update: 12.16 pm on 26 February).
