Fincantieri registered a heavy loss for 2022, primarily as a result of incurring several non-recurring expenses throughout the year.
The Pierroberto Folgiero-led shipbuilder reported a €324m ($342m) net loss for the year versus a €22m profit for the prior year after absorbing €238m in one-time costs.
Those expenses included €164m in impairment costs recorded by Fincantieri and its subsidiary Vard Cruise, €52m in asbestos-related litigation costs and €20m in costs related to not fulfilling obligations set forth in offset agreements.
“2022 was a year of transition. Our performance was impacted by a set of non-recurring items, also related to the Covid-19 pandemic on supply chains as well as inflationary pressures caused by the conflict in Ukraine,” chief executive Pierroberto Folgiero said in a statement.
“Such events have led the new management to carry out a strategic review of the main ongoing projects.”
Revenue totalled €7.44bn, up 11.7% from the previous year. Cruise ship building accounted for €4.06bn of that revenue, up 3.3% from 2021. Naval ship construction brought in €1.86bn in revenue, up 7.3% from the prior year.
Fincantieri delivered 19 ships in 2022 that included six cruise ships, and it has a backlog of 109 vessels overall to be constructed.
The Italian company said it expects more newbuilding orders to come as the cruise industry quickly approaches full capacity and the ongoing conflict between Russia and Ukraine reaffirms demand for larger, more advanced military fleets.
“With the revamp of the cruise sector, almost at pre-Covid levels, and additional investments in defence and renewable energies, the group is best positioned to seize future opportunities,” Folgiero said.
“2022 order intake fully confirms such a trend.”
