Leading cruiseship builder Fincantieri has turned around losses to record a profit.
The Italian yard reported a €22m ($24.2m) profit for 2021, after deducting €85m in asbestos-related claims and Covid-19 related costs.
It made a loss of €245m in 2020.
Revenues last year rose 28% to €6.7bn from €5.2bn a year earlier.
The Trieste-headquartered shipbuilder has responded promptly to the challenges of Covid-19, according to chief executive Giuseppe Bono, but it is now facing other uncertainties with the war in Ukraine.
The shipyard fears the conflict could affect the cruise industry, or cause potential increases in commodities and energy prices.
“Inflation, raw material shortages and the ongoing conflict introduce even more uncertainties to the current scenario,” Bono said.
Pre-pandemic boost
The shipbuilder expects revenues and margins will be higher this year than before the pandemic, despite increased commodity and energy prices.
Fincantieri has preserved the backlog and all its commitments, successfully delivering ships on time, Bono said.
He noted that the cruise division performed positively, with deliveries in line with schedule and costs forecasts.
The company is slated to deliver 29 cruiseships through to 2026 and one in the years after that. Six will be delivered from its Italian yards this year and one in the luxury niche segment from its Norwegian VARD division.
It also has orders for 26 offshore and specialised vessels for delivery through to 2024.
Naval ships make up the balance of the backlog of 115 ships worth €35.5bn, more than five times 2021 revenues.
Fincantieri, which employs 10,000 workers in Italy, may end up winning more naval orders because of the war in Ukraine.
“In the light of the current geopolitical situation, in the medium term an increase in defence budget is to be expected, along with a plan for common European Defence,” it wrote in a business update.
Bono added: “We are certain that the group will react once again to upcoming challenges with the utmost responsibility and will serve the country with all the competencies developed throughout the years, both in Italy and abroad.”
