Italian shipbuilder Fincantieri has hailed the earlier-than-expected recovery of cruise ship orders.
Pierroberto Folgiero, who took over as CEO in May from long-time predecessor Giuseppe Bono, said the cruise sector is being boosted by the arrival of new operators.
He made the comments as the Milan-listed company reported another drop in earnings.
Ebitda fell to €172m ($171.9m) for the first nine months of the year, down from €330m in the same period last year, despite a 17.2% increase in revenues to €5.3bn.
The performance was affected by a €62m write-down on work-in-progress and by the reassessment of a shipowner credit rating linked to a vessel originally due for delivery in July that has been delayed until the fourth quarter of 2022.
Fincantieri, controlled by Italian state lender Cassa Depositi e Prestiti, continues to be shackled by significant debt.
Net debt was €3.03bn at the end of September, up from €2.2bn at the end of last year.
“The operating performance is tough, still affected by the first-half non-recurring items, the ongoing macroeconomic and geopolitical instability, as well as the inflationary pressures,” Folgiero said.
The shipbuilder cited rising raw material prices, labour market shortages and supply chain congestion in the US.
But Folgiero remains positive about the outlook for the cruise sector.
“During the third quarter 2022 we witnessed the first signs of a resumption in cruise order intake, for ships equipped with the most innovative technological features and next-generation engines,” he said.
“New operators are approaching the ultra-luxury cruise industry, as proof of an earlier-than-expected comeback in the cruise business.
“We are also foreseeing a very promising market outlook in the naval and offshore in the medium and long term.”
The Trieste-headquartered shipbuilder has a €24.1bn backlog of orders across the cruise, naval and offshore sectors, including 28 cruise vessels for delivery to 2026 and beyond.
It won contracts to build four high-end cruise ships in the third quarter — from Swiss giant MSC Group for two more of its Explora Journeys vessels, and two expedition cruise ships for Torstein Hagen’s Viking Cruises.
