Fincantieri’s attempt to return to profit is bogged down by litigation costs.
The Italian shipbuilding group improved its financial performance but still made a net loss of €22m ($24.3m) in the first six months of the year.
Adjusted profit — which measures operating results before non-recurring income and extraordinary expenses — was €3m.
That is much improved compared with a €94m loss in the same period last year, but the company remained in the red due to a €33m hit related to asbestos-related litigation costs.
Fincantieri is a diverse group with cruise, naval and offshore shipbuilding divisions on different continents.
Its revenues rose by €159m to €3.67bn over the period, reflecting the recovery of key performance indicators, according to chief executive Pierroberto Folgiero.
He said Fincantieri will continue to modernise its production sites and launch new technology-driven projects.
“Thanks to the progression of production volumes, revenues were up by 4.5% when compared to the same period in 2022, and order intake reached €2.1bn,” he said, adding that both figures were supported by a strategy to reposition operations towards the offshore wind sector.
“Initiatives put in place to improve the operating efficiency and cost governance, continue to contribute positively to margins.”
Ebitda and Ebitda margin roughly doubled to €185m and 5%, respectively.
2023 forecast
Fincantieri’s net financial position is expected to be in line with the 2022 year-end. It has maintained its 2023 forecast with an Ebitda margin for the full-year forecast at 5%.
“The core business has an encouraging outlook, with the cruise sector fully recovered in its long-term growth path, potential new opportunities in defence both in Italy and abroad, and the offshore renewable energy mainstream,” Folgiero said.
New orders in the first half rose to €2.13bn, from €1.52bn in the same period last year.
That leaves the company with orders for 24 cruise ships through to 2027 and beyond, as well as 31 naval vessels and 33 ships destined for the offshore market.
Fincantieri expects to deliver four cruise ships in the second half, including the 63,000-gt, 996-passenger Explora I (built 2023), which was delivered from the Monfalcone shipyard on 20 July.
It is the first of four ships in the class to be delivered to Explora Journeys, the luxury brand of the MSC Group.
