Italy’s Fincantieri, one of the world’s largest shipbuilding groups, has released its financial results for the first half of 2024. The financial report shows that as of June 30, 2024, Fincantieri achieved operating income of €3,681 million (about $4,017 million), a slight year-on-year increase of 0.3%; adjusted net loss of €10 million (about $10,913,000); Earnings before interest, taxes, depreciation and amortization (EBITDA) of €214 million (about $234 million), an increase of 15.6% year-on-year, with an EBITDA margin of 5.8%, significantly enhancing profitability.
As of June 30, 2024, Fincantieri has taken orders for a total of 18 new vessels valued at €7.62 billion (approximately $8.316 billion) in the first half of this year, a 237% jump compared to the same period last year, with the total order book already exceeding the total amount of the whole of the fiscal year 2023; the total order book for projects in hand has reached a record €41.1 billion (approximately $4.4 billion), and the order book for handheld orders amounts to 96 vessels, including €27.4 billion worth of hand-held orders (to meet the workload for the next 3.6 years) and €13.7 billion worth of intended orders, with portfolio visibility up to 2032.
According to the financial report, Fincantieri Cruise Ships & Naval Ships business new orders in the first half of the year reached a total value of €6.695 billion, about six times that of the same period last year, a significant increase; to achieve an operating income of €2.761 billion (about $3.013 billion); a decline of 7.1% compared with the same period last year (€2.972 billion), which was attributable to the lower production capacity in the first half of the year, with the expectation of growth in the second half of the year in line with the Group’s 2024 strategic plan objectives.
Among them, the cruise ship field revenue of €1,832 million, down 7% compared with the same period last year, this change is agreed with the shipowner to change the production plan of the ship due to the second half of the relevant production will be on track, the revenue is expected to get a significant boost; naval ship field revenue of € 906 million (about $ 989 million), down 6.8% compared with the same period last year; ship interior decoration business to achieve operating income of € 23 million euros, a slight decline.
Specifically, in the cruise ship sector, Fincantieri has signed contracts with Norwegian Cruise Line Holdings for the construction of eight large cruise ships, two, two and four for Regent Seven Seas Cruises, Oceania Cruises, and Novozymes Cruises, respectively; signed a contract for the construction of two 54,300 gross ton small cruise ships with Swiss cruise line Viking Cruises; a contract for the construction of 2+1 high-end cruise ships with Crystal Cruises; signed a contract with Carnival Group for the construction of three liquefied natural gas (LNG)-powered luxury cruise ships to be delivered to its eponymous cruise brand, Carnival Cruise Lines, in the summers of 2029, 2031 and 2033.
In the naval ship sector, Fincantieri was awarded a contract for the construction of the Italian Navy’s new generation of conventional submarines (U212NFS) No. 4 during the reporting period, valued at approximately €500 million, including the related integrated logistical support and in-service support; Fincantieri’s U.S. subsidiary Fincantieri Marinette Marine (FMM) receives an order for the fifth and sixth U.S. Constellation-class frigates, valued at more than $1 billion; Received an order from the Indonesian Ministry of Defense for 2 multi-purpose offshore patrol vessels (PPAs) valued at approximately €1.2 billion, and 10 P51MR offshore patrol vessels (OPVs) through the establishment of a joint venture, MAESTRAL, with the United Arab Emirates’ advanced technology and defense group, EDGE, for an order valued at €400 million, with a potential commercial order value of approximately €30 billion.
In addition, in the offshore and specialized vessels business, Fincantieri achieved revenues of €582 million during the reporting period, an increase of 20.9% year-on-year, continuing the growth trend of the past, which was mainly attributable to the growing demand in the offshore wind power market. During the reporting period, Fincantieri took orders for a total of six new vessels valued at €762 million ( $832 million).
In terms of ship deliveries, Fincantieri’s five shipyards delivered a total of seven ships during the reporting period, including Carnival Group’s Princess Cruises’ LNG-powered, dual-fuel Sphere-class cruise ship, Sun Princess; Carnival Group’s Crown Royal Cruises’ Queen Anne; and others. In the second half of this year, Fincantieri plans to deliver 14 vessels, including two cruise ships, seven ships, and five offshore and specialty vessels.