Italian shipbuilder Fincantieri has fallen to a loss in the first quarter as financial costs rose.
Fincantieri ended the first quarter of 2015 with Euro1.11 billion consolidated turnover and an EBITDA equal to Euro59 million. This equated to a loss of Euro27 million, mainly due to a slowdown in orders from the offshore sector caused by a market that is still very tight due to the collapse in oil prices.
The group secured new orders totaling euro 85 million compared to euro 1.7 billion in the corresponding period of 2014.
Intense commercial negotiations leading to increase of soft backlog to euro 9.2 billion which shall result in greater revenue visibility through a further backlog increase, said the company.
Of the total new orders 53% relates to the shipbuilding segment (59% at 31 March 2014), 35% to the offshore segment (39% at 31 March 2014), and 29% to the equipment, systems and services segment (4% at 31 March 2014).
New orders secured by the parent company Fincantieri S.p.A. accounted for 22% of the total (41% at 31 March 2014).
“In the first quarter of 2015, despite a weak order intake, we have successfully developed intense commercial negotiations that have led to important industrial and commercial agreements. The most notable are the one with our historical partner Carnival, the one with the Italian Navy for the fleet renewal program, along with the continuation of FREMM and LCS programs through the confirmation of the expected units,“Giuseppe Bono, Fincantieri’s Chief Executive Officer, said.
In Shipbuilding, with regards to Cruise, signing of a strategic agreement with Carnival for the construction of 5 next-generation cruise ships and additional options not yet included in order intake, while in Naval negotiations led after 31 March 2015 to the signing of the Italian Navy's fleet renewal program and the continuation of FREMM and LCS programs. Small reduction of margin due to lower contribution of Naval in the quarter