Fincantieris Q1 Results on Track to Meet Business Plan

first_imgzoom Italian shipbuilder Fincantieri reported a EUR 1.104 billion in revenue and income for the first quarter of this year against EUR 1.048 billion (approximately USD 1.19 billion) year earlier, up 5.3% compared to the same period of 2016.The company’s EBITDA was also up year-on-year standing at EUR 67 million against EUR 51 million in 2016, with EBITDA margin increasing to 6.0% marking a major improvement from 4.9% of Q1 2016, the company said.According to Fincantieri, the results are in line with the Business Plan 2016-2020 targets.The shipbuilder’s total backlog came at EUR 26.6 billion, covering approximately 6 years of work if compared to 2016 revenues. The backlog as at March 31, 2017 was EUR 20.8 billion up by over USD 5 billion from a corresponding period from last year with 103 ships in the order book.Since the start of the year, Fincantieri secured contracts for a total of 19 cruise ships, including options.Specifically, 2 ships have been ordered for Carnival’s brands Princess Cruises and Holland America Line; 4 ships plus 2 options for the Norwegian Cruise Line brand; binding agreements with CSSC and Carnival for the construction in China of 2 ships plus 4 options; letter of intent signed by VARD for another expedition cruise vessel, and memorandum of agreement signed in April for 2 ships plus 2 options for Viking Ocean Cruises.Three cruise ships delivered by Fincantieri’s yard in the first few months of the year, those being Viking Sky, Majestic Princess and Silver Muse.“The group will continue its work to achieve the growth targets envisaged by the Business Plan. In this respect I would like to point out that over the two-year period 2015-2016 we have hired around 600 people in Italy, while the increase of production volumes has added around 3,000 jobs in our subcontractor network. Furthermore, we expect to hire another 400 people in Italy in 2017 only,” Giuseppe Bono, Fincantieri’s Chief Executive Officer, said.Looking ahead, Fincantieri expects its shipbuilding segment to benefit from further increase in production volumes coupled with improved margins, primarily thanks to the start of construction works for cruise sister ships, ordered in the post-crisis period at higher prices, to full-swing production for the Italian Navy’s fleet renewal program and to the full start-up of design activities for the Qatari Ministry of Defense contract. Actions to increase profitability through production synergies with VARD will also continue to be pursued.last_img read more

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TEN Sells Its Oldest VLCC for Scrap

first_imgzoomImage Courtesy: TEN Greek tanker owner and operator Tsakos Energy Navigation (TEN) has availed of the strong demolition prices to sell its oldest very large crude carrier.The Panama-flagged VLCC Millennium, featuring 301,200 dwt, was built by Hyundai Heavy Industries (HHI) in 1998.Based on the data from Vesselsvalue, the ship was sold in March fetching USD 447 per light displacement ton (ltd) and will be dismantled in Bangladesh.“The Millennium has operated flawlessly and profitably since its newbuilding delivery exactly 20 years ago and was much in demand by many significant oil concerns throughout her life. The attractive price achieved combined with her age, provided us with the right opportunity to take advantage of the very strong recycling market, something other owners should consider as well,” George Saroglou, COO of TEN commented.A total of 21 VLCCs were removed from the global fleet year to date, data from VesselsValue shows. The scrapping of veteran crude carrier giants already broke last year’s total of 13 ships mid-March with 16 VLCCs sent for demolition.March was one of the busiest months for VLCC demolition, with a dozen of ships sent for scrap. Only one VLCC is reported to have been removed from the fleet in April this year.Separately, TEN said that it has secured a minimum 12 maximum 24-months charter with an undisclosed oil major for an MR product tanker. The fixture of the MR is expected to generate approximately USD 10 million of gross revenues over the extended duration of the contract while the sale of the VLCC will generate USD 7.5 million of free cash after repayment of applicable debt.“The fixture of the product tanker on the other hand, highlights TEN’s continuity and operational model as it provides security and visibility of cash flows and the enhancement of an existing relationship with a blue-chip client, this time on the product space,” Saroglou concluded.TEN’s fleet consists of 64 double-hull vessels totaling 6.9 million dwt. Of these, 46 vessels trade in crude, 13 in products, three are shuttle tankers and two are LNG carriers.last_img read more

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