SHARE
The Board of Directors reviews the proposed financial statement 2006
03 apr 2007
03 apr 2007
• The Board of Directors of Fincantieri has approved the proposed financial statements at 31.12.2006 which reported all financials significantly improved compared to 2005: value of production at 2,431.8 Euro million (up 9.6% compared to 2,217.8 million in 2005); gross operating margin at 156.4 Euro million (up 4.5% compared to 149.7 million in 2005); operating result at 128.4 Euro million (up 16.7% compared to 110 million in 2005); earnings before income tax at 115.7 Euro million (up 15.9% compared to 99.8 million in 2005); net profit at 58.7 Euro million (up 21% compared to 48.5 million in 2005); net financial position with a credit balance of 173 Euro million (up 17.5% compared to 147.2 million in 2005)
• For the third consecutive year the Board of Directors has proposed to the Shareholders’ Meeting the distribution of a dividend of 10.1 Euro million, equivalent to 3% of share capital
• Commercial activities during the year reached record results: new orders worth 4.1 Euro billion, which, together with the total value of orders due for delivery, take the order book to 10.2 Euro billion (an increase of 31% compared to 7.8 billion in 2005)
• Investments in Research and Development, equal to 43.7 Euro million, are in line with the previous two years, confirming that the company considers research, industrial development and product innovation key drivers to maintain its leadership in both product and market.
Financial results were also satisfactory at group level, which includes Isotta Fraschini Motori S.p.A., Cetena S.p.A., Fincantieri Marine Systems North America Inc., reporting a value of production of 2,466.7 Euro million.
Commenting on the results the company’s Chief Executive Officer, Giuseppe Bono, said: “Fincantieri is in excellent shape and has confirmed its position as a world leader, with important prospects for growth considering the order book the company has achieved and the development of new business, from ship conversions to marine systems, from medium sized cruise ships to mega yachts.”
• VALUE OF PRODUCTION: at 2,431.8 Euro million, is up by approximately 10% over 2005. The increase, which is correlated to more intensive manufacturing activities, was achieved thanks to efficient use of internal production capacity as well as subcontractors, through outsourcing.
• GROSS OPERATING MARGIN: reached 156.4 Euro million up 4.5% over 2005.
• OPERATING RESULT: at 128.4 Euro million (up by approximately 17% over 2005) generating a return on sales (ROS) of 5.3%, again up on 2005.
• NET PROFIT: at 58.7 Euro million (2.4% of value of production) with a return on equity (ROE) of 7.8%.
Net capital requirement was slightly higher (22.8 Euro million) in 2006 due to an increase in fixed assets (28.9 Euro million), which was only partially offset by a lower level of net working capital (2.0 Euro million) and an increase in severance indemnity (4.1 Euro million).
A more detailed analysis of the items which contributed to the above trend shows that:
- tangible and intangible assets increased by a total of 10.7 Euro million due to overall higher investments compared to depreciation for the year;
- the increase in financial assets, equal to 18.2 Euro million, is due to an increase in long term receivables of 14.9 Euro million (mainly due to the accounting for Government grants to ship owners reversed to the Company against the ship price and, to a lesser extent, to net investments in shareholdings (3.3 Euro million));
- the increase in the employee severance indemnity recorded at the end of 2006 is a consequence of the normal trend of provisions and disbursements;
The above trends, together with the net increase in Equity of 48.6 Euro million, generating an increase in the net financial position of 25.8 Euro million, with a final credit balance of 173 Euro million.
The statement of cash flow confirms the dynamics of the changes related to assets and liabilities and may be summarised as follows:
- cash flows from operating activities were positive (115.4 Euro million) as a result of the good trend of gross operating cash flow (113.4 Euro million) and the slight reduction of net working capital requirements (2.0 Euro million);
- investments in and disposals of fixed assets required cash availability of 79.4 Euro million; requirements for investment in fixed assets, equal to 108.0 Euro million, mainly comprising investments in plants and machineries and receivables against Government grants to be allocated, were only partially offset by sources generated by disposals;
- financing activities show an increase in sources for 3.9 Euro million, from subsidized loan for both research (Euro million 3.8) and investments (Euro million 0.9), net of the normal flow of financial debt repayments (Euro million 0.8);
- as in 2005, again this year the Company deliberated and distributed a dividend of 10.1 Euro million.
IMPORTANT EVENTS IN 2006
Merchant ships
Cruise ships
The year was again positive, with the leading ship owners developing substantial fleet renewal and expansion programmes.
In this context, Fincantieri’s work was rewarded with the closing of a maxi-contract, announced in 2005, with Carnival Group. The contract includes a total of 5 ships: 4 for a value of 1.7 billion Euro, confirmed at the beginning of the year, plus an option exercised in December 2006.
In addition to this order there is also a contract for the construction of 2 panamax ships for Costa Crociere, worth over 0.8 billion Euro.
To sum up, considering events in early 2007, the ships on order for Carnival Group amount to 13 - including an option for Holland America Line – with deliveries due up to 2011 and for a total value of over 7 billion dollars. Fincantieri is thus confirmed as the preferred shipbuilder for the American group, for whom 38 vessels have been built since 1990 for a total value of 14 billion dollars.
The company’s significant order book means it has a considerable backlog for the forthcoming years and assures that it will continue to hold a leading position worldwide, with a market share, measured in compensated gross tonnes, of 40%.
During the year the company also turned its attention to the market sector of medium/small vessels which is characterised by rapidly ageing fleets and where there is a clear growth trend.
Ferries
With regard to the ferry business area, 2006 was a particularly challenging year in terms of design and construction given the large number of orders received in previous years.
Work was carried out on 9 ferries, 4 of which were completed. These were: a second ferry for Neptune Lines, the fast ferry “Gotlandia II” ordered in 2004 by the Swedish owner Rederi Ab Gotland, and for whose design and construction dual technological solutions were adopted, partly from the military field, and, again for the Scandinavian market, the first 2 vessels of a series of 5 were delivered to the Finnish owner Finnlines, while delivery of the other 3 ships is due in 2007.
Finally, at Ancona shipyard there was the keel laying of the cruise ferry for the Estonian company Tallink, with delivery due in 2008, while at Castellammare di Stabia shipyard construction is in progress on the first vessel of a series of 4 ferries for the Grimaldi Group Naples.
However, in terms of new orders, 2006 can not be considered as a reference year since there was a slowdown, or even standstill, in fleet renewals.
Ship repairs and conversions
The company’s strategy to extend its range of services to owners by offering after sales service, with a presence in the main operating areas, in particular those of cruise ships, was carried out with the purchase of a 21.05% stake in the capital of the German shipyard Lloyd Werft, a leading operator in the sector. The agreement is a significant step forward in the plan to set up a reference centre for a sector which is still typically served by a fragmented offer.
Confirmation of the potential of this business area comes from the order for the refitting of the “Century”. This is an important achievement both in terms of contract value and for its challenging technical complexity; the order was placed at the Palermo shipyard by Celebrity Cruises, a brand of the Royal Caribbean Group, the world’s second operator in the cruise sector, that, for the first time, was able to appreciate the quality of work carried out by Fincantieri.
Special ships
With a view to pursuing a strategy of expansion and growth by selectively seeking out strategic operational opportunities in new business areas, in 2006, Fincantieri gained a number of orders for offshore multipurpose tug, supply and support vessels: 2 for the Genoese owner Rimorchiatori Riuniti and 4 for the German group Hartmann.
This is a new production line which the company is monitoring carefully since the market prospects for offshore vessels are very interesting.
Higher level of activities of research and exploitation of new oil and gas fields, especially in deep waters, due to the increase of energy demand and to the higher price of energy sources, have led owners to allocate greater resources to fleet renewal with modern, more reliable and safer vessels with better levels of performance.
Naval vessels
In the domestic market the contract with the Italian Navy for the first two “Rinascimento” class multi-mission frigates was finalised within the framework of a joint Italian-French programme which entails for the construction of 10 vessels for the Italian Navy and 17 for the French Navy, also known under the acronym FREMM.
Internationally wide there were important successes with an order gained for an oceanographic ship for the National Institute of Ocean Technology – India in addition to a contract to provide 4 patrol vessels to Iraq.
The Indian order, which followed the contracts signed in 2004 for the design and integration of the engine for the new Indian aircraft carrier, has further consolidated Fincantieri’s relationship in the country, and the company now has a local office there.
Moreover, Fincantieri is also closely monitoring the American market, where it considers to be in a position to acquire a wider role in the programmes of the U.S. Navy as a supplier of components and technological solutions.
Production activities continued on ongoing programmes for the Italian Navy. In detail, tests started on the platform and the navigation safety and security systems for the aircraft carrier “Cavour” and for the “Andrea Doria”, the first “Horizon” class destroyer, while the U 212A type submarine “Scirè” completed its tests and integration of the weapon system, in preparation for delivery which has recently taken place.
In addition to these activities, was also completed the functional refitting and maintenance of the platform and systems on board the frigates “Sagittario” and ”Perseo”, sold by the Italian Navy to the Navy of Peru.
Marine Systems and Components
During 2006, by pooling together the products and the expertise of Riva Trigoso shipyard, Isotta Fraschini Motori and Fincantieri Marine Systems North America, the new business unit “Marine Systems and Components” became fully operational.
A series of initiatives was undertaken aimed to identify all the existing synergies in the field of mechanical products, with priority given to establishing a reference point for commercial activities and for product management and development so that a consistent offer is provided by the new business unit; the business unit mission is ito succeed not only as a supplier of components, but also as systems integrator, especially in the fields of propulsion, power generation, stabilization and positioning.
In the field of industrial products there were interesting sales of industrial turbines to the North American and Scandinavian markets.
Mega Yachts
The availability of an organisation which is capable of managing complex orders, the presence of appropriate plant for demanding construction work, and, more generally, proven expertise in shipbuilding, have provided distinctive advantages in acquiring the first order for the construction of a vessel of over 130 metres in length. The yacht, which is being built at Muggiano shipyard, was developed by the team which Fincantieri has deployed on this business area, starting from a project drawn up, on behalf of the owner, by one of the leading designers in the sector.
During 2006 efforts continued with the goal to making the new business unit fully operational, by expanding design activities, which led to the presentation of two new concept designs co-developed with a world renowned design firm.
There also continued cooperation with Azimut-Benetti, leader in pleasure boat sector, with whom a series of initiatives were set up with an objective to developing the presence of the two Groups in their respective market segments, thus consolidating and extending Italy’s leadership in this highly prestigious sector.
PRODUCTION
7 vessels were delivered in 2006:
• 3 cruise ships: the “Noordam” for Holland America Lines, the “Costa Concordia” for Costa Crociere and the “Crown Princess” for P&O Cruises;
• 4 ferries: the “Neptune Thelisis” for Neptune Lines; the ”Finnstar” and the “Finnmaid” for Finnlines; the “Gotland 2000” for Rederi Ab Gotland;
In addition, the submarine “Salvatore Todaro” was also delivered to the Italian Navy.
Palermo shipyard, where over 60 ships were repaired, also carried out important conversion work on 4 cruise ships and offshore vessels.
RESEARCH AND DEVELOPMENT
The costs sustained in the year for process/product innovation were in line with those of the previous two years, confirming the importance Fincantieri attributes to these issues. The ability to carry out research, industrial development and innovation represent essential drivers for a strong, decisive ability to compete.
Throughout the year work continued on a number of R&D projects. There was a strong drive towards innovation, fundamentally along two axis:
- with regard to products, aiming at “vitalising” solutions, both in terms of design features and in functional terms, on several vessels belonging to long, fortunate series;
- with regard to processes, not only by addressing significant issues for new types of ships, but also ensuring the highest performance of plant in order to enhance production efficiency.
The questions addressed with regard to new constructions were mainly concerned with the issues of active and passive safety and security and pollution. Great efforts were also made to formulate proposals in the field of mega yachts in line with top standards of comfort and pleasure.
Within the context of naval products highly innovative studies were conducted following the development of designs for new generation offshore support vessels.
In the field of process innovation activities were undertaken especially in relation to cutting edge technologies and methodologies for the construction of panels, the definition of areas for high quality standard working activities, the development of information systems in support of technical and management activities.
TREND IN THE FIRST MONTHS OF 2007 AND FORECAST FOR THE FORTHCOMING YEAR
The first part of 2007 has gathered the rewards of the company’s intensive commercial activity Indeed:
With regard to cruise ships, in addition to finalising the contract with Carnival Group for a vessel for P&O Princess Cruises, agreements have been reached with the American owner Oceania Cruises for 2 vessels of 65,000 gt, plus an option for a third, and with the Italian operator Silversea for 1 vessel of 36,000 gt, plus an option for a second. These are “luxury” ships, a market segment which has been closely targeted, given its great potential, for new customers, who further enhance the company’s customer portfolio;
The return to foreign markets for naval vessels has been confirmed by an order to supply a Turkish shipyard with components and technological know-how for the construction of 4 patrol vessels for the Turkish Coast Guard;
Contracts have been drawn up with the German group Hartmann for further 6 multi-purpose ships for offshore support plus an option for a further 2 vessels, in addition to the 4 already ordered by the same customer in 2006.
Negotiations are in progress in all the company’s business areas.
The contracts drawn up and the successful conclusion of negotiations will enable further increases in the order book, which today stands at over 11 billion Euro, and can accordingly guarantee a sufficient workload for the company’s various shipyards in forthcoming years. Considering that benefits are expected from the renewed programme to improve industrial efficiency, positive results also for the forthcoming year, can be expected.
• For the third consecutive year the Board of Directors has proposed to the Shareholders’ Meeting the distribution of a dividend of 10.1 Euro million, equivalent to 3% of share capital
• Commercial activities during the year reached record results: new orders worth 4.1 Euro billion, which, together with the total value of orders due for delivery, take the order book to 10.2 Euro billion (an increase of 31% compared to 7.8 billion in 2005)
• Investments in Research and Development, equal to 43.7 Euro million, are in line with the previous two years, confirming that the company considers research, industrial development and product innovation key drivers to maintain its leadership in both product and market.
Financial results were also satisfactory at group level, which includes Isotta Fraschini Motori S.p.A., Cetena S.p.A., Fincantieri Marine Systems North America Inc., reporting a value of production of 2,466.7 Euro million.
Commenting on the results the company’s Chief Executive Officer, Giuseppe Bono, said: “Fincantieri is in excellent shape and has confirmed its position as a world leader, with important prospects for growth considering the order book the company has achieved and the development of new business, from ship conversions to marine systems, from medium sized cruise ships to mega yachts.”
• VALUE OF PRODUCTION: at 2,431.8 Euro million, is up by approximately 10% over 2005. The increase, which is correlated to more intensive manufacturing activities, was achieved thanks to efficient use of internal production capacity as well as subcontractors, through outsourcing.
• GROSS OPERATING MARGIN: reached 156.4 Euro million up 4.5% over 2005.
• OPERATING RESULT: at 128.4 Euro million (up by approximately 17% over 2005) generating a return on sales (ROS) of 5.3%, again up on 2005.
• NET PROFIT: at 58.7 Euro million (2.4% of value of production) with a return on equity (ROE) of 7.8%.
Net capital requirement was slightly higher (22.8 Euro million) in 2006 due to an increase in fixed assets (28.9 Euro million), which was only partially offset by a lower level of net working capital (2.0 Euro million) and an increase in severance indemnity (4.1 Euro million).
A more detailed analysis of the items which contributed to the above trend shows that:
- tangible and intangible assets increased by a total of 10.7 Euro million due to overall higher investments compared to depreciation for the year;
- the increase in financial assets, equal to 18.2 Euro million, is due to an increase in long term receivables of 14.9 Euro million (mainly due to the accounting for Government grants to ship owners reversed to the Company against the ship price and, to a lesser extent, to net investments in shareholdings (3.3 Euro million));
- the increase in the employee severance indemnity recorded at the end of 2006 is a consequence of the normal trend of provisions and disbursements;
The above trends, together with the net increase in Equity of 48.6 Euro million, generating an increase in the net financial position of 25.8 Euro million, with a final credit balance of 173 Euro million.
The statement of cash flow confirms the dynamics of the changes related to assets and liabilities and may be summarised as follows:
- cash flows from operating activities were positive (115.4 Euro million) as a result of the good trend of gross operating cash flow (113.4 Euro million) and the slight reduction of net working capital requirements (2.0 Euro million);
- investments in and disposals of fixed assets required cash availability of 79.4 Euro million; requirements for investment in fixed assets, equal to 108.0 Euro million, mainly comprising investments in plants and machineries and receivables against Government grants to be allocated, were only partially offset by sources generated by disposals;
- financing activities show an increase in sources for 3.9 Euro million, from subsidized loan for both research (Euro million 3.8) and investments (Euro million 0.9), net of the normal flow of financial debt repayments (Euro million 0.8);
- as in 2005, again this year the Company deliberated and distributed a dividend of 10.1 Euro million.
IMPORTANT EVENTS IN 2006
Merchant ships
Cruise ships
The year was again positive, with the leading ship owners developing substantial fleet renewal and expansion programmes.
In this context, Fincantieri’s work was rewarded with the closing of a maxi-contract, announced in 2005, with Carnival Group. The contract includes a total of 5 ships: 4 for a value of 1.7 billion Euro, confirmed at the beginning of the year, plus an option exercised in December 2006.
In addition to this order there is also a contract for the construction of 2 panamax ships for Costa Crociere, worth over 0.8 billion Euro.
To sum up, considering events in early 2007, the ships on order for Carnival Group amount to 13 - including an option for Holland America Line – with deliveries due up to 2011 and for a total value of over 7 billion dollars. Fincantieri is thus confirmed as the preferred shipbuilder for the American group, for whom 38 vessels have been built since 1990 for a total value of 14 billion dollars.
The company’s significant order book means it has a considerable backlog for the forthcoming years and assures that it will continue to hold a leading position worldwide, with a market share, measured in compensated gross tonnes, of 40%.
During the year the company also turned its attention to the market sector of medium/small vessels which is characterised by rapidly ageing fleets and where there is a clear growth trend.
Ferries
With regard to the ferry business area, 2006 was a particularly challenging year in terms of design and construction given the large number of orders received in previous years.
Work was carried out on 9 ferries, 4 of which were completed. These were: a second ferry for Neptune Lines, the fast ferry “Gotlandia II” ordered in 2004 by the Swedish owner Rederi Ab Gotland, and for whose design and construction dual technological solutions were adopted, partly from the military field, and, again for the Scandinavian market, the first 2 vessels of a series of 5 were delivered to the Finnish owner Finnlines, while delivery of the other 3 ships is due in 2007.
Finally, at Ancona shipyard there was the keel laying of the cruise ferry for the Estonian company Tallink, with delivery due in 2008, while at Castellammare di Stabia shipyard construction is in progress on the first vessel of a series of 4 ferries for the Grimaldi Group Naples.
However, in terms of new orders, 2006 can not be considered as a reference year since there was a slowdown, or even standstill, in fleet renewals.
Ship repairs and conversions
The company’s strategy to extend its range of services to owners by offering after sales service, with a presence in the main operating areas, in particular those of cruise ships, was carried out with the purchase of a 21.05% stake in the capital of the German shipyard Lloyd Werft, a leading operator in the sector. The agreement is a significant step forward in the plan to set up a reference centre for a sector which is still typically served by a fragmented offer.
Confirmation of the potential of this business area comes from the order for the refitting of the “Century”. This is an important achievement both in terms of contract value and for its challenging technical complexity; the order was placed at the Palermo shipyard by Celebrity Cruises, a brand of the Royal Caribbean Group, the world’s second operator in the cruise sector, that, for the first time, was able to appreciate the quality of work carried out by Fincantieri.
Special ships
With a view to pursuing a strategy of expansion and growth by selectively seeking out strategic operational opportunities in new business areas, in 2006, Fincantieri gained a number of orders for offshore multipurpose tug, supply and support vessels: 2 for the Genoese owner Rimorchiatori Riuniti and 4 for the German group Hartmann.
This is a new production line which the company is monitoring carefully since the market prospects for offshore vessels are very interesting.
Higher level of activities of research and exploitation of new oil and gas fields, especially in deep waters, due to the increase of energy demand and to the higher price of energy sources, have led owners to allocate greater resources to fleet renewal with modern, more reliable and safer vessels with better levels of performance.
Naval vessels
In the domestic market the contract with the Italian Navy for the first two “Rinascimento” class multi-mission frigates was finalised within the framework of a joint Italian-French programme which entails for the construction of 10 vessels for the Italian Navy and 17 for the French Navy, also known under the acronym FREMM.
Internationally wide there were important successes with an order gained for an oceanographic ship for the National Institute of Ocean Technology – India in addition to a contract to provide 4 patrol vessels to Iraq.
The Indian order, which followed the contracts signed in 2004 for the design and integration of the engine for the new Indian aircraft carrier, has further consolidated Fincantieri’s relationship in the country, and the company now has a local office there.
Moreover, Fincantieri is also closely monitoring the American market, where it considers to be in a position to acquire a wider role in the programmes of the U.S. Navy as a supplier of components and technological solutions.
Production activities continued on ongoing programmes for the Italian Navy. In detail, tests started on the platform and the navigation safety and security systems for the aircraft carrier “Cavour” and for the “Andrea Doria”, the first “Horizon” class destroyer, while the U 212A type submarine “Scirè” completed its tests and integration of the weapon system, in preparation for delivery which has recently taken place.
In addition to these activities, was also completed the functional refitting and maintenance of the platform and systems on board the frigates “Sagittario” and ”Perseo”, sold by the Italian Navy to the Navy of Peru.
Marine Systems and Components
During 2006, by pooling together the products and the expertise of Riva Trigoso shipyard, Isotta Fraschini Motori and Fincantieri Marine Systems North America, the new business unit “Marine Systems and Components” became fully operational.
A series of initiatives was undertaken aimed to identify all the existing synergies in the field of mechanical products, with priority given to establishing a reference point for commercial activities and for product management and development so that a consistent offer is provided by the new business unit; the business unit mission is ito succeed not only as a supplier of components, but also as systems integrator, especially in the fields of propulsion, power generation, stabilization and positioning.
In the field of industrial products there were interesting sales of industrial turbines to the North American and Scandinavian markets.
Mega Yachts
The availability of an organisation which is capable of managing complex orders, the presence of appropriate plant for demanding construction work, and, more generally, proven expertise in shipbuilding, have provided distinctive advantages in acquiring the first order for the construction of a vessel of over 130 metres in length. The yacht, which is being built at Muggiano shipyard, was developed by the team which Fincantieri has deployed on this business area, starting from a project drawn up, on behalf of the owner, by one of the leading designers in the sector.
During 2006 efforts continued with the goal to making the new business unit fully operational, by expanding design activities, which led to the presentation of two new concept designs co-developed with a world renowned design firm.
There also continued cooperation with Azimut-Benetti, leader in pleasure boat sector, with whom a series of initiatives were set up with an objective to developing the presence of the two Groups in their respective market segments, thus consolidating and extending Italy’s leadership in this highly prestigious sector.
PRODUCTION
7 vessels were delivered in 2006:
• 3 cruise ships: the “Noordam” for Holland America Lines, the “Costa Concordia” for Costa Crociere and the “Crown Princess” for P&O Cruises;
• 4 ferries: the “Neptune Thelisis” for Neptune Lines; the ”Finnstar” and the “Finnmaid” for Finnlines; the “Gotland 2000” for Rederi Ab Gotland;
In addition, the submarine “Salvatore Todaro” was also delivered to the Italian Navy.
Palermo shipyard, where over 60 ships were repaired, also carried out important conversion work on 4 cruise ships and offshore vessels.
RESEARCH AND DEVELOPMENT
The costs sustained in the year for process/product innovation were in line with those of the previous two years, confirming the importance Fincantieri attributes to these issues. The ability to carry out research, industrial development and innovation represent essential drivers for a strong, decisive ability to compete.
Throughout the year work continued on a number of R&D projects. There was a strong drive towards innovation, fundamentally along two axis:
- with regard to products, aiming at “vitalising” solutions, both in terms of design features and in functional terms, on several vessels belonging to long, fortunate series;
- with regard to processes, not only by addressing significant issues for new types of ships, but also ensuring the highest performance of plant in order to enhance production efficiency.
The questions addressed with regard to new constructions were mainly concerned with the issues of active and passive safety and security and pollution. Great efforts were also made to formulate proposals in the field of mega yachts in line with top standards of comfort and pleasure.
Within the context of naval products highly innovative studies were conducted following the development of designs for new generation offshore support vessels.
In the field of process innovation activities were undertaken especially in relation to cutting edge technologies and methodologies for the construction of panels, the definition of areas for high quality standard working activities, the development of information systems in support of technical and management activities.
TREND IN THE FIRST MONTHS OF 2007 AND FORECAST FOR THE FORTHCOMING YEAR
The first part of 2007 has gathered the rewards of the company’s intensive commercial activity Indeed:
With regard to cruise ships, in addition to finalising the contract with Carnival Group for a vessel for P&O Princess Cruises, agreements have been reached with the American owner Oceania Cruises for 2 vessels of 65,000 gt, plus an option for a third, and with the Italian operator Silversea for 1 vessel of 36,000 gt, plus an option for a second. These are “luxury” ships, a market segment which has been closely targeted, given its great potential, for new customers, who further enhance the company’s customer portfolio;
The return to foreign markets for naval vessels has been confirmed by an order to supply a Turkish shipyard with components and technological know-how for the construction of 4 patrol vessels for the Turkish Coast Guard;
Contracts have been drawn up with the German group Hartmann for further 6 multi-purpose ships for offshore support plus an option for a further 2 vessels, in addition to the 4 already ordered by the same customer in 2006.
Negotiations are in progress in all the company’s business areas.
The contracts drawn up and the successful conclusion of negotiations will enable further increases in the order book, which today stands at over 11 billion Euro, and can accordingly guarantee a sufficient workload for the company’s various shipyards in forthcoming years. Considering that benefits are expected from the renewed programme to improve industrial efficiency, positive results also for the forthcoming year, can be expected.