With production back at 100 percent in the fourth quarter of last year, the Fincantieri Group expects to resume its growth path with improved margins and profitability in 2021.
For 2020, Fincantieri report a loss of 245 million euros on revenues of 5.2 billion euros, excluding what the company calls pass-through activities, compared to a net loss of 148 million euros on revenues of 5.8 billion for 2019. The company attributed the decline in revenues to a reduction in production hours because of COVID-19.
Fincantieri stated that cruise ship deliveries stayed on schedule per its pre-pandemic program and that even with the delays in production, four of the seven ships delivered in 2020, were handed over in the second half of the year. The Palermo yad also completed the lengthening of the Star Breeze for Windstar Cruises, to be followed by two more sister ships. No orders were cancelled.
Cruise ships accounted for 3.3 billion euros of revenue for 2020, compared to 3.6 billion euros for 2019.
Among the highlights for 2020, Fincantieri announced the development of a new series of thrusters specifically designed for the cruise ship market, meeting what it said were higher requirements for quietness, efficiency, reliability and environmental sustainability.
In other developments during the year, construction began on the first cruise ship at t he Shanghai Waigaoqiao Shipbuilding subsidiary of China State Shipbuilding Corporation (CSSC) in a joint venture between Carnival and CSSC.
Fincantieri also signed a letter of intent to participate in the design and construction of a new ship repair, conversation and maintenance yard in Yucatan, Mexico. Fincanteri will be granted a 40-year exclusive concession to run the facility.
Five cruise ships are slated for deliveries from the Italian yards in 2021: the Silver Dawn, Viking Venus, Rotterdam, MSC Seashore and Virgin Valiant Lady, in addition to two ships from Vard (Fincantieri subsidiary) for Ponant and Hapag-Lloyd.
Funding is also in place to upgrade the production facilities at the Marghera and Monfalcone shipyards to support the increase in production volume, as well as greater integration between the yards in Italy and Romania dedicated to cruise ship building.
The total orderbook as of Dec. 31, 2020 were said to include 116 units, amounting to 35.7 billion euros, of which 48 are cruise ships, including the ships being built at Vard and in China, according to Cruise Industry News.