Italy’s Fincantieri vows to trim debt after reporting big loss

Italy’s Fincantieri vows to trim debt after reporting big loss

Shipbuilder of Fincantieri works over a cruise ship under construction at Monfalcone shipyard near Trieste at Monfalcone shipyard near Trieste, in northest Italy, April 21, 2016. REUTERS/Alessandro Bianchi

MILAN, July 27 (Reuters) – Italy’s shipbuilder Fincantieri (FCT.MI) promised to trim its debt by delivering new cruise ships in the coming months after reporting on Wednesday a net loss of 234 million euros ($237 million) in the first half of 2022.

The state-controlled group reported net financial debt of 3.3 billion at the end of June, up from 2.2 billion euros at the end of last year, unnerving investors who sold shares in the group after results.

The company’s shares were 6.5% down at 950 GMT, compared to a broadly flat Italian all-share index (.FTITLMS). read more

“The debt increase is mainly due to the working capital dynamics in the cruise business,” the company said in a statement adding that the debt figure is still affected by a payment extension strategy to customers implemented after the COVID-19 pandemic.

The first half loss came despite a positive business operating performance in the first half of 2022, with a 16% growth in revenues year-on-year. read more

The net financial position – weighed down by one-off items – is expected to slightly improve by the end of the year, said the company’s Chief Executive Officer Pierroberto Folgiero during a conference call with analysts.

He cited the expected delivery of five cruise ships in the second half of 2022 in addition to savings and operation discipline to cope with an increase in raw material prices.