Fincantieri

Fincantieri completes INSO acquisition as Q1 revenues grow

Trieste-based Italian shipbuilding company Fincantieri, through its subsidiary Fincantieri Infrastructure, completed the acquisition of the main company branch of INSO – Sistemi per le Infrastrutture Sociali S.p.A., including the subsidiary SOF, part of the Condotte Group, and now holds its control under the NewCo “FINSO – Fincantieri INfrastrutture SOciali”.

Fincantieri Infrastructures holds a 90% stake in the share capital of the new company, with the remaining 10% held by Sviluppo Imprese Centro Italia SGR SpA (SICI).

INSO, established in the 1960s and part of the Condotte Group since 2012, is specialized in the development of construction projects and supply of technologies for the healthcare, industrial and services sectors. With construction projects completed in more than 20 countries, INSO current portfolio includes remarkable contracts both in Italy and abroad.

One of the world’s largest shipbuilding groups, Fincantieri makes vessels ranging from luxury yachts to military aircraft carriers. The group’s clients include the world’s biggest cruise operators, the Italian and US Navies, as well as numerous foreign navies.

In the first quarter of 2021, Fincantieri’s revenues and income, stood at euro 1,426 million, excluding pass-through activities (euro 222 million), up 9.1%, compared to the same quarter of 2020. Q1 production volumes exceeded those reported in the first quarter last year, fully recovering the shortfall caused by the suspension of production activites at the group’s Italian shipyards and production sites, owing to the COVID-19 outbreak.

The results are in line with expectations, marking a step forward towards 2021 targets, with revenues expected to increase considerably in the remaining part of the year as a consequence of the ramp up needed for the development of the hefty workload and to meet the delivery schedule.

The higher revenues and volumes achieved are driven by the full resumption of production activities in all the group’s shipyards and production sites

The increase, compared to the first quarter of 2020, is a combination, on one hand, of the positive trend in the Shipbuilding (+12.8%, excluding pass-through activities) and in the Equipment, Systems and Services (+13.4%) segments and, on the other hand, of the decrease in revenues recorded in the Offshore and Specialized vessels segment (-23.5%).

Group EBITDA, at euro 101 million (euro 72 million at March 31, 2020), recovered well beyond the margin lost in the first quarter of 2020 due to the lack of progress on naval projects during the suspension of activities (euro 15 million); EBITDA margin, excluding pass-through activities, stands at 7.0% (5.5% at March 31, 2020). The improved marginality confirms the performance of the fourth quarter 2020 (6.9%) and it is in line with the guidance for 2021.

Founded in 1959 as Società Finanziaria Cantieri Navali – Fincantieri S.p.A. as a State financial holding company, part of IRI, the company became a separate entity in 1984. In 2014, Fincantieri was listed on the Italian stock exchange. Banca IMI, Credit Suisse, J.P. Morgan , Morgan Stanley and UniCredit were acting as global coordinators. Banca IMI was also the lead manager of the public offering and UniCredit its sponsor. The joint bookrunners were BNP Paribas, Citigroup , Deutsche Bank, Goldman Sachs, HSBC and Mediobanca. Fincantieri was advised by Equita SIM and Fintecna by Rothschild.

 


 

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