Fincantieri, the Italian shipbuilding group that is the biggest builder of cruise ships in the world, has presented a business plan for the years 2018-22, which calls for closer synergies between its yards and supply chain in the cruise ship sector.
To he company said in a statement that to better deploy its backlog, it plans to optimise the productive capacity of Italian shipyards and along the supply chain, besides leveraging on the substantial production synergies with Vard’s Romanian shipyards, particularly through an increased use of the Tulcea yard to support the Italian production network, therefore reducing the overload that would be otherwise incurred.
“The positive trend in global cruise tourism keeps sustaining momentum for the cruise activities of the Group. In fact, with respect to the previous Plan, the positive outlook for this tourist segment is confirmed, with an expected number of cruise passengers in 2030 exceeding 49 million (vs 25.8 million in 2017), amounting to a CAGR of 5.1%,” Fincantieri said.
Its cruise ship order portfolio is characterised by both a positive trend in lower berth pricing and a greater proportion of large cruise ships (above 140,000 gross tons); the combined effect of these two factors will allow the development of innovative projects with greater value.
“Furthermore, the Group will build an increasing number of luxury-niche cruise ships (a fast growing sub-segment) which are usually more profitable, despite the smaller size,’ fincantieri said.
Such expectations are confirmed by the strategies implemented by cruise operators, who started substantial newbuilding programs, particularly aimed at emerging markets, to anticipate demand growth and gain a more competitive positioning in the market. “Consequently, as the Group’s shipyards are now operating at full capacity, with planned production schedules until 2022, market prices will be positively impacted,” the company said.
In the new business plan, 2022 revenues are expected to grow up to 50% versus 2017, accompanied by a significant increase in profitability with an EBITDA margin between 8% and 9% (corresponding with a growth in EBITDA of up to 100% versus 2017). In 2022 the Adjusted net income margin is expected to be between 3% and 4%.