Fincantieri rearranging delivery dates due to COVID-19 impact
In order to maintain the accumulated backlog, Italian shipbuilding company Fincantieri is concentrating its attention on renegotiating production dates of secured newbuilding orders.
Customers are looking at their capital investments and the prospect of halting such programs and payments to conserve cash at a extremely difficult period for the COVID-19 pandemic economic operation.
Cruise line firms, who account for a large portion of Fincantieri's orders, have been struck especially hard by the pandemic and are keen to move their newbuilding production deadlines and associated capital investment payments ahead.
“In order to ensure the acquired backlog and with a view to accommodate its customers’ needs, Fincantieri is valuing, in full collaboration with the shipowners, the revision of the delivery dates of the units in portfolio and the consequent delays of the installments for units about to be delivered and for those under construction. The review of delivery dates will also be influenced by the subcontractors and by the recovery plan at full capacity of production activities,” Giuseppe Bono, Fincantieri’s Chief Executive Officer, explained in a statement.
The shutdown of production resulted in a 20 per cent drop in volumes of Q1 revenue, the shipbuilder said, reporting its first quarter results.
Fincantieri has begun to restart production slowly after April 20, with stringent health and safety policies being enforced at its Italian shipyards.
The global shipbuilding reports the adverse economic consequences from the effects of the pandemic to be approximately € 23 million.
The sum was, however, not found in the financial profits of the company but in the exceptional expenditures.
The group said it would publish its Business Strategy 2020-2024 as long as emergency changes make a better evaluation of the potential impacts.
In addition, Fincantieri did not offer a precise financial outlook, since the COVID-19 epidemic implications have yet to be determined.
Maritime Business World