Operating results up, orderbook insufficient at Fincantieri

Boosted by the addition of Vard to the group, the operating result is triple the EUR34m for the same period last year.

In January this year, Fincantieri completed their acquisition of 50.75% of STX OSV, ending up with a 55.63% stake after the subsequent, poorly received mandatory offer. The offshore shipbuilder was rebranded Vard and recently reported a $7.2m loss in the second quarter of 2013 as it struggles with delays at its Brazilian yard and a shrinking orderbook, especially in Vietnam where the yard is working on the last vessel in its orderbook.

In the six months to 30 June, Fincantieri secured EUR1.8bn in new orders, bringing their total order portfolio to EUR10.8bn. The related order backlog, EUR6.8bn, will not be enough to fill capacity at in the group's Italian yards, it said.

Despite the new orders, including two cruise ships for the Carnival group and various offshore and naval vessels, Fincantieri will continue to reduce and reshuffle its workforce and their work hours in line with hard-fought and recently extended agreements with trade unions and the Ministry of Labour.

Giuseppe Bono, Fincantieri's ceo commented, "There are reasons to be reasonably optimistic about the future, especially if the Fincantieri system and the national system will achieve a unity of purposes focusing on sectors that stimulate exports and employment and attract major foreign investments in Italy."