Italian Shipbuilder Fincantieri Looks to Slash Leverage in Business Revamp

By Alberto Brambilla (Bloomberg) —

Italy’s Fincantieri SpA wants to slash its debt-to-profit ratio in its new business plan through 2027, as the state-controlled shipbuilder looks to avoid seeking new funds from investors, Chief Executive Officer Pierroberto Folgiero said in an interview in Milan. 

The new guidelines of the new strategic plan for 2023-2027 unveiled on Friday, Folgiero’s first as CEO, target a decline of the ratio between net debt and earnings before interest, tax, depreciation and amortization to 2.5 to 3.5 times in 2027 from 4.5 to 5.5 times in 2025, according to a statement. 

Folgiero said that Fincantieri won’t “need” a capital increase, considering the deleveraging targets embedded in the business plan.  

Fincantieri, owned by state-lender Cassa Depositi e Prestiti, is highlighting moves to optimize internal resources in areas that had seen duplication in recent years in a bid to return to profit in 2025. The company seeks to boost revenues to €9.8 billion in 2027.

The Trieste-based company is planning to revamp its business through sharing technologies and digitalizing construction processes across its three main branches: cruise vessels, military ships and offshore wind vessel. The plan includes a de-risking and repositioning of the infrastructure business, which counts for 6% of total revenues, according to Bloomberg data. 

Folgiero, 50, joined Fincantieri in May after a decade at energy engineering group Maire Tecnimont SpA, including a stint as CEO. 

–With assistance from Antonio Vanuzzo.

© 2022 Bloomberg L.P.

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