Finmeccanica: 3.5 billion contract with Fincantieri for renewal … – Finanzaonline.com

Finmeccanica and Fincantieri will build and equip the units contained in the plan for renewal of the fleet of the Navy . So a joint statement between the two groups. Under the plan, OCCAR (Organisation de Cooperation Conjointe sur l’Armement, the international organization for cooperation on armaments) signed the order to execute the contract with the temporary consortium (RTI), formed between Fincantieri , agent, and Finmeccanica, through Selex Es, principal, for the construction of six patrol boats with four additional optional (PPA, or Multipurpose Offshore Patrol) and a unit of logistics support (LSS or Logistic Support Ship). The value of the contracts of the seven units is approximately 3.5 billion euro , of which the share of Fincantieri is approximately 2.3 billion euro, while that of Finmeccanica is approximately 1 , 2 billion euro.

The contracts provide for different stages of activation and today OCCAR triggered the Phase 1 on the activities in preparation for the construction of the first PPA and the support unit logistics, for a total value of 372 million euro, of which the share Fincantieri is 220 million euro and that of Finmeccanica amounted to 152 million euro. The activation of the Next Steps relating to other units is expected in the coming months . The delivery unit of logistical support is expected in 2019, while for the first patrol boat is expected in 2021. The deliveries of the next patrol boats are scheduled in 2022, 2023, 2024 with two units and in 2025.

In general, the statement said, the multiannual program for the renewal of the fleet of the Navy (the so-called Law naval ) uses a total funding of 5.4 billion euro and it involves the construction, in addition to the above units, a unit from transport and unloading through the form of a public contract with the Administration of Defense Italian, whose finalization is in progress.

“ The news is clearly good – comment the analsiti of Banca Akros in the report today – but we stress that the mentioned Law Naval envisages investments 5.4 billion euro dating back to the fourth quarter of 2013. The contracts today were then expected to materialize. ” Experts confirm that the buy rating on Finmeccanica, with a target price of EUR 13.5 , also point out that according to the white paper of the Italian Navy, the service might need further 5 billion of investments in order to avoid excessive depletion of the fleet. “We rebranded also that the construction of new vessels for the Italian Navy can be a first step to sell similar platforms abroad”.

Finmeccanica announce the results this afternoon : “The first quarter will not be particularly significant for seasonal reasons,” says Banca Akros that it expects revenue growth of 3.6% year on year to 2.64 billion and an EBITA rising by 16.1% to 164 million euro. Net income is expected to be 11.3 million euro. “We expect that new orders touch the 2.6 billion”, essentially flat compared to last year, while net debt, 4 billion in late 2014, is forecast at about of € 5,000,000,000 to 5.1000000000.