It does not receive public funding
Editor in chief:

Facebook Twitter Youtube Instagram LinkedIn

Avio: first half 2021 results

Vega returned to flight with two missions -ATTACHMENT

The Board of Directors of Avio SpA, reference aerospace company listed on the STAR segment of the Italian Stock Exchange, today reviewed and approved the HY 2021 results.

The highlights:

Continuity of operations during COVID-19 lockdown in Italy

Return to flight with 2 Vega and 1 Ariane 5 missions completed in 2021

Vega C and Ariane 6 maiden flights expected by 2022

Financial results

Net order backlog: Euro 835 million (+13% on December 2020)

Revenues: Euro 127.7 million (-24% on HY 2020)

EBITDA: Reported Euro 8.1 million (-52%) – Adjusted: Euro 10.5 million (-47%)

EBIT: Reported Euro -2.4 million (-10.9 million on HY 2020) – Adjusted: Euro 0.0 million (-11.5 million on HY 2020)

Net result of the period: Euro -2.4 million (-10.9 million on HY 2020)

Net cash position: Euro 36.6 million

Guidance 2021

Net order backlog: Euro 850-900 million

Revenues: Euro 300-330 million

EBITDA Reported: Euro 30-32 million

Net income: Euro 10-12 million.

In the first months of 2021 the activities required by the implementation of set of recommendations issued by the VV17 Independent Enquiry Commission has required a sizeable resources commitment, with the consequence postponing of some development activities previously expected in the first half of 2021 on the Vega C and Vega E launchers, with effects on the revenues and margins associated with these activities. This was the main factor causing the shift in results in HY 2021 with respect to HY 2020.

These efforts led the Vega launcher to complete its VV18 return to flight mission on the 29th of April 2021, carrying the first satellite of the Pléiades Neo constellation for Airbus Defense & Space, along with 5 other payloads in rideshare on a SSMS derived payload adapter. Confirming the effectiveness of the activities performed, Vega also successfully completed a second mission in August 2021 putting into orbit the second satellite for the Pléiades Neo constellation along with 4 other smaller payloads. Also, at the end of July, the first 2021 launch of Ariane 5 took place successfully.

For the remaining part of the year another Vega and another 2 Ariane 5 missions are being readied for launch, with a parallel acceleration in the development activities for Vega C and Vega E, with the target of performing the Maiden Flight of Vega C in the first quarter of 2022, and also the firing test of the new engine Mira M10 for the third stage of the Vega E launcher in the new test facility SPTF in Sardinia. The Maiden Flight of Ariane 6 is also expected in the second quarter of 2022.

The Net order backlog shows a significant increase to Euro 835 million (+13% compared with December 2020), including contracts mainly for Vega E development activities until 2024, with also an order for Aster 30 signed in June, to cover production activities for around 10 years.

Avio group recorded, in the first semester 2021, revenues equal to Euro 127.7 million, down (-24%) compared to the first half of 2020. The decrease in revenues is mainly due to the postponement of the development activities for Vega C and Vega E beyond the semester, which caused a delay in recording revenues, and also due to the already ongoing Ariane 5 phase-out, only partially balanced by the ramp-up of Ariane 6 production.

The Reported EBITDA, amounting to 8.1 million Euros, marks a decrease compared to the previous year, mainly due to reduction in revenues and the lower capacity to absorb the industrial fixed costs, only partially compensated by positive contribution of the Ariane 5 phase-out and a reduction in general & administrative expenses.

The Reported EBIT, amounting to -2.4 million Euros, marks a decrease with respect to the previous year, also due to the increase in depreciation and amortization expense for the phased-in industrial investments for the P120 engine production.

The impact of non-recurring charges is quantifiable in approximately €2.4 million (Euro 3.0 million in HY 2020), of which Euro 1.8 million are related to Covid-19 costs, which are excluded from both the Adjusted EBITDA (€10.5 million, -47% on HY 2020) and the Adjusted EBIT (€0.0 million).

The Net result for the period amounts to -2.4 million Euros, following the dynamics of Reported EBIT due to the limited impact of financial expenses and taxes.

The Net Cash Position as of the 30th June 2021 is equal to Euro 36.6 million (Euro 62.6 million Euro as of 31st December 2020) with a better-than the ordinary trend due to company’s working capital decrease and despite also the resumption in dividend distribution and a significant level of investments of Euro 14.8 million (+20% vs HY 2020). The solid net cash position allows the Group to face the next growth challenges.

The Board of Directors also approved the Guidance for the FY 2021 results, quantifying it as follows:

Net order backlog: Euro 850-900 million

Revenues: Euro 300-330 million

Reported EBITDA: Euro 30-32 million

Net income: Euro 10-12 million

"The first half of 2021 confirmed, once again, the strength of our Company which, despite the difficulties linked to Covid-19, remained resilient and focused on long term objectives, as demonstrated by the growth in backlog", said Giulio Ranzo, CEO of Avio. "In these months we maintained continuity of operations, launching Ariane 5 in July and, a few days ago, Vega. We are already working in Guyana on the new VV20 flight, which is scheduled in November, and immediately afterwards, we will start the final preparations for the maiden flight of Vega C, the new and most high-performance space launcher produced in Colleferro. At the same time, in 2022, the inaugural launch of Ariane 6 is also scheduled, for which Avio will produce the P120C engine, the largest monolithic propeller in the world made of carbon fibre, which also powers Vega C”.

“Finally -concludes Giulio Ranzo- in the next few weeks we will inaugurate the new SPTF plant in Sardinia, where the new-generation liquid propellant (oxygen and methane) 'green' space engines that will power Vega E in the coming years will be tested”.

The integral version of the report (ten pages) is attached to this AVIONEWS

red - 1238879

AVIONEWS - World Aeronautical Press Agency