Representing a significant proportion of new build deliveries globally, the minimal impacts reported so far are promising for the Italian sector. However, as the list of sanctioned individuals grows, so too may the exposure to sanctioned clients. The following data supplied by The Superyacht Agency demonstrates just how significant Italian New Build output is, in relation to the wider industry. As well as the official statements, SuperyachtNews will provide a snapshot analysis of each shipyard's current output. 

The following statement was issued by Ferretti Group dated  March 9, 2022:

"Despite the critical geopolitical situation caused by the outbreak of the conflict between Russia and Ukraine, Ferretti Group foresees no significant consequences for business volume. 

With an order backlog of 1,272 million Euro as of 28 February 2022 and an Order Intake of 308 million Euro in the first two months of 2022, the Group, which is present in over 70 countries, has a geographically diversified commercial strategy and an exposure, in terms of revenues, of less than 3% to the areas currently involved in the conflict. Ferretti Group has no exposure to the mega and gigayacht segment - of greatest interest to the Russian elites most affected by international sanctions. Furthermore, as of today, the Group is not aware of any sales to subjects targeted by these sanctions. 

The company is monitoring market developments on an ongoing basis and mitigating any risk through a distribution model involving progress payments during construction and the possibility of reallocating series and semi-custom yachts thanks to waiting lists for almost all the models in the range." 

For context, the below graph, supplied by The Superyacht Agency highlights Ferretti Group's historical deliveries and order book. The order book for 2022 is looking disproportionately high compared to likely deliveries in 2022. The outlying nature of the data is likely due to a high number of vessels across Ferretti Group's custom and semi-custom ranges being built on speculation, and to be sold over the coming years. 

A similar sentiment was echoed by Sanlorenzo in an earlier statement:

In view of the geopolitical uncertainties, and in particular the conflict between Russia and Ukraine, Sanlorenzo S.p.A. (“Sanlorenzo” or the “Company”) announces that the backlog amount as of 31 January 2022, equal to €1,002.6 million, related to customers of Russian nationality does not reach 10% of the total, spread over three financial years.

The Company also specifies that these are subjects not affected by international sanctions, whose payments are regular, and as of today no order has been cancelled.

The Group, in line with the best practices of the companies listed on the international markets, constantly monitors the situation and the updates on international sanctions, in accordance with the strict Know Your Customer procedures and the Sanctions Compliance Program adopted by all Group companies.

Once again, as seen below, the Sanlorenzo data shows a similar trend, when taken across the entire range. The high number of vessels on the order book is likely the result of yachts from across all ranges being built on speculation, to be delivered gradually, in line with historic deliveries and proportionate with year on year growth. 

With a significant amount of uncertainty hanging over the sector, the caveat remains, how will the continued sanctions affect the new build sector? At present, and related to the official statements released from each of the Italian superyacht builders analysed, the impacts as related to signed contracts remain minimal. However, the high volume of yachts built on speculation may be substantially affected by the removal of a growing list of sanctioned Russian individuals from the buyer pool. SuperyachtNews will continue to monitor the situation, in conjunction with our colleagues in the Italian new build sector. 

The data provided within this article is just a snapshot of the data curated and available to The Superyacht Agency through its intelligence and consultancy offerings. By breaking down the data into more nuanced metrics and overlaying it with independent data sets, all of a sudden the market can be viewed in a much more colourful and detailed manner, enabling data to become intelligent and inform business-critical decisions. To find out more about how The Superyacht Agency can help your business, click here.

Profile links

Ferretti SpA

Sanlorenzo

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