Fincantieri has reported a net loss of 9 million euro on revenues of 2.2 billion euro for the first six months of 2015, compared to net income of 48 million euro on revenues of 2 billion euro for the same period last year.

Revenues were up due the higher volume of cruise ship building, with 11 ships under construction, yet were offset by depressed pricing for cruise ships and the challenging offshore market.

Fincantieri said in a prepared statement that despite the increase in segment revenue, “it should be noted that the margins on cruise ships currently under construction, most of which are prototypes, reflect severely depressed prices agreed to during the crisis.”

Thus, Fincantieri said it is engaged in achieving significant growth in volumes and has embarked on an extensive reorganization, without resorting to layoffs, and is working to rebuild the subcontractor network which has been seriously undermined by years of crisis.

Already this year, the yard delivered the Britannia to P&O, the Viking Star to Viking Ocean, and Le Lyrial to Ponant. Five cruise ships are scheduled for deliveries next year, of which four are prototypes.

Going forward, Fincantieri has a record order backlog estimated at some 19 billion euro. Earlier this year, the yard signed a memorandum of agreement with Carnival Corporation for five next-generation ships to be built over the period 2019-2022, including options for additional ships in coming years.

The company also signed a binding letter of agreement with Virgin Cruises for three ships.

Its cruise orderbook counts 22 cruise ships through 2022.

During the first six months, shipbuilding accounted for 68.3 percent of revenues and in the order backlog shipbuilding represents 70 percent of the contract values.

In other developments, an association known as Vessels of the Future was launched in February with Fincantieri and Rolls-Royce as founding members. The objective is to promote research, development and innovation in the maritime field. The yard has also launched an Active Safety training program, aimed at reducing injuries among the workforce at its yards.

Fincantieri said it is also working to achieve “better labor relations suited to competing in a global market.”

In addition, earlier this month, Fincantieri established a Shanghai-based subsidiary under the name of Fincantieri Shanghai Trading. This is part of the company’s expansion strategy, seeking opportunities offered by the Chinese market in several sectors, including cruise, repairs and conversions, offshore and marine systems and equipment.