“Icon of the Seas” tears a hole in Meyer Turku’s balance sheet

The Finnish shipyard Meyer Turku, which belongs to the Papenburg-based Meyer Group, was unable to avoid a significant loss last year despite a jump in turnover.

The turnover of the Meyer Turku shipyard and its subsidiaries rose by 10.6% to €1.43bn in 2023, as has now been published[ds_preview].

This means that both turnover and the number of employees have increased for three consecutive years, the shipyard announced. But in the end, the company remains in the red: The loss for the 2023 financial year amounted to €103.8m – significantly higher than in previous years, when it was €15.6m and €17m.

Meyer, Turku, Werft, Schiffbau, Finnland, Kreuzfahrt
© Meyer Turku

“The shipyard company’s financial year 2023 was impacted by the ship deals concluded before the coronavirus pandemic, the new prototype ship project and the loss provision for the ship to be delivered in 2024,” said Meyer Turlu in its statement.

Shipyard CEO Tim Meyer emphasised the positive aspects: “The cruise industry has recovered to pre-pandemic levels, even beyond, and there is demand for our high-quality products. We are constantly making large financial investments in sustainable development, which is an important competitive factor for us and a natural part of the high-quality shipbuilding we are known for.” However, he added that in the meantime, “the increased general and financing costs together with the Covid pandemic and the war in Ukraine” had severely impacted the financial results in 2023.

Meyer Turku wants to improve cost efficiency

These have been extraordinary times for the construction of the world’s most complex cruise ship. The “Icon of the Seas” is considered a great success. However, every ship prototype incurs considerable costs, e.g. for product development. “With the continuation of the Icon series, our cost efficiency is improving, which means that ship after ship is becoming more profitable. We, therefore, remain optimistic about the future,” says Meyer.

Tui Cruises’ “Mein Schiff 7”, Meyer Turku’s first-ever methanol-capable ship, is currently at the fitting-out pier. The second ship in the Icon series, the “Star of the Seas”, which is due to be delivered in 2025, and the “Icon 3”, which will be completed in 2026, are also being built at the shipyard.

In addition to cruise ships, Meyer Turku is also focusing on other ship types: For example, two multi-purpose offshore patrol vessels are to be delivered to the Finnish Border Guard in 2025 and 2026.

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Copyright: Meyer Turku

Caption: Meyer Turku