The state-controlled group reported net financial debt of 3.3 billion at the end of June, up from 2.2 billion euros at the end of last year, unnerving investors who sold shares in the group after results.

The company's shares were 6.5% down at 950 GMT, compared to a broadly flat Italian all-share index.

"The debt increase is mainly due to the working capital dynamics in the cruise business," the company said in a statement adding that the debt figure is still affected by a payment extension strategy to customers implemented after the COVID-19 pandemic.

The first half loss came despite a positive business operating performance in the first half of 2022, with a 16% growth in revenues year-on-year.

The net financial position - weighed down by one-off items - is expected to slightly improve by the end of the year, said the company's Chief Executive Officer Pierroberto Folgiero during a conference call with analysts.

He cited the expected delivery of five cruise ships in the second half of 2022 in addition to savings and operation discipline to cope with an increase in raw material prices.

($1 = 0.9855 euros)

(Reporting by Francesco Zecchini)