Market development

Power Plants

Good activity in gas based power generation markets

Power plant market activity was at a good level in the first quarter of 2013, and the amount of quoted MWs was higher than in the fourth quarter of 2012. Quotation activity remained focused on natural gas based generation. Supported by their economic growth, the emerging markets continued to invest in new power generation capacity. However, the volatility in the macro economy continues to delay investment decisions in the power generation markets overall.

Power Plants market share

During 2012, global orders for natural gas and liquid fuel based power generation (including all prime mover units of over five MW) totalled 75.4 GW, a decrease of 25% compared to 2011 (100.8). Wärtsilä's share represents 4.2% of the market (3.3%).

Ship Power

Activity in offshore and specialised vessels remained robust

During the first quarter of 2013, 286 contracts for new vessels were registered. This represents an increase in contracting activity of approximately 40% compared to the corresponding period in 2012. Competitive new building prices have attracted some investments in merchant vessels. The gas carrier market (LNG carriers and LPG carriers) continued to be active, with a total of 26 contracts registered during the first quarter of 2013. Moreover, contracting of offshore and specialised vessels remained robust.

China and South Korea captured 38% and 39% respectively of the contracts confirmed during the first quarter of 2013 in terms of compensated gross tonnage (CGT), while Japan secured 13%. 53 orders were placed outside of these top three shipbuilding countries during the first quarter.

Ship Power market shares

Wärtsilä's share of the medium-speed main engine market increased slightly to 48% (47% at the end of the previous quarter). The market share in low-speed engines decreased to 15% (18). In the auxiliary engine market, Wärtsilä's share remained at 4% (4).

Services

Good development in the Americas

Service market activity was somewhat slower during the first quarter of 2013. Overall marine service market activity was satisfactory, although slightly lower than the high level of demand in the fourth quarter of 2012. Europe continued to be the most challenging marine market, while the USA in particular developed favourably. The demand from IPP and utility customers for power plant related services remained at a good level, while demand from industrial customers was somewhat lower.

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