The general macro-economic uncertainty and the slow global growth projections continue to impact power generation markets. Based on weaker global ordering statistics in the first half-year, the overall market for natural gas and liquid fuel based power generation in 2013 is expected to decline. Ordering activity remains focused on the emerging markets, which continue to invest in new power generation capacity. In the OECD countries, there is still pent-up power sector demand, mainly driven by CO2 neutral generation and the ramp down of older, mainly coal-based generation.
Our outlook for the shipping and shipbuilding market in 2013 has improved. The lively ordering of product tankers, large containerships and gas carriers is expected to continue during the rest of the year. Furthermore, the offshore sector is expected to remain active, although with a different contracting mix that favours mobile drilling units and FPSOs more. Current emission regulations and the focus on fuel efficiency create interesting opportunities in gas fuelled vessels and environmental solutions. Financing is expected to remain difficult, but some signs of easing can be seen across the industry. Overall, the contracting mix is expected to be more balanced than in 2012, with activity in all major vessel segments.
The overall service market outlook remains stable. An increase in the installed base partly balances the slower service demand for older installations and the continued focus of merchant marine customers on reducing operating expenses. The outlook for services to the offshore industry and gas fuelled vessels remains positive. Demand for services in the power plant segment continues to be good, with opportunities for long-term agreements. The outlook for the Middle East and Asia remains slightly more positive, supported by interest in power plant related services. The outlook is also good in the Americas and in Africa.
Wärtsilä's prospects for 2013 revised
Wärtsilä specifies its net sales prospects for 2013. Based on the current order book, net sales for 2013 is expected to grow by 0-5%. Previously, Wärtsilä estimated that its net sales would grow by 0-10%. Wärtsilä reiterates its expectations that operational profitability (EBIT% before non-recurring items) will be around 11%.