Order intake

Fourth quarter order intake

Wärtsilä’s order intake for the fourth quarter of 2013 remained stable at EUR 1,351 million (1,357). In relation to the previous quarter, Wärtsilä’s order intake increased by 23% (EUR 1,097 million in the third quarter of 2013). The fourth quarter book-to-bill ratio was 0.96 (0.89).

Power Plants’ fourth quarter order intake totalled EUR 409 million (471), which was 13% less than for the corresponding period last year. Compared to the previous quarter, order intake increased by 57% (EUR 261 million in the third quarter of 2013). Significant orders were received from Indonesia and Mauritania.

The fourth quarter order intake for Ship Power totalled EUR 462 million (339), an increase of 36% compared to the corresponding period last year. Compared to the previous quarter, order intake increased by 22% (EUR 378 million in the third quarter of 2013). Ordering activity was highest in the offshore and merchant segments. Ship Power’s merchant related orders included an order for Wärtsilä X92 main engines to four container ships being built for Ciner Group based in Turkey, as well as an order for Wärtsilä’s new low-speed, low pressure dual-fuel engine to two environmentally advanced tankers for Terntank Rederi A/S. Ship Power also received an order to supply complete dual-fuel propulsion and LNG equipment to a new passenger ferry being built for Reederei Cassen Eils GmbH based in Germany. The ordering of environmental solutions continued, with Ship Power receiving orders for 11 exhaust gas cleaning systems during the fourth quarter. The merchant segment represented 44% of the fourth quarter order intake, while the offshore segment’s share was 37%. Special vessels and navy both accounted for 6% of the order intake, and the cruise & ferry segment represented 5%. Other orders accounted for 2%.

Order intake for the Services business totalled EUR 457 million (543) in the fourth quarter, a decrease of 16% compared to the corresponding period last year. Compared to the previous quarter, order intake increased by 1% (EUR 454 million in the third quarter of 2013).

Review period order intake

The total order intake for the review period January-December 2013 was EUR 4,872 million (4,940), which represents a decrease of 1% compared to the corresponding period in 2012. The book-to-bill ratio for the review period was 1.05 (1.05).

For the review period January-December 2013, the Power Plants order intake totalled EUR 1,292 million (1,515), a decrease of 15% compared to the previous year. This development is in line with the decline in the global power generation markets. 82% of the orders received, measured in MW, were for gas based power plants. In 2013, major orders were received for a 274 MW power plant from Jordan and a 220 MW power plant from Oregon, USA. Other important orders were received from Finland, Russia and Indonesia.

Ship Power’s order intake increased by 14% to EUR 1,662 million (1,453) during January-December 2013, reflecting the improvement in the marine market. Ordering was active in the offshore and special tonnage segments, as well as in the merchant segment. In line with the Ship Power strategy, Wärtsilä received several orders for the delivery of integrated solutions, including ship design, propulsion machinery, automation and other equipment. The ordering of environmental solutions picked up somewhat and Wärtsilä was awarded an order for its AQUARIUS®UV ballast water management system by Carboflotta Group, as well as exhaust gas cleaning system orders by TT-Line, Color Line and Messina among others. A total of 41 exhaust gas cleaning systems for 17 vessels were ordered during 2013. The interest in gas as a marine fuel continued throughout the year, and Ship Power received many orders for dual-fuel engines and gas related systems. Among these was the strategically interesting contract to supply a comprehensive solutions package, including the cargo handling system, the gas supply system, and the propulsion machinery, for a series of LNG carriers being built for the Danish operator Evergas. In the offshore segment, notable orders included supplying propulsion solutions for six new offshore pipe laying vessels being built for Subsea 7 and Seabras Sapura, as well as several orders for platform support vessels. The offshore segment represented 42% of the review period order intake, while the merchant segment’s share was 34% and cruise & ferry accounted for 8%. The special vessels segment's share was 7% and navy represented 6% of the order intake. Other orders accounted for 3%.

Services’ order intake for January-December 2013 decreased by 4% to EUR 1,885 million (1,961). During the review period, Wärtsilä signed important long-term operations and maintenance agreements with power plant customers in Africa, Australia and the USA. Wärtsilä was also awarded a service agreement by Viking Line for maintaining and servicing the gas-fuelled passenger ferry Viking Grace.

Order intake by business
MEUR 10-12/2013 10-12/2012 Change 1-12/2013 1-12/2012 Change
Power Plants 409 471 -13% 1 292 1 515 -15%
Ship Power 462 339 36% 1 662 1 453 14%
Services 457 543 -16% 1 885 1 961 -4%
Order intake, total 1 351 1 357 0% 4 872 4 940 -1%
Order intake Power Plants
MW 10-12/2013 10-12/2012 Change 1-12/2013 1-12/2012 Change
Oil 90 80 11% 444 796 -44%
Gas 526 652 -19% 1 957 2 323 -16%
Renewable fuels 27
Order intake, total 615 732 -16% 2 401 3 146 -24%

Order intake in joint ventures

Order intake in the Wärtsilä Hyundai Engine Company Ltd joint venture company in South Korea, and the Wärtsilä Qiyao Diesel Company Ltd joint venture company in China, producing auxiliary engines, totalled EUR 222 million (242) during the review period January-December 2013. Wärtsilä’s share of ownership in these companies is 50%, and the results are reported as a share of result of associates and joint ventures.


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