Wärtsilä Corporation Interim Report q1 2014

Order intake

Wärtsilä’s first quarter order intake totalled EUR 1,142 million (1,352), a decrease of 16% compared to both the corresponding period last year and the previous quarter (EUR 1,351 million in the fourth quarter of 2013). The first quarter book-to-bill ratio was 1.13 (1.53). 

The first quarter order intake for Power Plants totalled EUR 165 million (406), which was 59% less than for the corresponding period last year. Compared to the previous quarter, the order intake decreased by 60% (EUR 409 million in the fourth quarter of 2013). Ordering was most active in the Middle East and Africa.

The first quarter order intake for Ship Power totalled EUR 467 million (443), an increase of 5% compared to the corresponding period last year. Compared to the previous quarter, the order intake decreased by 4% (EUR 486 million in the fourth quarter of 2013). Ordering activity was highest in the merchant and offshore segments. Offshore related orders included an order to supply the design and integrated solutions for four new platform supply vessels being built for Siem Offshore. In the merchant segment a Wärtsilä licensee received an important order to supply Wärtsilä’s new 2-stroke, dual-fuel engine for an LNG carrier vessel being built for the Chinese ship owner and operator Zheijiang Huaxiang Shipping Co. Ltd. Wärtsilä will provide the vessel with a gas valve unit. During the first quarter, orders were received for six exhaust gas cleaning systems for four vessels and there is increasing interest for Wärtsilä’s environmental solutions. Orders were also received for ballast water management systems, including an order to retrofit two Ro-Ro ferries owned by UK based Condor Ferries with the new Aquarius ready solution. The merchant segment represented 62% of the first quarter order intake, while the offshore segment’s share was 33%. Special vessels’ share of order intake was 4%. Other orders accounted for 2% of the total.                                            

Order intake for the Services business totalled EUR 510 million (504) in the first quarter of 2014, an increase of 1% compared to the corresponding period last year. Compared to the previous quarter, the order intake increased by 12% (EUR 457 million in the fourth quarter of 2013). During the first quarter, Wärtsilä signed a three year service agreement with Van Oord, a Dutch dredging and offshore contractor. Wärtsilä also received an order for the technical design and installation of a new fixed pitch propeller for an Australian FPSO conversion project.

Order intake by business
MEUR 1-3/2014 1-3/2013 Change 2013
Power Plants 165 406 -59% 1 292
Ship Power 467 443 5% 1 695
Services 510 504 1% 1,885
Order intake, total 1 142 1,352  -16% 4,872
The Ship Power comparison figures have been adjusted to reflect the combination of PowerTech and Ship Power, which became effective on 1 January 2014.
Order intake Power Plants
MW 1-3/2014 1-3/2013 Change 2013
Oil 161 138 17% 444
Gas 236 622 -62% 1 957
Order intake, total  396 760 -48% 2,401

Order intake in joint ventures

Order intake in the South Korean joint venture Wärtsilä Hyundai Engine Company Ltd and the Chinese joint venture Wärtsilä Qiyao Diesel Company Ltd totalled EUR 25 million (25) during the review period January-March 2014. 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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