Wärtsilä’s order intake for the financial period January-December 2015 was EUR 4,932 million (5,084), which represents a decrease of 3% compared to the corresponding period in 2014. The book-to-bill ratio for the financial period was 0.98 (1.06).
Order intake for Energy Solutions totalled EUR 1,009 million (1,293), a decrease of 22% from the corresponding period last year. Of the orders received, measured in MW, 46% were for gas based power plants. Turkish owners contributed to the high level of activity in Europe, while in the USA several orders were received for peaking and renewable support power plants.
Marine Solutions’ order intake declined by 8% to EUR 1,599 million (1,746). Considering the general slowdown in vessel contracting and the further weakening of the offshore market, this was a satisfactory result. Order intake for Marine Systems International, acquired during the financial period, developed well. The gas carrier segment represented 38% of the order intake, while the conventional merchant share was 18% and cruise & ferry accounted for 15%. The special vessels segment represented 10%, the offshore segment 8%, and navy 4%. Other orders accounted for 6%. In line with the Marine Solutions strategy, Wärtsilä received several orders for the delivery of integrated solutions. Highlights included the contract to supply engines, controllable pitch propellers, transverse thrusters, and an LNGPac gas supply and storage system to the world’s first duel-fuelled dredger being built for DEME Group. Other strategically significant orders included the first order for the new generation Wärtsilä 31 engine, which was launched in June. Interest in environmental solutions continued to increase during 2015. A noteworthy order in this respect was the contract to retrofit eleven container vessels owned by Bernhard Schulte GmbH & Co. KG with Wärtsilä Aquarius Ballast Water Management Systems. The development in exhaust gas cleaning systems orders was stable. During 2015, the Wärtsilä 34DF engine strengthened its market position, with three major South Korean shipyards supporting the use of this engine for auxiliary applications in the LNG carrier segment.
Services’ order intake increased by 14%, totalling EUR 2,324 million (2,045), supported by increased demand for service projects and long-term agreements. Larger service projects included an order from Shanghai Electric Power to convert the Maltese Delimara Power Station to operate on natural gas, as well as several propulsion system upgrade projects. Customers with gas fuelled vessels showed particular interest in signing long-term agreements. The signed contracts included a 5-year technical management agreement with Golar Management Oslo for its LNG carrier fleet, and a maintenance agreement with GasLog LNG Services Limited to ensure the reliable operation of GasLog’s seven LNG carriers. Power plant related service agreements included a 10-year operations and maintenance agreement for Central Generadora Electrica Huinala’s flexicycle power plant, located near Monterrey, Mexico.
Order intake in joint ventures
Order intake in the Wärtsilä Hyundai Engine Company Ltd joint venture company in South Korea, and in the Wärtsilä Qiyao Diesel Company Ltd and CSSC Wärtsilä Engine (Shanghai) Co. Ltd joint venture companies in China totalled EUR 182 million (306) during the financial period January-December 2015. The results of these companies are reported as a share of the result of associates and joint ventures.
The total order book at the end of the financial period amounted to EUR 4,882 million (4,530), an increase of 8%. The Energy Solutions order book decreased by 7%, totalling EUR 1,366 million (1,475). The Marine Solutions order book increased by 16% to EUR 2,558 million (2,213). The Services order book totalled EUR 958 million (842), an increase of 14%.