Wärtsilä Corporation Interim Report Q1 2015

Order intake

Wärtsilä’s first quarter order intake totalled EUR 1,285 million (1,115), an increase of 15% compared to the corresponding period last year. Compared to the previous quarter, order intake decreased by 16% (EUR 1,522 million in the fourth quarter of 2014). The first quarter book-to-bill ratio was 1.30 (1.12).

The order intake for Power Plants totalled EUR 287 million (165), which was 74% more than for the corresponding period last year. Compared to the previous quarter, order intake decreased by 43% (EUR 501 million in the fourth quarter of 2014). Orders received included a EUR 120 million order from a European based customer with international operations, a 135 MW project in Central Africa, and a 56 MW peaking and wind support power plant in the USA.

Ship Power’s order intake totalled EUR 336 million (440), a decrease of 24% compared to the corresponding period last year. Compared to the previous quarter, order intake decreased by 27% (EUR 460 million in the fourth quarter of 2014). In the merchant segment, Wärtsilä received an order to supply twenty generating sets for a series of five container vessels being built for COSCO (China Ocean Shipping Group) at the Hudong-Zhonghua Shipbuilding Group yard in China. The generating sets will be produced by the Wärtsilä Yuchai Engine Co. Ltd. joint venture. Wärtsilä also received an order to supply Wärtsilä Aquarius UV explosion proof ballast water management systems to a series of eight new chemical tankers. In the cruise & ferry segment, Wärtsilä was contracted to supply dual-fuel engines and fixed pitch propellers to a new fast ropax ferry ordered by Tallink Grupp, based in Estonia. The ship will be built at the Meyer Turku shipyard in Finland. First quarter orders also included a contract to supply reliquefaction equipment to an LNG terminal project in the UK. Gas carriers represented 41% of the first quarter order intake, while the conventional merchant segment accounted for 18%. Offshore, cruise & ferry and special vessels each accounted for 11%. Navy represented 3% and other orders 5% of the total.                                               

Supported by certain larger project orders, Services order intake increased by 30% to EUR 662 million (510). During the quarter, Wärtsilä received an order from Shanghai Electric Power to convert the Maltese Delimara Power Station to operate on natural gas. Wärtsilä also signed a 3-year service agreement with Newcrest Mining Limited covering major engine servicing and spare parts for three power plants in the Lihir gold mine in Papua New Guinea, and a 5-year technical management agreement with Golar Management Oslo for its LNG carrier fleet.

Order intake by business
MEUR 1-3/2015 1-3/2014 Change 2014
Power Plants 287 165 74% 1 293
Ship Power 336 440 -24% 1 746
Services 662 510 30% 2 045
Order intake, total 1 285 1 115 15% 5 084
Order intake Power Plants
MW 1-3/2015 1-3/2014 Change 2014
Oil 452 160 182% 980
Gas 251 236 6% 1 509
Order intake, total 702  396 77% 2 489

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 totalled EUR 138 million (25) during the review period January-March 2015. Wärtsilä’s share of ownership in these companies is 50%, and the results are reported as a share of the result of associates and joint ventures. During the first quarter, Wärtsilä Hyundai Engine Company Ltd received an order to supply 30 dual-fuel engines to power icebreaking LNG carriers. The vessels will operate in arctic conditions to serve the Yamal LNG project in Northern Russia.

Note

Make a note?

Close

For the best experience of our Annual Report, please update your browser to a newer version.