Wärtsilä Corporation Interim Report Q3 2015

Order intake

Wärtsilä’s third quarter order intake totalled EUR 1,086 million (1,309), a decrease of 17% from the corresponding period last year. Compared to the previous quarter, order intake development was stable (EUR 1,159 million in the second quarter of 2015). The third quarter book-to-bill ratio was 0.89 (1.17).

Order intake for Energy Solutions totalled EUR 167 million (383) in the third quarter, which was 56% lower than in the corresponding period last year. Compared to the previous quarter, order intake decreased by 11% (EUR 188 million in the second quarter of 2015). Third quarter orders included a 40 MW industrial power plant contract in Kazakhstan.

Marine Solutions’ third quarter order intake totalled EUR 407 million (463), a decrease of 12% from the corresponding period last year. Compared to the previous quarter, order intake increased by 4% (EUR 392 million in the second quarter of 2015). Order intake for the recently acquired L-3 Marine Systems International developed well. Included in the third quarter order intake was the first order for the Wärtsilä 31 engine, which was launched in June. Three engines will be delivered to an icebreaker being built for FSUE Atomflot. Within environmental solutions, orders included exhaust gas cleaning systems for three passenger vessels as well as ballast water management systems for eleven container vessels. In the gas carrier segment, orders included two contracts to supply regasification modules to be installed on FSRU vessels owned by Höegh LNG from Norway. Gas carriers represented 37% of the third quarter order intake, while the conventional merchant segment accounted for 21%. The cruise & ferry segment’s share was 16%, special vessels represented 9% of the order intake, navy 6% and offshore 5%. Other orders accounted for 7% of the total.                                             

Order intake for the Services business totalled EUR 511 million (463) in the third quarter, an increase of 10% over the corresponding period last year. Compared to the previous quarter, order intake decreased by 12% due to the seasonal slowdown in demand for projects and long-term agreements (EUR 579 million in the second quarter of 2015). Orders signed in the third quarter included a five-year maintenance agreement with Teck Alaska Incorporated for its power plant at the Red Dog mine in Northwest Alaska.

The total order intake for the review period January-September 2015 was stable at EUR 3,529 million (3,562). The book-to-bill ratio for the review period was 1.03 (1.10). Energy Solutions’ order intake decreased by 19% to EUR 642 million (792). Marine Solutions’ order intake decreased by 12% to EUR 1,134 million (1,286). Services’ order intake totalled EUR 1,752 million (1,484), an increase of 18%.

 

Order intake by business
MEUR 7-9/2015 7-9/2014 Change 1-9/2015 1-9/2014 Change 2014
Energy Solutions 167 383 -56% 642 792 -19% 1 293
Marine Solutions1 407 463 -12% 1 134 1 286 -12% 1 746
Services 511 463 10% 1 752 1 484 18% 2 045
Order intake, total 1 086 1 309 -17% 3 529 3 562 -1% 5 084
1 MSI's contribution to order intake was EUR 113 million in the third quarter of 2015 and EUR 153 million in the review period January-September.
Order intake Energy Solutions
MW 7-9/2015 7-9/2014 Change 1-9/2015 1-9/2014 Change 2014
Oil 394 321 23% 1 082 791 37% 980
Gas 71 408 -83% 605 925 -35% 1 509
Order intake, total 465 730 -36% 1 687 1 716 -2% 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 163 million (126) during the review period January-September 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.

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