Fourth quarter order intake
Wärtsilä’s fourth quarter order intake totalled EUR 1,514 million (1,324), an increase of 14% over the corresponding period last year. The fourth quarter book-to-bill ratio was 1.05 (0.85).
The fourth quarter order intake for the Services business increased by 14% to EUR 646 million (565). Demand improved particularly in long-term service agreements. Orders received during the quarter included one for retrofitting an energy storage system onboard the North Sea Giant, one of the largest and most advanced sub-sea construction vessels in the world. The system reduces the vessel’s energy consumption, operating costs, and exhaust emissions.
Order intake for Energy Solutions was stable at EUR 501 million (501) in the fourth quarter. Demand was strongest in the Americas and in Asia. Significant orders received from these regions included a 200 MW natural gas plant in Arizona and a 130 MW gas plant in Mexico, as well as three new projects in Indonesia and Bangladesh. Wärtsilä was also contracted to supply a 52 MWp solar PV plant to Jordan. In addition to power generation solutions, energy storage and software orders were received for projects in the USA, Singapore, and Portugal.
Marine Solutions’ fourth quarter order intake totalled EUR 366 million (258), an increase of 42% compared to the corresponding period last year. Activity was strongest in the merchant segment, where Wärtsilä received a sizeable order for four new shuttle tankers from TEEKAY, of which two were included in the order intake for the fourth quarter. The vessels will feature a wide range of Wärtsilä’s latest technology innovations, which enables them to reach a new level of economic and ecological performance. Among other orders received was a contract to supply engines, the navigation system, and a broad scope of other products and systems for a new environmentally friendly luxury ferry being built for the Finland based operator Viking Line at the Xiamen Shipbuilding Industry yard in China. Wärtsilä’s SmartPredict system, launched during the year, is part of the scope, providing the vessel greater safety and more efficient operations. Another strategically interesting order was the contract to provide two Wärtsilä HY 2 hybrid power modules for a new escort tug being built at GONDAN Shipbuilders in Spain for the Swedish port of Luleå. The conventional merchant segment represented 38% of the fourth quarter order intake. The cruise and ferry segment’s share was 22%, and the gas carrier segment accounted for 20%. The offshore segment’s share was 4%, while navy represented 5%, special vessels 6%, and other orders 5% of the total.
Review period order intake
Wärtsilä’s order intake for the review period January-December 2017 increased by 15% to EUR 5,644 million (4,927). The book-to-bill ratio for the review period was 1.15 (1.03).
Services’ order intake for the review period increased by 13% to EUR 2,481 million (2,194), thanks to higher demand for long-term service agreements in both the marine and energy markets. The highlight of the year was the strategic performance-based partnership with Carnival Corporation. According to the agreement, Wärtsilä will handle all engine maintenance and monitoring work for 79 Carnival vessels. A strategically interesting order was the contract with Belize Electric Company Limited (BECOL) for a plant upgrade with high quality hydroelectric solutions and technical support, which expands the business of American Hydro, a Wärtsilä company, to Central America.
Energy Solutions’ order intake for the review period was EUR 1,685 million (1,448), which represents an increase of 16% from the previous year. Asia was the most active region in terms of ordering activity. Demand was particularly good in growing economies, such as Indonesia, and in Bangladesh, where the government is making a strong effort to increase the number of households having access to electricity. In the developed markets, Wärtsilä received orders for two 50 MW power plants from the UK and contracts exceeding 500 MW to support the expansion of renewable energy in the USA. During the year, Wärtsilä also received a turnkey order to build a liquefied natural gas (LNG) receiving terminal, with a net storage capacity of 30,000 m3, in Hamina, Finland.
Marine Solutions’ review period order intake increased by 15% to EUR 1,478 million (1,285). Expectations for growth in cruise tourism supported demand in the cruise and ferry segment, which represented 31% of Marine Solutions’ order intake. Significant orders included a contract to supply the main engines and exhaust gas cleaning systems to Norwegian Cruise Line’s four new generation cruise ships being built by Fincantieri. The gas carriers’ share of the order intake was 25%, largely due to improved demand for FSRUs. Orders received within this segment included a contract to equip two new vessels being built for Höegh LNG at the Samsung Heavy Industries and Hyundai Heavy Industries shipyards in Korea, with dual-fuel main engines and regasification technology. The conventional merchant segment’s share of the order intake was 23%, while special vessels represented 8%, navy 7%, and offshore 3% of the total. Other orders accounted for 4%.