Fourth quarter order intake
Wärtsilä’s fourth quarter order intake totalled EUR 1,874 million (1,514), an increase of 24% over the corresponding period last year. The book-to-bill ratio was 1.22 (1.05).
The order intake for the Services business increased by 24% to EUR 865 million (696). In addition to continued demand for exhaust gas cleaning retrofit projects, orders received in the marine markets included the first ever Wärtsilä 31 engine retrofit project for a fishing vessel delivering the owner, Gardar AS in Norway, major NOx and fuel savings. Wärtsilä also signed a three-year operation and maintenance agreement for a 130 MW power plant delivered to Mexico during the quarter.
Order intake for Energy Solutions increased by 18% to EUR 589 million (501). The most active markets were Asia and the Americas. Received orders included a 378 MW plant running on liquefied natural gas in El Salvador, as well as several projects in Bangladesh and Indonesia. Wärtsilä also received a strategically important order in Germany for a 90 MW combined heat and power plant featuring Wärtsilä 31SG engines.
Marine Solutions’ order intake totalled EUR 419 million (316), an increase of 33% compared to the corresponding period last year. Ordering momentum continued in the cruise and ferry segment, which represented 31% of the fourth quarter order intake. The gas carrier segment accounted for 18%, while the conventional merchant segment’s share was 16%. Special vessels represented 19%, the offshore segment 9% and navy 6% of the total. Other orders accounted for 1%.
Review period order intake
Wärtsilä’s order intake for the review period January-December 2018 increased by 12% to EUR 6,307 million (5,644). The book-to-bill ratio was 1.22 (1.15).
Services’ order intake increased by 16% to EUR 3,086 million (2,670), thanks to the strong demand for exhaust gas cleaning retrofit projects and continued demand for long-term service agreements. In the marine markets, highlights of the year included a EUR 170 million order for hybrid scrubber systems and retrofit services from a major European container shipping company, as well as the extension of Wärtsilä’s service agreement with Royal Caribbean to the year 2028. Important agreements signed in the energy markets included a 10-year asset management agreement for a power station in Papua New Guinea, as well as a 10-year maintenance and operational advisory agreement with Hawaiian Electric Co.
Energy Solutions’ order intake amounted to EUR 1,511 million (1,685), which represents a 10% decrease from the corresponding period last year. Asia was the most active region in terms of ordering activity, followed by the Americas. Demand was good in Bangladesh, where the government continues its efforts to increase the number of households with access to electricity, as well as in growing economies such as Indonesia. In the developed markets, Wärtsilä received major contracts in Australia and the USA to support the expansion of renewable energy. Wärtsilä also received several energy storage and grid management software orders during the year.
Marine Solutions’ order intake increased by 33% to EUR 1,710 million (1,288). Several orders were received from major cruise companies, contributing to strong order activity in the cruise and ferry segment, which represented 30% of the order intake. The demand for environmental solutions continued throughout the year, largely as a result of the approaching IMO 2020 regulations. A considerable number of scrubber systems were ordered for newbuild vessels, particularly in the merchant segment, which amounted to 28% of the order intake. Other significant orders received in this segment included the supply of volatile organic compounds (VOC) recovery technology, LNG fuel gas handling systems, and the auxiliary engines for two new shuttle tankers being built for Singapore based AET Tankers, as well as solutions for shuttle tankers being built for TEEKAY. The gas carrier’s share of the order intake was 14%, while special vessels represented 8%, navy 8%, and offshore 7% of the total. Other orders accounted for 5%.
|Order intake by business|
|Services||865||696||24%||3 086||2 670||16%|
|Energy Solutions||589||501||18%||1 511||1 685||-10%|
|Marine Solutions||419||316||33%||1 710||1 288||33%|
|Order intake, total||1 874||1 514||24%||6 307||5 644||12%|
|Due to the internal reorganisation of service activities, EUR 50 million was transferred from Marine Solutions to Services in the figures for the fourth quarter of 2017 and EUR 190 million for the full year.|
|Order intake Energy Solutions|
|Gas||813||526||55%||1 941||1 938||0%|
|Order intake, total||992||920||8%||2 905||3 775||-23%|
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, CSSC Wärtsilä Engine Company Ltd. and CSSC Wärtsilä Electrical & Automation Company Ltd. joint venture companies in China totalled EUR 156 million (70) during the review period January-December 2018. The results of these companies are reported as a share of the result of associates and joint ventures.