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Reporting segment: Wärtsilä Marine Business

In the marine and oil & gas industries, no other company has a broader offering of technologically advanced, environmentally sustainable, and economically sound solutions. Wärtsilä is leading the industry’s transformation towards a Smart Marine Ecosystem, whereby real-time communication and the digitalisation of all aspects of shipping and port operations, are utilised to create long-term value for customers and partners. With an integrated product portfolio comprising full lifecycle solutions that are supported by the market’s most extensive service network, Wärtsilä is able to optimise performance and achieve the safest, smartest, most ecological and efficient operating profiles possible.

  • Order intake increased by 5% to EUR 922 million (877)
  • Net sales increased by 18% to EUR 733 million (619)
  • Comparable operating result totalled EUR 61 million (57), which represents 8.3% of net sales (9.3)
Key figures
MEUR 1-3/2019 Restated
1-3/2018
Change Restated
2018
Order intake 922 877 5% 3 945
of which services 412 449 -8% 1 747
Order book, end of period 3 861 2 818 37% 3 651
Net sales 733 619 18% 2 815
of which services 370 355 4% 1 577
Book-to-bill 1.26 1.42 1.40
Operating result 55 55 0% 349
% of net sales 7.5 8.8 12.4
Comparable operating result 61 57 6% 380
% of net sales 8.3 9.3 13.5
Personnel 13 467 12 618 7% 13 582

Operating environment

During the first quarter of 2019, 227 contracts for new vessels were registered (192). The market sentiment in the gas carrier segment continued to be positive, thanks to increasing demand for liquified natural gas (LNG) and favourable short- to long-term market trends for cleaner fuels. Market conditions in container, tanker, and bulk shipping were adversely affected by the continued uncertainty in world trade. Contracting activity was healthy in the cruise segment, supported by the need for modern capacity to match the anticipated growth in cruise passenger numbers. In the ferry segment, investments were mainly related to fleet replacements. The offshore market continued to be challenging, due to the lower amount of investment decisions, the reactivation of existing fleets, and the current order book volumes.

Approaching deadlines relating to the 2020 global sulphur cap and the requirement for ballast water management systems are impacting vessel owners and operators. The uncertainty over future pricing and availability of compliant fuels have led to an uptake of scrubber technology.

Activity in the marine services market was solid. The demand for services was at a good level in the merchant segment, particularly in the gas carrier sub-segment. The offshore services market showed some signals of increased activity, with opportunities linked to the reactivation of laid-up offshore support vessels. 

Financial development

Wärtsilä Marine’s order intake totalled EUR 922 million (877) during the review period January-March 2019, an increase of 5% compared to the corresponding period last year. Book-to-bill was 1.26 (1.42). Services orders decreased by 8% to EUR 412 million (449), while equipment orders increased by 19% to EUR 511 million (428).

Demand was highest in the merchant segment, which, including both traditional merchant vessels and gas carriers, represented 52% and 36% of the order intake of equipment and services respectively. Equipment orders received included an integrated propulsion and cargo handling solution for an LNG carrier built at the Hyundai Mipo Dockyard (HMD) in South Korea on behalf of Norway based Knutsen OAS Shipping. Services orders included a long-term maintenance agreement with Japanese LNG shipowner Tokyo LNG Tanker Co. Ltd, a subsidiary of Tokyo Gas. Activity was also strong in the cruise and ferry segment, where Wärtsilä was awarded a contract to supply an integrated package of products, systems, and solutions to Wasaline’s new, efficient and environmentally sustainable RoPax ferry.

The order book at the end of the period amounted to EUR 3,861 million (2,818), which is 37% higher than last year, thanks largely to the strong demand for exhaust gas cleaning systems.

Net sales increased by 18% to EUR 733 million (619) compared to the corresponding period last year. Services net sales increased by 4% to EUR 370 million (355), while equipment net sales increased by 38% to EUR 363 million (264).

The comparable operating result was EUR 61 million (57), or 8.3% of net sales (9.3). Profitability was affected by the strong growth in equipment deliveries.

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