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Jaakko Eskola, President & CEO

“While the first half of 2019 was generally marked by stable development in our net sales and profitability, our performance in the second quarter was burdened by fewer power plant deliveries, as well as an unfavourable project and equipment mix.

Order intake for the first six months was below that of the previous year, largely resulting from the continued macroeconomic and geopolitical uncertainty that has prolonged customer decision-making in the energy markets. Orders received in the Marine Business remained stable during the same period, as newbuild contracting has favoured the more specialised vessel segments. Nevertheless, uncertainty regarding fuel price development has slowed scrubber orders, which, in combination with concerns related to lower overall vessel contracting volumes, has prompted us to lower our marine demand outlook for the coming twelve months. The outlook for the energy markets has also been lowered, as we expect market conditions to remain challenging in the near-term. In contrast to the softer demand trends in the equipment markets, I am pleased to note that the growth in services related sales has continued in both businesses throughout the second quarter.

The phasing of the order book indicates that volume related challenges will continue in the coming months, followed by unusually strong deliveries in the fourth quarter. Successful delivery execution, the implementation of ongoing realignment actions, and finalising certain power plant contracts will be central to our financial performance this year.

Looking beyond 2019, we are well placed to benefit from the demand for energy efficiency and the shift to low-carbon energy sources in both of our end-markets. We remain focused on improving operational efficiency and delivering increased lifecycle value to further strengthen our competitive position.”

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