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Finland-based Wärtsilä group has seen a positive first half of the year – with the power plant business taking a big share of the growth. However, for the full year an unchanged result is expected.

The order intake increased 13% to 2,776 mill. €, net sales grew by 6% to 2,299 mil[ds_preview]l. €, the engine manufacaturer, hybrid power specialist and power plant group revealed today. The »comparable operating result« increased from 206 to 211 mill. €, which represents 9.2% of net sales. Earnings per share increased from 0.49 to to 0.66 €. At the end of June, the order book amounted to 5,065 mill. €. At the same time of 2016, it was 5,083 mill. €.

Jaakko Eskola 045
Jaako Eskola (Photo: Wärtsilä)

However, Jaako Eskola, President and CEO of Wärtsilä confirmed that a major contribution for the result came from a non-maritime field: »The first half of 2017 was characterised by good development in net sales, largely due to an increase in the number of power plant deliveries, as well as by solid earnings.« He added that the order intake developed well in all business areas. The power plant project pipeline has continued to materialise into orders at a healthy pace, thanks to the growing interest in flexible, gas-fired technologies.

»Furthermore, although the marine markets remain challenging, a favourable vessel contracting mix supported the development of Marine Solutions‘ orders received, particularly in the second quarter. Activity in the service markets was broadly stable, with healthy demand for long-term agreements«, Eskola said.

According to the CEO, Wärtsilä‘s ambition is to become a leader in smart marine and smart energy ecosystems. The recent acquisitions of Eniram and Greensmith, as well as cleantech innovations, are said to demonstrate the active role of Wärtsilä.

»To support the development of our digital services and products, we are launching digital acceleration centres where promising ideas are developed and co-created into service concepts and products together with customers and partners. I am confident that the investments into our company-wide digital transformation will drive new business opportunities.«

Jaako Eskola

»Solid in Marine Solutions«

WNL people office 31

Wärtsilä‘ expects the overall development in 2017 to be relatively unchanged from the previous year. In detail, the group hopes to be »solid in services« with growth opportunities in selected regions and segments, »good in Energy Solutions«, thanks to increasing electricity demand in the emerging markets and the global shift towards renewable energy sources and »solid in Marine Solutions« (raised from soft), thanks to a favourable vessel contracting mix.

»The general marine market environment remains challenging, as the merchant, gas carrier, and offshore segments continue to suffer from overcapacity, slow trade growth, and the financial constraints of customers«, it is said in a statement. The current order book for 2017 deliveries is 2,087 mill. €, up from 2,061 mill. €.