The Finnish marine and energy coporation has reported a positive first half of 2018. Upcoming
regulations led to increased sales. The outlook is raised from »solid« to »good«
From January to June, the order intake rose by 10% to 3.06 bn €. Net sales remained stable – after a slight[ds_preview] decrease in the first quarter – at 2.31 bn €. While the operating result increased from 204 to 211 mill. €, the order book grew by 16% to 5.9 bn €.
President and CEO Jaakko Eskola explained, the the positive momentum in ordering activity continued in the second quarter of 2018. Although vessel contracting activity has been somewhat slower than anticipated, »our extensive portfolio of solutions and a favourable contracting mix resulted in the Marine Solutions’ order intake developing well.«
In particular, he mentioned the scrubber business as having been successful. : »I am pleased to note the increased demand for exhaust gas cleaning solutions in both the newbuild and retrofit markets ahead of the global sulphur regulations, which enter into force in 2020.«
In the Services business, Wärtsilä has also seen continued interest in service agreements, the agreement to optimise the maintenance of all Wärtsilä thrusters installed within the Transocean fleet being a highlight of the quarter. Another significant project was the order of a Fuel Gas Supply System for two new shuttle tankers being built for Singapore based shipping company AET Tankers – ist was the 100th order being booked. The vessels will feature Wärtsilä 34DF dual-fuel auxiliary engines running primarily on LNG fuel, and fitted with LNGPac units.
The system comprises a bunkering station, the LNG fuel tank and related process equipment, as well as the control and monitoring system. The first LNGPac installation was for the chemical tanker »Bit Viking« owned by Swedish operator Tarbit. This vessel was converted for LNG fuel operation in 2011. According to Wärtsilä, today the LNGPac is installed on some 12 or more different types of vessel, including passenger ferries, tugs, dredgers and offshore vessels.
In May, Wärtsilä also announced that its acquisition of Transas, a global company headquartered in the U.K., leading in the market of marine navigation solution, has been finalised. The acquisition, which was announced in March, had a transaction value of 210 mill. €.It is planned to bring Wärtsiläs »Smart Marine Ecosystem« many steps forward.
Notwithstanding the good results in the first half of the year, for both the marine and the energy segment, the impact of increased geopolitical uncertainty on customer decision-making remains a concern, Eskola added.
Nonetheless, the CEO expected the demand for services and solutions in 2018 to improve »somewhat from the previous year«. The outlook for »Services« is »Good«, although there are concerns related to fuel price development and escalating trade tensions. The segment of Marine Solutions also has the expectation »Good«, raised from »Solid«.
