Wärtsilä Achieves 2013 Financial Target

MarineLink.com
Tuesday, February 11, 2014
Björn Rosengren
: Photo courtesy of Wärtsilä Corporation

Wärtsilä Corporation has published its annual financial report for the year 2013, and President & CEO Björn Rosengren
 introduces it with the following message to shareholders, excerpted as follows:

"For Wärtsilä, 2013 was a year of varying activity within our different end markets. While the improvement in global vessel contracting was significant, power generation markets declined for the second consecutive year.

Unfavourable exchange rates and some delayed deliveries at the end of the year led to a slightly weaker than expected net sales development. Profitability on the other hand developed well, reaching 11.2% for the full year. I am pleased with the resilience we have shown in reaching our profitability targets, despite the lower level of sales. Cash flow from operating activities development was strong, increasing to EUR 578 million during the year.

In the shipbuilding industry, competitive new building prices combined with the increased fuel efficiency of modern vessels attracted investments in the merchant segment. Furthermore, oil price levels supported activity in the offshore markets, including operations in harsh and deep water areas. This resulted in stronger vessel contracting and a more balanced order mix compared to recent years. In line with overall market activity, Ship Power’s order intake developed well, increasing by 14% in 2013.

Several notable orders were received in the offshore industry and the demand for dual-fuel engines and gas handling systems continued to be active. In the latter part of 2013, we launched our 2-stroke, low pressure, dual-fuel engine. The first order for this technology was received shortly thereafter, and we feel that this technology could very well be a game changer for merchant shipping.

Overcapacity in the marine market continued to impact global fleet utilisation and our customers’ remained focused on reducing operating expenses. The continued good demand for power plant related services compensated for this development and contributed to the overall stability of the service market. I am pleased to note that our concentration on long-term service agreements has proven successful in 2013. The share of contracts in Services net sales increased during the year, and several important agreements were signed with both power plant and marine customers.

LNG bunkering
Today, gas availability represents one of the main barriers for its wider scale use. Infrastructure expansion is partly planned to take place through investments in midsized LNG distribution, which represents an interesting opportunity for Wärtsilä. By combining our experience in engineering, procurement and construction project execution with our LNG handling expertise, we can offer turnkey LNG terminal solutions, thus positioning us well in this up and coming market. The new emission regulations are becoming imminent, and vessel owners are preparing themselves to comply with the new requirements. The progress we have made in environmental solutions, both in terms of receiving type approvals for our ballast water systems and in strengthening our extensive reference list of exhaust gas cleaning systems, supports our growth ambition in this field.

Outlook
Our market outlook remains cautious, although a slight improvement may be seen in certain areas. In 2014, we anticipate some growth in net sales and expect operating margins to be around 11%."
 
The full report is available at: http://www.wartsilareports.com/en-US/2013/ar/frontpage/

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Kemp Joins PMSA as Vice President

The Pacific Merchant Shipping Association (PMSA) announced the hire of Carl Kemp as a Vice President based in the organization’s Long Beach office.    Kemp brings

FSL Trust Divests Two Containerships

FSL Trust Management Pte. Ltd., as the trustee-manager of First Ship Lease Trus, announced that the Trust has completed the disposal of Ever Radiant and Ever Respect

Sill Reinforcements Complete in New Panama Canal Locks

The Panama Canal Authority (ACP) announced that sill reinforcements in the new locks have been completed this week, bringing the Panama Canal Expansion closer to inauguration.

Marine Propulsion

VPS Raises Concerns Over Revised Rules for Fuels

Veritas Petroleum Services (VPS) expressed reservations about some of the proposed revisions to the international ISO 8217 specifications of marine fuels. Areas

China to Enforce Low Sulphur ECA in Yangtze River Delta

Vessels calling ports in China’s Yangtze River Delta, including Shanghai, will be required to burn low sulphur fuel while at berth from April 1 this year.   China’s

Schottel Canada Opens Quebec Offices

Sylvain Robitaille has been named Regional Sales Manager. Reflecting the growing volume of shipbuilding projects and expansion of its customer base in the region,

Finance

FSL Trust Divests Two Containerships

FSL Trust Management Pte. Ltd., as the trustee-manager of First Ship Lease Trus, announced that the Trust has completed the disposal of Ever Radiant and Ever Respect

COSCO Also Eyes Greek Train Network

China's COSCO already the sole bidder for Greece's Piraeus Port. Buying both would give COSCO a European transhipment hub. China's COSCO is expected to make

Asia-Europe Box Rates Down 8 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 8.1 percent to $431 per 20-foot container (TEU) in the week ended on Friday,

Marine Power

VPS Raises Concerns Over Revised Rules for Fuels

Veritas Petroleum Services (VPS) expressed reservations about some of the proposed revisions to the international ISO 8217 specifications of marine fuels. Areas

China to Enforce Low Sulphur ECA in Yangtze River Delta

Vessels calling ports in China’s Yangtze River Delta, including Shanghai, will be required to burn low sulphur fuel while at berth from April 1 this year.   China’s

Schottel Canada Opens Quebec Offices

Sylvain Robitaille has been named Regional Sales Manager. Reflecting the growing volume of shipbuilding projects and expansion of its customer base in the region,

People in the News

Kemp Joins PMSA as Vice President

The Pacific Merchant Shipping Association (PMSA) announced the hire of Carl Kemp as a Vice President based in the organization’s Long Beach office.    Kemp brings

USCG Issues Zika Virus Precautions

Recently, the World Health Organization designated the Zika virus as a global public health emergency. This has prompted questions from the maritime industry regarding

Seafarers help Sought to Improve Onboard Design

The Nautical Institute and CIRM (the principal international association for marine electronics companies) today launched a joint initiative to improve the usability

 
 
Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1233 sec (8 req/sec)