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 Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ThyssenKrupp Says Submarines Part of Growth Story

Germany's Thyssenkrupp sees its submarine business as making an important contribution to its growth targets, the head of its Industrial Solutions business area said on Tuesday.

Two Newbuilds Delivered to Star Bulk

Star Bulk Carriers Corp. took delivery on February 27 of M/V Honey Badger (ex HN NE 164) and M/V Wolverine (ex HN NE 165), two 61,000 dwt Ultramax bulk carriers

Brazil Truck Strike Diminishes

Some truck drivers in Brazil continued blocking roads on Tuesday, slowing grains deliveries to southern ports, even as adherence to the strike diminished and a

Finance

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

Vessel Sales: February 2015

Vessel sales for February 2015  - (as of March 1) as prepared by Shipping Intelligence, Inc., New York.   Date Reported - Vessel Name - DWT - Built -  - (Age)

Marine Power

USCG Marine Safety Alert

The U.S. Coast Guard issued a marine safety alert today to remind all gas carrier owners and operators to ensure that all personnel follow approved Safety Management

USCG Marine Safety Alert

The U.S. Coast Guard issued a marine safety alert today to remind vessel owners and operators to establish effective fuel oil changeover procedures during efforts

Gas Turbine Alternator Installed into Aircraft Carrier

The Aircraft Carrier Alliance has completed the installation of the first MT30 Gas Turbine Alternator (GTA) package into the Royal Navy’s latest aircraft carrier HMS Prince of Wales,

People in the News

Former BP Boss Browne is DEA Chairman

Lord John Browne heads DEA's supervisory board * LetterOne co-owners Fridman, Khan also join * Unit changes name to DEA Deutsche Erdoel AG FRANKFURT, March 3 (Reuters) - DEA,

Hike in Service Tax at Indian Ports

The Indian Ministry of Finance has advised an increase in service tax and applicable at all ports. The effective date has not yet been announced. The rate

Vessels for the Future – New R&D Initiative

Looking ahead to 2020 and beyond, both maritime and inland waterways will be under ever increasing pressure, as we use them for transport, recreation and commercially.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1935 sec (5 req/sec)