Wärtsilä has published its 2014 results which show a good performance despite “challenging market conditions”.
During the year, the Finnish-based company’s order intake increased by 5% to €5.084million and net sales increased by 4% to €4.779million. The operating result before non-recurring items was €5.69million.
Björn Rosengren, President and CEO, said: “Wärtsilä performed well in 2014, a year characterised by challenging market conditions. Net sales and profitability developed in line with our expectations. Net sales grew by 4% to €4.799million, largely due to a strong fourth quarter. Profitability reached 11.9%, with the development in Services and Ship Power performance and the restructuring measures introduced in January compensating for the effect of lower Power Plant’ sales.
“Although overall vessel contracting slowed during 2014, the robust ordering of gas carriers and the continued demand for specialised tonnage resulted in good ordering activity for Ship Power.
He added: “How the current market uncertainties will impact customers’ investment decisions is not yet clear, and therefore our market outlook remains cautious. We are, however, confident that our strategic focus areas position us well, and continue to see opportunities to grow sales and improve profitability in the coming year.”
Wärtsilä said its outlook for shipping and shipbuilding in 2015 is cautious, due to the current uncertainties in the market. In particular, overcapacity continues to affect demand for traditional merchant. Vessels are being scrapped at a younger age which, along with a more balanced fleet growth, supports a gradual recovery in the freight market. Low oil prices are expected to impact investments in exploration and development, thus limiting the demand for offshore vessels. In other vessel markets, lower bunkering costs may have a positive impact on the operating expenses for ship owners and the outlook for gas carriers continues to be positive, although the strong ordering volumes seen in 2014 are expected to normalise.
