Wärtsilä reports increase in sales and orders

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Power solutions provider Wärtsilä has reported an increase in orders and net sales in its interim results released today (Wednesday).

Despite tough markets, the order intake between January and September this year has risen by 10% to €3,583million and sales by 7% to €3,191million indicating that annual results for the Finnish company will be better than predicted.

Björn Rosengren, President and Chief Executive Officer, said: “Despite the continuing uncertainty in the global economy and the tough market conditions, both our order intake and net sales developed well. In the third quarter they were up by 14% and 28% respectively.

“Ship Power’s year-on-year performance is strong, and has been supported by an active offshore sector and the Hamworthy acquisition.”

Mr Rosengren said among the highlights were a major engine and propulsion equipment order for six Brazilian drillships from Jurong Shipyard and three platform vessel related orders from Statoil, as well as four ballast water management system orders.

Wärtsilä again received a record power plant order, this time for an approximately 600 MW power plant to be built in Jordan.

“It will be the world’s largest tri-fuel power plant,” explained Mr Rosengren.

Due to the interim results, Wärtsilä’s prospects for 2012 have been revised.

“We believe that net sales will grow this year by around 10 to 15% which is more than originally estimated,” said Mr Rosengren.

“Our profitability now stands at 10.3% and we believe it will improve in the fourth quarter. As a result, we expect profitability for the full year to be 10.5 to 11%.”

The market outlook shows power generation is expected to remain active during the remainder of the year. Ordering activity continues to be focused on emerging markets which continue to invest in new power generation capacity.

Interesting opportunities are also being seen in efficiency improvement, gas as a fuel, and environmental solutions, all central issues in many newbuilding discussions, and they are expected to grow in importance.

The outlook for the overall service market is expected to be ‘stable’ despite continued uncertainty in the global economy.