Wärtsilä rides the storm

Wärtsilä – one of the global leaders in smart technologies and complete lifecycle solutions for the marine and energy markets – released their half-year figures to 30 June today.

The report reveals underlying stability in net sales and a strong cash flow but recognises the impact of Covid-19 on the Company.

Q2, inevitably, revealed a 51% hit to the comparable operating result to €55m, representing 4.5% of net sales. This highlights trading conditions at the height of the pandemic.

Away from the head-line figures Wärtsilä demonstrated its talent for riding the present Covid-19 storm with a manageable decrease of 12% in the order book to €5,401m.

Significantly cash flow for the same period increased to €293m.

The Company, despite the probable envy of its rivals, realistically commented that Covid-19 is having a significant effect on the business. It says that this will materially impact the demand for Wärtsilä’s solutions and services as well as the Company’s 2020 financial performance.

Realistically the Company confirms the full financial impact cannot be quantified at this stage of the year. How Covid-19 progresses and the race to contain the spread of the virus plays out is the great unknown faced by Wärtsilä, and everyone else.

Wärtsilä President & CEO Jaakko Eskola said: “The adverse impact of COVID-19 on both our own operations and those of our customers increased during the second quarter.

“This was clearly visible in the decrease in orders received across all businesses.

“The decline in demand was especially strong in the cruise industry, as travel bans and other mitigation measures have kept most passenger vessels idle for the past few months.”

He continued: “Given this difficult back-drop, second quarter net sales held up reasonably well.”