- Wärtsilä Corp downgraded the demand outlook for its marine business as scrubber orders slow.
- The uncertainty in fuel price that has slowed scrubber orders with lower vessel contracting volumes concerns, prompted company’s lower marine demand outlook.
- Order intake decreased by 9% to EUR 936 m in the second quarter of 2019.
- Equipment orders hit by decreasing scrubber orders with the Q2 2019 order intake dropping 13% to EUR 532 m.
- Marine services orders had a drop of 3% to EUR 413 m in the second quarter of the year.
Wärtsilä Corp has downgraded the demand outlook for its marine business as scrubber orders slow and on concerns about overall newbuilding demand, reports Seatrade Maritime News.
Downgraded to “soft” from “solid”
In its half year results Wärtsilä downgraded its outlook for its marine business for the coming 12 months to “soft” from “solid” previously.
Jaakko Eskola, president and CEO of Wärtsilä, commented that the orders received in the Marine Business remained stable during the same period, as newbuild contracting favoured the more specialised vessel segments.
Uncertain fuel prices
He said that the uncertainty regarding fuel price development has slowed scrubber orders.
This in combination with concerns related to lower overall vessel contracting volumes, has prompted the company to lower the marine demand outlook for the coming twelve months.
Drop in second quarter
Wärtsilä Marine’s order intake decreased by 9% to EUR 936 m in the second quarter of 2019 compared EUR 1.03 bn in the same period a year earlier.
Equipment orders were hit by decreasing scrubber orders with the Q2 2019 order intake dropping 13% to EUR 532 m compared to EUR 601 m in the corresponding period.
Marine services orders saw a smaller drop of 3% to EUR 413 m in the second quarter of the year.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: SeatradeMaritime
