Wärtsilä Reports Strong Financial Performance Amid Global Shipping Challenges

85

  • Order intake increased by 11% to EUR 1,924 million (1,739), and the organic growth was 17%
  • Service order intake increased by 7% to EUR 949 million (889)
  • Order book at the end of the period increased by 19% to EUR 7,294 million (6,153)
  • Net sales decreased by 10% to EUR 1,321 million (1,465), and the organic decrease was 6%
  • Book-to-bill amounted to 1.46 (1.19)
  • Comparable operating result increased by 50% to EUR 132 million (88), which represents 10.0% of net sales (6.0)
  • Operating result increased by EUR 35 million to EUR 127 million (92), which represents 9.6% of net sales (6.3)
  • Basic earnings per share increased to 0.14 euro (0.09)
  • Cash flow from operating activities increased to EUR 258 million (145)

Wärtsilä reported strong financial performance in the recent period, with notable increases in order intake, service orders, and the order book. Despite a decrease in net sales, the comparable operating result saw a significant boost, reflecting a positive outlook for the company’s prospects. In the marine market, global trade disruptions have influenced shipping dynamics, leading to increased demand for ship capacity and a focus on decarbonization efforts. Wärtsilä is well-positioned to capitalize on these trends with its advanced technologies and services to support customers in their decarbonization journeys.

 Wärtsilä’s prospects

Marine

Wärtsilä expects the demand environment for the next 12 months (Q2/2024-Q1/2025) to be better than that of the comparison period.

Energy

Wärtsilä expects the demand environment for the next 12 months (Q2/2024-Q1/2025) to be better than that of the comparison period.

In the marine market, trade flows around the world have been impacted by the conflicts in the Middle East, the attacks on ships in the Red Sea, and the drought affecting the Panama Canal, which has led to longer average shipping distances, increased transportation costs, and delays to global supply chains. Driven by the increasing demand for ship capacity and decarbonisation-related ship renewal, investments in new ships were higher than in the first quarter of 2023. Higher capacity utilization and a continued increase in shipyard capacity supported the growth in ship delivery volumes.

The market sentiment continued to develop favorably for Wärtsilä’s key segments, especially on the passenger side, with good development in passenger volumes creating demand for new vessels in both cruise and ferry. The uptake of alternative fuels remained at a healthy level. From January 1st, shipping has been included in the EU ETS, an emissions trading system that obliges shipping companies operating in the EU to purchase and use emission allowances based on their CO2 or CO2-equivalent emissions. This incentivizes shipping companies to reduce emissions and modernize fleets, either through renewals or retrofits. As an established technology leader, and with a wide range of technologies and specialized services Wärtsilä is well-positioned to support customers on their decarbonization journeys.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: Wärtsilä