Wärtsilä’s order intake for the marine segment of its business fell by 30% in the third quarter of 2019 due to the waning scrubber demands compared to the previous year, reports Seatrade Maritime News.
Increase in service orders
Wärtsilä’s third quarter order intakes:
marine order intake was EUR705m compared to EUR1.01bn in the same period in 2018,
marine equipment orders plunging 55% to EUR260m in Q3 2019 while service orders increased 5% to EUR554m.
Low scrubber orders
The company noted that scrubber orders were down from last year’s “exceptionally high levels”.
The orders for exhaust gas cleaning systems surged to enable installation ahead of the 1 January 2020 deadline for the IMO 2020 regulation.
Uncertainty delays decision
“Uncertainty concerning bunker fuel pricing and availability has delayed decision-making among customers for scrubber technology investments, despite supportive initial price indications,” Wärtsilä commented.
Focus on environmental fuelling
The overall marine order book was up 10% at EUR3.89bn compared to EUR3.45bn.
The company is seeing more interest in environmental fuelling solutions to reduce emissions.
“Sustainability issues and regulations are pushing increased efforts to minimise the environmental footprint of the shipping industry. This is resulting in a growing interest in LNG as a fuel and in hybrid battery packs across all vessel segments.”
The outlook for Wärtsilä’s marine business remained soft.
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Source: Seatrade Maritime News
