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LNG carrier activity supports Wärtsilä gas system orders

LNG Industry,


Wärtsilä has released an interim report for the first nine months of 2014, reporting good development in order intake and profitability.

January – September highlights

  • Order intake increased 2% to €3562 million
  • Net sales increased 1% to €3230 million
  • Operating result before non-recurring items €373 million, or 11.5% of net sales (€346 million or 10.8%)
  • Earnings per share €1.16
  • Cash flow from operating activities €240 million
  • Order book at the end of the period increased 5% to €4674 million

Profits

Wärtsilä estimates its profitability for 2014 (EBIT% before non-recurring items) to be 11.5% - 12.0%. Previously profitability was expected to be around 11.5%. Wärtsilä reiterates its expectation that net sales will grow by around 5%.

Comments

Commenting on the results, Bjorn Rosengren, President and CEO, said: “The third quarter was characterised by the strong development in order intake.

“In the marine markets the recent activity in LNG and LPG carriers has supported the ordering of gas handling systems. The 24% increase in Ship Power’s order intake was further enhanced by good activity in the cruise markets. I am confident that the positive trend in order development will continue during the upcoming quarter.”

Market outlook

Based on the difficult market situation seen during the three first quarters of the year and the revised GDP forecasts for 2014, the overall market for liquid and gas fuelled power generation is expected to continue to be challenging.

The outlook for gas carriers remains positive, although the recent strong ordering volumes may affect activity in the short term. The importance of fuel efficiency and environmental regulations are clearly visible. The regulatory environment is also driving interest in gas as a marine fuel in the wider marine markets, a trend further strengthened in the US by favourable pricing.


Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/23102014/lng-carrier-activity-boosts-wartsila-results-1651/


 

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