World News
Wärtsilä Bullish on Demand for Fuel Efficiency
After a profitable third quarter, engine and technology company Wärtsilä Corp. (Wärtsilä) says its outlook for the shipping market has improved, with the demand for fuel efficiency creating "interesting opportunities."
"In the marine markets, we see good activity across all the main vessel segments," said President and CEO Björn Rosengren.
"The focus on fuel efficiency and competitive newbuilding prices are supporting investments in the merchant segment, while offshore markets remain active."
Wärtsilä reported net sales of €1.2 billion ($1.7 billion) for the quarter, up 11 percent year-over-year, and a profit before taxes of €126 million ($174 million) an increase of 27 percent.
Order intake for the ship power segment fell 3 percent year-over-year in the quarter, to €378 million ($522 million).
The company said its share of the medium-speed main engine market rose to 49 percent from 47 percent at the end of Q2, while its share in low-speed engines fell from 14 percent to 10 percent and its share of auxiliary engines rose to 5 percent from 4 percent.
Wärtsilä said "lively" ordering of product tankers, large containerships, and gas carriers should continue through the end of the year, as buyers take advantage of low ship prices, and the offshore sector should also remain strong.
"Current emission regulations and the focus on fuel efficiency create interesting opportunities in gas fuelled vessels and environmental solutions," the company said.
"Financing is expected to remain difficult, but some signs of easing can be seen across the industry."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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