Wärtsilä Says Newbuild Prices, Fuel-Efficiency Helped Attract Orders

by Ship & Bunker News Team
Monday July 22, 2013

The ship power division of power technology company Wärtsilä reports it increased its net sales 6 percent year-over-year in the second quarter of 2014 to €315 million ($415 million), although order intake for the division dropped 15 percent to €380 million ($501 million).

"Marine markets are showing some signs of improvement, with the offshore and specialised vessel segments continuing to be active," said Wärtsilä President and CEO Björn Rosengren.

"Furthermore, competitive new building prices and the increased fuel efficiency of modern vessels are attracting investments in the merchant segment."

The company's share of the medium-speed main engine market was 47 percent, compared with 48 percent three months earlier, while its share in low-speed engines was 14 percent, down from 15 percent, and it held 4 percent of the auxiliary engine market, the same as before.

Wärtsilä said orders in the offshore segment, including one for integrated systems for a multipurpose support vessel (MPSV) being built for Harvey Gulf International Marine LLC (Harvey Gulf), made up 37 percent of its second-quarter orders, while the merchant segment accounted for 44 percent.

While overcapacity in the freight market and difficulty with financing is keeping ship orders relatively low, the company said orders in the merchant market are focused on fuel-efficient design, and that emission regulations "create interesting opportunities in environmental solutions."

Ship & Bunker News Team
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