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SCRUBBER POSTPONEMENTS AND CRUISE RESTRICTIONS AFFECT WÄRTSILÄ’S FIGURES

SCRUBBER POSTPONEMENTS AND CRUISE RESTRICTIONS AFFECT WÄRTSILÄ’S FIGURES

Tuesday, July 20, 2021 

Wärtsilä has announced its financial results for the first half of 2021, and, while expectimg demand in the third quarter to be better than the previous year, is still worried that prevailing market conditions make the outlook uncertain.

Håkan Agnevall, President and CEO, said: “During the second quarter of 2021, we saw signs of stabilisation and recovery in our markets, despite the prevailing uncertainty. In the marine markets, vessel ordering activity improved, although activity in our key vessel segments remained relatively low. In particular, the important cruise industry is still heavily affected by COVID-19 related restrictions. The demand for services has developed positively across vessel segments, supported by improved vessel activity and earnings. We saw good demand for long-term agreements, as customers wish to secure the performance of their fleet.

“Despite the relatively challenging overall market environment, our order intake grew across businesses, with a total increase of 14%. It was also encouraging to see that our service order intake grew by 24% and that the order intake growth was broad and driven by several customer segments.

“While net sales decreased, we succeeded in improving our profitability, and our comparable operating profit increased by 30%. Marine Power and Energy clearly improved their results, while Marine Systems suffered from low net sales driven by postponed scrubber retrofits. Customers’ interest towards smarter, digitalised, greener, and safer solutions supported the growth in Voyage’s order intake and net sales. The number of vessels connected to our cloud solutions increased by 78%. Our cash flow from operating activities was very strong. Wärtsilä’s asset-light business model, strong cash generation ability, and high service volumes deliver overall operational stability.

“During the second quarter, we continued our systematic investments in R&D and participated in several international and local research alliances. Wärtsilä is pioneering the adoption of carbon-free fuels. Extensive tests are ongoing with ammonia, hydrogen and methanol as potential future fuels for Wärtsilä’s fuel-flexible combustion engines. Clean fuels, combined with Wärtsilä’s strengths in outcome-based service agreements, provide our customers with major opportunities to improve environmental footprint while boosting profitability.

“In the longer term, we see exciting opportunities driven by the decarbonisation transformation of both the marine and energy industries. With our focus on a holistic system approach, technology leadership, and fuel flexible solutions, we are committed to supporting our customers to succeed in this transformation.”

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