Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Engine orders favour offshore and specialised vessels: Wärtsilä

Engine orders favour offshore and specialised vessels: Wärtsilä
The shipping equipment market is “expected to be better than in 2012”, with sales favouring offshore and specialised markets, engine manufacturer Wärtsilä reports in its interim results.

The company has signed equipment contracts for 749 vessels so far in 2013, compared to 490 in 2012. Shipyards in China had the largest share of  orders at 39%, with South Korea second at 36%. Wärtsilä credits low newbuilding prices and the increasing fuel efficiency of modern vessels with driving investment.

The company reported a 14% increase in order intake, to 822 in the first half of 2013 compared to 723 in the same period in 2012.

“Market conditions are expected to be better than in 2012," Wärtsilä said in the report. "Despite the continued activity in orders, financing and overcapacity related issues are still visible in the traditional merchant markets. The orders placed in these markets focus more on fuel-efficient design and technology.. Current emission regulations create interesting opportunities in environmental solutions.”

“The contracting mix is expected to be largely in line with that seen in 2012, favouring contracting in offshore and specialised vessel segments. The outlook for gas demand remains healthy and the attractiveness of LNG as a fuel is supported by its low carbon intensity, global trade, and pricing.”

Wärtsilä points to a number of long-term service agreements for LNG-powered vessels, foreseeing some “interesting opportunities.”