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Wärtsilä downgrades marine business outlook as scrubber demand softens

jaakko
Wärtsilä Corp has downgraded the demand outlook for its marine business as scrubber orders slow and on concerns about overall newbuilding demand.

In its half year results Wärtsilä downgraded its outlook for its marine business for the coming 12 months to “soft” from “solid” previously.

Jaakko Eskola, president and ceo of Wärtsilä, commented: “Orders received in the Marine Business remained stable during the same period, as newbuild contracting has favoured the more specialised vessel segments.

“Nevertheless, uncertainty regarding fuel price development has slowed scrubber orders, which, in combination with concerns related to lower overall vessel contracting volumes, has prompted us to lower our marine demand outlook for the coming twelve months.”

Wärtsilä Marine’s order intake decreased by 9% to EUR936m in the second quarter of 2019 compared EUR1.03bn in the same period a year earlier. Equipment orders were hit by decreasing scrubber orders with the Q2 2019 order intake dropping 13% to EUR532m compared to EUR601m in the corresponding period. Marine services orders saw a smaller drop of 3% to EUR413m in the second quarter of the year.

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