Finnish engineering company Wärtsilä (OMX: WRTBV) was among the (too) many reporting quarterly earnings towards the end of this week. The power sources maker was expected to continue to deliver improved numbers but did not quite manage to do so. Even though net sales increased by 6% to 1.1 billion Euros, operating result fell ever so slightly to 113 million, which was based on a one percentage point fall in the operating margin. Second quarter EPS came to at 38 cents. Order intake of 1.2 billion was impressive particularly as it came on the heels of an improvement from Ship Power, where specialised vessel - segment has good demand and many pump, gas and environmental system orders were also received. Power Plant orders were down marginally as some large projects have been delayed.
It would seem that some further margins weakening has been observed since CEO President and CEO Björn Rosengren said the company is continuing to work towards reaching growth and profitability targets this year. Those are net sales growth of 5-10% and EBIT% of 10-11%. For the first half sales are up by 6% and operating margin stands at 10.2%. There were some organizational tweaks aimed at helping to reach those targets.
Emerging markets should still invest heavily in power generation capacity while Wärtsilä feels there is pent-up demand in OECD countries in this segment. Vessel contracting activity outlook in general is expected to be slightly lower than last year although some segments will see strong demand. Services demand is still robust but there is some uncertainty mainly from merchant shipping where scrapping, lay-ups, slow steaming, and low utilisation of vessels continue as overcapacity remains. First half-year revenue spread is 45% from services, 30% from power plants and 25% from Ship Power.
Showing posts with label Wärtsilä. Show all posts
Showing posts with label Wärtsilä. Show all posts
Saturday, 21 July 2012
Wednesday, 18 July 2012
Wärtsilä’s largest power plant order to date
Boyuk Shor power plant located near Baku, Azerbaijan will be supplied by Wärtsilä (OMX: WRT1V)engines. The 384 MW gas power plant is the largest order in terms of output for Wärtsilä so far. It will be running on natural gas with 21 Wärtsilä 50SG engines. The Finnish company will also supply related auxiliaries and process equipment. The order goes into Q2 2012 books and the plant should be operational in Autumn of 2013. Financial details were not disclosed.
Thursday, 5 July 2012
Wärtsilä starts July by announcing two major orders
Strong presence in Indonesia has again helped Finnish Wärtsilä (OMX: WRT1V) to land a notable power plant order. This time the company will deliver a combustion gas engine baseload power plant to state-owned PT Perusahaan Listrik Negara (PLN). It will be built by government owned construction company PT. Pembangunan Perumahan (Persero) Tbk also known as PP. The 113MW PLTMG Duri plant will be located in Riau province. The order goes into Q2 2012 received orders.
Wärtsilä will supply seven 50DF dual-fuel engine, associated auxiliaries and engineering services. The project is done with a tight schedule and Wärtsilä’s proven track record of meeting delivery schedules together with the efficient engines set it apart. The two Indonesian companies also cooperate with the construction of Sei Gelam, Indonesia’s first gas engine based peaking power plant, into which Wärtsilä was selected as engine provider in March.
The Power Plants division order was followed by one from Marine Solutions for the supply of integrated power and propulsion systems for three offshore service vessels. These are being built in Huang Pu and Zhenjiang shipyards in China for Singaporean company Pacific Radiance Ltd. The company required greater efficiency, fuel savings and low emissions. Two of the ships are 86 metre Platforms Supply Vessels (PSV) and the third one a Anchor Handling Tug Supply (AHTS) vessel.
Wärtsilä provides four 6-cylinder 26 in-line main engines, thrusters and electrical and automation systems for the PSVs and two 6-cylinder 32 in-line main engine, two generating sets, two controllable pitch propellers, thrusters, and the electrical and automation systems for the AHTS. The equipments are scheduled to be delivered next year. This order will also be booked in Q2 2012 accounts. Wärtsilä’s interim report is due on July 18th before market open.
Wärtsilä will supply seven 50DF dual-fuel engine, associated auxiliaries and engineering services. The project is done with a tight schedule and Wärtsilä’s proven track record of meeting delivery schedules together with the efficient engines set it apart. The two Indonesian companies also cooperate with the construction of Sei Gelam, Indonesia’s first gas engine based peaking power plant, into which Wärtsilä was selected as engine provider in March.
The Power Plants division order was followed by one from Marine Solutions for the supply of integrated power and propulsion systems for three offshore service vessels. These are being built in Huang Pu and Zhenjiang shipyards in China for Singaporean company Pacific Radiance Ltd. The company required greater efficiency, fuel savings and low emissions. Two of the ships are 86 metre Platforms Supply Vessels (PSV) and the third one a Anchor Handling Tug Supply (AHTS) vessel.
Wärtsilä provides four 6-cylinder 26 in-line main engines, thrusters and electrical and automation systems for the PSVs and two 6-cylinder 32 in-line main engine, two generating sets, two controllable pitch propellers, thrusters, and the electrical and automation systems for the AHTS. The equipments are scheduled to be delivered next year. This order will also be booked in Q2 2012 accounts. Wärtsilä’s interim report is due on July 18th before market open.
Monday, 4 June 2012
Metso order news
Metso Oyj (OMX: MEO1V) will deliver biggest mining cones crushers it has built to Codelco to be used in the world’s largest open pit copper mine, the Finnish engineering company said today. The operational weight of a single crusher exceeds 150 tonnes and has the ability to process up to 1800 tonnes of ore per hour in secondary position. The order value is more than 9 million Euros. Chuquicamata mine is located in the Atacama Desert in Northern Chile. Over its long operations, many Nordic workers have become very familiar with the working conditions over there.
Last week the company noted it will supply a board machine rebuild for SCA’s (OMX: SCA) Piteå mill. This will increase the annual capacity of the mill’s value added white top kraftliner products by 55 000 tonnes to 165 000 tonnes in total. The company also said it will also acquire full ownership of the heat and power plants supplier MW power joint venture by buying out Wärtsilä’s (OMX: WRT1V) 40% stake subject to required approvals.
Last week the company noted it will supply a board machine rebuild for SCA’s (OMX: SCA) Piteå mill. This will increase the annual capacity of the mill’s value added white top kraftliner products by 55 000 tonnes to 165 000 tonnes in total. The company also said it will also acquire full ownership of the heat and power plants supplier MW power joint venture by buying out Wärtsilä’s (OMX: WRT1V) 40% stake subject to required approvals.
Friday, 20 April 2012
Wärtsilä Q1 2012 report out
Wärtsilä Corporation’s (OMX: WRT1V) order intake was quite strong at over 1.1 billion Euros during Q1 2012, a 13% improvement vs. last year. Sales decreased seven percent to just over a billion while operating result on a 10% margin just toppled 100 million. Earnings per share were 33 cents and cash flow positive at 28 million.
President & CEO Björn Rosengren says that the company is well on its way to meeting annual targets. Sales were lower due to less Power Plants and Ship Power deliveries on Q1 whereas Services net sales were up by 12%. Wärtsilä said that Hamworthy integration is going according to plan and the aim is to double Hamworthy’s net sales in five years.
The power generation market is expected to remain on a good level this year as emerging markets make further capacity investments. Wärtsilä also feels that there is pent-up demand in OECD countries mainly stemming from CO2 emission cut demands and renovations of old plant.
Vessel contracting activity is mixed with expectations at r just below 2011 levels overall. While the activity in bulk carries, container vessels and tankers is expected to remain slow, LNG carrier segment demand should be robust. Offshore segment is an interesting opportunity.
Wärtsilä says that some challenges remain but the company is confident to expects 5-10% net salesgrowth and EBIT% before non-recurring items of 10-11%. The stock opened with a small minus but has since reversed course and is up by 3.5% midway through Friday session.
President & CEO Björn Rosengren says that the company is well on its way to meeting annual targets. Sales were lower due to less Power Plants and Ship Power deliveries on Q1 whereas Services net sales were up by 12%. Wärtsilä said that Hamworthy integration is going according to plan and the aim is to double Hamworthy’s net sales in five years.
The power generation market is expected to remain on a good level this year as emerging markets make further capacity investments. Wärtsilä also feels that there is pent-up demand in OECD countries mainly stemming from CO2 emission cut demands and renovations of old plant.
Vessel contracting activity is mixed with expectations at r just below 2011 levels overall. While the activity in bulk carries, container vessels and tankers is expected to remain slow, LNG carrier segment demand should be robust. Offshore segment is an interesting opportunity.
Wärtsilä says that some challenges remain but the company is confident to expects 5-10% net salesgrowth and EBIT% before non-recurring items of 10-11%. The stock opened with a small minus but has since reversed course and is up by 3.5% midway through Friday session.
Monday, 12 March 2012
Some marine segment related engineering news from the past week
Wärtsilä’s (OMX: WRT1V) Southeast Asian offering continues to increase. The Finnish firm agreed to acquire Singapore-based MMI Boiler Management. It has a solid market position in the region particularly within offshore segment with 2011 net sales at around 5.3 million Euros and 138 employees. All the employees including the owners continue with Wärtsilä. The value of the deal, which is expected to be concluded in Q1, was not disclosed.
MMI Boiler Management is active in both marine & land industries and has steam raising plants and ships as well as rig owners as customers. It has manufacturing capabilities for various products such as boiler water wall membrane panels, exhaust gas boilers, heater elements, various pressure retaining ancillaries, loose tubes, pipes and steel components and pressure vessel tanks among others. The main focus is to provide services for repair & erection of boilers.
Bergen Group’s (OSE: BERGEN) crane and lifting equipment supplier Bergen Group Dreggen landed several contracts worth close to 50 million NOK on aggregate in the past week. Scana Industrier (OSE: SCI) said its subsidiary Scana Propulsion has doubled its order book for service activities in the last two months. This should help keeping earnings acceptable despite low global contracting levels within shipbuilding industry.
MMI Boiler Management is active in both marine & land industries and has steam raising plants and ships as well as rig owners as customers. It has manufacturing capabilities for various products such as boiler water wall membrane panels, exhaust gas boilers, heater elements, various pressure retaining ancillaries, loose tubes, pipes and steel components and pressure vessel tanks among others. The main focus is to provide services for repair & erection of boilers.
Bergen Group’s (OSE: BERGEN) crane and lifting equipment supplier Bergen Group Dreggen landed several contracts worth close to 50 million NOK on aggregate in the past week. Scana Industrier (OSE: SCI) said its subsidiary Scana Propulsion has doubled its order book for service activities in the last two months. This should help keeping earnings acceptable despite low global contracting levels within shipbuilding industry.
Friday, 27 January 2012
Wärtsilä sales down on delays, strong order inflow compensates
Wärtsilä Corporation’s (OMX: WRT1V) fourth quarter sales decreased by a whole 15% but order intake made up for that disappointment as it grew by an eye-popping 25% to one and a quarter billion Euros. The main reason behind the lower sales was a delay in power plant deliveries. Operating results was 145 million compared to 157 million as an improvement of 0.8% in the operating margin made up for some of the sales decline.
Fourth quarter earnings per share were 0.48 Euros, pushing the annual total to 1.52 Euros (1.48). Wärtsilä is proposing a dividend of 90 cents a share. Wärtsilä’s target is to pay 50% of operational earnings per share as a dividend. Wärtsilä’s owners have been enjoying a long run of high dividends. Recent split may confuse some people comparing those. The company has also booked some big one-off gains from asset sales in the years past.
Last November it came to light from marine and oil & gas industry service provider Hamworthy plc’s announcement that Wärtsilä was about to make a cash offer for the British company. Wärtsilä is now closer to getting control over Hamworth as the Scheme of Arrangement regarding to acquisition was sanctioned by a Court in London yesterday. Hamworthy’s shareholders supported the bid and the acquisition is expected to become effective within the next few days.
Wärtsilä has announced numerous orders to Power Plants business unit as of late and President & CEO Björn Rosenberg says that potential for further orders in the pipeline is strong. The company expects 5-10% net sales growth with a 10-11% EBIT margin before non-recurring items for 2012. The stock opened down over 4% but has recovered somewhat along with the rest of the market to currently trail at -1.5%.
Fourth quarter earnings per share were 0.48 Euros, pushing the annual total to 1.52 Euros (1.48). Wärtsilä is proposing a dividend of 90 cents a share. Wärtsilä’s target is to pay 50% of operational earnings per share as a dividend. Wärtsilä’s owners have been enjoying a long run of high dividends. Recent split may confuse some people comparing those. The company has also booked some big one-off gains from asset sales in the years past.
Last November it came to light from marine and oil & gas industry service provider Hamworthy plc’s announcement that Wärtsilä was about to make a cash offer for the British company. Wärtsilä is now closer to getting control over Hamworth as the Scheme of Arrangement regarding to acquisition was sanctioned by a Court in London yesterday. Hamworthy’s shareholders supported the bid and the acquisition is expected to become effective within the next few days.
Wärtsilä has announced numerous orders to Power Plants business unit as of late and President & CEO Björn Rosenberg says that potential for further orders in the pipeline is strong. The company expects 5-10% net sales growth with a 10-11% EBIT margin before non-recurring items for 2012. The stock opened down over 4% but has recovered somewhat along with the rest of the market to currently trail at -1.5%.
Thursday, 12 January 2012
Three more power plant orders for Wärtsilä from Bangladesh
As was probably evident from the announcement just a couple days ago, Wärtsilä (OMX: WRT1V) has again scored new contracts in Bangladesh. This time the new contracts add up to a total of more than 250 MW. Once again construction schedule is very tight and the ability to convert the plants to run on natural gas played a role in securing the contracts.
The orders came from Ace Alliance Power Ltd, Raj-Lanka Power Company Ltd and Max-Lanka Power Ltd. All three are independent power producers. The value of the contracts was not disclosed. The contracts again add up to Q4 2011 orders. Succesfull debt auction from Spain and Italy have helped to push Nordic exchanges to a nice plus in early trading. Wärtsilä has gained 2.5%, about twice the index gain.
The orders came from Ace Alliance Power Ltd, Raj-Lanka Power Company Ltd and Max-Lanka Power Ltd. All three are independent power producers. The value of the contracts was not disclosed. The contracts again add up to Q4 2011 orders. Succesfull debt auction from Spain and Italy have helped to push Nordic exchanges to a nice plus in early trading. Wärtsilä has gained 2.5%, about twice the index gain.
Tuesday, 10 January 2012
Bangladesh to invest more in power generation, Wärtsilä a dominant player in the region
Wärtsilä Corporation (OMX: WRT1V) has been contracted to supply two more power plants to Bangladesh for a total overall output of over 200 MW. Both orders are from PowerPac-Mutiara Consortium (Power Pac from Bagladesh and Malaysian Mutiara Consolidated) owned projects. The other order contains is twelve 20-cylinder Wärtsilä 32 generating sets for PowerPac Mutiara Jamalpur Power Plant Ltd. These are initially designed to run on heavy fuel oil but can be switched to operate on natural gas as it becomes available. Wärtsilä sees this unique technology as a key for getting this order.
The Government of Bangladesh has started a programme to rapidly increase electricity generation in the country.These two power plants bring the current total of installed or to be installed capacity from Wärtsilä in Bangladesh to up to more than 1850 MW, with one third of them also operated and maintained by Wärtsilä. Both plants are scheduled to be operational in 2012 on fast-track basis and Wärtsilä has booked the orders in Q4 2011 accounts.
The company has a long working history in the country and was the provider of the engines for the first private sector power generation plant for Khulna Power Company Limited already in 1998. Currently Wärtsilä employs more than 500 workers in Bangladesh. Wärtsilä is up nearly 4% in an overall positive market this morning.
The Government of Bangladesh has started a programme to rapidly increase electricity generation in the country.These two power plants bring the current total of installed or to be installed capacity from Wärtsilä in Bangladesh to up to more than 1850 MW, with one third of them also operated and maintained by Wärtsilä. Both plants are scheduled to be operational in 2012 on fast-track basis and Wärtsilä has booked the orders in Q4 2011 accounts.
The company has a long working history in the country and was the provider of the engines for the first private sector power generation plant for Khulna Power Company Limited already in 1998. Currently Wärtsilä employs more than 500 workers in Bangladesh. Wärtsilä is up nearly 4% in an overall positive market this morning.
Wednesday, 7 September 2011
Wärtsilä power plant to provide electricity for Pueblo Viejo gold mine
Wärtsilä Corporation (OMX: WRT1V) has received a 155 million Euro turnkey order to supply a gas-fired power plant to Dominican Republic. The supply includes 12 dual fuel Wärtsilä 50DF engines, which can run on both liquid fuels and on natural gas, as well as full engineering, procurement and construction contract for the project.
The contract was signed with Barrick Gold to provide electricity to Pueblo Viejo gold mine, where Barrick Gold is the operator with 60% interest and Goldcorp owns the remaining 40%. The region of the mining project experienced significant rainfall in May this year, which caused a need for new investments to be made. Barrick Gold has been anticipating incremental capital costs of around 0.3 billion USD in total for the power plant.
Wärtsilä has previously done two plants projects for the global gold mining giant Barrick Gold. Wärtsilä also has a strong presence in Dominican Republic even prior to this major deal. The shares seems set to open up around 2%.
The contract was signed with Barrick Gold to provide electricity to Pueblo Viejo gold mine, where Barrick Gold is the operator with 60% interest and Goldcorp owns the remaining 40%. The region of the mining project experienced significant rainfall in May this year, which caused a need for new investments to be made. Barrick Gold has been anticipating incremental capital costs of around 0.3 billion USD in total for the power plant.
Wärtsilä has previously done two plants projects for the global gold mining giant Barrick Gold. Wärtsilä also has a strong presence in Dominican Republic even prior to this major deal. The shares seems set to open up around 2%.
Friday, 15 July 2011
Wärtsilä sales warning
Wärtsilä Corporation (OMX: WRTBV) revised its 2011 sales prospects down to a cecline by 0-5% compared to 2010. Previously Wärtsilä had estimated that net sales would grow 3-5%. Wärtsilä estimates EBIT margin to be at around 11% as previously communicated, so profit for the year will be down as well.
The reason given is weaker than expected development in marine services markets and the timing of power plant deliveries. Wärtsilä said that its order intake for second quarter was solid 1.17 billion Euros. Wärtsilä's second quarter results are due on Wednesday 20th of July. Wärtsilä's stock is down nearly 10% under 10 minutes after the warning.
The reason given is weaker than expected development in marine services markets and the timing of power plant deliveries. Wärtsilä said that its order intake for second quarter was solid 1.17 billion Euros. Wärtsilä's second quarter results are due on Wednesday 20th of July. Wärtsilä's stock is down nearly 10% under 10 minutes after the warning.
Subscribe to:
Posts (Atom)