In the Finnish engine manufacturer’s annual earnings report it said the sector will be “slightly better” than last year but described its outlook as “cautious”.
“The contracting outlook remains challenging for certain ship types, such as bulk carriers, due to the remaining overcapacity,” it told investors Friday.
“Overall, the contracting mix is expected to be in line with that seen in 2012, favouring offshore and specialised vessel segments. Interesting opportunities can be seen in environmental solutions and fuel efficient designs.”
The commentary came as the company reported a fourth-quarter operating result of EUR 186m, versus a gain of EUR 145m in the same period year prior, and an annual net profit that rose to EUR 344m from EUR 293m on revenues of EUR 4.72bn.
Wartsila said 199 contracts for new vessels were registered in the three months to 31 December but logged 1,090 deals over the course of the year, which represented a decrease of 35% when compared to figures reported 12 months ago.
“There was a diverse mix of orders in 2012 with a clear emphasis on the contracting of offshore and specialised vessels,” it continued. “The LNG and LPG carrier markets also had an active year with 35 LNG carrier contracts booked.
“During 2012, shipping started to be more affected by the challenges of emission reductions and other environmental responsibilities.
“China and South Korea continued to be the dominant countries in shipbuilding, capturing 35% and 34% respectively of the contracts confirmed in 2012 in terms of compensated gross tonnage.”
You can read Wartsila’s earnings report in full by clicking on the link located under the Related Media section to the right of this article
