Today Wärtsilä released its interim report. By the end of the third quarter, 1,150 vessels have been ordered which is notably more than for the full year 2009. Contracting activity continued to be good in the bulk carrier segment, supported mainly by Chinese ship owners.

The recovery in Ship Power continued and the order intake for the third quarter totalled EUR 176 million (68), 160% above the corresponding period last year. Some of the orders featured Dual-Fuel engine technology that enables vessels to run on clean LNG fuel, and in general the orders highlighted the success of Wärtsilä’s strategy to be a systems integrator, ship designer and solution provider. Wärtsilä’s share of the medium speed main engine market decreased from 37% (at the end of the previous quarter) to 32%. The market share in low speed engines decreased to 12% (15). In the auxiliary engine market Wärtsilä’s share increased to 3% (1).

Wärtsilä outlook
In the marine industry, contracting activity is expected to improve slightly. A shift in the mix of vessel types ordered is expected as contracting for bulk carriers decreases from current levels and containership ordering continues to increase. The outlook for offshore contracting activity is positive with strong demand expected to materialise in new orders.

Even though markets have bottomed out, the prevailing conditions will result in ordering volumes being maintained at lower levels than during the previous peak years. Competition and price pressures among shipbuilding suppliers will remain intense. Wärtsilä expects Ship Power’s order intake in 2010 to clearly improve over 2009.

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