Order intake and order book
Order intake increased
Wärtsilä’s order intake for the financial period January-December 2011 totalled EUR 4,516 million (4,005), an increase of 13%. The book-to-bill ratio for the financial period was 1.07 (0.88).
For the financial period January-December 2011, the Power Plants order intake totalled EUR 1,602 million (1,413), a 13% increase compared to the previous year. After a rather slow start, ordering activity picked up towards the year’s end. Around 50% of the orders received in terms of MW’s were from gas based markets. During 2011, Wärtsilä received two large turnkey project orders from the Dominican Republic, as well as a 250 MW turnkey project order from Estonia and a 180 MW order from South Africa. Several midsize orders were received from Bangladesh and Turkey.
Wärtsilä Ship Power’s order intake for January-December 2011 was EUR 1,000 million (657), a significant increase of 52% over the corresponding period last year. Throughout 2011, Offshore and Special Vessels segment orders continued to be active. In line with the Ship Power strategy, Wärtsilä received several significant orders for the delivery of total solutions, including ship design, propulsion machinery, automation and other equipment. Wärtsilä received many orders for dual-fuel engines, thus underlining the company's frontrunner position in gas applications. Dual-fuel orders included several offshore vessels, as well as a significant order for a passenger ferry from the Finnish ship owner Viking Line. The vessel will be the largest passenger vessel ever to operate on LNG. The Offshore segment represented 40% of the total order intake, while the Merchant segment share was 25% and Special Vessels 15%. The Cruise & Ferry segment’s share was 10%, Navy represented 7% of the order intake, and Ship Design accounted for 3%.
For the financial period January-December 2011, the Services order intake totalled EUR 1,909 million (1,931). During 2011, Wärtsilä was awarded a five-year technical management contract, based on Dynamic Maintenance Planning, covering a total of 24 Wärtsilä 50DF dual-fuel engines installed in six LNG carriers. The contract was placed by the operator of the vessels, Ceres LNG Services Ltd, a Greek ship management company and a major marine services provider in LNG shipping. Wärtsilä also signed its largest ever long-term marine maintenance support agreement. The contract with Royal Caribbean Cruises Ltd covers a wide range of services and 29 vessels with an aggregated output of approximately 1,400 MW.
Order intake in joint ventures
The joint venture company in South Korea, Wärtsilä Hyundai Engine Company Ltd (WHEC), received orders for dual-fuel engines for 34 LNG carriers in 2011. Order intake in WHEC and in the Wärtsilä Qiyao Diesel Company Ltd joint venture company in China, producing auxiliary engines for the financial period January-December 2011 grew significantly to EUR 394 million (77). Wärtsilä’s share of ownership in these companies is 50%, and the profits will be reported as a share of the result of associates and joint ventures.
At the end of the financial period, Wärtsilä’s total order book stood at EUR 4,007 million (3,795), an increase of 6%. The Power Plants order book amounted to EUR 1,536 million (1,299), which is 18% higher than on the same date last year. The Ship Power order book stood at EUR 1,684 million (1,825), a decrease of 8%. The Services order book totalled EUR 786 million (671) at the end of the financial period, an increase of 17%.