This release is a summary of
IMPROVED PROFITABILITY AND CONTINUED GROWTH IN SERVICES
HIGHLIGHTS FROM APRIL-
- Order intake increased by 17% to
EUR 1,687 million (1,440), of which organic growth was 21% -
Service order intake increased by 13% to
EUR 913 million (811) -
Net sales increased by 3% to
EUR 1,454 million (1,407), of which organic growth was 7% - Book-to-bill amounted to 1.16 (1.02)
-
Comparable operating result increased by 26% to
EUR 108 million (85), which represents 7.4% of net sales (6.1). -
Operating result decreased by 12% to
EUR 66 million (75), which represents 4.5% of net sales (5.3). -
Basic earnings per share decreased to
0.05 euro (0.09) -
Cash flow from operating activities increased to
EUR 75 million (-90)
HIGHLIGHTS FROM JANUARY-
- Order intake increased by 22% to
EUR 3,427 million (2,820), of which organic growth was 25% -
Service order intake increased by 17% to
EUR 1,802 million (1,543) -
Order book at the end of the period increased by 5% to
EUR 6,249 million (5,936) -
Net sales increased by 11% to
EUR 2,919 million (2,639), of which organic growth was 13% - Book-to-bill amounted to 1.17 (1.07)
-
Comparable operating result increased by 30% to
EUR 196 million (151), which represents 6.7% of net sales (5.7) -
Operating result increased by
EUR 230 million toEUR 158 million (-72), which represents 5.4% of net sales (-2.7) -
Basic earnings per share increased to
0.14 euro (-0.16) -
Cash flow from operating activities increased to
EUR 219 million (-213)
WÄRTSILÄ'S PROSPECTS
Marine
Energy
HÅKAN AGNEVALL, PRESIDENT & CEO: TRANSFORMING WÄRTSILÄ TO A MORE PROFITABLE AND STABLE COMPANY
"The market sentiment remained fairly positive during the second quarter of 2023, and we succeeded to improve our performance. The continued growth in service and positive development in the energy storage business supported our profitability improvement.
In the energy market, higher interest rates, volatile gas prices and longer permitting times continued to hamper new projects, especially in the power plants business. In Energy storage, the decrease of battery raw material prices during the first half of the year has resulted in orders being postponed as certain customers wait for even lower price levels. Interest in balancing technologies remains high as supportive energy and climate policies around the world continue to evolve towards decarbonisation targets. The Energy service business continued to develop well. For example, we signed a two-year renewal of an Operations & Maintenance agreement with the Brazilian independent energy producer, Gera Amazonas. We also signed our largest ever energy storage deal to-date with an Australian customer,
In the marine market, the increasing cost of new ships and limited capacity at shipyards continued to limit the investment appetite in some segments. However, the market sentiment remained positive in
Q2 order intake increased by 17%, supported by good development both in equipment and services. Net sales increased by 3% with solid growth in services and decline in equipment. The comparable operating result increased by 26% with the comparable operating margin amounting to 7.4%, with strong contribution from services and energy storage. We managed to improve our profitability despite taking a 19 MEUR provision in a single turnkey project in the Gas Solutions business unit belonging to Marine Systems. Cash flow from our operating activities also improved.
As announced during the first quarter, we completed the transfer of parts of the Voyage business activities (previously part of
In June, two new members joined our
We expect the demand environment for the next 12 months to be similar to that of the comparison period, in both Marine (including
MEUR | 4-6/2023 | 4-6/2022 | Change | 1-6/2023 | 1-6/2022 | Change | 2022 |
Order intake | 1,687 | 1,440 | 17% | 3,427 | 2,820 | 22% | 6,074 |
of which services | 913 | 811 | 13% | 1,802 | 1,543 | 17% | 3,066 |
of which equipment | 774 | 629 | 23% | 1,625 | 1,277 | 27% | 3,008 |
Order book, end of period | 6,249 | 5,936 | 5% | 5,906 | |||
Net sales | 1,454 | 1,407 | 3% | 2,919 | 2,639 | 11% | 5,842 |
of which services | 807 | 696 | 16% | 1,543 | 1,327 | 16% | 2,775 |
of which equipment | 647 | 712 | -9% | 1,376 | 1,312 | 5% | 3,067 |
Book-to-bill | 1.16 | 1.02 | 1.17 | 1.07 | 1.04 | ||
Comparable adjusted EBITA* | 113 | 91 | 24% | 206 | 163 | 26% | 349 |
% of net sales | 7.8 | 6.4 | 7.1 | 6.2 | 6.0 | ||
Comparable operating result | 108 | 85 | 26% | 196 | 151 | 30% | 325 |
% of net sales | 7.4 | 6.1 | 6.7 | 5.7 | 5.6 | ||
Operating result | 66 | 75 | -12% | 158 | -72 | 320% | -26 |
% of net sales | 4.5 | 5.3 | 5.4 | -2.7 | -0.4 | ||
Result before taxes | 53 | 72 | -26% | 137 | -74 | 284% | -32 |
Basic earnings/share, EUR | 0.05 | 0.09 | 0.14 | -0.16 | -0.11 | ||
Cash flow from operating activities | 75 | -90 | 219 | -213 | -62 | ||
Net interest-bearing debt, end of period | 462 | 432 | 481 | ||||
Gearing | 0.23 | 0.21 | 0.23 | ||||
Solvency, % | 33.5 | 35.8 | 35.3 |
*Comparable adjusted EBITA excludes items affecting comparability and purchase price allocation amortisation.
ANALYST AND PRESS CONFERENCE
A virtual analyst and press conference will be held as a webinar on the same day, Friday
If you only wish to view the stream, please register at: https://www.mediaserver.fi/live/wartsila
If you plan to view the stream and ask questions in the Q&A session, please register at: https://register.gotowebinar.com/register/2317125529521558613
Please register using only one of the links above, not both. Once you have registered, you will receive a confirmation email that includes specific joining instructions.
***
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For more information on joining and setting up your audio for Q&A, you may visit the official GoToWebinar attendee joining guide at: https://support.goto.com/webinar/how-to-join-attendees. Instructions on Q&A related functionalities can be found at: https://support.logmeininc.com/gotowebinar/help/raise-your-hand.
A recording of the webcast will be available on the company website as soon as possible after the event.
For further information, please contact:
Executive Vice President & CFO
Tel. +358 10 709 5444
arjen.berends@wartsila.com
Vice President, Investor Relations
Tel. +358 10 709 1461
hanna-maria.heikkinen@wartsila.com
For press information, please contact:
Executive Vice President, Communications and Marketing
Tel. +358 40 589 0223
saara.tahvanainen@wartsila.com
https://news.cision.com/wartsila-corporation/r/wartsila-s-half-year-financial-report-january-june-2023,c3808154
https://mb.cision.com/Main/15003/3808154/2198877.pdf
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