Tue 21 Jul 2015 13:08

'A lot of customers' plan to use scrubbers, says Wartsila CEO


CEO says he has met many clients that intend to use scrubbers to comply with future sulphur legislation.



Wärtsilä's CEO, Björn Rosengren, has indicated that he has spoken to a number of clients who are already planning to install exhaust gas cleaning technology, also known as scrubbers, in the near future.

Speaking during the company's quarterly earnings call on July 17, Rosengren fielded a question from Sven Weier at UBS Deutschland AG regarding Wärtsilä's scrubber business and whether there had been a negative impact from the recent decrease in fuel prices.

In reply to the question, Rosengren said: "On the scrubber side I think we have our good market share there. We had a little bit lower [during the last quarter]. We had four scrubbers during the period, but we have a lot of projects that we hope to be closed here during the second quarter of the year. So there are activities, but it's clear that it's the ferry and the crews, who have taken these orders, but they are also coming in in the merchant segment, and I think many of the ship owners, talking to them, they are talking more about scrubbers today. Sorry, I said four, it's actually five scrubbers that were booked during the second quarter."

Rosengren added: "From the beginning, of course we thought it would be an explosion within this area. It hasn't been, and many ship owners are using low sulphur fuel today, especially now when the oil price is lower. But long term, we do believe that scrubbers, and even when the rest of the world, we don't know if it's 2020 or 2025, will go in to the sulphur legislations, the whole market will, and I met a lot of customers that are now planning for preparing using scrubbers to reach 0.5% sulphur index or fumes. So this is going to be a market. I think we're well established there."

During the second quarter, profit before tax rose by EUR 21 million, or 17.6 percent, to EUR 140 million compared to EUR 119 million during the corresponding period last year.

Net sales were up by EUR 114 million, or 10.2 percent, to EUR 1,230 million compared to EUR 1,116 million during the second quarter of 2014.

In its forecast for 2015, the Finnish firm says it expects net sales to rise by 5-10 percent and its operational profitability (EBIT% before non-recurring items) to be 12.0-12.5 percent. The guidance includes the impact of the L-3 Marine Systems International (MSI) acquisition.

Previously, Wärtsilä expected its net sales to grow by 0-10 percent and its operational profitability (EBIT% before non-recurring items) to be 12.0-12.5 percent, excluding the impact of the MSI acquisition.

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