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Wärtsilä's CEO has said that the company anticipates a rise in interest for liquefied natural gas (LNG) as a marine fuel.

Speaking in the company's financial statements bulletin for January - December 2011, Wärtsilä President and CEO Bjorn Rosengren said: "We anticipate growing interest for gas as a fuel and on a slightly longer term we foresee strong potential in the marine markets for environmental technologies.

Commenting on the Hamworthy takeover, Rosengren said: "The acquisition of Hamworthy will enhance our capabilities in the offshore, marine gas applications, and environmental solutions markets and it will provide important synergies. The acquisition is expected to become effective on 31 January 2012 and it will increase our earnings as soon as it is finalised. However, it will have a slightly negative impact on our profitability in 2012.”

Please find below a summary of financial highlights for January - December 2011

- Order intake increased 13% to EUR 4,516 million (4,005)
- Order intake in joint venture companies grew significantly, EUR 394 million (77)
- Book-to-bill 1.07 (0.88)
- At the end of the period the order book totalled EUR 4,007 million (3,795), +6%
- Net sales decreased 7.6% to EUR 4,209 million (4,553)
- Operating result EUR 469 million, or 11.1% of net sales (EUR 487 million and 10.7%)
- Earnings per share 1.52 euro (1.68)
- Cash flow from operating activities EUR 232 million (663)
- Dividend proposal 0.90 euro/share

Fourth Quarter Highlights

- Order intake increased 25% to EUR 1,250 million (1,003)
- Order intake in joint venture companies grew significantly, EUR 178 million (4)
- Book-to-bill 1.01 (0.69)
- Net sales decreased 15% to EUR 1,238 million (1,462)
- Operating result EUR 145 million, or 11.7% of net sales (EUR 159 million and 10.9%)
- Earnings per share amounted to 0.48 euro (0.50)
- Cash flow from operating activities EUR -71 million (171)

Ship Power Sector

Vessel contracting activity during the fourth quarter 2011 was approximately at the same level as in the third quarter. A total of 1,192 vessels were contracted in 2011, which represents a decrease of 49% compared to the previous year. However, the investment level in newbuilding of ships was comparable to that of 2010, highlighting a shift towards the contracting of specialised vessels.

During 2011, dry and wet cargo trades grew, but the fleet of bulk carriers and tankers grew twice as much as the growth in cargo. Wärtsilä said this demonstrates an imbalance between supply and demand that resulted in the slowing down of contracting for traditional merchant ships in 2011.

Contracting activity was robust for specialised vessel types throughout the year. By year-end, 50 contracts for LNG carriers were registered and the dual-fuel solution has proven to be the preferred technology for propulsion in this segment.

Vessels used for offshore exploration also experienced very robust contracting activity, with notably 36 contracts for drillships being placed in 2011. In the fourth quarter of 2011, several offshore service vessels (OSV’s) were contracted. China accounts for 44% of contracting in 2011 in terms of number of vessels and 36% in terms of Gross Tonnage compensated with workload (CGT). South Korea accounts for 27% and 45% respectively. Thereby, China continues to be the leading shipbuilding country in terms of number of vessels, while South Korea regained its position as the number one shipbuilder in terms of workload for their shipyards.

Notably, Brazilian yards booked a number of orders for offshore vessels, positioning the country in the top five shipbuilders for 2011.

Ship Power market shares

Wärtsilä’s share of the medium-speed main engine market was steady at 46% (at the end of the previous quarter 46%). Its market share in low-speed engines increased to 22% (18). In the auxiliary engine market Wärtsilä’s share was 4% (3).