This release is a summary of
MOVING IN THE RIGHT DIRECTION IN 2021: ORDERS,
HIGHLIGHTS FROM OCTOBER-
- Order intake increased by 92% to
EUR 2,150 million (1,118) -
Service order intake increased by 20% to
EUR 753 million (626) -
Net sales increased by 31% to
EUR 1,597 million (1,220) - Book-to-bill amounted to 1.35 (0.92)
-
Comparable operating result increased by 53% to
EUR 158 million (103), which represents 9.9% of net sales (8.4) -
Operating result increased by 59% to
EUR 144 million (90), which represents 9.0% of net sales (7.4) -
Basic earnings per share increased to
0.14 euro (0.10) -
Cash flow from operating activities increased to
EUR 370 million (274)
HIGHLIGHTS FROM JANUARY-
- Order intake increased by 32% to
EUR 5,735 million (4,359) -
Service order intake increased by 17% to
EUR 2,656 million (2,267) -
Order book at the end of the period increased by 16% to
EUR 5,859 million (5,057) -
Net sales increased by 4% to
EUR 4,778 million (4,604) - Book-to-bill amounted to 1.20 (0.95)
-
Comparable operating result increased by 30% to
EUR 357 million (275), which represents 7.5% of net sales (6.0) -
Operating result increased by 34% to
EUR 314 million (234), which represents 6.6% of net sales (5.1) -
Basic earnings per share increased to
0.33 euro (0.23) -
Cash flow from operating activities increased to
EUR 731 million (681) -
Dividend proposal
0,24 euro per share (0.20)
WÄRTSILÄ'S PROSPECTS FOR 2022
HÅKAN AGNEVALL, PRESIDENT & CEO: ORDERS STRENGTHENED TOWARDS YEAR-END
"In 2021, the Covid-19 pandemic continued to affect our end markets, our operations, and our financial performance. New virus variants reminded us that the pandemic is not yet over. However, we saw signs of stabilisation and recovery in both the marine and energy markets, and the order intake improved towards year-end.
In the energy markets, the market situation stabilised. The need for various flexible balancing solutions was illustrated by strong demand for energy storage solutions, as well as by some important thermal power plant orders. While energy storage orders were received throughout the year, the major multi-fuel power plant orders for
In the marine markets, we saw mixed activity levels across different vessel segments. Vessel ordering activity overall improved, largely driven by containerships. At the same time, activity in our key vessel segments remained relatively low, particularly in the important cruise industry. The progress in Covid-19 vaccination programmes and the lifting of travel restrictions accelerated the reactivation of existing cruise and ferry fleets in the second half of the year. The active cruise fleet capacity increased from around 20% at the end of June to around 70% at the end of December, which supports our service business going forward. However, new Covid-19 variants pose a risk to recovery.
Looking at our full-year performance, it was encouraging to see that the total order intake increased by 32%, supported by all our core businesses, albeit from earlier low levels. The increase in order intake was mainly related to equipment, with an impact on sales mix in 2022. Demand for services was solid, resulting in a 17% growth in service order intake. Net sales increased by 4%, driven by a 11% growth in service sales. We also saw clear improvement in profitability. The operating result increased by 34%, largely driven by a more favourable sales mix between equipment and services, as well as improved service capacity utilisation.
We are leading the decarbonisation journey with a strong commitment to sustain R&D investments at around 3% of net sales, combined with partnerships for a broad solution offering. In 2021, we continued pioneering the adoption of sustainable fuels by launching a major test programme towards carbon-free solutions with hydrogen and ammonia. Marine Power upgraded the 20DF dual-fuel engine, which can now deliver more power with less energy consumption, and its methane slip is lowered by as much as 40%. Energy launched the 34SG Balancer, the optimal solution for balancing renewable power generation. Marine Systems launched the new IQ Series exhaust gas treatment system that allows the same exhaust gas cleaning results to be achieved with a smaller impact on a vessel's cargo-carrying capacity, and therefore its profitability. Voyage initiated partnerships and projects globally to enable sustainable shipping. The digital systems such as Navi-Port and FOS optimise the vessel journey and enable just-in-time arrival for ships, saving fuel and reducing time at anchorage.
One key activity during 2021 was the launch of a new strategic framework, the Wärtsilä Way, combined with the introduction of new financial and decarbonisation targets. Going forward, the
In the longer term, the increased focus on decarbonisation continues. Regulatory frameworks and wider policy announcements are accelerating the move to a low-carbon society, and our customers are increasingly asking for green shipping and clean energy. As a technology leader,
MEUR | 10-12/ 2021 | 10-12/ 2020 | Change | 1-12/ 2021 | 1-12/ 2020 | Change |
Order intake | 2,150 | 1,118 | 92% | 5,735 | 4,359 | 32% |
of which services | 753 | 626 | 20% | 2,656 | 2,267 | 17% |
Order book, end of period | 5,859 | 5,057 | 16% | |||
Net sales | 1,597 | 1,220 | 31% | 4,778 | 4,604 | 4% |
of which services | 761 | 654 | 16% | 2,499 | 2,255 | 11% |
Book-to-bill | 1.35 | 0.92 | 1.20 | 0.95 | ||
Operating result | 144 | 90 | 59% | 314 | 234 | 34% |
% of net sales | 9.0 | 7.4 | 6.6 | 5.1 | ||
Comparable operating result | 158 | 103 | 53% | 357 | 275 | 30% |
% of net sales | 9.9 | 8.4 | 7.5 | 6.0 | ||
Comparable adjusted EBITA* | 165 | 111 | 49% | 388 | 308 | 26% |
% of net sales | 10.4 | 9.1 | 8.1 | 6.7 | ||
Profit before taxes | 134 | 78 | 70% | 296 | 191 | 55% |
Basic earnings/share, EUR | 0.14 | 0.10 | 0.33 | 0.23 | ||
Cash flow from operating activities | 370 | 274 | 731 | 681 | ||
Net interest-bearing debt, end of period | 4 | 394 | ||||
Gross capital expenditure | 143 | 117 | ||||
Gearing | 0.00 | 0.18 | ||||
Solvency, % | 38.6 | 38.1 | ||||
Personnel, end of period | 17,305 | 17,792 | -3% |
*Comparable adjusted EBITA excludes items affecting comparability and purchase price allocation amortisation.
BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors proposes that a dividend of
The first instalment of
The second instalment of
ANALYST AND PRESS CONFERENCE
A virtual analyst and press conference will be held as a webinar today, Friday
If you only wish to view the stream, please register at: http://www.mediaserver.fi/live/wartsila.
If you plan to view the stream and ask questions in the Q&A session, please register at: https://attendee.gotowebinar.com/register/2853821333102916107.
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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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, Branding & Marketing
Tel. +358 10 709 5599
atte.palomaki@wartsila.com
https://news.cision.com/wartsila-corporation/r/wartsila-s-financial-statements-bulletin-january-december-2021,c3494069
https://mb.cision.com/Main/15003/3494069/1526415.pdf
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