This release is a summary of
A CHALLENGING YEAR WITH STRONG ANNUAL GROWTH
HIGHLIGHTS FROM OCTOBER-
- Order intake decreased by 24% to
EUR 1,638 million (2,150) -
Service order intake increased by 6% to
EUR 791 million (747) -
Net sales increased by 11% to
EUR 1,770 million (1,597), of which organic growth was 7% - Book-to-bill amounted to 0.93 (1.35)
-
Operating result decreased by 75% to
EUR 37 million (144), which represents 2.1% of net sales (9.0). -
Comparable operating result decreased by 41% to
EUR 93 million (158), which represents 5.3% of net sales (9.9). This includesEUR 40 million cost provisions related to the Olkiluoto 1 and 2 nuclear project. -
Basic earnings per share decreased to
0.05 euro (0.14) -
Cash flow from operating activities decreased to
EUR 51 million (370)
HIGHLIGHTS FROM JANUARY-
- Order intake increased by 6% to
EUR 6,074 million (5,735) -
Service order intake increased by 17% to
EUR 3,066 million (2,615) -
Order book at the end of the period was stable at
EUR 5,906 million (5,859) -
Net sales increased by 22% to
EUR 5,842 million (4,778), of which organic growth was 18% - Book-to-bill amounted to 1.04 (1.20)
-
Operating result decreased by
EUR 339 million toEUR -26 million (314), which represents -0.4% of net sales (6.6). This includes a write-down ofEUR 200 million related toWärtsilä's exit fromRussia andEUR 90 million related to the ramp down of manufacturing inTrieste . -
Comparable operating result decreased by 9% to
EUR 325 million (357), which represents 5.6% of net sales (7.5) -
Basic earnings per share decreased to
-0.11 euro (0.33) -
Cash flow from operating activities decreased to
EUR -62 million (731) -
Dividend proposal
0.26 euro per share (0.24)
WÄRTSILÄ'S PROSPECTS FOR 2023
HÅKAN AGNEVALL, PRESIDENT & CEO: GOOD GROWTH IN SERVICES
"The year 2022 was characterised by geopolitical tensions and uncertainty in the global business environment. The war in
In the energy markets, the market situation remained volatile during the year. The war in
In the marine market, the market sentiment continued to improve throughout 2022. Ordering activity was supported by record-high orders for LNG carriers, especially in terms of order value. Increasing demand for tonnage, improved volumes in the passenger travel segment and continued fleet reactivations developed favourably. This also supported our service business. The active cruise fleet has been 94% at the end of 2022 compared to around 70% at the end of 2021. Decarbonisation continues to be an increasingly important topic for our customers. One proof point of our ability to support our customers' environmental targets is the announced order for hybrid propulsion systems for four new heavy lift vessels. This innovative hybrid system will minimise the ships' CO2 emissions, thus supporting the marine sector's decarbonisation ambitions.
We were able to grow our order intake by 6% and net sales by 22% during the year. We were especially successful in the service business, where our order intake grew by 17% exceeding the equipment order intake in absolute terms. Service net sales grew by 12%, with growth in all businesses. Interest in long-term agreements has been high, and our service agreement renewal rates in both the Marine and Energy businesses were more than 90%. Equipment net sales increased by 33% and was strongly supported by growth in Energy equipment deliveries. The comparable operating result decreased by 9%, supported by higher sales volumes and burdened by cost inflation, a less favourable sales mix between equipment and services, and a cost provision related to the Olkiluoto 1 and 2 nuclear project. Particularly the profitability of projects taken before the acceleration of cost inflation in the beginning of 2022 has suffered.
In July, we announced our plan to centralise our 4-stroke engine manufacturing in
In July, we announced that we have completed the orderly exit from the Russian market following our announcement of scaling down activities in
In October, we announced that we are further strengthening the marine end-to-end lifecycle offering by integrating the Voyage business into
We have continued to invest in R&D despite the prevailing market uncertainty. In June, we opened our new Sustainable Technology Hub in Vaasa,
We continue to promote the transition to carbon-neutrality both in our own operations as well as for our customers. Our goal is to become carbon-neutral in our own operations and to be able to provide a product portfolio ready for zero-carbon fuels by 2030. We already took the decision to purchase fully green electricity in
Whereas global economic and political uncertainty is set to continue, our strong order book in both equipment and services will support our ambitions for 2023. At the same time, the share of equipment orders taken before the acceleration of cost inflation in the beginning of 2022 will be significantly smaller. We aim to improve profitability by climbing the service value ladder, and by turning around the Energy Storage and Voyage business units."
MEUR | 10-12/ 2022 | 10-12/ 2021 | Change | 1-12/ 2022 | 1-12/ 2021 | Change |
Order intake | 1,638 | 2,150 | -24% | 6,074 | 5,735 | 6% |
of which services | 791 | 747 | 6% | 3,066 | 2,615 | 17% |
Order book, end of period | 5,906 | 5,859 | 1% | |||
Net sales | 1,770 | 1,597 | 11% | 5,842 | 4,778 | 22% |
of which services | 784 | 751 | 4% | 2,775 | 2,467 | 12% |
Book-to-bill | 0.93 | 1.35 | 1.04 | 1.20 | ||
Operating result | 37 | 144 | -75% | -26 | 314 | -108% |
% of net sales | 2.1 | 9.0 | -0.4 | 6.6 | ||
Comparable operating result | 93 | 158 | -41% | 325 | 357 | -9% |
% of net sales | 5.3 | 9.9 | 5.6 | 7.5 | ||
Comparable adjusted EBITA* | 99 | 165 | -40% | 349 | 388 | -10% |
% of net sales | 5.6 | 10.4 | 6.0 | 8.1 | ||
Result before taxes | 35 | 134 | -74% | -32 | 296 | -111% |
Basic earnings/share, EUR | 0.05 | 0.14 | -0.11 | 0.33 | ||
Cash flow from operating activities | 51 | 370 | -62 | 731 | ||
Net interest-bearing debt, end of period | 481 | 4 | ||||
Gross capital expenditure | 161 | 143 | ||||
Gearing | 0.23 | 0.00 | ||||
Solvency, % | 35.3 | 38.6 | ||||
Personnel, end of period | 17,581 | 17,305 | 2% |
*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, Tuesday
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/2984383948907077980.
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-2022,c3705942
https://mb.cision.com/Main/15003/3705942/1815276.pdf
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