An improved result in the fourth quarter did not prove enough for Wartsila to avoid reporting a smaller profit in 2016.
But the company’s management is satisfied with the performance as it came in the wake of extremely low vessel contracting activity.
Hot on the heels on its biggest ever deal with Carnival, Wartsila reported full year pre-tax profit of EUR 479m ($511.6m), down by 13% year-on-year.
Its order intake in 2016 remained stable at EUR 4.93bn while net sales declined from EUR 5.03bn to 4.8bn.
Jaakko Eskola, chief executive of Wartsila, said: “Thanks to solid delivery execution, growth in services’ revenues, and an improved project mix in the fourth quarter, we were able to meet our revised net sales and profitability targets for the year 2016.
“Considering these headwinds, Wartsila’s order intake developed well."
Wartsila has turned its attention to other sectors such as ferries, ro-ros and FSRUs due to the slump in the offshore and oil businesses.
Biggert dividend and slight 2017 optimism
It has declared a dividend increase of 8% to EUR 1.30, in line with its growing practice.
Boosted by the latest 79-vessel deal with cruiseship giant Carnival, Wartsila expects its result in 2017 to be given a boost.
The company also plans to make the most of its activities within the ferry and ro-ro segments this year.
Roger Holm, executive vice president at Wartsila, said in a post-result interview: “On the newbuilding side, the market will continue to be challenging in 2017.
“But the same segments that were active in 2016 will continue to be active in 2017.
“So for us it’s good to be strong in ferries, ro-ros and FSRUs, areas where we have experience.”
Wartsila has also set out its aim to grow 5% over the cycle in its services division.
