Wartsila is pressing on with new low-carbon solutions for shipping against a background of rising earnings.
The Finnish technology group expects demand for its shipping services to be better this year as owners grapple with decarbonisation.
Chief executive Hakan Agnevall said investment appetite for new ships remained healthy in 2023, despite capacity limitations at the main shipyards in South Korea and China and further increases in newbuilding prices.
“Decarbonisation provides notable opportunities, not only for newbuilds, but also for retrofits and conversions as shipowners and operators seek to keep their existing fleets compliant and competitive,” he added.
Wartsila has increased research and development spending from the historical average of 3% of net sales to 4% as a result.
The world’s first 100% four-stroke ammonia engine for ships was launched last year, as well as four more methanol-ready engines.
“In 2025, we will deliver an engine concept ready for operating with pure hydrogen,” Agnevall revealed.
The company has also been testing its maritime carbon capture and storage system at a 70% capture rate.
Wartsila is preparing for the first pilot installation this year, with the intention of launching the product in 2025.
Net profit for the fourth quarter was up to €96m ($104m) from €28m a year earlier.
Headwinds navigated
Revenue dropped to €1.6bn from €1.8bn, but material and services costs were lower at €941m, against €1.25bn.
The annual result was €269m versus a loss of €58m in the final quarter of 2022.
Agnevall said: “We mitigated the headwinds from cost inflation, geopolitical concerns and a slowdown of global economic growth.
“The market sentiment for our businesses remained fairly positive in both marine and energy, and we maintained our focus on executing our strategy and supporting our customers in their decarbonisation journeys.”
