• 2020 April 1 14:22

    Wärtsilä launches actions to mitigate the impact of COVID-19 and withdraws its market outlook

    The markets in which Wärtsilä operates are increasingly being affected by the coronavirus (COVID-19) outbreak and the measures taken to contain the pandemic across the globe. As a consequence, economic activity is expected to slow down globally. The length and depth of the downturn remain to be seen, the company said in its release.

    Wärtsilä has implemented a wide range of special arrangements in all impacted locations to ensure business continuation and to safeguard the health and safety of its personnel. Such measures include rearranging shifts and production to avoid contamination, optimised use of multiple sourcing, as well as using virtual tools in testing and validation and in service activities. Remote working is strongly encouraged where possible, enabled by digital collaboration technology. Most factories are in operation at this time, but they are running at a lower than usual capacity. Wärtsilä’s ability to deliver on customer commitments has thus far been mostly secured.

    Order intake and invoicing have developed largely in line with expectations in January and February. However, intensifying restrictions are impacting Wärtsilä’s delivery schedules, access to customer sites, and ability to perform service activities. Supply chains and logistics are also seeing disruptions. Furthermore, deteriorating macroeconomic conditions and the effect of COVID-19 on customer operations are expected to lower the demand for Wärtsilä’s solutions and services. This will materially impact Wärtsilä’s net sales and earnings for 2020 starting in March. The full financial impact cannot be quantified at this time, as it will depend on the duration and severity of measures taken to contain the virus spread and the pace of an eventual market recovery. Wärtsilä has decided to withdraw its market outlook for 2020, until visibility has improved.

    Wärtsilä is taking proactive steps to minimise the negative impact on its operations globally. Simultaneously, the company is ensuring its ability to both return to normalised operations when markets recover and capture future growth opportunities. The steps being taken include reducing working hours and initiating temporary layoffs, as well as streamlining hiring and minimising the use of external personnel and consultants. Discretionary spending will also be reduced, and non-critical development projects will be postponed. The actions will be implemented locally, depending on country-specific circumstances. Wärtsilä expects these measures to generate temporary cost savings in the range of EUR 100 million. The market situation will be continuously monitored and further actions taken as needed.

    The fixed salaries of the members of Wärtsilä’s Board of Management will temporarily be cut by 20%. The resulting savings will be donated to support efforts aimed at combatting the impacts of the COVID-19 pandemic.

    Previous market outlook for 2020 (published on 30 January 2020):
    The demand for Wärtsilä’s services and solutions in the coming 12 months is expected to be somewhat below that of the previous 12 months. Demand by business area is anticipated to be as follows:
     Soft in Wärtsilä Marine Business, as low vessel contracting is expected to affect equipment ordering activity.
     Soft in Wärtsilä Energy Business. While some recovery in equipment order intake is anticipated, market conditions remain challenging.
    Wärtsilä’s current order book for 2020 deliveries is EUR 3,571 million (3,696), comprised mainly of equipment deliveries.
     
    Wärtsilä in brief

    Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2019, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.




2020 May 29

18:36 Port of Marseille Fos to constuct a new international ferry terminal
18:20 Sea Port of Saint-Petersburg boosts its infrastructure investments by 40%
18:06 PIL starts a new India Service - China India Express (CIX)
17:51 Petrotrans takes delivery of lead ship of Project RSD59
17:36 Rolls-Royce seals major contract covering complete MTU propulsion systems for Royal Navy Type 31 frigates
17:14 United Shipbuilding Corporation developed its own cargo ship design
17:06 ECSA welcomes TRAN opinion on future EU-UK partnership and urges rapid advancement of the talks in view of the looming deadline
16:15 Port Authorities pledging support to keep ports open during COVID-19 more than doubles within a month
15:52 Market of seaborne cargo transportation for wind farms is stable and expected to grow
15:46 Viking Line starts a passenger service from June 1
15:05 KiwiRail orders two new ferries
14:49 Admiral Makarov University introduced new GMDSS simulator class
14:05 Bollinger Shipyards delivers the USCGC MYRTLE HAZARD to the U.S. Coast Guard
13:41 Smart Delta Resources launches project to substantially reduce CO2 emissions in Scheldt-Delta region
13:09 Record engine powers world’s largest containership
12:48 Large amphibious ships of RF Navy's Black Sea Fleet conducted comprehensive exercise in sea training ground
12:30 Navigation season opens on Upper Lena and Lower Lena rivers
12:09 Global shipping body addresses the health concerns of seafarers during the COVID-19 pandemic
11:26 Vimpel Shipyard launches coast guard boat Lamantin of river-going design
11:03 LNG STS bunkering – ‚First-off‘ operations in France, Germany and Norway
10:28 Oil prices fall by over $1
10:09 DP World joins with TradeLens to digitize global supply chains
09:53 Bunker prices are stable at the port of Saint-Petersburg, Russia
09:35 Baltic Dry Index on May 28
09:20 Konecranes to deliver third mobile harbor crane to South Australia
09:17 MABUX: Bunker market this morning, May 29
08:46 CMA CGM announces FAK rates from Asia to North Africa, Mediterranean and North Europe

2020 May 28

18:37 CMA CGM ends ESS from North Europe, Scandinavia & Poland to West Med, East Med, Adriatic & North Africa
18:07 PortXchange results in shorter idle times on departure at APM Terminals Rotterdam
17:24 Independent Container Line starts new service from Cork to USA
17:20 Antwerp@C investigates potential for halving CO2 emissions in Port of Antwerp by 2030
16:49 Nevsky Shipyard launches lead ferry of Project PV22, Admiral Gennady Nevelskoy
16:17 Finland's new Water Traffic Act enters into force in June
16:05 Lubrizol joins the Getting to Zero Coalition
15:56 Wärtsilä high-efficiency propulsion solutions selected for special high-speed ferry
15:46 ABP keeps Britain trading in the safest way possible
15:02 Bunker prices show no considerable changes at the Far East ports of Russia (graph)
14:38 Bunkering tanker intended for Baikal lake delivered to the customer
14:00 WinGD wins type approval for biggest and most powerful ever dual-fuel engines
13:00 Gasum partners up with the sustainable transport solution provider company Samskip
12:30 More Konecranes BOXHUNTER RTGs to Vietnam
12:00 Konecranes and Fluidmesh join forces to deliver world-first 100% wireless Automated Rubber Tired Gantry crane system
11:30 EPS and Equinor set sights on a trio of newbuild LPG dual-fuel vessels
11:09 Boskalis awarded two dredging contracts in Finland
10:51 Oil prices continue going down
10:30 DNV GL releases first ever traceability standard for reclaimed plastic
10:09 Port of Stockholm announces arrival of the first container ship at Norvik Port
09:44 CMA CGM announces Overweight Surcharge (OWS) from Asia to North Europe
09:37 Baltic Dry Index on May 27
09:19 Rosmorport released young trout into Ladoga lake
08:54 MABUX: Bunker market this morning, May 28

2020 May 27

18:36 Nexans wins major subsea HVDC cable contract from Greece's Ariadne Interconnection S.P.S.A
18:06 The lock gate of the Pierre Vandammelock at the port of Port of Zeebrugge gets decoupled and transported to the inner harbour for renovation works
17:36 Sales of “Honesty” - device to measure the level of liquid in tanks - exceeds 1,000 units
17:06 ZIM posts Q1 2020 results
16:58 NOVATEK-Murmansk obtains resident status at Advanced Special Economic Zone
16:31 Transport Ministry addressed with proposal to introduce criteria for coal ports to be acknowledged as dedicated ones
16:04 UN agencies call for urgent action on crew changes and keyworker designation for sea and air workers
15:59 Cai Mep International Terminal welcomes maiden call of TP17 service
15:13 Traficom extends validity of certain seafarers’ competency and proficiency certificates