Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Shipping event by Danske Bank 2014
31 slides from Wartsila Oyj Abp's conference presentation, Mar 3, 2014
Slide 1: Wärtsilä Ship Power
WÄRTSILÄ SHIP POWER JAAKKO ESKOLA SENIOR EVP DEPUTY TO THE CEO PRESIDENT, SHIP POWER 1 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 2: The most complete Marine Offering on earth
The most complete Marine Offering on earth 2 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 3: Market trends and drivers
Market trends and drivers • Development of the global economy drives marine trade and transportation growth • Development of oil & gas prices stimulates investments in exploration and production of offshore oil & gas • Environmental regulations drive demand for environmental solutions and LNG as a m
Slide 4: Strategic focus
Strategic focus Wärtsilä’s strategy for the marine and oil & gas market To be recognised as the leading provider of innovative products and integrated solutions in the marine and offshore oil & gas industry. Energy efficiency Gas and dual-fuel Environmental solutions solutions LEADER IN OFFERING THR
Slide 5: Why do our customers choose us?
Why do our customers choose us? The fundamentals has not changed just the order of importance Wärtsilä does: Customer needs: • Continuously responsive to • Customer understanding customer needs, competent - Understands customers and reliable business and needs - Matching offering that suits • Integr
Slide 6: This is what we bring to the market
This is what we bring to the market Project services Support during Comprehensive project development product portfolio and execution • Marine lifecycle services • Environmental technologies • Ship design and naval • Engines and gensets architecture • Propulsion equipment • Financial services • Powe
Slide 7: The most complete marine offering on earth
THE MOST COMPLETE MARINE OFFERING ON EARTH Automation Ballast Water Management Compressors Engines & Generating Sets Exhaust Gas Cleaning Gas Systems Gears Inert Gas Integrated solutions Marine Lifecycle Solutions Oil Separation Power Electric Systems Project Management Propulsors Pumps & Valves Sea
Slide 8: The most complete Marine Offering on earth
The most complete Marine Offering on earth 8 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 9: Truly global
Truly global 70 countries 160 locations 18000 people The only player in the market with a truly global presence and capability to service customers 24/7 on all continents Every second ship in the world is equipped or served by Wärtsilä 9 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID:
Slide 10: Market drivers and Competitive landscape
Market drivers and Competitive landscape 10 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 11: Market drivers
Market drivers Environment LNG Offshore Merchant • Emissions • LNG bunkering • Deepwater requiring • Fleet supply and legislation (Nox) availability more power demand volatility 2015-2016 • Wärtsilä proven • High oil price • Low cost postponed (sulphur technology • Brazil and China manufacturing sti
Slide 12: Increasing environmental regulation and alternatives for decreasing emissions
Increasing environmental regulation and alternatives for decreasing emissions NOx SOx PARTICULATE GREENHOUSE BALLAST MATTER GAS WATER Acid rains Acid rains Impact on air quality Global warming Damage to local Ozone depletion eco-systems Tier II (2011) 3.5% (2012) Along with SOx Under evaluation Glob
Slide 13: Regulation
2016 Jul 1: 2018 Jan 1: 2014 Jul 1: Ecdis 2016 Jan 1: IMO ballast water Regulation mandatory for existing convention applies to all other vessels (implies treatment Ecdis mandatory existing Ecdis mandatory existing cargo passengerships technology needs installing on 2024 Jan 1: tankers vessels (<500
Slide 14: The competition has changed
The competition has changed E&A Propulsion Gas Systems LGE * ** 4-stroke Flow medium Systems speed Local pumps makers SHIP POWER Ship 2-stroke Environ- EGCS MARIC Design mental solutions Major IGS BWMS Shipyards 14 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power
Slide 15: Our expertise in the gas value chain
Our expertise in the gas value chain Power generation Distribution LNG terminal & transport & Regasification LPG/LEG/LNG (FSRU/JRU) Small-scale tanker LNG plants LNG liquefaction LNG & terminal receiving terminal LNG carrier LNG fuelled LNG fuelled vessels vessels LNG bunkering & barges Oil tanker P
Slide 16: Clear leadership in dual-fuel applications
Clear leadership in dual-fuel applications Power Plants Merchant Offshore Cruise Navy Others and Ferry DF Power Plant LNGC OSV’s LNG Cruise ferry Coastal Patrol TUG • 67 installations • 141 vessels • 31 vessels • 1 vessels • DF-propulsion • 2 vessel • 354 engines • 567 engines • 96 engines • 4 engin
Slide 17: R&D
R&D 2S DualFuel New 4S engine portfolio engines Wärtsilä 3C Medium voltage power drive New generation X engines LNGPac™ ISO System Integration at its best Evergas BWMS WST – 45U aquarius EGC Gas reformer 17 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power
Slide 18: Shipping outlook
Shipping outlook 18 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 19: Shipbuilding has moved to Asia
Shipbuilding has moved to Asia China has gained the top merchant builder position Contracting volumes - Share by region (GT) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1977 1996 1970 1971 1972 1973 1974 1975 1976 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1
Slide 20: Shipping and shipbuilding demand depends on global economy
Shipping and shipbuilding demand depends on global economy 12,0% Projected 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Seaborne trade growth GDP growth Political and economic issues continue to limit
Slide 21: Contracting activity development
Contracting activity development 6 000 100 • Contracting activity improved in 2013 90 • Finance and poor freight markets are 5 000 clouding recovery 80 • The contracting product mix has been 70 spread across the various vessel sectors 4 000 Number of vessels 60 • Regulations and fuel prices driving
Slide 22: Earnings and newbuilding prices
Earnings and newbuilding prices Earnings and newbuilding prices 250 60000 Newbuilding prices increased steadily during 2013 accross all sectors. 50000 200 Clarksea index USD/Day INewbuilding price Index 40000 150 30000 100 20000 50 10000 0 0 1999-07 2001-01 2002-07 2004-01 2005-07 2007-01 2008-07 20
Slide 23: Bunker fuels – Focus on fuel efficiency, regulatory issues
Bunker fuels – Focus on fuel efficiency, regulatory issues MGO forecasts do not seem to have any response to the upcoming SECA 1400 limits 1200 MGO bunker prices, Rotterdam 1000 MGO Forecast USD/Tonne 380cst bunker prices, Rotterdam 800 MDO bunker prices, Rotterdam 600 400 200 0 2001-01 2011-05 2013
Slide 24: Gas prices
Gas prices Natural gas price historical and forecast (IMF) 20 18 LNG to Japan Natural Gas, Russian Natural Gas border price in Germany, US$ per MMBTU 16 Natural Gas, Indonesian LNG in Japan, US$ per MMBTU Natural gas, USD/MMBTU 14 Natural Gas, Natural Gas spot price at the Henry Hub terminal in Loui
Slide 25: Offshore outlook
Offshore outlook 25 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 26: Strong growth in LNG supply and demand
Strong growth in LNG supply and demand • Natural gas is becoming an increasingly popular fuel • Growth supply in recent years driven by Middle East, for power generation offering a relatively safe demand driven by Asia (compared to nuclear); cheap (compared to oil); and • Significant project delays
Slide 27: Offshore contracting outlook
Offshore contracting outlook Offshore contracting historical and forecast • The offshore oil and gas industry is recognised as a key 1200 growth area for the future of oil production and fleet growth. Whilst some oil producing areas are in long term decline, this has only encouraged exploration in l
Slide 28: Contracting update
Contracting update 28 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status:
Slide 29: LNG Carriers
LNG Carriers LNG Carrier Contracting activity 90 80 70 Number of vessels 60 50 40 30 20 10 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 F F F F F F • Medium- and long-term new build potential are promising - long liquefacti
Slide 30: Contracting Activity Development – All vessels
Contracting Activity Development – All vessels 250 5 200 4 150 3 # of vessels Million CGT 100 2 50 1 0 0 05.10 07.13 01.09 03.09 05.09 07.09 09.09 11.09 01.10 03.10 07.10 09.10 11.10 01.11 03.11 05.11 07.11 09.11 11.11 01.12 03.12 05.12 07.12 09.12 11.12 01.13 03.13 05.13 09.13 11.13 01.14 Merchant
Slide 31: Thank you!
Thank you! www.wartsila.com 31 / 31 © Wärtsilä 3 March 2014 Wärtsilä Ship Power Doc.ID: Revision: Status: