Finland-based Wärtsilä has unveiled another round of restructuring that will see it divest its Gas Solutions unit and restructure its marine business, marking significant changes in the company’s operational structure
The Gas Solutions unit, which provides gas processing systems, will be moved to the portfolio business for divestment due to what Wärtsilä said was its limited alignment with the company’s broader marine product portfolio.
The division recorded sales of €293M (US$313M) in the 12-month period Q4 2022 to Q3 2023.
Wärtsilä’s restructuring efforts will also see the company’s Marine Systems business unit name dropped and business units reorganised. Wärtsilä Marine Systems will cease to exist as an independent organisational unit and will be rebranded as simply Wärtsilä Marine. It will be led by Roger Holm, currently president of Wärtsilä Marine Power. Tamara de Gruyter will continue as executive vice president and member of the Wärtsilä board of management, focusing on the divestments of the portfolio businesses. The company’s Exhaust Treatment and Shaft Line Solutions units will be transferred from Wärtsilä Marine Systems to Wärtsilä Marine Power by 1 January 2024.
The new changes follow 2022’s reshuffle, which saw the Wärtsilä Voyage shipping software division merged with Marine Power. Going forward, the company said it will have two reporting segments as of 1 January 2024: Marine and Energy. Business activity from the portfolio businesses will continue to be reported as other business activities. The change in the reporting structure will be reflected in Wärtsilä’s financial reporting as of Q1 2024.
Restated financial information regarding these changes will be published during Q1 2024.
The combined net sales of Exhaust Treatment and Shaft Line Solutions was €290M (US$310M) between Q4 2022 and Q3 2023.
Wärtsilä’s net sales totalled €5.8Bn in 2022. In Q3 2022, the Finnish firm recorded improved profitability in the Energy business thanks to an 18% rise in order intake to €5.2Bn, mostly for services. Net profit in Q3 increased to €82M from €3M a year ago, while revenue climbed to €1.4Bn.
Following the announcement of its sale, Wärtsilä Gas Solutions said it had won a contract to supply the cargo handling systems for five new very large LPG carrier (VLGC) vessels to be built at the Hyundai Heavy Industries (HHI) yard in South Korea. The order with Wärtsilä was booked in Q3, 2023.
The ships have been contracted by Norwegian ship owner Solvang in a joint venture with Gunvor Group Ltd in Geneva. The VLGCs are of Panamax size.
“Being a trusted partner to our customers is something we have worked hard to achieve. It comes through delivering efficient and reliable solutions, and by providing lifecycle support. We are, therefore, very pleased to secure this order and continue our good relationship with both HHI and Solvang,” Wärtsilä Gas Solutions sales manager Patrick Ha said.
The vessels will have a cargo-carrying capacity of 88,000 m3. The Wärtsilä equipment is scheduled for delivery to the yard commencing in early 2025, and the first ship is expected to begin operations towards the end of 2026.
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