Wartsila remains optimistic about the decarbonisation of marine traffic, despite a delay in establishing a global carbon price for shipping, as stated by its CEO. The Finnish engineering firm, a major player in ship engine manufacturing, has invested in emissions reduction technologies and anticipates increased demand due to the International Maritime Organisation’s climate plan. Although third-quarter order intake fell 0.7% year-on-year to €1.79 billion ($2.09 billion), CEO Hakan Agnevall noted that the delay has not adversely affected orders, as ship owners continue to seek fuel flexibility and efficiency.
However, Wartsila’s energy storage business has faced significant challenges due to U.S. tariffs and regulations. The unit accounted for 12% of sales last year but received no new orders in the third quarter after restrictions on Chinese-made battery cells were imposed. To address this, the company is exploring sourcing battery cells from the U.S. or other Asian countries.
Wartsila’s shares dropped 2%, disappointing investors who anticipated a more optimistic outlook for energy equipment orders. Despite the regulatory setbacks, Wartsila maintains its marine outlook, expecting demand to rise amid a fragmented regulatory landscape as countries implement their own frameworks.
