WÄRTSILÄ is enjoying a period of “sustained positive momentum”, chief executive Håkan Agnevall said in the company’s latest earnings report.

A greater need for ship capacity due to Red Sea rerouting (among other geopolitical challenges), combined with healthy earnings for owners, has led to a big increase in new ship orders placed during the first three quarters, Wärtsilä said, increasing from 1,356 in 2023 to 1,953 in 2024.

Nearly half of that capacity ordered will be capable of running on alternative fuel, with methanol and liquefied natural gas the two preferred options at present.

Wärtsilä’s order intake remained flat in 3Q24 compared to the same period in 2023, but Agnevall highlighted the extraordinarily strong performance of 3Q23, which saw several orders placed in the ferry segment, in particular.

Its net sales grew 18% in 3Q24 on the corresponding period of last year and its comparable operating result grew 41% on 3Q24 and 51% for the first nine months of the year.

Cruise in particular was performing well, Agnevall said, which, together with efforts to decarbonise the global fleet, was driving growth in its marine sector.

Wartsila announced a five-year Lifecycle Agreement with Royal Caribbean, covering 37 ships, for both scheduled and unscheduled maintenance.

The agreement is designed to optimise the performance, availability and reliability of its vessels, with both parties sharing any gains made through improved efficiency or reliability.

Sentiment in the LNG sector was softer, thanks to milder weather and high gas storage in Europe, but newbuilding activity and service demand remained strong, thanks to new projects linked to Qatar and higher vessel utilisation respectively.

The Finnish company said it expects the demand environment in its marine division to be better over the next 12 months.