Finnish power-plant manufacturer Wärtsilä (HEL:WRT1V) experienced a significant uptick in its share prices after exceeding third-quarter earnings forecasts and initiating a strategic review of its energy-storage business. The company's shares led the Stoxx Europe 600 index on Tuesday, trading 15% higher at €11.20 at 06:00 ET (10:00 GMT).
The surge in share price was driven by robust growth in Wärtsilä's marine power unit that produces ship engines, which helped the company surpass its third-quarter orders forecast. The orders amounted to €1.79 billion ($1.9 billion), exceeding the Vara Research consensus by 9.6%. This growth was primarily fueled by a rebounding demand from cruise operators, which balanced lower orders from container vessels. Similar demand levels are projected for the next year across the marine unit.
Despite experiencing a dip in thermal power plant and energy-storage equipment orders, Wärtsilä's energy division saw a significant margin increase, with improved demand anticipated over the next year. The energy-storage business, which generated nearly €1 billion in sales, managed to break even over a 12-month period.
Wärtsilä CEO Hakan Agnevall commented on the company's performance, noting their remarkable market growth and solid progress in the energy storage sector. Citi analysts suggested these developments might encourage some investors despite skepticism around storage break-up cases.
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