Alfa Laval’s marine environmental business boosts order intake

Feb 11 2019

Giant engineering group Alfa Laval’s total order intake increased by 13% to SEK11,561 mill in the fourth quarter of this year and by 19% to SEK45,005 mill for the full year.

Net sales increased by 6% to SEK11,209 mill and by 12% to SEK40,666 mill, for the respective periods under review.

The net result for the 4Q18 and the full year also rose to SEK1,470 mill and SEK5,896 mill, respectively. Adjusted EBITDA was SEK1,787 mill and SEK6,718 mill, respectively.

Tom Erixon, President and CEO, said; ”The business climate in the fourth quarter remained positive in most end markets, with order intake reaching SEK11.6 bill, up 13%, compared to the corresponding quarter in the previous year. Despite some volatility in oil prices, orders from the oil & gas sector climbed back to historically high levels in the quarter, supported by several large offshore orders.

“2018 was the year when demand for our marine environmental solutions accelerated, bringing the order intake for Alfa Laval PureSOx and Alfa Laval PureBallast to SEK5.6 bill. This, combined with the positive development in offshore oil and gas, brought the Marine Division’s annual order growth to 46%, despite yard contracting remaining flat, compared to 2017.

“The operating margin for the year ended at 16.5% and net income reached a record level, bringing the EPS to SEK10.77. The operating margin in the fourth quarter was flat compared to last year, despite continued good business conditions. Partly, the development is explained by negative foreign exchange effects. Partly, an uneven load compared to capacity, in certain areas of heat exchanger manufacturing, weighed on the Energy Division, as well as the group.

“In all, 2018 was a strong year and we advanced our strategic agenda on many fronts. The investments in product development resulted in a substantial increase in product launches. The operational improvements of the Greenhouse businesses continued throughout the year and in the fourth quarter we signed an agreement to sell the major part of the remaining business.

“The Footprint restructuring of global manufacturing continued as planned, with both capital expenditure and operational costs affecting 2018. Finally, at the end of the year, we invested in a start-up company, focusing on developing thermal energy storage solutions for the future,“ he said.

The outlook for the 1Q19 was that demand will be somewhat higher than in the fourth quarter, Alfa Laval said.

****Meanwhile, Alfa Laval has expanded its PureBallast 3 training programme with three new sites earmarked for crew training.

Alfa Laval will begin PureBallast 3 crew training courses in Houston, Manila and Mumbai during the first and second quarters of this year. The strategically located sites complement Alfa Laval’s facility in Stockholm, forming a network of training locations to serve the needs of customers worldwide.
“Training is integral to success in ballast water treatment,” said Anders Lindmark, Head of Alfa Laval PureBallast. ” Marine authorities have made clear that a lack of crew knowledge is not a valid reason for non-compliance. So besides providing crew training on board and online, Alfa Laval is making convenient courses available where our customers do business.”
Lindmark pointed out that training is more than a matter of system knowledge. “PureBallast 3 is designed for ease of use, which means crews can quickly learn its operation and maintenance,” he said. “However, ballast water treatment is still a relatively new application. For crew members to get it right, they need to understand not only how, but also why and when the ballast water treatment system should be used.
“Simply put, Alfa Laval crew training will help customers ensure safe, correct and efficient operation of their PureBallast 3 systems. By leading to optimal system use, it will safeguard their investment and their compliance,” he concluded.

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