Frequently asked questions

About Wärtsilä

1. What is Wärtsilä’s purpose and strategy?

Wärtsilä's purpose is "Enabling sustainable societies through innovation in technology and services". Read here about Wärtsilä's purpose and strategy.

2. What are Wärtsilä’s financial goals?

Wärtsilä’s target is to improve its financial performance and create added value for its stakeholders and the society. Wärtsilä’s financial goal is to offer investors a competitive return on their investment through profitable growth. Read more about Wärtsilä's financial targets.

3. What are Wärtsilä’s main geographical markets?

Wärtsilä’s customers are evenly spread around the world. For more information on Wärtsilä’s local presence, please visit our local sites.

4. What are Wärtsilä’s main customer segments?

In the Energy business, the customer groups can be divided into industries, utilities, and independent power producers. The Marine business segments consist of ship builders, ship owners, and ship operators.

5. When was Wärtsilä founded?

Wärtsilä was founded in 1834. For more information on Wärtsilä’s history, please visit our History pages.

6. How many people does Wärtsilä employ?

Wärtsilä currently employs approximately 17,800 people in 79 countries around the world. Find out more about working at Wärtsilä on our Careers section.

7. Where are Wärtsilä’s biggest production facilities?

In July 2022, Wärtsilä announced its plan to ramp down manufacturing in Trieste, Italy and to centralise its 4-stroke engine manufacturing in Europe in Vaasa, Finland. Wärtsilä's biggest production facility is in Vaasa, Finland.

8. Where can I find Wärtsilä's contact information?

Contact information can be found here.

9. How much of Wärtsilä’s net sales is allocated to R&D?

In 2023, research and development expenditure totalled EUR 258 million which represents 4.3% of net sales.

10. What are Wärtsilä’s most important raw materials?

Wärtsilä's most important raw materials are iron, steel, aluminium, metals, bronze, concrete, water, and different oils.

11. How is Wärtsilä affected by changes in raw material prices?

The direct effect of oil price changes on production in Wärtsilä is quite limited. The indirect effects of oil price volatility on customers are outweighed in importance by the long economic life of investments and the availability of alternative fuels.

The propulsion business hedges its exposure on different metal prices. These risks are small from the group’s perspective. Metal prices have an indirect effect on engine component costs. This exposure is not hedged, but annual agreements are in place to balance short-term fluctuations.

12. How do changes in currency exchange rates impact Wärtsilä?

Most of Wärtsilä’s business is conducted in euros, and the impact of changes in exchange rates is therefore limited. Foreign exchange exposures are monitored at the Business level and netted and hedged at group level. The hedges cover such time periods that both the prices and costs can be adjusted to new exchange rates. The group’s profits and competitiveness are indirectly affected by the home currencies of its main competitors: USD, GBP, JPY and KRW. Since Wärtsilä has subsidiaries outside the euro zone, the group’s shareholder’s equity is also sensitive to exchange rate fluctuations.

Wärtsilä shares

1. Where are the Wärtsilä shares listed?

Wärtsilä’s shares are listed on Helsinki Exchange, which is part of the NASDAQ OMX Group.

2. How many share series does Wärtsilä have?

Wärtsilä has one share series. The series A and B were combined and trading started on the 27th of March 2008.

3. How many outstanding shares does Wärtsilä have?

Information about the development of Wärtsilä’s share capital.

4. Who are Wärtsilä’s largest shareholders?

At the end of 2023, Wärtsilä’s biggest shareholders were Invaw Invest AB, Varma Mutual Pension Insurance Company, Ilmarinen Mutual Pension Insurance Company, Keskinäinen Työeläkevakuutusyhtiö Elo and The Social Insurance Institution of Finland. An updated list of Wärtsilä’s largest shareholders.

5. What is the current share price?

Please go to our share monitor to find the most current share price (15 minutes' delay) and to follow the development of the share.

6. Does Wärtsilä’s management hold any Wärtsilä shares?

Information on management holdings.

7. What is Wärtsilä’s dividend policy?

Wärtsilä's target is to pay a dividend of at least 50% of operational earnings over the cycle. Information on historical dividends.

8. When is the dividend paid out?

The payout date varies from year to year. Information on historical dividends.

Financial information

1. What is Wärtsilä’s financial year?

Wärtsilä’s financial year is the calendar year: January 1 - December 31.

2. When does Wärtsilä publish its financial results?

The publication date varies from year to year. Please refer to our IR calendar to find the exact date.

3. Where can I find additional financial information on Wärtsilä?

The financials section of our website is a good source of information as well as our annual reports.

Corporate Governance

1. Who are the members of the Board of Directors?

The Annual General Meeting held on 7 March 2024 decided that the Board of Directors shall have eight members. The following were elected to the Board: Karen Bomba, Morten H. Engelstoft, Karin Falk, Johan Forssell, Tom Johnstone, Mats Rahmström, Tiina Tuomela, and Mika Vehviläinen. Read more about the members.

2. What are Wärtsilä’s Corporate Governance principles?

Please read about our Corporate Governance.

3. Does Wärtsilä have any incentive schemes for management?

Find out more about management incentive schemes.

4. Who are Wärtsilä’s auditors?

The Annual General Meeting appointed the firm of public accountants PricewaterhouseCoopers Oy as Wärtsilä Corporation’s auditors.

5. Where can I find Wärtsilä’s Articles of Association?

Wärtsilä's articles of association can be found in the Governance section.

CSR & Sustainability

1. Why is sustainability important for Wärtsilä?

Sustainability is one of the cornerstones of all Wärtsilä’s business operations. Wärtsilä aims at profitable growth by providing advanced technologies and lifecycle solutions to its marine and energy market customers. Increasing environmental awareness and changing energy needs are affecting the way that our customers operate. With our integrated products and services, we are well positioned to respond to the need for energy efficient and flexible solutions. Wärtsilä’s commitment to sustainability and responsible business conduct is based on our mission, vision, and strategy, which along with our sustainable development objectives create the framework for developing the company's activities and products. Our strength is our technological leadership and, therefore, technology plays a central role in our sustainability work. Wärtsilä Energy and Wärtsilä Marine businesses focus on developing and providing sustainable solutions for the industries in which they operate. Wärtsilä's service activities have a key role in supporting our solutions and providing the latest technologies for existing installations through upgrades and modernisation packages.

2. How important is health and safety to Wärtsilä?

Occupational health and safety is one of our central values in Wärtsilä. Our occupational health and safety principles are defined in the Code of Conduct, the company's QEHS policy, and in the directive on environment, health, and safety (EHS). Wärtsilä's subsidiaries are required to have a management system in place that conforms to the QEHS policy and the EHS directive. The main aspects of the management system relate to compliance with legislation, identifying and minimising occupational health and safety risks, personnel training, implementing effective health and safety programmes and instructions, recording and investigating occurred incidents, and the continual improvement of occupational health and safety performance. The indicators used to measure occupational health and safety performance include the number of accidents, the time of absence due to sickness, and the frequency of accidents. Wärtsilä has set a corporate level target of achieving zero lost time injuries. In 2023, the corporate total recordable injury frequency rate (TRIF) was 2.62 (2.57).

3. Does Wärtsilä have a Code of Conduct?

Yes. Our values and Code of Conduct define who we are in dealing with our business partners, owners, financiers, and other stakeholders. Supported by our policies, the Code of Conduct sets common principles and rules with which each Wärtsilä employee must comply in order to ensure responsible business practices in all our operations. Key areas of Wärtsilä Code of Conduct include: compliance with laws, transparency and continuous stakeholder dialogue, respect for human and labour rights, respect for environment, fair employment practices, anti-corruption, anti-fraud, and data privacy. Please see the Code of Conduct here.

4. How does Wärtsilä ensure sustainability in its supply chain management?

Wärtsilä has clear expectations towards its suppliers in terms of compliance with relevant legislation, environmental, occupational health and safety, quality management, and social performance, and strives to ensure that these expectations are met. Wärtsilä's supplier requirements address both general features and issues relating to quality, product-specific requirements, environmental management, occupational health and safety, social responsibility, and legal compliance. These requirements are included in standard supply contracts. Wärtsilä assesses and manages its key suppliers through its Supplier Management System. Wärtsilä regularly conducts supplier evaluations. These are divided into three categories: pre-assessment, auditing, and performance review. As part of the supplier evaluation, Wärtsilä conducts a rating based upon Wärtsilä's supplier requirements. This rating is a result of assessment of various information sources, such as pre-qualification questionnaires, dialogue with suppliers, and/or conducted audits. Based on this rating, the suppliers can be approved, approved with limitations or remarks, or banned. Wärtsilä develops its supply management system on regular basis.

5. Is Wärtsilä included in sustainability indices?

Wärtsilä is included in the Dow Jones Sustainability Indices (both World and Europe), FTSE4Good Index, Ethibel Sustainability Index (ESI) Excellence Europe, ECPI Indices, MSCI ACWI ESG Leaders Index, S&P Europe 350 ESG index, STOXX Global ESG Leaders index, and OMX GES Sustainability Finland Index.

Wärtsilä is also included in the Ethibel PIONEER and EXCELLENCE Investment Registers, as well as RobecoSAM Sustainability Yearbook. In addition, we have been awarded “Prime” status by ISS ESG.

6. Does Wärtsilä publish a sustainability report?

Yes, annually, as a part of the corporate annual report.

 

Glossary

Business related terms

Baseload = Power plants running for more than 6,000 hours/year, i.e. generating power for continuous use.

Bow thruster = A transverse thruster mounted in the bow of a ship to make manoeuvring easier in harbours.

cgt (compensated gross tonnage) = The compensated tonnage of a ship, i.e. the ship’s volume adjusted (compensated) by a factor to render the amount of work at the yard equivalent for dif-ferent types and sizes of ship. 

CIPS = Coastal and Inland Propulsion System. A tailor-made propulsion system with small fixed pitch propellers (diameter below 3.5 m) suitable for inland navigation vessels, fishery vessels, coasters and luxury (mega) yachts.

CO2 = Carbon dioxide. A component in exhaust gases formed when fossil fuels are burned. The most significant greenhouse gas in the atmosphere; it prevents thermal radiation entering the atmosphere from being reflected back into space. 

Cogeneration = The simultaneous generation of electricity and heat. Also called Combined Heat and Power (CHP)

Combined cycle technology = The use of two different power generation processes, e.g. fuel engines and steam turbines, in the same power plant. The second process utilizes the heat recovered from the first. 

Combined Heat and Power (CHP)
= This method raises total efficiency to above 90% since the heat produced by power generation is recovered and used, for example, in industrial processes or to supply district heat.

Common rail = A method of fuel injection that eliminates the principle of one pump/cylinder. The common rail is constructed from a series of accumulators inter-connected by small-bore piping. The injection pressure is adjusted as desired and the injection timing (start and stop) controlled electronically. Wärtsilä has used common rail technology to develop the “smokeless engine”, which also reduces NOx and CO2 emissions. 

Controllable pitch propeller (CPP) = A propeller whose pitch can be controlled (changed) by rotating the blades with a hydraulic or electro-mechanical system in the propeller’s hub.

DCC (Diesel Combined Cycle) = Technology utilizing waste heats from diesel engine for additional el-generation via a steam turbine. 

Decentralized power plant = A small local power plant for small towns, communities or industrial processes i.e. close to consumption.

Deep Sea Seals (DSS) = The trademark for Wärtsilä Propulsion seals. 

DeNOx = Secondary emission reduction technology for emissions of nitrogen oxides. Commonly used technology is Selective Catalytic Reduction (SCR) system.

DWI (Direct Water Injection) = A method in which water is injected into the engine cylinders prior to fuel injection in order to reduce nitrogen oxide emissions. Direct water injection reduces the combustion temperature and therefore the formation of nitrogen oxides. 

DWT (dead weight tons)
= The difference between the displacement and the lightweight of a ship, i.e. the combined weight of its cargo, passengers, crew, stores, fuel and other liquids.

EEQ (Engineering equipment) = Engineering and delivery of equipments for power plant. 

Efficiency (power generation) = The ratio between the input fuel energy and the power produced. The total efficiency of a power plant means the amount of total fuel energy that can be converted into electricity and heat.

Electrical efficiency = In simple cycle, the ratio between the input fuel energy and the electrical energy produced. 

EPC
= Engineering procurement construction

Eutrophication = A process by which pollution from such sources as sewage effluent or leachate from fertilized fields causes a lake, pond or fen to become overrich in organic and mineral nutrients, so that algae grow rapidly and deplete the oxygen supply. 

Face seal
= A non-polluting seal (e.g. Coastguard) that eliminates oil loss from a ship’s outboard seal, even when this is fouled or badly damaged. The face seal is suitable either for retrofitting to existing vessels or for use on new tonnage, especially cruise vessels, tankers, bulk carriers, RoRo vessels and offshore applications.

FGD (Flue Gas Desulphurisation) = Secondary emission reduction technology for emissions of sulphur oxides. Examples include alkali scrubbing and semidry FGD using quicklime or calcium carbonate scrubbers. 

Fixed pitch propeller (FPP)
= A monoblock (cast in one piece) propeller optimized for only one operating condition.

Four-stroke engine = An engine in which the pistons complete their power stroke every second crankshaft revolution. 

FSN (Filter Smoke Number)
= A unit defining the amount of smoke. When measuring, exhaust gas is fed through a special filter element, the colour of which is then analyzed optically.

Fuel cell = Fuel cells are electrochemical devices that convert the energy of a fuel through a chemical reaction directly into electrical energy and heat. The basic physical structure or “building block” of a fuel cell consists of an electrolyte layer in contact with a porous anode and cathode on either side of it. 

Fuel cell stack
= A fuel cell stack is a multi-layer sandwich of fuel cells and interconnecting plates. The plates function as channels for distributing fuel gas and oxygen to the cells and also as an electrical conductor to couple the repeating cells in series. Piling a sufficient number of cells in series raises the stack voltage and power to the optimum level. See also Solid oxide fuel cell.

Gas compression = The raising of gas pressure and density for further processing. This makes it possible to use smaller storage tanks or pipes to transport a given quantity of gas. 

Gasification
= The production of fuel gas from biofuel for heat and/or power generation.

GT (gross tonnage) = The gross tonnage of a vessel, i.e. its total enclosed volume. 

HFO
= Heavy fuel oil.

High-powered special vessels = Passenger or naval vessels able to travel at high speeds. 

High-speed engine (diesel/gas)
= An engine running at speeds over 1,200 rpm (revolutions per minute).

Hot combustion = A method that raises the temperature of the engine exhaust gases by reducing the air intake and isolating the combustion chamber. This increases total efficiency and enhances the engine’s suitability for combined cycle technology. 

IMO =
The International Maritime Organization

Independent Power Producer (IPP) = A private corporation producing electricity for sale on a national grid. Also an IPP power plant. 

JMT (Japan Marine Technologies)
= Japanese trademark for lip seals.

Lean burn -gas engine = A gas-fired engine in which the gas-air mixture in the engine’s cylinders contains substantially more air (roughly double) than required for complete combustion of the gas. The over-abundance of air achieves high output and efficiency combined with low nitrogen oxide emissions. 

Licensee
= A company authorized to manufacture under licence and that pays royalty fees on the products sold.

Lip seal = (e.g. MKII) Multi barrier type of sealing system. Applicable to any size or type of vessel. Highly resistant to wear and fouling. 

Load management
= Meeting varying demand for power, e.g. producing more or less energy when required.

Low NOx technology = A method for reducing nitrogen oxide emissions that also raises engine efficiency. Emission levels are reduced by regulating the combustion temperature in the cylinders and the duration of fuel injection. 

Low-speed engine
= An engine running at speeds below 300 rpm.

Medium-speed engine (diesel/gas) = An engine running at speeds of 300–1,200 rpm.

Multi-fuel engine = A Wärtsilä engine running on both gaseous and liquid fuels. (Engines denoted DF (dual fuel) and GD (gas diesel) are multifuel engines).

Multi-purpose container carrier = A freighter carrying primarily containers but also able to transport other unitized cargo. 

NOx = Nitrogen oxides (NO and NO2). Products formed during the combustion of nitrogen in both the fuel and combustion air. Nitrogen oxides contribute to local eutrophication and acidifi cation.

NT (net tonnage) = The net tonnage of a vessel, i.e. the volume of its payload spaces. 

O&M
= Operations and Maintenance.

OEM = Original Equipment Manufacturer. 

Offshore = Industrial activity at sea, e.g. drilling and pumping at an oil or gas well.

Operations agreement = Operations & Maintenance (O&M) = Full performance and operational responsibility for the plant, its engines and auxiliary systems. 

OpExS (Operative Excellence System) = This system, which covers all Wärtsilä’s operations, aims to generate added value for Wärtsilä’s various stakeholders. The system addresses issues including quality, the environment, occupational health and safety, continuous improvement process and selfassessment.

Orimulsion® = An emulsion of Orinoco bitumen and water produced in Venezuela. 

Panamax vessel
= A vessel whose main dimensions (beam/length/draught) are limited to enable the vessel to negotiate the Panama Canal.

Post-panamax vessel = A vessel too large for the Panama Canal. Generally refers to cruise ships and large container ships. 

Propulsion package = The propulsion train used to drive a ship (propeller, reduction gear, engine, etc.).

Pyrolysis = The production of a fuel gas which can be processed as oil and which is combustible in boilers or diesel engines. This is still at the R&D stage although pilot plant projects exist. 

Reduction gear = The core function of a reduction gearbox is to reduce the main engine speed to the optimum propeller speed.

RoPax vessel = Combined RoRo and passenger ship, a ship equipped with large Roro decks and limited passenger facilities. 

RoRo vessel = Roll-On/Roll-Off, a ship designed for carrying vehicles and wheelbased cargo, which are driven onboard and ashore.

Selective Catalytic Reduction (SCR) = A method to reduce NOx emissions using a catalytic converter fitted after the engine. The catalytic converter requires the addition of an ammonia or a urea solution to the exhaust gases. 

Semi-submersible vessel = A vessel designed to be partially submerged to perform a specific task (e.g. semisubmersible oil or gas drilling rigs).

Service agreement = A service agreement covers all aspects of maintenance and service for optimizing a power plant’s lifecycle. This can include everything from parts supply and daily assistance, inspection and maintenance to implementation of agreed performance targets and even complete operation & maintenance packages for the installation. 

Shaft efficiency
= The ratio between the mechanical power measured on the engine shaft and the chemical power of the input fuel.

Shaft output = The power output developed by the engine’s crankshaft. 

Simple cycle = Power generation using only a thermal power plant.

SO2 = Sulphur dioxide. Formed by the combustion of sulphur when burning sulphur-containing fuels. Sulphur dioxide contributes to acidification. 

SOFC (Solid oxide fuel cell) = The fuel for a SOFC can be hydrogen, natural gas or diesel. Fuel cells offer very low emissions, high electrical efficiency and outstanding reliability. They are very suitable for the production of power in decentralized stationary (CHP) and marine applications. See also fuel cell.

Steerable thruster = A 360 degrees rotatable propulsor with FPP or CPP, which applies thrust in any direction and thus achieves superior manoevrability. Steerable thrusters can be used for both offshore (dynamic positioning) and seagoing (free-running) applications. 

TEU (Twenty-foot equivalent unit) = 1 TEU is equivalent to the capacity of one 20-ft long container; hence a 12,500 TEU containership can in principle carry 12,500 20-ft long containers. The TEU takes no account of a container’s weight.

Traditional fuel injection = Mechanically controlled fuel injection. Each engine cylinder has its own fuel injection pump and all the pumped fuel is fed directly into the cylinder. 

Turbocharging
= The pressure of the air fed into the cylinder is raised using the energy in the engine’s exhaust gas. This increases the amount of air in the cylinder, allowing injection of a higher quantity of fuel for greater output.

Turnkey power plant = A power plant delivered to the customer ready for operation. 

Two-stroke engine = An engine in which the pistons complete their power stroke every crankshaft revolution.

ULCC tanker = Ultra Large Crude Carrier, an ocean-going supertanker designed to carry extremely large amounts of crude oil (>300,000 dwt). 

VLCC tanker = Very Large Crude Carrier, an ocean-going supertanker designed to carry large amounts of crude oil (>200,000 dwt).

Waterjet = A propulsor that uses a pump to accelerate waterflow. The momentum generated by the acceleration of the flow results in a force that propels a ship.

Financial terms

Annual General Meeting
The annual get-together of shareholders in a joint stock company. It is also attended by the company's executive and supervisory boards. The AGM gives the shareholders an opportunity to exercise their rights: They select members for the supervisory board, vote on the distribution of profits, on the stewardship of the executive and supervisory boards, and amendments to the company statutes (capital increases, the issue of convertible bonds etc.) At companies with bearer shares, shareholders are notified and invited to the AGM by their depositary bank.

Cash flow
A measure of a company's financial and earnings potential. It is calculated as the difference between the inflow and outflow of cash and cash equivalents during the financial year.

Corporate Governance
The term "corporate governance" denotes the responsible management and supervision of a company. Corporate governance standards were established to make the management structures of internationally active companies more transparent for investors. All listed Finnish companies which submit to the recommendations of the Finnish Corporate Governance Code are legally obliged to issue a compliance statement each year. 

Dividend
The share of a company's profit paid to a shareholder. The amount is decided by the Annual General Meeting on the basis of proposals put forward by the company's executive and supervisory boards.

Dividend yield
Indicator for assessing the profitability of an investment in equities. It is determined by dividing the dividend by the adjusted share price at the end of the reporting year and then multiplying it by 100. 

EBIT

A financial indicator denoting earnings before interest and taxes.

Equity ratio
A financial measure showing the share of equity or own capital and reserves as a proportion of total assets. 

Flagging notification

Listed companies have an obligation to publicly disclose a shareholder's notification of changes in its holdings. Changes in holdings are disclosed when the holding reaches, exceeds or falls below 5, 10, 15, 20, 25, 30, 50 or 90 percent or two thirds of the voting rights or the numbers of shares of the company.

Gearing
A financial indicator expressing the ratio of net debt to shareholders' equity. 

IFRS/IAS
International Financial Reporting Standards / International Accounting Standards. They facilitate comparability of the financial statements of companies operating in different European countries. They are also designed to provide more comprehensive information for investors as anonymous participants in the organised capital markets. The IFRS standards were developed by the International Accounting Standards Committee (IASC) in London, which in 2001 was renamed IASB (International Accounting Standards Board) following a restructuring. The standards that had been adopted until then were gradually modified or replaced by new standards by the IASB. The new standards are called IFRS, while the earlier standards that continue to apply keep the name IAS. As of 2005 capital market-oriented companies must prepare their consolidated financial statements in accordance with IFRS. Wärtsilä adopted IFRS reporting standards on 1 January 2008.

Insider register
A company is obliged to maintain both a public and a company-specific insider register. A public insider register includes personal information of insiders, i.e. persons subject to the disclosure obligation, and information on their holdings and trading in securities issued by their own company. Wärtsilä's permanent insiders comprise the statutory insiders, i.e. the Board of Directors, the President and CEO, the Executive Vice President and the Principal Auditor, as well as the members of the Board of Management. 

Non-recurring items

Non-recurring items are related to restructuring measures and one-time charges for events or activities, which are not part of the normal business operations.

Operating result
A profit term denoting the profit from operating activities less book profits (and losses), write-back (or allocation of provisions), currency losses on valuation at the balance sheet date of long-term financial liabilities, and other periodic expenses and income. 

Outstanding shares

A company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Retained earnings
Allocation of retained profits to shareholders' equity for the purpose of strengthening a company's financial base. 

Return on equity (ROE)

A financial term indicating the ratio of net profit to shareholders' equity.

Return on investment (ROI)
A financial term indicating the ratio of return of an investment to the cost of an investment. 

Working capital

A financial calculation that is equal to a company's current assets minus its current liabilities.
 
Calculation of financial ratios