Creditors and shareholders
Wärtsilä had interest-bearing debt totalling EUR 1,096 million (823) at the end of December 2019. The increase in interest-bearing debt is largely related to the inclusion of lease liabilities amounting to EUR 188 million on the balance sheet, as a result of the new IFRS 16 standard. The total amount of short-term debt maturing within the next 12 months was EUR 99 million. Long-term loans amounted to EUR 997 million. Net interest-bearing debt increased to EUR 726 million (333), due to weak cash flow and the implementation of IFRS 16. Gearing was 0.30 (0.14) and the solvency ratio was 40.8% (44.4). Excluding the impact of lease liabilities, gearing amounted to 0.22.
In 2019, the Annual General Meeting approved the Board of Directors’ proposal to distribute a dividend of EUR 0.48 per share in two instalments making a total of EUR 284 million. The first instalment of EUR 0.24 per share was distributed on 18 March 2019. The second instalment of EUR 0.24 per share was distributed on 27 September 2019.
Our target is to pay a dividend of at least 50% of earnings over the cycle. At the end of 2019 earnings per share (EPS) was EUR 0.37 (0.65) and Wärtsilä’s market capitalisation was EUR 5,828 (8,222) million.