Wärtsilä and Carnival Corporation announce strategic performance-based partnership
(Thomson Reuters ONE) -
Wärtsilä Corporation, Press Release, 25 January 2017 at 10 am EET
Wärtsilä and Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world's
largest cruise company, announced today that they have signed a comprehensive,
12-year agreement that strengthens their existing partnership and joint
continuous improvement efforts to maintain the highest possible levels for
cruise ship safety and reliability. The performance-based agreement provides for
shared financial incentives and exposure based on outcomes for both companies.
The value of the long-term agreement is approximately EUR 900 million. The
expected revenues for 24 months, approximately EUR 150 million, will be included
in Wärtsilä's order book for the first quarter of 2017. As the contract becomes
effective as of April 1, the expected revenues for 2017 are EUR 56 million.
According to the agreement, all engine maintenance and monitoring work for 79 of
Carnival Corporation's vessels will be handled by Wärtsilä, and ongoing planning
will be a collaboration between both companies.
The agreement includes Wärtsilä's Dynamic Maintenance Planning (DMP) and
Condition Based Maintenance (CBM). These services are based on capturing
digitalised data streams from every engine, after which this data is analysed by
specialists. This allows real-time optimisation of the equipment whilst
predicting operational and maintenance demands. With the DMP and CBM in place,
vessel and fleet operations are optimized and engine overhaul intervals
potentially extended. With approximately 400 Wärtsilä engines covered under the
agreement, even the smallest improvements in vessel fuel consumption add up to
significant annual savings in fleet operational costs.
"Our agreement with Wärtsilä extends our cooperation to a strategic
partnership," said Bill Burke, Chief Maritime Officer for Carnival Corporation.
"With Wärtsilä maintaining vessels under our agreement and ensuring a high level
of safety and reliability, we can concentrate on our core priority - providing
great cruise vacations for our more than 11 million annual guests. In addition
to reducing our costs, the long-term agreement increases safety and operational
efficiency - two critical advantages in the fast-growing cruise market."
Mutual incentives and shared risks
The long-term performance-based agreement model provides predictability of costs
and incentives for both companies as remuneration is based on how the equipment
performs, with the companies sharing exposure based on outcomes. For Wärtsilä,
the strategic partnership encourages increased focus on research and
development, manufacturing and other functions to make its products even better
and more efficient.
"We are very excited to develop our long-term partnership into a more strategic
direction. Both Wärtsilä and Carnival Corporation are committed to investing
significantly in this partnership as well as to develop our cooperation in the
long run. We are confident that working closely together, we can improve
performance in both organisations," says Pierpaolo Barbone, President, Services
& Executive Vice President, Wärtsilä Corporation.
Further improvements in energy efficiency will be a significant focus area for
Wärtsilä within this agreement and a key driver for the cooperation between the
two companies. Engine efficiency and fuel consumption will be measured on a
regular basis, with improvements to fuel efficiency based on continuous
monitoring and data analysis. Potential savings in fuel costs are counted in
tens of millions of dollars per year.
Link to image of Carnival Dream
Caption: Wärtsilä and Carnival Corporation strengthen their existing partnership
and joint continuous improvement efforts to maintain cruise ship safety and
reliability.
For further information, please contact:
Fraser Scott
Head of 4 Stroke Sales, AMER
Wärtsilä Services
fraser.scott(at)wartsila.com
Tel: +44 07595 068474
Atte Palomäki
Executive Vice President, Communications & Branding
Wärtsilä Corporation
Tel. +358 10 709 5599
atte.palomaki(at)wartsila.com
For investor information, please contact:
Natalia Valtasaari
Director, Investor and Media Relations
Wärtsilä Corporation
Tel: +358 10 709 5637
natalia.valtasaari(at)wartsila.com
Wärtsilä Services in brief
Wärtsilä Services creates lifecycle services for its customers, enhancing their
business - whenever, wherever. We provide industry's broadest range of services
for both shipping and power generation. Our solutions range from spare parts and
basic support to ensuring maximised lifetime, increased efficiency and
guaranteed performance of customer's equipment or installation - in a safe,
reliable, and environmentally sustainable way. http://www.wartsila.com/services
Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle
solutions for the marine and energy markets. By emphasising sustainable
innovation and total efficiency, Wärtsilä maximises the environmental and
economic performance of the vessels and power plants of its customers.
In 2015, Wärtsilä's net sales totaled EUR 5 billion with approximately 18,800
employees. The company has operations in over 200 locations in more than 70
countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wärtsilä Oyj Abp via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.01.2017 - 09:01 Uhr
Sprache: Deutsch
News-ID 519747
Anzahl Zeichen: 6390
contact information:
Town:
Helsinki
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"Wärtsilä and Carnival Corporation announce strategic performance-based partnership"
steht unter der journalistisch-redaktionellen Verantwortung von
Wärtsilä Oyj Abp (Nachricht senden)
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