Midyear results 2017
Expanding business with oil and water separation applications
Sulzer closed the acquisition of Wärtsilä’s Vessel Internal Electrostatic Coalescer (VIEC) technology in the first quarter of 2017. The patented technology separates oil from water in a highly efficient manner. Over the last 15 years, it has been delivered to more than 40 clients. The acquisition allows Sulzer to further extend its Chemtech upstream product portfolio for advanced oil and water separation applications.
ExxonMobil has licensed its new patented cMIST™ technology to the Chemtech division. cMIST efficiently removes water vapor present during the production of natural gas. This inline technology reduces the size, weight, footprint, and cost of the gas dehydration system. cMIST complements Sulzer’s line of compact multiphase separation technologies and will benefit oil and gas operating companies around the world.
With the creation of the new Applicator Systems division as of January 1, 2017, Sulzer Mixpac Systems, Geka, and PC Cox are not reported within Chemtech anymore.
Order intake increased
Chemtech reported growing order intake compared with the same period of the previous year, both on a currency-adjusted basis (+7.8%) and organically (+7.6%). The increase is largely due to the robust performance of the Separation Technology business. Regionally, the Asia-Pacific region grew strongly, driven by some larger orders from China. The region Europe, the Middle East, and Africa was down from a high base in the first half year 2016 when a large order was booked. Order intake in the Americas grew.
Higher sales, operational EBITA, and operational ROSA
In the first half of 2017, currency-adjusted (+10.4%) and organic (+10.2%) sales increased. This is in line with the higher order intake last year. Higher sales in the tower field services business stemming from the execution of previously booked large projects also contributed to the increase. Operational EBITA increased remarkably, triggered by a higher sales volume and operational improvement measures. Accordingly, operational ROSA improved to 4.9%.
If not otherwise indicated, changes compared with the previous year are based on currency-adjusted figures.
EBIT: Operating income
opEBITA: Operating income before restructuring, amortization, impairments, and non-operational items
opROSA: Return on sales before restructuring, amortization, impairments, and non-operational items (opEBITA/sales)