Bloomberg News

Waertsilae Climbs on Alaskan Dual-Fuel Plant: Helsinki Mover

March 13, 2012

Waertsilae Oyj (WRT1V), the world’s largest maker of ship motors, advanced the most in more than three months after the company’s expansion in natural-gas gear yielded a power-plant order in Alaska.

Meeting Alaska (STOAK1)’s air-quality standards helped Waertsilae win the Matanuska Electric Association contract, the Helsinki- based company said in a statement. Waertsilae gained 5.3 percent, the most since Nov. 28.

“Environmental issues are something Waertsilae has heavily invested in and I believe this will come to play a bigger part in who gets future orders,” said Pekka Spolander, a Pohjola Bank (POH1S) Oyj analyst. “Perhaps this order also dispelled some doubts about the activity of the power plant side.”

Gas is “undoubtedly” gaining market share in power plants and becoming the first option “wherever possible,” Spolander said. This may benefit Waertsilae, as it has been successful with its technology in the field, he said. The Matanuska order is valued at $106 million and set to be delivered in 2013. The supplied power plant will be able to switch between natural gas and light fuel oil, the company said.

Shares of Waertsilae advanced 1.37 euros, or 5.3 percent, to 27.07 euros at the close, making it today’s top gainer in the OMX Helsinki 25 Index. (HEX25) The stock has increased 21 percent this year, valuing the company at 5.34 billion euros ($7 billion).

To contact the reporter on this story: Kasper Viita in Helsinki at kviita1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net


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