Wallenius Wilhelmsen ASA Q3 2018 results
Oslo, November 6, 2018 Wallenius Wilhelmsen reports EBITDA of USD 152 million in the third quarter. The results are negatively impacted by higher and rising bunker prices and low rates. The USD 120 million synergy target was confirmed in the quarter, and a performance improvement program targeting USD 100 million in bottom line improvements was initiated.
Total income was USD 1 031 in the third quarter, up 7% compared to the same quarter last year due to increased revenues for both the ocean and landbased segment. The increase in ocean revenues were driven by a combination of slightly higher ocean volumes and increased fuel cost compensation from customers.
EBITDA ended at USD 152 million in the quarter, a decline of 19% compared to the third quarter last year. The decline is largely driven by the ocean segment which was negatively impacted by higher and rising bunker prices, relatively weak HMG volumes, lower rates, and trade imbalances with more volumes out of Asia than Europe. The negative effects were only partly offset by underlying positive volume and cargo mix development and higher realization of synergies. EBITDA for the landbased segment was USD 23 million in the third quarter.
Results for the third quarter were in line with our expectations. We see volume development leveling out and the underlying performance is hampered by rising bunker prices and low rates. We have delivered on the USD 120 million synergy target and are now moving to the next phase of improvement initiatives. During the quarter we initiated a performance improvement program targeting USD 100 million in bottom line improvement to further increase operational efficiency, reduce costs and lift margins, says Craig Jasienski, President and CEO of Wallenius Wilhelmsen ASA.
The board maintains a balanced view on the prospects for the company. However, there is increased uncertainty around the auto outlook in light of weaker auto sales in certain markets towards the end of the third quarter and the potential risk of trade barriers. The positive development for high & heavy volumes is expected to continue. Market rates remain at a depressed level, but tonnage balance is expected to gradually improve. Wallenius Wilhelmsen has a solid platform for growth and is well positioned in a challenging market with more than USD 120 million in synergies realized. Furthermore, the new 2-year performance improvement program is expected to support profitability.
About Wallenius Wilhelmsen The Wallenius Wilhelmsen group (OEX: WALWIL) is a market leader in RoRo shipping and vehicle logistics, transporting cars, trucks, rolling equipment and breakbulk around the world. The company operates around 130 vessels servicing 15 trade routes to six continents, with a global inland distribution network, 77 processing centers, and 13 marine terminals. The Wallenius Wilhelmsen group consists of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC. The group is headquartered in Oslo, Norway with 7.500 employees in 29 countries worldwide. Read more at walleniuswilhelmsen.com
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