Wallenius Wilhelmsen ASA: Q4 financial results 2023

Wallenius Wilhelmsen closes another solid quarter - 2023 is the strongest year on record (Oslo February 14, 2024) Wallenius Wilhelmsen reported strong performance for the fourth quarter of 2023 with EBITDA at USD 454m. For the full year, Wallenius Wilhelmsen delivered a record EBITDA of USD 1,807m and a net profit of USD 967m. The Board proposes a dividend of 50 percent of net profit for 2023 and a new semi-annual pay-as-you-go dividend policy for 2024 and beyond. "2023 was our best year ever. I am proud of what our people have delivered together with our customers. Not only are customers renewing contracts at market rates ; they are also adding biofuel as part of their standard fuel mix. During 2023, we have been running our fleet of 125 vessels at maximum capacity, and we see the congestion picture improving. Still, the total number of lost sailing days are flat due to the Red Sea situation," says Lasse Kristoffersen, President, and CEO at Wallenius Wilhelmsen. He expects 2024 to be somewhat stronger than 2023. Predictability and stability Customers are shifting priorities, increasingly looking for shipping and logistics solutions giving predictability and stability in larger parts of their supply chains. Q4 EBITDA was USD 454m, of which shipping delivered USD 392m, logistics USD 43m and government USD 32m. "Most of the customer contracts we signed in 2023, and have signed so far in 2024, encompass shipping and logistics services, and have typical durations of three years with extension options," says Kristoffersen, who also points out that this is a result of long-term relations and there are no signs of customers demanding less volume going forward. Decarbonization and biofuel "The demand for biofuel is increasing, and more than 10 percent of our fuel consumption in 2024 will be biofuel," says Kristoffersen who is also pleased with the big steps Wallenius Wilhelmsen is taking to reduce own emission through a combination of initiatives ranging from AI to physical modifications of vessels. He adds: "Despite increasing activity and high vessel utilization, we reduced our absolute emission year over year with around 10 percent." The Red Sea situation The situation in the Red Sea area has a significant impact on global trade. As the first RoRo company, Wallenius Wilhelmsen decided to re-route all vessels around the cape of Africa on December 18. The net effect on capacity is a loss of 4-6 percent sailing days. "We are having a dialog with customers about how to mitigate this as we speak. This is a fluid situation. We never compromise on safety or environment and will make sure to keep our people safe and meet our decarbonization targets," says Kristoffersen. The company maintains its guiding that 2024 is likely to be a somewhat better year than 2023. Q4 highlights Wallenius Wilhelmsen: o Delivers a strong Q4 EBITDA of USD 454m, of which Shipping contributes USD 392m, Logistics USD 43m, and Government USD 32m o Concludes several multi-year contracts with key customers at market rates o Delivers a record EBITDA of USD 1,807m and a Net Profit of USD 967m for FY 2023 o Proposes to pay a dividend of USD 1.14 per share, representing a FY 2023 payout of 50% and a total dividend amount of USD 482m o Proposes to introduce a semi-annual pay-as-you-go dividend policy, under which a potential dividend for H1 2024 will be paid with the second tranche of the 2023 dividend o Maintains expectation that 2024 is likely to be a somewhat better year than 2023, but see recent geopolitical events, specifically in the Red Sea, adding some more uncertainty For further information, please contact: Anders Redigh Karlsen, VP IR & Market Insight Tel: +47 994 20 293 Email: anders.karlsen@walwil.com For media: Anette Maltun Kofoed, SVP & Chief Communication and Marketing Officer Tel: +47 975 87 999 Email: anette.maltunkoefoed@walwil.com Or visit our website: https://www.walleniuswilhelmsen.com/who-we-are/investors About Wallenius Wilhelmsen The Wallenius Wilhelmsen group is a market leader in roll-on/roll-off (RoRo) shipping and vehicle logistics, managing the distribution of cars, trucks, rolling equipment and breakbulk to customers all over the world. The company operates around 125 vessels servicing 15 trade routes to six continents, a global inland distribution network, 66 processing centers and eight marine terminals. With a head office in Oslo, Norway, the Wallenius Wilhelmsen group has 9,500 employees working across 28 countries worldwide.

Source: NewsWeb