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.