Wallenius Wilhelmsen ASA: Results for Q4 2019
Oslo, 11 February 2020 - Wallenius Wilhelmsen reports adjusted EBITDA of USD 194 million, up USD 26 million compared to last year but with underlying performance down due to reduced volumes. The Board of Directors proposes a dividend of up to USD 14 cents per share for 2019.
Total income for the group was USD 932 million in the fourth quarter, down 9% compared to the same period last year as a result of lower revenues in both the ocean and landbased business. The decrease in both ocean and landbased revenues was primarily a result of lower volumes. An important driver behind the reduced ocean volumes are commercial priorities where Wallenius Wilhelmsen has chosen not to renew contracts or carry cargo at unprofitable rate levels. However, volumes are also being impacted by slower markets in both auto and high & heavy segments.
Adjusted EBITDA in the fourth quarter of 2019 was USD 194 million, up by USD 26 million compared to last year. With USD 41 million positive impact related to the implementation of IFRS 16, underlying result are down compared to fourth quarter last year as a result of lower volumes and costs in connection with the IMO2020 transition of USD 8 million. More efficient operations, higher net freight per CBM and lower net bunker cost continue to have a positive impact on the Ocean EBITDA, and strong project cargo also impacted results favourably.
"We continue to manage what we can control, have attracted new business, retained what we wanted and chosen not to renew some business at unviable rate levels. In the face of softening volumes, we have ensured that we have the flexibility to adjust our fleet, to continue to serve our clients' needs and deliver a solid financial result" says Craig Jasienski, President & CEO of Wallenius Wilhelmsen.
Dividend proposed The Board has decided to propose an ordinary dividend of 7 cents per share to the Annual General Meeting in April 2020. The board also proposes that the Annual General Meeting gives the Board authority to approve a second dividend payment of up to USD 7 cents per share for a period limited in time up to the annual general meeting in 2021, but no longer than to 30 June 2021. In total, the proposed dividend for 2019 is equivalent to about USD 60 million.
Prospects The board maintains a balanced view on the prospects for Wallenius Wilhelmsen. However, uncertainty remains on the volume outlook in light of weaker sales for both auto and high & heavy. In addition, the outbreak of the novel coronavirus is likely to have some short-term effects on volumes. Rates remain at a low level, and there is still strong competition for tendered volumes. The gradual improvement in tonnage balance is expected to continue, but with more uncertain volume outlook any rate improvements may take longer to materialise.
Wallenius Wilhelmsen has a solid platform for growth, an efficient cost base and is well positioned to succeed in a challenging market. Furthermore, continuous focus on efficiency in operations and the flexibility to adjust the fleet will continue to support profitability going forward.
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 125 vessels servicing 15 trade routes to six continents, and a global inland distribution network, 120 processing centres, and 11 marine terminals. The Wallenius Wilhelmsen group consist of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC. The group is headquartered in Oslo, Norway with 9 500 employees in 29 countries worldwide. Read more at walleniuswilhelmsen.com
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